Industrial Power System Market size is poised to surpass USD 26.8 Billion by the end of 2035, growing at a CAGR of 7% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of industrial power system was USD 10.4 Billion. The growth of the market can be attributed to the increasing energy supply, and energy management systems worldwide over the upcoming decades. In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of the source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%).
Moreover, rising environmental degradation and awareness related to climate change are motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in the upcoming years.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 10.4 Billion |
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Forecast Year Market Size (2035) |
~ USD 26.8 Billion |
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Regional Scope |
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Growth Drivers
Challenges
End User (Transportation, Upstream, Petrochemicals, Utility & Power Generation)
The transportation segment in the industrial power system market is projected to have the largest share of 30% in 2035. Globally, a broad range of energy sources (or fuels) are employed for transportation, which is likely to drive the market expansion of the transportation segment in the future decades. As per the report published by U.S. Energy Information Administration, petroleum-derived goods accounted for almost 90% of total transportation sector power consumption in the United States in 2021. Biofuels made for around 6% of the total. Natural gas comprised roughly 4%, with the majority of it employed in natural gas pipeline compressors. Electricity consumption by mass transit systems accounted for less than 1% of the overall transportation business energy consumption.
Technology (SCADA, PLC, DCS, HMI)
The SCADA segment is expected to increase significantly in the industrial power system market. This is mostly owing to the fact that it offers a snapshot of plant processes and allows for the cooperation of functioning amongst low-level controllers. Furthermore, the system necessitates a continuous source of power and a safe atmosphere in order to monitor the status of complex energy systems in real time. It is also necessary for monitoring and controlling remote systems.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Technology
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End User |
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APAC Market Statistics
The industrial power system market in Asia Pacific is estimated to witness noteworthy growth of 33 % over the forecast period on the back of the rapidly growing industrialization, urbanization, and expansion of the consumer electronics industry in the region. For instance, more than 77 percent of the total population of Malaysia lived in urban areas in 2020, up from about 76 percent in the year 2019. In addition, an increasing number of government initiatives to raise the efficiency of industrial processes are also expected to bolster market growth in the region in the coming years. According to an action plan for energy cooperation, Asia aims to increase the share of renewable sources of energy in its energy combination to 23% by 2025. Furthermore, by early 2020, renewable energy accounted for approximately 40% of China's total installed electric power output and 26% of total power production. It had expanded to 29.4% of the overall power generation by 2021.
North American Market Analysis
Moreover, the industrial power system market in North America is projected to grab the largest share during the forecast period ascribing to the growing demand for industrial power supply for delivering power to the strong presence of major market players in the region. Also, as a result of higher expenditures in automotive projects and the emergence of power generation sectors, North America is predicted to be the second-fastest expanding market. According to the Energy Information Administration, natural gas was the primary source of power generation in the United States in 2021, accounting for around 38% of total generation. Natural gas is utilized to create energy in steam turbines and gas turbines. Coal was the second-biggest energy source for US power generation in 2021, accounting for around 22% of total production.
ABB Ltd. India announced that it will deliver next-generation digital technology for power supply in Indore that is predicted to enable the continuous supply of electricity to businesses and homes
Siemens AG declared to build an industrial power plant for a combined cycle power facility for Evonik in North Rhine-Westphalia, Germany.
Author Credits: Payel Roy, Dhruv Bhatia
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