The global captive power plant market size is projected to expand a high CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the increasing demand for uninterrupted power supply.
A captive power plant provides a confined source of capacity to an energy client. These are regularly industrial offices, enormous workplaces or data centers. The plants usually work in lattice equal mode with the capacity to send out excess capacity to the neighborhood power distribution division. Moreover, they have the capacity to work in island mode; for instance, captive power plant can be integrated with local electricity distribution framework.
A captive power plant is a localized source of power to an energy user. These plants can be used for manufacturing industries, large offices, or data centers. Distributed generation system improves fuel efficacy and decreases losses associated with the transmission of electricity from centralized power plants. Gas engines are the ideal source for captive power plants for places where localized supply is easily available. The energy source can be from gas pipeline but can also be transported from other places in liquefied or compressed form. These plants not only generate electricity but also heat which can be used for the production of steam for turbines.
Market Trends, Drivers, Restraints, and Opportunities
- Rapid growth of the energy intensive industry is projected to drive the market growth in the projected timeline.
- Rising fuel consumption and decreasing crude oil prices helps in development of new refineries, which is estimated to further enhance the demand for captive power plants in the coming years.
- Increasing demand for reliable and continuous power supply is expected to spur the market growth.
- Government policies and initiatives to boost small and medium energy businesses is anticipated to upheld the market growth.
- Major barrier such as power supply and land acquisition can restrict the development of the market.
- Lack of grid infrastructure can hinder the growth of the market.
- Expansive of energy intensive industry in Africa can create lucrative opportunity for industry players during the forecast period.
Scope of the Report The report on the global captive power plant market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|Global Captive Power Plant Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|Types (Diesel, Gas, Coal, Others) and Applications (Commercial, Industrial, and Residential)
|Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|Key Players Covered in the Report
|Kohler Co.; Wartsila Oyj Abp; General Electric Company; Cethar Limited; and Siemens AG
Captive Power Plant Market Segment Insights
Gas segment is expected to grow at a rapid pace
Based on types, the captive power plant market is divided into diesel, gas, coal, and others. The gas segment is expected to grow at a rapid pace during the forecast period, Gas power plants cause less environmental pollution, which in turn, further helps local governments to meet international guidelines for climate change.
Industrial segment is projected to expand at a considerable CAGR
On the basis of applications, the market is segregated into commercial, industrial, and residential. The industrial segment is projected to expand at a considerable CAGR during the forecast period as industry requires a reliable and continuous source of power for smooth functioning. This factor is expected to increase the development of captive power plant grids.
Asia Pacific is anticipated to constitute a key market share
In terms of regions, the captive power plant market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period. Developing countries such as India, Sri Lanka, and Bangladesh are focusing on the development of new petrochemical, refining, mining, cement, and metal processing industries to boost their economy. To meet iron and steel demand for infrastructure development, these countries are focusing on the development of captive power plants.
Segments Covered in the Report
The captive power plant market has been segmented on the basis of
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Kohler Co.
- Wartsila Oyj Abp
- General Electric Company
- Cethar Limited
- Siemens AG
Key players competing in the captive power plant market areKohler Co.; Wartsila Oyj Abp; General Electric Company; Cethar Limited; and Siemens AG.
Major industy playrs are focusing on acquisition of small scale industries to boost their capacity while others are focusing on improving their existing plant efficiency.