by The industrial energy efficiency market comprises products and solutions that help industries reduce energy consumption and optimize power generation. Some key products in this market include electric motors, variable frequency drives, boilers, chillers, cooling towers, etc. These products play a vital role in improving overall energy performance in industries. Rising concerns regarding environmental pollution and greenhouse gas emissions are compelling industries to adopt energy-efficient solutions to lower carbon footprint.
The Global industrial energy efficiency market is estimated to be valued at US$ 58.01 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 To 2031.
Key Takeaways
Key players: Key players operating in the industrial energy efficiency market are BNP Paribas, CVS Health, Aviva, Allianz, Humana, Cigna, Aetna, Wellcare Health Plans Inc., UnitedHealth Group Inc., and Nippon Life Insurance Company, among others. These players are focusing on developing innovative and cost-effective solutions to gain a competitive edge in the market.
Key opportunities: Stringent government regulations regarding carbon emissions and energy usage across industries offer significant opportunities for industrial energy efficiency solution providers. Moreover, growing investments by industries in renewable energy generation to reduce dependence on fossil fuels will augment the demand for related energy-efficient equipment in the coming years.
Global expansion: Leading players in the market are expanding their geographical footprint by strengthening their distribution networks across Asia Pacific, Europe, North America, and other regions. They are establishing production facilities and collaborating with local players to better serve the needs of regional industries. Rising industrial activities in developing nations are further encouraging global players to tap into new markets.
Market drivers
The key driver for the industrial energy efficiency market is the rising environmental concerns. Stringent norms by various governments and regulatory bodies mandating industries to reduce carbon footprint and switch to cleaner production processes are compelling industries to adopt energy-efficient technologies on a large scale. This is positively impacting the demand for energy-efficient industrial equipment and solutions worldwide.
PEST Analysis
Political: The governments across various regions are introducing various policies and initiatives to promote industrial energy efficiency. Several nations have introduced energy efficiency norms and standards for industrial and manufacturing facilities.
Economic: Rising energy costs and shrinking margins are forcing industries to focus on adopting energy efficient systems and technologies to optimize consumption. Investments made towards energy efficiency helps industries reduce operating costs in the long run.
Social: With growing environmental concerns, industries are facing pressures from various stakeholders to reduce their carbon footprint and switch to cleaner technologies. Consumer preference for green products is also encouraging industries to optimize resource utilization.
Technological: Advancements in IoT, automation, and digitalization have enabled comprehensive energy management of industrial facilities. Real-time monitoring and data analytics help identify scope for improvements and control energy consumption more effectively. Developments in LED lighting, electric motors, and HVAC systems further aid energy efficiency.
The industrial energy efficiency market in terms of value is highly concentrated in few regions globally. North America currently accounts for over 30% of the global market revenue led by the United States. Strict federal and state level norms regarding carbon emissions and energy usage in industries is driving higher investments towards optimization of energy consumption in the region. Europe is another major market for industrial energy efficiency accounting for about 25% of the global revenue backed by the implementation of stringent energy efficiency directives of the European Union. China has also emerged as a major market in recent years and is expected to grow at a high single digit CAGR between 2024-2031.
The Asia Pacific region excluding China and Japan is poised to exhibit the fastest growth in the industrial energy efficiency market over the forecast period backed by rapid industrialization and economic development of countries like India. The Indian government through schemes like Perform, Achieve and Trade and initiatives by Energy Efficiency Services Limited is promoting efficiency in the industrial sector. This is anticipated to drive highest investments towards sustainable technologies and management systems for energy savings in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
