by 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 entity to generate power primarily for its own use. Captive power plants are mainly established to ensure stable & continuous power supply and avoid dependency on state electricity boards. Industries such as cement, steel, paper and textile have a high demand for uninterrupted power and often face issues related to power outages and fluctuations in supply from state grids.
Market key trends:
Rising demand for uninterrupted and reliable power supply from various end-use industries such as cement, steel, and mining among others is a key factor driving growth of the captive power plant market. These industries have highly power intensive manufacturing processes and require a steady power supply. Moreover, factors such as rising energy costs, transmission losses in power distribution from centralized grids, and space constraints for grid connectivity have encouraged industries to set up on-site captive power plants. This ensures a reliable power source and also helps industries minimize dependency on state electricity boards.
SWOT Analysis
Strength: Captive power plants ensure reliable power supply to industries and businesses. They have control over quality and cost of power generated.
Weakness: High initial setup and maintenance cost of captive power plants. Require large area of land for installation.
Opportunity: Increasing industrialization and infrastructure development in emerging economies offer growth opportunities. Governments also encourage captive power to address power deficit issues.
Threats: Stringent environmental regulations around emissions. Subsidies and incentives offered to renewable energy adoptation acts as a threat.
Key Takeaways
The Global Captive Power Plant Market Size is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing industrialization and rapid urbanization across developing regions of Asia Pacific and Latin America.
Regional analysis: Asia Pacific dominates the global captive power plant market and is estimated to grow at the fastest pace during the forecast period. Countries such as India, China, Indonesia are amongst the key contributors to the regional market growth. This is attributed to rapid industrialization and economic development in these countries.
Key players operating in the Captive Power Plant 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. These players are focusing on new product launches and partnerships to gain competitive edge in the market. For instance, in 2022, Cummins introduced 6.7-liter engine for captive power market in India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
