Hybrid Power Solutions Market Size, Share & Industry | 2031

Report Description

The global hybrid power solutions market size was USD 590.46 Mn in 2022 and is likely to reach USD 1.04 Bn by 2031, expanding at a CAGR of 6.6% during 2023–2031. This growth is attributed to the increasing demand for power supply due to rising industrialization and urbanization across the globe.

The hybrid power solution is a technology that combines two or more power generation sources together, usually renewable energy sources such as sun and wind with traditional conventional energy sources. It is designed for the generation of a reliable and efficient power supply. It combines solar photovoltaic and wind turbines with generators run by diesel or other fuels.

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Hybrid power systems generate power from solar and wind energy that reduces the operational hours of diesel generators, which helps to minimize carbon emissions. The high-efficiency power generation system offers a stable and continuous power supply to the end users. This system reduces fuel costs as it uses less fuel compared to traditional power generators. It ensures a 24x7 power supply.

The hybrid power system enhanced flexibility and it can be expanded with increasing power demand. It delivers an alternative current with a fixed frequency. It is a very efficient system for providing electricity in remote areas where the supply of electricity through a grid network is difficult or impossible.

COVID-19 Impact on Hybrid Power Solutions Market

The market report finds that the COVID-19 pandemic moderately impacted on the global hybrid power solutions market. The pandemic slowed down the overall revenue generation of the global market. Lack of timely supply of the raw materials for generating the power due to the traveling restrictions across the globe disrupted the supply chain of the power industries.

The labor shortage due to the preventive measures such as social distancing and emergency lockdown imposed by the government across the country led to the temporary shutdown of the manufacturing units of hybrid power. Furthermore, the significant growth is attributed to the increasing use of electricity in residential buildings due to the growing adoption of work-from-home. Rising demand for more power supply from hospitals, nursing homes, and other healthcare operators created opportunities for market players during the COVID-19 pandemic.

Hybrid Power Solutions Market Dynamics

The market research report provides a complete overview by providing detailed information and by focusing on growth and historic data to determine the key market trends, major drivers, existing restraints, growing opportunities and potentials, and emerging challenges. The global hybrid power solutions market report has up-to-date insights about the market scenarios that can help in shaping the overall performance and output of the market during the forecast period, 2022 to 2030.

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What are the key factors propelling hybrid power solutions market?

Rising Green and Clean Energy Technology for Several Development Projects

The concept of green and clean energy technologies that generate power such as solar PV and wind turbines is a major factor driving the growth of the global hybrid power solutions market in the coming years. Increasing demand for power generation using renewable energy sources leads to rising in green and clean energy projects at a rapid pace.

Renewable energy source is a positive way towards reducing carbon emissions, which leads to increased efforts to adopt renewable sources. Furthermore, Rapid growth in digitization along with increasing industrialization and urbanization across the globe demands for more power supply.

Growing Demand from Off-grid Sites

Off-grid sites include small villages and telecom towers where access to electricity is not available through the grid connection. Laying down grid connections in such remote areas requires high investment. Thus, the growing demand for hybrid power generation from off-grid sites is another major factor that drives the growth of the global hybrid power solutions market.

Supportive Government subsidies

Various government subsidies and initial investments have encouraged consumers to invest in the generation of green and clean energy from rooftop solar PV panels and windmills. Expansion of government schemes and policies offers low-income people to adopt energy at a low price than the market rate which is anticipated to drive the global market growth during the forecast period.

Which key factors are projected to restrain the growth of hybrid power solutions market?

Limited availability and increasing cost of conventional sources

Hybrid power systems combine renewable sources with conventional means such as diesel power generators. Diesel is found in the earth’s crust, which needs to be found and then extract. This process requires a lot of time and investment resulting in a reduction in the diesel supply. The lack of availability of diesel leads to increasing the price at a rapid pace, which hinders the overall revenue generation of the global market.

High initial installation cost

The higher initial capital requires for setting up the hybrid power plants, which hampers the revenue growth of the global hybrid power solutions market. New emerging technologies in the equipment of power generators are quite expensive as compared to the traditional method. Rapidly increasing advanced technologies across the globe need a high amount of capital to adopt those technologies for setting up the power transmission network system that restrains the growth of the global market at a certain limit during the projected period.

Rising environmental concerns across the globe

Diesel creates a large amount of smoke that pollutes the air and increases the risk of global warming. Rising awareness of the negative effects of diesel leads to rising environmental concerns among the masses. Thus, increasing awareness of the drawbacks of diesel and carbon emissions among consumers hampers the growth of the global market in the coming years.

What are the key factors expected to create lucrative opportunities for hybrid power solutions market players?

Electrification in rural areas

Electrification in rural areas is one of the key factors that create lucrative growth opportunities for the global hybrid power solutions market. 100% electrification through a hybrid power system is an excellent solution for the rural areas of developing regions where electricity is not available. The lack of grid connectivity in such areas highly demands for the installation of a hybrid power system, which boosts the growth of the global market during the forecast period.

Growth in investment for research and development

Growing investment in research and developing advanced technologies creates immense growth opportunities for market players. Growing various industries at a rapid pace demand for power supply with low cost. Market players shifting their focus towards new advanced technologies to reduce the costs of generating power with a lesser amount of carbon emissions. Industries are becoming technologically oriented with new innovations to produce electric power transmission and distribution equipment, which fuels the growth of the global hybrid power solutions market in the coming years.

Scope of Hybrid Power Solutions Market Report

The global hybrid power solutions market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Hybrid Power Solutions Market Segment Insights

What Key Factors Contribute to the Rapid Expansion of the System Type Segment?

Rising Demand for Cost-effective Energy Sources Boosting the Solar-diesel Segment

Based on system type, the global hybrid power solutions market is fragmented into wind-diesel, solar-diesel, solar-wind-diesel, and others. The solar-diesel segment is anticipated to expand at a significant growth rate during the projected period owing to the rising demand for cost-effective energy sources and the broad acceptance of this system across industries.

The solar-diesel hybrid system is a combination of power generation systems where power is generated from solar photovoltaics with a diesel generator to supply the load. This system is applicable to all types of end-users. It provides stable power with a constant power supply that offers 24 hours electricity to the customers. It reduces fuel costs by reducing the operational hours of diesel generators. This system is flexible and can be expanded with respect to increasing energy demand.

The wind-diesel segment is expected to hold a key share of the market in the coming years. The wind-diesel hybrid system generates power through wind turbines with a diesel generator. The high wind penetration shut down diesel generators, which reduces fuel consumption and system operating cost. It offers continuous high-quality power. Rising demand for continuous power supply from powerhouses leads to accelerate segment growth during the assessment period.

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What are the Main Aspects of the Power Rating Segment Expansion?

Wide Applications of the 11 kW to 100 kW Segment in the Commercial Sector

On the basis of power rating, the global hybrid power solutions market is segregated into up to 10 kW, 11 kW to 100 kW, and above 100 kW. The 11 kW to 100 kW segment held a key market share in 2021 and is anticipated to account for a large revenue share during the projected period owing to its major applications in the commercial sector. It provides reliable power and offers more flexibility compared to others.

On the other hand, the above 100 kW power rating segment is anticipated to account for a major market share in the coming years. It provides extra energy when a large number of electronic appliances with energy needs such as computers, lights, and fans are used. Rapid expansion in the commercial sector demands for above 100 kW power rating solutions.

Which Major Factors Influence the Substantial Growth of the Location Segment?

Increasing Demand from Rural Areas Accelerate the Off-grid Segment Growth

Based on location, the global market is bifurcated into on-grid and off-grid. The off-grid segment is attributed to fuel the market during the projected period. Off-grid location includes telecom towers, industrial units, and remote villages where electricity is not accessible or laying down a grid system for electricity is impossible. Thus, increasing demand for electricity from rural areas through hybrid power systems accelerates to drive the growth of the global hybrid power solutions market in off-grid sites.

The on-grid segment is projected to generate a revenue share of the global market during the forecast period owing to the rising demand for power solutions from residential buildings. On-grid includes those areas that are directly connected to the electric grid where 24 hours electricity supply is possible with no daytime power cut.

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What are the Major Reasons for High Revenue Generation in End-user Segment?

Growing Demand for Telecom Towers Fuel the Industrial Segment

On the basis of end-user, the global hybrid solutions market is segmented into residential, industrial, and commercial. The industrial segment is further sub-segmented into telecommunication, oil & gas, mining, and others.

The industrial segment is projected to register a considerable CAGR in the coming years due to increasing industrialization at a rapid pace across the globe, which demands for extra electricity. Telecommunication is one of the major industries that consume a high amount of electricity. Telecom companies are setting up telecom towers in remote areas to provide mobile access to consumers. Growing demand for telecom towers at off-grid sites demands for hybrid power solutions that lead to fuel the growth of the global market.

The commercial segment held a large share of the market in 2021 and is expected to grow at a significant growth rate during the forecast period. The commercial sector includes schools & colleges, hotels, resorts, and hospitals, which are mostly located at off-grid sites. Rising expansion of small-to-medium scale industries at a rapid pace in off-grid sites demands for hybrid power solutions.

Why is Asia-Pacific dominating the Global Hybrid Power Solutions Market?

Rising Government Initiatives Towards Rural Electrification Boosting the Regional Market

In terms of regions, the global hybrid power solutions market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a large market share in 2021 and is expected to dominate the market during the projected period due to the rapid expansion of renewable power generation using solar PV and wind turbines.

Market players in the Asia-Pacific region are setting up hybrid power systems as standalone mini-grids to avoid transmission costs. Increasing industrialization in off-grid sites in emerging countries such as China, Japan, and India and rising government initiatives towards rural electrification highly demand for hybrid power solutions, which leads to fuel the regional market growth.

The Middle East & Africa is the second largest region of the global market which held a key market share in 2021 and is anticipated to expand at a rapid pace during the forecast period. The market players in the region focused on increasing its power generation capacity to meet the demand of electricity. The regional market growth is attributed due to rising rural electrification in the region and power generation using renewable sources.

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