by The industrial energy efficiency market involves the implementation of various technologies and processes to optimize energy usage in manufacturing and industrial facilities. Some key industrial energy efficiency solutions include HVAC and refrigeration systems, lighting control systems, electric motors and drives, steam traps, and building energy management systems. Adoption of these solutions help industries reduce energy consumption and costs significantly. For instance, upgrading existing lighting infrastructure with LED lights can help lower lighting energy use by almost 50-70%. Similarly, installing variable speed drives on motor systems provides energy savings of 15-60% depending on the application.
The global industrial energy efficiency market is estimated to be valued at US$ 23.13 billion 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 Dynamics:
One of the key drivers for the growth of the industrial energy efficiency market is the growing adoption of smart technologies across various industries. Implementation of Internet of Things (IoT) based solutions is enabling industries to remotely monitor and optimize their energy usage. For instance, smart meters and sensors connected via IoT help industries detect energy wastage in real-time and take corrective measures. Similarly, adoption of smart building energy management systems powered by IoT and analytics is allowing industries to achieve more accuracy in energy forecasting and demand response. Growing use of predictive maintenance solutions based on IoT and AI is also fueling the market growth by enhancing equipment reliability and performance. Additionally, supportive government policies and incentives promoting industrial energy efficiency are further boosting the adoption of innovative smart technologies in this market.
Segment Analysis
The industrial energy efficiency market can be segmented based on the technology, services, end-user industry and region. Based on technology, the market for energy efficient equipment such as LED lighting, HVAC, motor and drive systems and steam systems dominates the segment. These systems offer energy savings over conventional systems owing to their high efficiency. Geographically, the Asia Pacific region dominates others primarily due to the large presence of energy intensive industries such as manufacturing, automotive, etc. in countries like China and India.
PEST Analysis
Political: Various government organizations across regions are coming up with supportive regulations and schemes to promote industrial energy efficiency practices. For instance, financial incentives for optimization projects.
Economic: Industrial energy efficiency improves profitability through reduced energy costs. It aids in long term savings and competitiveness.
Social: Rising awareness regarding environmental protection and sustainable practices is driving many industries to adopt efficient technologies and optimize operations.
Technological: Emerging digital tools such as IoT, AI, predictive maintenance are enabling real-time monitoring and optimization of industrial energy usage.
Key Takeaways
The Global Industrial Energy Efficiency Market Share is expected to witness high growth over the forecast period supported by the rapidly growing manufacturing and industrial sector globally. The Asia Pacific region currently dominates others with the largest market share primarily attributed to China and India.
Regional analysis: The Asia Pacific region is expected to maintain its dominance during the forecast period driven by rapid industrialization and presence of major energy intensive industries. China accounts for over 35% of global market share owing to the large manufacturing base and supportive government policies promoting efficiency.
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, Veolia Environnement, SGS, Enel X, Wärtsilä, Danfoss, Hitachi, Legrand, Ingersoll Rand, Schneider Electric.Siemens and General Electric capture over 20% of the global market share owing to their diversified product and solution portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
