Industrial Energy Efficiency Market is Estimated To Witness High Growth Owing To Focus On Reducing Energy Consumption

Industrial Energy Efficiency Market is Estimated To Witness High Growth Owing To Focus On Reducing Energy Consumption

Market Overview:
Industrial energy efficiency market comprises products and services that help to reduce industrial energy consumption while maintaining the same or improved level of output. These include products such as LED lighting, conveyor belt systems, industrial boilers and heat exchangers. Increasing focus on reducing energy costs and carbon emissions from industrial facilities is driving demand for industrial energy efficiency solutions.

Market key trends:
One of the key trend spurring growth of the  Industrial Energy Efficiency Market Share is the rapid emergence of new technologies for renewable energy integration. Renewable energy technologies such as solar PV and wind are being increasingly deployed at industrial facilities to generate on-site power. Advancements in energy storage solutions are also enabling greater utilization of renewable energy by industries. This is expected to significantly reduce dependence on grid power as well as fossil fuels, driving demand for technologically advanced industrial energy efficiency solutions in the coming years.

Porter’s Analysis

Threat of new entrants: Low capital requirements and existing technologies act as a barrier for new players. Moreover, presence of established brands makes it difficult for new entrants to gain market share.

Bargaining power of buyers: Large buyers can negotiate for better prices and customized solutions due to their high purchase volumes. However, availability of several solution providers counterbalances their bargaining power.

Bargaining power of suppliers: Majority of components and equipment required can be easily sourced from different suppliers. This limits the bargaining power of suppliers.

Threat of new substitutes: Emerging technologies like IoT provide an opportunity for alternate solutions. However, established application areas and customer acceptance favors existing products.

Competitive rivalry: The market consists of global giants with overlapping product portfolios. Players differentiate based on product innovation, service quality and geographic penetration to gain competitive edge.

SWOT Analysis

Strengths: Growing investments and policy push for resource efficiency. Vast application areas across industries and availability of advanced technologies.

Weaknesses: High initial costs deter certain customer segments. Complex implementation and dependency on external expertise.

Opportunities: Rising energy consumption, carbon emission regulations and automation & digitization trends. Growth prospects in emerging markets.

Threats: Economic slowdowns impacting capital expenditure budgets. Protectionist trade policies affecting global collaborations and supply chain.

Key Takeaways

The global industrial energy efficiency market size is expected to witness high growth, exhibiting CAGR of 8.6% over the forecast period, due to increasing focus on carbon emission cuts and sustainable development goals. Power generation, cement, chemicals and food & beverage industries cumulatively account for over 45% share of global energy consumption, thereby, driving large-scale deployment of energy management solutions.

Regional analysis - North America currently holds the largest share in the market supported by stringent environmental regulations and rapid industrialization. Asia Pacific is poised to emerge as the fastest growing regional market by 2030 on account of rising manufacturing activities, urbanization and government programs promoting energy conservation in major countries like China and India.

Key players - Key players operating in the industrial energy efficiency market are Siemens, General Electric, ABB, Johnson Controls, Schneider Electric, Honeywell, Eaton Corporation, Rockwell Automation, Emerson Electric, Mitsubishi Electric, Yokogawa Electric. They provide integrated solutions ranging from plant automation & control systems to renewable energy integration, facility management and engineering services.

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