Industrial Power Generation Market to Grow with a CAGR of 19.19% through 2028
Increasing demand for electricity from the industrial
sector and growing need for reliable and uninterrupted power supply in
industrial settings are likely to drive the market in the forecast period.
According to TechSci Research report, “Industrial
Power Generation Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2028”, the Global Industrial Power Generation
Market stood at USD 902.08 billion in 2022 and is anticipated to grow with a
CAGR of 19.19% in the forecast period. One of the primary drivers propelling
the global industrial power generation market is the relentless growth in
energy demand and the ongoing electrification of various sectors. As the global
population continues to expand, urbanize, and adopt increasingly
energy-intensive technologies and practices, the need for a consistent and
reliable power supply becomes more critical than ever before. Urbanization, particularly in emerging
economies, has led to the construction of vast cities and megastructures that rely
heavily on electricity to function efficiently. From skyscrapers to advanced
transportation systems, these urban centers require a stable and robust power
supply to meet the demands of their residents and businesses. Moreover, the
digitalization of industries, homes, and communication networks has intensified
the requirement for power-hungry data centers, smart devices, and 24/7
connectivity—all of which are reliant on a steady and secure electricity
infrastructure. The electrification of transportation is another significant
driver of power generation growth. Governments worldwide are encouraging the
adoption of electric vehicles (EVs) to reduce carbon emissions and combat
climate change. As a result, the development of EV charging infrastructure and
the mass production of electric cars have led to a substantial surge in
electricity demand.
In response to
these escalating energy needs, power generation companies are diversifying
their energy sources, investing in renewables like solar and wind, as well as
traditional sources such as natural gas and nuclear power. This diversification
ensures a resilient and secure power supply, addressing the ever-increasing
appetite for electricity in an electrified world. The global
industrial power generation market is being profoundly influenced by the
ongoing transition towards renewable energy sources. Environmental concerns,
combined with the need to reduce carbon emissions and mitigate climate change,
are steering the industry away from fossil fuels and toward cleaner,
sustainable alternatives. Renewable energy sources, including solar, wind,
hydroelectric, and geothermal power, are gaining prominence in the power
generation sector. Government incentives, regulatory mandates, and
international agreements like the Paris Agreement have played a pivotal role in
promoting the adoption of renewable energy. These sources offer not only
environmentally friendly solutions but also increasingly competitive economics,
thanks to declining costs. Solar power, for instance, has experienced
remarkable growth due to falling solar panel prices and advancements in energy
storage technology. Wind energy has seen significant enhancements in turbine
efficiency and the development of offshore wind farms. Hydropower remains a
reliable source of clean energy, particularly in regions with abundant water
resources, while geothermal power harnesses the Earth's natural heat to
generate electricity. The industrial sector's shift towards renewables is
driven by factors like sustainability commitments, public pressure for cleaner
energy, and a growing awareness of the environmental impact of fossil fuels.
Companies are now investing heavily in research and development to improve the
efficiency and reliability of renewable energy technologies. Additionally, grid
integration and energy storage solutions are being developed to ensure a
continuous power supply, even when renewable sources are intermittent.
In summary, the
transition towards renewable energy sources is a significant driver of the
global industrial power generation market. It not only addresses environmental
concerns but also contributes to long-term energy security and sustainability,
reshaping the industry's landscape and influencing the future of global energy
production.
Browse over XX market data Figures spread
through XX Pages and an in-depth TOC on "Global Industrial Power Generation Market.”
The Global Industrial Power Generation Market is
segmented into type, source, end user and region. Based on type, The Combined
Cycle Power Plants segment held the largest market share in 2022. One of the
primary reasons for the dominance of CCPPs is their exceptional efficiency.
CCPPs combine two power generation cycles, typically a gas turbine cycle and a
steam turbine cycle, to maximize energy extraction from the same fuel source.
The gas turbine generates electricity directly, while the waste heat is used to
produce steam, which drives a steam turbine. This dual-cycle approach
significantly boosts overall efficiency compared to standalone gas or steam
turbines. High efficiency translates to lower fuel consumption and reduced
operating costs, making CCPPs an economically attractive option for industrial
power generation. CCPPs offer operational flexibility that allows them to
respond quickly to changes in electricity demand. Gas turbines, a key component
of CCPPs, can be rapidly started and stopped, making them ideal for meeting
peak demand or compensating for fluctuations in renewable energy output. This
flexibility is vital for grid stability and reliability. CCPPs are known for
their relatively lower emissions compared to traditional coal-fired power
plants. The high efficiency of CCPPs results in reduced fuel consumption and,
consequently, lower greenhouse gas emissions per unit of electricity generated.
This aligns with global efforts to reduce carbon emissions and combat climate
change. CCPPs can use a variety of fuel sources, including natural gas, diesel,
or even biofuels. Natural gas, in particular, is abundant and considered a
cleaner-burning fossil fuel. The ability to switch between different fuel
sources provides resilience against fuel supply disruptions and allows CCPP
operators to choose fuels based on cost and environmental considerations. CCPPs
can provide grid support and stability. Their ability to respond quickly to
fluctuations in electricity demand or supply from intermittent renewable
sources makes them valuable assets in modern power grids. They can serve as
peaking units or provide essential grid services like frequency regulation.
Continuous advancements in gas turbine technology and combined cycle
configurations have improved the efficiency and performance of CCPPs. These
advancements have contributed to their dominance in the industrial power generation
market.
Based on end user, The Manufacturing segment held the
largest market share in 2022. Manufacturing processes are often
energy-intensive, requiring a significant amount of electricity to operate
machinery, motors, and equipment. Industries such as automotive, steel,
chemicals, and textiles rely heavily on electricity for production and assembly
lines. This substantial energy demand makes manufacturing one of the dominant
sectors in the industrial power generation market. Manufacturing facilities
typically run 24/7 or follow strict production schedules. Interruptions in
power supply can result in costly downtime and production losses. To maintain
continuous operations, manufacturers often invest in reliable power generation
solutions, including backup generators and on-site power plants. Manufacturing
processes often have specific power quality requirements. For instance, some
processes require a stable voltage and frequency to ensure product quality and
consistency. Industrial power generation allows manufacturers to customize
their power supply to meet these unique needs. Manufacturing facilities are
spread across various geographic locations, including urban and remote areas.
In some cases, these facilities are located in regions with unreliable grid
power. As a result, manufacturers may rely on on-site power generation to
ensure a stable and independent energy source. Many manufacturers have adopted
energy efficiency initiatives to reduce operational costs and minimize
environmental impact. Industrial power generation technologies, such as
combined heat and power (CHP) systems, allow manufacturers to simultaneously
generate electricity and capture waste heat for useful purposes, improving
overall energy efficiency. Manufacturers are under increasing pressure to
reduce greenhouse gas emissions and comply with environmental regulations.
Major companies operating in the Global Industrial
Power Generation Market are:
- General
Electric Company
- Siemens
Energy AG
- Mitsubishi
Hitachi Power Systems, Ltd.
- Caterpillar
Inc.
- Cummins
Inc.
- Wärtsilä
Oyj
- Emerson
Electric Co.
- Eaton
Corporation plc
- ABB Ltd.
- Schneider
Electric SE
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“The Global Industrial Power Generation market is
expected to rise in the upcoming years and register a significant CAGR during
the forecast period. The primary driver of the global industrial power generation
market is the escalating demand for electricity and the expanding trend of
electrification across industries. As global populations grow, urbanization
progresses, and industries embrace technology-driven processes, the need for a
reliable and ample power supply intensifies. Urban centers, digital
infrastructure, and the widespread adoption of electric vehicles are all
reliant on stable electricity sources. In response to this heightened demand,
power generation companies are diversifying their energy sources, investing in
renewables, and upgrading infrastructure to ensure an uninterrupted and
sustainable power supply for industries and consumers worldwide. Therefore, the market of Industrial Power
Generation is expected to boost in the upcoming years.,” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based management consulting
firm.
“Industrial Power Generation Market - Global
Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Gas Turbines, Steam
Turbines, Diesel Generators, Combined Cycle Power Plants, Renewable Energy
Technologies), By Source (Fossil Fuels, Renewable Energy Sources), By End User
(Manufacturing, Mining, Oil And Gas, Food And Beverage, Chemicals, Pharmaceuticals,
Data Centers, Other), By Region, By Competition”, has evaluated
the future growth potential of Global Industrial Power Generation Market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision-makers make sound investment decisions., The report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Global Industrial Power Generation Market.
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