by Industrial operations require energy for various production processes and equipment operations. Energy efficiency solutions aim to reduce energy consumption through methods like upgrading equipment with energy efficient technologies and implementing operational practices that optimize usage. Energy efficient solutions help lower energy costs and greenhouse gas emissions for industries.
The global Industrial Energy Efficiency Market is estimated to be valued at US$ 23.13 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Energy conservation has become an essential business need as industries aim to reduce costs and comply with stringent environmental regulations. The industrial energy efficiency market is poised to grow robustly due to rising focus on energy conservation. Industries are increasingly adopting energy management systems, HVAC and refrigeration system optimization, lighting control upgrades, electric motor systems and drives upgrades, and other industrial energy efficient technologies and services. Premium efficiency motors, variable frequency drives, smart lighting controls allow industries to optimize energy usage and achieve substantial cost savings over the long run. With growing policies promoting sustainable manufacturing, the demand for industrial energy efficiency solutions is expected to rise considerably during the forecast period.
SWOT Analysis
Strength: The industrial energy efficiency market offers solutions to reduce energy consumption and costs for industrial facilities. There is rising awareness about the need to adopt energy efficient technologies and processes to lower emissions.
Weakness: High initial investments required for industrial energy efficiency upgrades pose a challenge. Small and medium industries may lack access to capital needed for implementing efficiency solutions.
Opportunity: Stringent government regulations and policies related to industrial energy usage and carbon emissions present an opportunity. The market sees demand for customized solutions tailored to specific industry needs.
Threats: Technology changes at a rapid pace, threatening obsolete solutions. Economic uncertainties and downturns may reduce priority on energy efficiency projects among industries.
Key Takeaways
The Global Industrial Energy Efficiency Market Share is expected to witness high growth. Regional analysis reveals that Asia Pacific currently dominates the market and is expected to continue its dominance over the forecast period supported by rising industrialization in major countries like China and India. Countries in the region are also implementing various energy efficient policies and programs to reduce dependence on imports for meeting energy needs.
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, Veolia Environnement, SGS, Enel X, Wärtsilä, Danfoss, Hitachi, Legrand, Ingersoll Rand, Schneider Electric. Many key players focus on developing and offering tailored solutions for specific industry applications and processes. They also provide a range of services including audits, monitoring and verification to help industries achieve desired efficiencies.
The global industrial energy efficiency market size was valued at US$ 23.13 billion in 2023 and is forecast to reach over US$ 40 billion by 2030, growing at a CAGR of around 8.6% during the forecast period. Regional insights reveal that Asia Pacific accounted for the largest market share in 2023 owing to rapid industrialization across China and India. However, North America is witnessing strong demand for industrial energy efficiency solutions from oil & gas, automobile and food & beverage industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
