The captive power plant market is estimated to be valued at US$ 25.99 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A captive power plant refers to a power generating facility setup, owned and operated by an organization for their self-consumption rather than for distribution. Captive power plants are majorly installed by various industrial sectors such as manufacturing, steel & cement plants, mining operations, IT parks and others where uninterrupted power supply is crucial. These plants help reduce dependency and cost of purchasing power from grid utility providers.
Market Dynamics:
The increasing need for reliable power supply across industries and rising energy costs are the key factors driving the growth of the captive power plant market. Captive power plants provide consistent power supply at lower cost compared to power purchased from utility providers. Rising concerns regarding power outages faced by manufacturing facilities and fluctuating electricity rates have further augmented the demand for captive power plants globally. Additionally, supportive government policies offering tax benefits for setting up renewable energy based captive power plants in various countries is also propelling the market growth. However, high initial investment costs associated with installation of captive power plants remains a major challenge.
SWOT Analysis
Strength: The captive power plant market allows companies to have their own reliable source of power. It reduces dependency on state grids which are prone to power outages. Having their own power plants allows companies to have control over power costs as they are not subject to fluctuations in tariff rates.
Weakness: Setting up a captive power plant requires huge capital investments and has high fixed costs. The power plants also have low capacity utilization if not optimized for the energy needs of the parent company. Maintaining power plants needs specialized resources and skills which increases operational costs.
Opportunity: Increasing industrialization and growth of energy-intensive sectors provide opportunities for captive power plants to fulfill additional power requirements. Rising share of renewable energy integration with existing power facilities can help reduce long-term energy costs.
Threats: Strict environmental norms around carbon emissions pose compliance challenges for power plants. Growing preference of industries to rely on grid power and avoid costs of owning assets can reduce captive power market.
Key Takeaways:
The Global Captive Power Plant Market Size is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing industrialization and infrastructure development activities across developing countries. Rapid urbanization is driving the need for continuous power supply to support various industries like manufacturing, mining, oil and gas etc.
Regional analysis
Asia Pacific dominates the global captive power plant market, owing to strong presence of manufacturing industries in China, India, Japan and other Southeast Asian countries. China is the largest captive power market due to large manufacturing sector. India is witnessing fastest growth in captive power installations led by sectors such as cement, iron and steel.
Key players
Key players operating in the Captive Power Plant market are Wartsila, AES Corporation, Dalkia, Vegawatt Power Pvt Ltd, Ducon Technologies, General Electric, Thermax, Cethar Limited, Clarke Energy, Siemens, Doosan Heavy Industries & Construction, MAN Energy Solutions, Yanmar Co., Ltd., Kawasaki Heavy Industries Ltd., Mitsubishi Heavy Industries Ltd., Meidensha Corporation, Kirloskar Oil Engines Ltd., Greaves Cotton Limited, Cummins Inc., Caterpillar Inc. The players are focusing on projects involving renewable energy integration and digitalization of power facilities.
Read more
https://www.rapidwebwire.com/captive-power-plant-market-size-share-growth-outlook-2023/
