Global Captive Power Generation Market Size, Share & Industry Trends Analysis Report By End User, By Fuel Type (Coal, Gas, Diesel, and Others), By Technology Type, By Ownership (Multiple and Single), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Captive Power Generation Market
Market Report Description
The Global Captive Power Generation Market size is expected to reach $691.4 billion by 2028, rising at a market growth of 5.2% CAGR during the forecast period.
A facility that generates energy used and operated by industrial or commercial energy customers for their own energy consumption is referred to as a captive power plant, sometimes known as a self-generating plant. It can run off the grid or be linked to the grid to exchange extra electricity. Usually, these are factories, large offices, or data centers. The capacity to export excess power to the nearby energy distribution network allows the facilities to operate in grid parallel mode. They might also be able to function in island mode, which would mean being independent of the local electrical distribution system.
Energy-intensive sectors, such as steel mills, chemical plants, and other companies, where the quality and reliability of the power supply are essential, frequently use capacity power plants. By integrating solar power with an electrical generator, cogeneration unit, and battery system, solar PV innovation and investment can drastically lower costs and make it feasible for less energy-intensive businesses to economically pull back from the grid.
Any industry requires a continuous and reliable supply of power because it is one of the key inputs. The quality of the electricity, in terms of voltage, harmonics, and other technical factors, is significant for various businesses. Another crucial element for enterprises is a supply that is reliable, of high quality, and affordable. Sometimes the state utilities are unable to adequately meet these standards.
Many enterprises are now using renewable energy sources, including wind, solar, and biomass as captive sources. Although the effectiveness of such captive plants in energy-intensive processes may be challenged due to the erratic nature of the power supply, captive renewable energy can be advantageous for many less energy-intensive industries, such as the food, textile, and commercial office sectors.
COVID-19 Impact Analysis
The emergence of COVID-19 had a detrimental effect on the expansion of the captive power generation market. This effect is mostly attributable to the substantial delays in the transit of raw materials, and the availability of low-wage workers, which caused the closure of numerous manufacturing companies and decreased demand for captive power generation throughout this time. The closure of the construction and tourism-related businesses as well as the decline in demand for numerous non-essential goods has had an adverse effect on the growth of the captive power generating market.
Market Growth Factors
Increasing Demand and Consumption of Electricity
One of the critical attributes of any country's economic prosperity is energy. Given that developing nations' energy requirements are always growing and require significant investments to be met, the energy industry assumes a crucial role in these countries. The human population is still growing. According to UN research, the population of the world, which was 7.8 billion in 2020, is expected to grow by 11 billion over 2050 to reach 9.6 billion by 2100. The energy needs of populations will increase as nations expand. The need for energy rises as affluence does. Products that require energy are more readily available as a result of technological advancements. Populations seek more consumer goods as more income is generated.
The Rapid Expansion of the Industrial Sector All Over the World
By consuming approximately 54% of all supplied energy worldwide, the industrial sector consumes more supplied energy than any other end-use sector. Three main industry types can be used to categorize the industrial sector viz. manufacturing that uses a lot of energy, manufacturing that uses a lot less energy, and nonmanufacturing. Depending on the degree and type of economic activity as well as technological advancement, different areas and nations have a different mix and intensity of fuel consumption in the industrial sector. Many different uses of energy are found in the industrial sector, including steam and cogeneration, process heating and cooling, & lighting, process and assembly, heating, and air conditioning for buildings.
Marketing Restraining Factor:
High Maintenance Costs Accompanied By Lower Efficiency
A captive power plant has significant operating and maintenance costs. Thermal facilities have intricate machinery and equipment that must be handled carefully by qualified staff. Machine problems occur frequently, and more maintenance is required. The ability of the facility to expand its capacity and resources is constrained by a lack of current equipment and qualified employees to handle maintenance and operations. Transporting raw materials and maintaining substantial storage facilities for coal and other fuels come at significant expense. Moreover, the captive power plant's total efficiency is regarded as low. Many thermal power facilities that use coal have outdated technology that cannot be upgraded.
End User Outlook
Based on End-User, the Captive Power Generation Market is categorized into Residential, Commercial, and Industrial. In 2021, the residential segment witnessed a substantial revenue share of the captive power generation market. The growth of the segment is increasing as a result of an increasing number of people migrating to urban areas. The increasing spread of urbanization is accelerating the demand for energy all over the world.
Fuel Type Outlook
On the basis of Fuel Type, the Captive Power Generation Market is segregated into Diesel, Gas, Coal, and Others. In 2021, the coal segment witnessed the biggest revenue share of the captive power plant market. The growth of the segment is attributed to the increasing utilization of coal as a fuel. A substantial proportion of the electricity in the world is produced by coal. An example of a fossil fuel power station is one that burns coal. A pulverized coal-fired boiler burns coal after it has been pulverized.
Based on Technology, the Captive Power Generation Market is segmented into Heat Exchanger, Turbines, Gas Engines, Transformers, and Others. In 2021, the heat exchangers segment garnered a significant revenue share of the captive power generation market. The rapid rise in the growth of the segment is primarily owing to the extensive use of heat changers for a variety of purposes. Heat exchangers are used in power plants to extract heat from smoldering waste gases.
By Ownership, the Captive Power Generation Market is bifurcated into Single Ownership and Multiple Ownership. In 2021, the multiple segments procured the highest revenue share of the captive power market. If a captive power plant satisfies the requirements, such as the beneficiaries holding at least 26% of the equity and jointly consuming 51% of the electricity generated during the year, it can also serve many stakeholders through a group captive mechanism.
|Market size value in 2021||USD 490.8 Billion|
|Market size forecast in 2028||USD 691.4 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 5.2% from 2022 to 2028|
|Number of Pages||249|
|Number of Tables||457|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Operation, Application, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region-wise, the Captive Power Generation Market is analyzed across North America, Europe, Asia-pacific, and LAMEA. In 2021, North America held the largest revenue share of the captive power generation market. the captive power market it the region is growing at a very rapid pace owing to the fact that North America is witnessing a significant presence of market players. Moreover, the market is the region is very competitive. In order to survive in the cutting-edge industry, these market players are rapidly working on development and introduction of several new solutions. This factor is boosting the growth of the regional captive power generation market.
Free Valuable Insights: Global Captive Power Generation Market size to reach USD 691.4 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, General Electric (GE) Co., Kohler Co., Reliance Industries Limited, Hindalco Industries Ltd. (Aditya Birla Management Corporation Pvt. Ltd.), ArcelorMittal S.A., Wärtsilä Corporation
Scope of the Study
Market Segments Covered in the Report:
By End User
By Fuel Type
By Technology Type
- Gas Engines
- Heat Exchanger
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Siemens AG
- General Electric (GE) Co.
- Kohler Co.
- Reliance Industries Limited
- Hindalco Industries Ltd. (Aditya Birla Management Corporation Pvt. Ltd.)
- ArcelorMittal S.A.
- Wärtsilä Corporation
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What would be the size of the Captive Power Generation Market by 2028?
The Captive Power Generation Market size is projected to reach USD 691.4 billion by 2028.
What are the key driving factors and challenges in the Captive Power Generation Market?
Increasing Demand and Consumption of Electricity are driving the market in coming years, however, High Maintenance Costs Accompanied By Lower Efficiency restraints the growth of the market.
What are the major top companies in the competitive landscape?
Siemens AG, General Electric (GE) Co., Kohler Co., Reliance Industries Limited, Hindalco Industries Ltd. (Aditya Birla Management Corporation Pvt. Ltd.), ArcelorMittal S.A., Wärtsilä Corporation.
Which segment shows a high revenue share of the Captive Power Generation Market in 2021?
The Gas Engines market acquired maximum revenue share Global Captive Power Generation Market by Technology Type in 2021; thereby, achieving a market value of $231.3 million by 2028.
Which segment is leading the market in 2021?
The Industrial market is leading the Global Captive Power Generation Market by End User in 2021; thereby, achieving a market value of $415.8 billion by 2028.
Which region dominated the Captive Power Generation Market in 2021?
The North America market dominated the Global Captive Power Generation Market by Region in 2021; thereby, achieving a market value of $237.7 billion by 2028.