Multi Energy Systems Market size is poised to reach USD 611 Billion by the end of 2036, growing at a CAGR of 11.1% during the forecast period, i.e., 2024 – 2036. In the year 2023, the industry size of multi energy systems was USD 235 Billion. The reason behind the growth is impelled by growing consumption of electricity.
The use of multi-energy systems has increased, and their popularity is on the rise since they can power a variety of applications can improve the performance of traditional energy systems.According to estimates, the world's electricity consumption has continuously grown over the past half a century, reaching over 25,000 terawatt-hours in 2022.
The growing government regulations to promote the use of clean energy are believed to fuel the market growth. For instance, The Netherlands' central government plans to eliminate its emissions of greenhouse gases, such as carbon dioxide (CO2,) by 2050, and by 2023, it wants more than 15% of all energy used in the Netherlands to be renewable. This could lead to higher demand for multi energy systems as they aid in combining clean energy sources.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~11.1% |
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Base Year Market Size (2023) |
~ USD 235 Billion |
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Forecast Year Market Size (2036) |
~ USD 611 Billion |
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Regional Scope |
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Fuel Type (Petroleum, Renewables, Natural Gas, Biomass)
The renewables segment is estimated to hold 30% share of the global multi energy systems market in the coming years owing to the growing prices of fossil fuels. High coal and fossil gas prices have deteriorated the competitiveness of fossil fuels and made renewable fuels even more attractive for consumers and businesses. Besides this, owing to high prices governments of several regions can invest more in renewable fuels which is also helping in reducing the reliance on imports of fossil fuels.
Component (PV Panels, LPG Boilers, Water Heating & Storage Tank, Thermal Solar Collectors, Diesel Generator, Battery Electric Storage System)
Multi energy systems market from the PV panels segment is set to garner a notable share of 23% shortly. Photovoltaic (PV) panels convert solar radiation directly into electricity, which can then be used in multi energy systems to generate electricity and store it for usage during periods of high demand or other unforeseen circumstances.
More than 250 TWh of electricity was produced by solar PV in 2022, up by over 25% as compared to 2021.
Application (Industrial, Commercial, Residential)
The industrial segment is set to garner a significant share during the forecast timeframe. Multi-energy systems (MESs), which integrate different energy systems such as electricity, natural gas, and district heating networks help industries to improve the efficiency of conventional energy systems, reduce air pollution, and enhance energy resilience. Besides this, multi energy systems provide power backup sources to the industrial settings to avoid disruptions caused by sudden power outages.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Application |
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Fuel Type |
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Energy Type |
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APAC Market Forecast
Multi Energy Systems market in Asia Pacific is predicted to account for the largest share of 60% by 2036 impelled by the rising integration renewable energy sources. India is still resolute in its commitment to sustainable development and the expansion of renewable energy, which is emerging as a way to address rising energy demands for economic growth while drastically lowering carbon emissions. This may increase the demand for multi-energy systems in the region as they can significantly improve the use of renewable energy, and also ensure a stable energy supply by integrating renewables into the grid more effectively.
By 2025, the capacity of India’s renewable energy sources is anticipated to increase to more than 260 GW, making up over 35% of the nation's overall energy supply.
European Market Statistics
The Europe multi energy systems market is estimated to be the second largest, during the forecast timeframe led by increasing focus on sustainability and energy efficiency. Energy efficiency is a strategic priority of the Energy Union, which is based on the tenet "energy efficiency first," and actions are also being taken to increase it through several measures. Multi-energy systems align with the sustainable goals of the region as they help in utilizing energy resources more efficiently by minimizing waste. As a result, the demand for these systems may significantly rise in the region.
In the News
Author Credits: Payel Roy, Dhruv Bhatia
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