April 21, 2024
Industrial Energy Efficiency Market

Industrial Energy Efficiency Market Propelled by Growing Need to Reduce Energy Cost and Carbon Emissions

Energy efficiency solutions help reduce energy consumption and cost across industrial facilities such as manufacturing plants, refineries, and others. These solutions including systems, services, and products help optimize industrial operations and processes to lower energy bills. For instance, energy-efficient lighting helps reduce lighting costs, smart motor drives cut motor electricity consumption, and steam traps prevent steam leakage. The growing need to curb energy costs and reduce carbon footprint is driving the adoption of industrial energy efficiency solutions across industries.

The global Industrial Energy Efficiency Market is estimated to be valued at US$ 120 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The growing need to lower energy cost and improve production efficiency is one of the major drivers of the industrial energy efficiency market. Industrial organizations are under constant pressure to reduce operational costs and carbon footprint. Energy efficiency upgrades help cut energy bills significantly and lower carbon emissions. According to the International Energy Agency (IEA), the industrial sector accounts for over 30% of global final energy consumption and energy efficiency measures in industries could deliver about 25% of the emissions reductions needed to meet climate pledges. Additionally, government initiatives and incentives around the world to promote industrial energy efficiency upgrades are fueling the adoption of these solutions. For instance, incentives for installing energy-efficient equipment, conducting energy audits, and developing energy management plans are encouraging factories and plants to invest in efficient technologies.

SWOT Analysis
Strength: The industrial energy efficiency market offers significant opportunities for cost savings and reduced carbon emissions. It helps industries achieve sustainability goals and gain a competitive advantage.

Weakness: High upfront capital costs required for energy efficient technologies and lack of awareness amongst small and medium enterprises act as barriers.

Opportunity: Stringent government regulations and policies pushing for industrial energy efficiency and demand for innovative digital solutions offer scope for growth. Rising need to optimize energy usage also opens up opportunities.

Threats: Changing market dynamics and frequent technology disruptions pose threats. Dependency on fossil fuels and lack of proper infrastructure in some regions are challenges.

Key Takeaways

Global Industrial Energy Efficiency Market Demand is expected to witness high growth over the forecast period of 2024 to 2031. The market provides solutions across various industries like manufacturing, cement, food and beverage, chemicals and petrochemicals, mining, and others.

Regional analysis: Asia Pacific region currently dominates the market and is expected to continue its lead through the forecast period. Rapid industrialization and rising energy costs are driving increased adoption of energy efficient technologies in countries like China, India, Japan, and South Korea. Europe follows in terms of market share on the back of stringent regulations related to carbon emissions and energy usage.

Key players: Key players operating in the industrial energy efficiency market are Siemens, ABB, Schneider Electric, Eaton, GENERAL ELECTRIC, Honeywell, TERI, DuPont, Dalkia, ENGIE, and Others. Siemens, ABB and Schneider Electric occupy majority market share due to their broad product portfolio and geographical presence. They offer integrated solutions including energy audits, retrofitting, metering and monitoring systems.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it