The global 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 set up by an industry to meet their own energy demands. These plants can be set up by core sector industries like cement, steel, aluminum etc. or commercial organizations like malls, IT parks to meet their electricity needs in a reliable and cost effective manner. Captive power plants offer various advantages like reliable power supply without disruptions, cost savings over grid supply and control over energy costs. They help industries insulate themselves from price volatility in grid power. With growing energy needs of industries and malls, the captive power plant market is witnessing significant growth globally.
Market key trends:
One of the key trends in the captive power plant market is the increasing focus on renewable energy sources like solar and wind. Many industries are installing renewable energy based captive power plants to meet their green energy targets and reduce carbon footprint. Governments across countries are also promoting renewable energy through various incentives and policies. For example, India has set an ambitious target of having 60GW of renewable energy based captive power plants by 2022. Growth in core sectors like cement and steel production along with rising energy consumption in commercial establishments is another major driver leading to increased investments in captive power plants.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the captive power plant market is moderate as the market requires high initial capital investments and adherence to strict environmental regulations.
Bargaining power of buyers: The bargaining power of buyers is moderate since there are multiple captive power plant manufacturers in the market. However, buyers prefer well-established brands.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the availability of substitute raw materials and components. However, switching costs are high for specialty parts and equipment.
Threat of new substitutes: The threat of new substitutes is low as captive power plants provide dedicated power supply and there are limited substitutes available for it.
Competitive rivalry: Maneuvering for greater market share intensifies competition.
Key Takeaways
The Global Captive Power Plant Market Size is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period, due to increasing industrialization and commercialization projects across emerging economies in Asia Pacific and Middle East & Africa.
Regional analysis
The Asia Pacific region dominates the captive power plant market and is expected to grow at the fastest rate during the forecast period. Factors such as rapid industrialization and urbanization in countries such as China and India are supporting market growth.
Key players
Key players operating in the captive power plant market include 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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it