Industrial Power System Market Trends
Growth Drivers
- Growing Demand for Energy-Efficient Devices in the Industrial Sector- The development of energy-efficient equipment is projected to drive market expansion in the future decades. For instance, Israel's Minister of Energy and Infrastructure, Israel Katz, posed an appeal to the Knesset's Economy Committee to implement the European standard as the sole rule for the arrival of electric equipment into Israel in May 2023.
- Rising Expenditure in Energy Efficient Projects and Initiatives- New requirements are expected to result in USD 80 billion in energy efficiency expenditures every year through 2020, saving between $40 billion and $190 billion in fuel expenses.
- Expanding Growth in the Gas and Oil Industry- The overall revenue of the United States' oil and gas sector in 2021 was approximately 211.9 billion US dollars, a rise from the year before when the industry was hit by the coronavirus epidemic.
- Rising Revenue in Petrochemical Sector- According to Statista, petrochemicals accounted for approximately 16 percent of OECD oil demand in 2020. The market revenues for petrochemicals surpassed 556 billion US dollars in 2021. It is anticipated to increase greatly by 2030, with China, India, and Iran having declared or set up the most substantial petrochemical potential expansions.
Challenges
- Difficulty in Selling Power Supply Products in Lower Economic Regions
- Harmful Gases Release When Heated
- The Accessibility of Inexpensive Items- The market for industrial power system is extremely competitive with numerous local and foreign companies. Product quality is a key factor in differentiating one's company from the competition. Most countries' domestic manufacturers compete fiercely with worldwide providers in their individual markets by producing low-cost, low-quality power supply equipment that produces hazardous emissions when heated or subjected to fire.
Industrial Power System Market: Key Insights
In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 1% due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.6% |
|
Base Year Market Size (2024) |
USD 12.03 billion |
|
Forecast Year Market Size (2037) |
USD 31.18 billion |
|
Regional Scope |
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