The industrial energy efficiency market involves various technologies and solutions that aim to reduce energy consumption in industrial facilities and operations. Key technologies included energy management systems, industrial drives, motors and pumps, lighting systems, steam traps, heat exchangers, etc. These solutions help minimize operational costs, reduce carbon emissions, and enhance productivity. For instance, energy management systems continuously monitor and optimize energy consumption across equipment to achieve energy savings. Similarly, efficient drives, motors and pumps reduce energy required for various industrial processes like material handling, heating & cooling.
The global industrial energy efficiency market is estimated to be valued at US$ 120 Billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Growing Focus on Reducing Carbon Footprint, which was also referred in heading, is a major driver for the industrial energy efficiency market. Regulatory push for energy conservation and focus on achieving carbon emission reduction targets have compelled industries to adopt energy efficient technologies and practices. Also, various government schemes and incentives for promoting energy efficient equipment are fostering market growth. Additionally, increasing energy costs make industrial facilities opt for cost-cutting solutions like energy management systems and monitoring devices. This driver along with growing focus on operational excellence and minimizing production costs are projected to boost the industrial energy efficiency market during the forecast period.
The industrial energy efficiency market is dominated by lighting segment. Lighting solutions have witnessed immense adoption across various industry verticals as it helps reduce electricity costs and carbon footprint significantly. The lighting segment accounts for over 30% share owing to the increasing replacement of traditional lighting with LED lights. Installation of automated light controls such as occupancy sensors, daylight sensors etc. further aid in attaining greater energy savings.
Political: Governments across regions are focusing on promoting energy efficiency to lower carbon emissions from industries. Various subsidies and incentives are being offered for adoption of efficient technologies and retrofitting existing infrastructure.
Economic: Rising energy costs worldwide is a major driver for industries to optimize energy usage. Implementation of energy efficient solutions helps lower operational costs in long-run.
Social: Growing awareness about climate change is motivating industries to minimize their energy consumption and carbon footprint. Sustainable manufacturing practices are gaining prominence.
Technological: Advancements in areas such as IoT, AI, cloud computing are enabling remote monitoring and data-driven management of energy consumption. Emergence of smart lighting, HVAC systems, drives etc. with connectivity features are supporting increased efficiencies.
Global Industrial Energy Efficiency Market Demand is expected to witness high growth.
North America region currently captures over 30% share owing to stringent regulations and focus on sustainable infrastructure. China is emerging as the fastest growing regional market supported by government initiatives for industrial upgrades.
Key players operating in the industrial energy efficiency market are Siemens, GE, Engie, Orion, Honeywell, Schneider Electric. Siemens provides a wide range suite of hardware and software solutions for industries to analyze, optimize and automate their energy consumption patterns across facilities. GE focuses on digital innovations in areas such as predictive maintenance, performance monitoring for reducing downtimes and wastage in industrial operations.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it