Global Industrial Power Supply Market - 2023-2030

Overview

Global Industrial Power Supply Market reached US$ 11.1 billion in 2022 and is expected to reach US$ 17.7 billion by 2030, growing with a CAGR of 6.1% during the forecast period 2023-2030.

Industrial power supply market is expected to be driven by increased production and energy consumption demand. According to IEA, the industrial sector's energy consumption increase up to 37% of global energy use in 2022, which got up from 34% in 2002. Electricity power supply has surged, constituting 23% of the energy mix in 2022, up from 19% in 2010. The surge is primarily attributed to heightened activity in light industries.

In the NZE Scenario, electricity's share is projected to ascend to nearly 30% by 2030, reinforcing the trend of cleaner energy sources taking precedence. The projected energy consumption growth of less than 0.5% annually until 2030 is somewhat affected with industrial energy productivity but it is anticipated to rise by around 3% each year. As with this industries are increasingly sourcing their power from renewable energy sources such as solar, wind, hydroelectric and geothermal.

Asia-Pacific's industrial power supply market holds the largest share globally expected to see remarkable upswing, with China and India driving significant growth. In China, the revival of electricity demand is robust across industrial and commercial sectors following the pandemic's impact in 2020. The trajectory shows a return to pre-pandemic levels across all sectors between 2021 and 2024.

Dynamics

Government Policies Fueling Industrial Power Supply Demand

Industrial power supply market is growing with new government incentives and policies, particularly in the realm of renewable energy. According to IEA, in the European Union, the record-breaking year for renewable energy capacity expansion in 2022, surpassing 50 GW, underscores the effectiveness of supportive policies. Across the Atlantic, U.S. enactment of the Inflation Reduction Act (IRA) in 2022 stands as a proactive stride towards bolstering investments in clean electricity.

Furthermore, by taking the support for renewables through tax credits and other strategic measures, the policy is expected to shows substantial momentum into the expansion of renewable energy capacity over the upcoming decade. Also, China's 14th Five-Year Plan for Renewable Energy underscores the transformative potential of government-led initiatives.

China's deliberate aim of achieving 33% of electricity generation from renewables by 2025 is particularly focusing to reduce reliance on fossil fuels and bolster the integration of cleaner alternatives. The government policies to achieve the renweable energy production fueling the demand of industrial power supply. These initiatives help push for more renewable energy production, which is needed to provide power for industries and other use.

Rapid Urbanization and Focus on Industrial Sector Worldwide

The industrial power supply market is undergoing significant growth, marked by historical shifts in urbanization and fueled by the rising demand for clean energy technologies. The Industrial Revolution and subsequent technological advancements brought about a rapid increase in urban populations, driving the need for robust power supply systems to support the expanding industries. Urban areas became centers of economic activity, where specialized factories emerged, drawing workers from rural regions and necessitating reliable power infrastructure to meet burgeoning energy demands.

Furthermore, according to IEA, with global manufacturing of clean energy technologies like solar panels, wind turbines, EV batteries, electrolyzers for hydrogen and heat pumps, the market is projected to grow to US$ 650 billion annually by 2030. The upswing is intertwined with a potential surge in clean energy manufacturing jobs, doubling from 6 million to nearly 14 million by 2030 and further growth expected in subsequent decades.

Energy Crisis can Lower Industrial Power Supply Market Stability

The industrial power supply market is expected to be restrain by energy crises which is due to surging prices which has triggered inflationary pressures and created an expected risk of recession. High energy prices and supply chain disruptions can result in energy shortfalls, impacting industrial operations. The energy crisis has disproportionate impacts on vulnerable industries, particularly in developing economies.

Furthermore, according to IEA, the surge in spot natural gas prices, reaching over US$ 250 per barrel of oil equivalent and record-high coal and oil prices have triggered an unprecedented increase in energy costs. With high oil prices, the cost of generating electricity from oil also increases, leading to higher electricity bills for industries. Elevated gas and coal prices are responsible for 90% of the upward pressure on electricity expenses globally. The surge significantly escalates production costs for industries, leading to reduced profitability and economic strain.

Segment Analysis

The global industrial power supply market is segmented based on converter type, output power, application and region.

Advancements in AC-DC Converter Power Supplies and Innovative Relays Shape Industrial Market

The AC-DC converter power supply holds the largest market share with advancements in which have led to significant improvements in efficiency, size and performance. Switching AC/DC power supplies have emerged as a solution to these limitations. Enabled by advancements in semiconductor technology, these switched-mode power supplies utilize high-power MOSFET transistors for efficient switching of large voltages and currents.

ATO, a prominent relay original equipment manufacturer (OEM) based in Guilin, China, has unveiled an innovative range of Solid State Relays and Timer Relays, catering to diverse industrial applications. These cutting-edge relays have been introduced to enhance control and performance in various systems. ATO's relays are designed to meet the specific requirements of different applications and are available in a variety of models and specifications.

Geographical Penetration

Asia-Pacific Drives Industrial Power Supply Market Growth

Asia-Pacific is the largest market for industry power supply with increasing urbanization and industrialization in the region. As urban populations surge, particularly in India, the demand for power is expected to experience remarkable growth. According to IEA, in India, it's projected that around 270 million people will be added to the urban population by 2040, this rapid urbanization is set to drive a substantial increase in industrial activity which shows a potential growth for industry power supply in the nation.

Furthermore, according to CGTN, China's industrial sector is experiencing rapid growth, fueled by its "new industrialization" strategy that has significantly advanced manufacturing and digital sectors. In 2022, China's industrial-added value exceeded $5.7 trillion, accounting for over a third of the country's GDP. China's manufacturing industry has ranked as the world's top for 13 consecutive years, while high-tech manufacturing accounts for 15.5% of total industrial added value and equipment manufacturing comprises 31.8%. These figures indicate the industrial power supply demand in the region.

Competitive Landscape

The major global players in the market include: ABB Group, Siemens AG, Emerson Electric Co., Schneider Electric, Delta Electronics, Mitsubishi Electric Corporation, Yaskawa Electric Corporation, Phoenix Contact, Eaton Corporation and TDK Lambda Corporation.

COVID-19 Impact Analysis

COVID-19 made a significant impact on industrial power supply market, the suspension of commercial and industrial activities resulted in loss of around ten thousand crores per month in the power sector. The pandemic and the subsequent lockdown measures led to a rapid drop in electricity demand across various countries. During the lockdowns, electricity demand dropped to levels comparable to Sundays, reflecting the reduced industrial and commercial activities.

After lockdowns were eased in countries like Italy and Germany, there was a noticeable improvement in electricity demand. The recovery trend was further confirmed as more countries softened their lockdown measures. For example, India experienced a faster and stronger recovery in electricity demand compared to the European Union (EU) countries. While recovery was evident in most countries, some fluctuations were observed due to seasonal factors, festivals and strikes.

Russia-Ukraine War Impact

The Russia-Ukraine war has made a significant impact on the global industrial power supply market as it has led to increasing energy prices in regions around the world which impacts consumers and industries alike. The resulting economic disruption highlights the vulnerabilities of energy supply chains and the risks associated with dependence on certain fossil fuels and especially those supplied by a limited number of major producers.

In response to the energy crisis the European countries are pursuing various strategies to neglect the impact of supply disruptions and ensure stability in their energy markets. These strategies include diversifying gas suppliers, increasing imports of liquefied natural gas, reviving coal power plants and potentially extending the lifespan of existing nuclear power plant, the crisis has amplified the urgency to expand renewable electricity capacity, though this comes with challenges such as rising production costs due to the demand for critical minerals like copper, nickel and aluminum, in which Russia plays a pivotal role as a supplied.

By Converter Type

• AC - DC Converter
• DC - DC Converter

By Output Power

• Up to 500 W
• 500-1,000 W
• 1,000 W-10 kW
• 10-75 kW
• 75-150 kW
• Above 150 kW

By Application

• Aerospace
• Chemical and Petrochemical Industry
• Food and Beverage
• Automotive
• Oil and Gas
• Other

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On July 10, 2023, Fuji Electric Co., Ltd. introduced a new addition to their line of high-capacity uninterruptible power supply systems (UPS), targeting the increasing demand for data centers. The new product offers a single-unit capacity of 2,400 kVA, making it one of the highest-capacity UPS systems available in the industry.
• In July 2023, Shanghai took a significant step towards ensuring a stable electricity supply during the summer months by introducing a virtual power plant. With an anticipated maximum electricity load of 38 million kilowatts for the summer season, Shanghai Electric Power implemented an inventive approach to address potential challenges in power supply.
• In January, 2023, Advanced Energy Industries, Inc., a global leader in precision power conversion, measurement and control solutions, introduced two new lines of AC-DC power supplies that boast industry-leading power densities. These new platforms, the SL Power NGB800 800 W and NGB1200 1200 W families, have been specifically designed to cater to critical medical and industrial equipment needs.

Why Purchase the Report?

• To visualize the global industrial power supply market segmentation based on converter type, output power, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of cement market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global industrial power supply market report would provide approximately 61 tables, 62 figures and 192 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies