Global Hybrid Power Systems Market: Renewable Energy Production Enticing Investments, finds TMR
The global hybrid power systems market has opened opportunities for new players who are equipped with financial might because of high initial investments required to manufacture and assemble these systems. Some of the prominent players in the global hybrid power systems market are Bergey WindPower Co., BORG Inc., KYOCERA Corporation, Guangzhou HY Energy Technology Limited Corp., Kestrel Renewable Energy, Panasonic Corporation, Schneider Electric SE, Siemens AG, Suzlon Group, and Sharp Electronics.
As a strategy to gain ground in the global market, these prominent players are actively investing in developing countries to develop hybrid power systems and rural electrification programs. Renewable energy production is also gaining popularity. For instance, in 2011, Guangzhou HY Energy Technology Limited Corp. supplied a wind-solar hybrid street light system in Tabriz in Iran, and installed several wind-solar hybrid systems for a telecom station in Mongolia the next year. Similarly, Borg Energy raised significant funds for several projects in India in 2014, focusing on rural electrification and engineering, procurement, and construction (EPC).
The research and development of new products and other technological innovations are some of the other strategies adopted by these players. Due to increased support from several governments who are offering various subsidies, the competitive landscape of this market is expected to experience frequent change over the coming years. According to the report, the global market for hybrid power systems was valued at US$411.7 mn in 2015. Rising at a healthy CAGR of 6.1% during the forecast period of 2016 to 2024, the valuation of the market is estimated to reach US$703.5 mn by 2024. Wind-solar-diesel Hybrid Systems Gain Preference over other Segments
The global market for hybrid power systems is segmented on the basis of type, end use, and geography. By type, the market is segmented into wind-solar-diesel hybrid, PV-diesel hybrid, and others. In 2015, wind-solar-diesel hybrid power systems accounted for the most significant share in the market, due to investments by various stakeholders to improve the rural electrification in developing countries such as India, China, Indonesia, and South Africa. Although, this segment is expected to grow at a moderate rate during the forecast period of 2016–2024, it will retain its dominance over the other segments.
By end use, the global market is segmented into residential, rural facility electrification, and others. Geographically, the report analyzes the regional markets of North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America (SCA). Japan leads the APAC demand for hybrid power systems, owing to the surge in commercial projects. The report notes that a number of companies have registered to sell retail power in the country, which will reflect positively on the market during the forecast period.
Need to Reduce Carbon Emission Encouraging Investments
The ability of hybrid power systems to reduce carbon emission is the primary driver in the global market. With growing awareness regarding preservation of the environment, several governments across the globe are offering lucrative incentives for investing in hybrid power systems. In 2016, Vodafone Qatar announced plans to construct several hybrid power systems across the country in order to reduce the carbon footprint and enhance the company’s energy efficiency measures.
Conversely, the report observes that the high initial cost of installation is the most prominent restraint on the growth of the hybrid power systems market. Moreover, these systems have a long return of investment (ROI) period as opposed to conventional sources of energy, which is restricting potential investors.
According to the author of the report, “Players in the market can avoid high transmission costs in the rural areas of developing countries by setting up hybrid power systems as standalone mini-grids. Also, the integration of renewable energy production with the electricity mix reduces the cost of transporting fuel to remote areas of a region.”
The information presented in this review is based on a Transparency Market Research report, titled, “Hybrid Power Systems Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016–2024.”
Key Segments of the Global Hybrid Power Systems Market
- Global Hybrid Power Systems Market: Type Analysis
- Global Hybrid Power Systems Market: End-Use Analysis
- Rural Facility Electrification
- Global Hybrid Power Systems Market: Regional Segment Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of MEA
- South and Central America (SCA)
- Rest of SCA
- North America
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