CAGR: 7.4%Current Market Size: USD 670 MillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global hybrid power systems market is expected to grow from USD 670 million in 2022 to USD 1,186 million by 2030, at a CAGR of 7.4% during the Projection period 2023-2030. The growth of the hybrid power systems market is mainly driven by rising political pressure.
Hybrid power systems are power systems that are designed to harvest electricity from two or more energy sources. It is a low-cost, efficient, and dependable energy extraction technology. Power extraction from this source also results in lower emissions of hazardous gases. This implies that hybrid power systems are environmentally benign. The majority of hybrid power systems generate energy through solar or wind power. Hybrid power systems are the power extraction systems of the future. The use of loads, generators, converters, storage systems, and renewable energy sources in hybrid power systems results in a reduced carbon footprint. One of the primary motives for the development of this technology is the scarcity of fossil resources. Increasing energy consumption and supply as a result of urbanization, industrialization, modernization, and overall infrastructure development is offering lucrative growth prospects for the hybrid power systems market. The combustion of fossil fuels emits greenhouse gases, but hybrid power systems have a low carbon impact. This element will also play a significant role in the market growth in the future. Another key aspect driving demand for hybrid power systems is the desire for sustainable development.
Sample Request: - Global Hybrid Power Systems Market
Market Dynamics:
Drivers:
A major market driver is the ability of hybrid power systems to reduce pollution and carbon emissions. Another market driver is the reduction of fuel use in the power generation industry. The move towards more sustainable energy sources is a major driving force. China and the United States, for example, are at the forefront of using renewable energy resources in a sustainable manner. In various circumstances, leading industrialized countries to accept alternative energy sources such as wind, solar, and hybrid power solutions.
Restraints:
Several market problems obstruct market expansion. High component pricing and disparities in the adoption of Hybrid Power Systems are two of the major issues. While wealthy countries such as China and the United States have shifted to this system in recent years, many developing and underdeveloped countries still rely on large-scale Hybrid Power Systems. Parity will be attained in the future by resolving the high pricing of hybrid power system components.
Opportunities:
While the system is well-known in urban areas, market trends suggest that hybrid power solutions will be expanded to rural areas. The need for hybrid power solutions is growing more pressing in distant locations, where continuous electrical power delivery is required. This criterion can be used to expand the market's reach into new locations. Another option is to use cleaner fuels and engines that are less harmful to the environment. As more popular automobile manufacturers transition to hybrid engines, the market's revenue channels may expand.
Challenges:
The primary barrier that the Market faces is the high cost of the Hybrid Power Solutions components. The system's affordability is hampered by the high cost of the components. As a result, hybrid power solutions are becoming more affordable to small enterprises and individuals. This limits the market's growth prospects.
Segmentation Analysis:
The global hybrid power systems market has been segmented based on system type, power rating, end-user, and region.
By System Type
The system type segment is solar-wind-diesel, wind-diesel, solar-diesel, and others. The wind-diesel segment led the largest share of the hybrid power systems market with a market share of around 37.56% in 2022. The wind turbine and diesel generator are used to generate electricity in a wind-diesel system. The system minimizes fuel usage as well as operating costs. In places with high winds, these generators perform admirably. When there are moderate to low winds, the energy generated can be offset by diesel generators, ensuring an intermittent supply of energy.
By Power Rating
The power rating segment is above 100 kW, 11 kW-100 kW, and up to 10 kW. The up to 10 kW segment led the largest share of the hybrid power systems market with a market share of around 41.56% in 2022. Depending on the power generation circumstances, hybrid power solutions can create up to 10kW of power solutions to feed the grid. These solutions do not necessitate the purchase of extra monitoring equipment. It also streamlines system operation and is more cost-effective than diesel generators. The device is suited for usage in homes because it can be installed with common household items.
By End-User
The end-user segment is residential, telecommunication, commercial, and others. The residential segment led the largest share of the hybrid power systems market with a market share of around 45.67% in 2022. In general, the load curve for residential applications is higher in the evening and at noon. Furthermore, energy consumption in rural areas is limited at night, resulting in a low load compared to electricity demand in the morning. Due to limitations such as high fuel consumption and low efficiency, diesel generators alone are unable to meet demand in rural areas, whereas hybrid power solutions provide the opportunity to supply load overnight, which is expected to contribute positively to demand from the residential sector in rural areas.
Global Hybrid Power Systems Market- Sales Analysis.
The sale of the hybrid power systems market expanded at a CAGR of 6.4% from 2016 to 2022.
Hybrid power solutions are a rising source of energy that is suited for off-grid or off-the-grid locations, isolated grids, and islands where grid electricity is not a cost-effective or practical option. Hybrid power systems combine renewable energy sources (wind and sun) with diesel generators to provide efficient and reliable power delivery. Residential, commercial, telecommunications, mining, and oil & gas are all industries that use hybrid power solutions. As a result of increased global awareness of renewable energy sources, many businesses in the power generation industry are turning their focus to renewable energy sources such as wind, solar, fuel cells, and water. The market for hybrid power systems has a promising future as a result of this feature.
The hybrid power solutions market is being propelled by factors such as the rising global need for reliable electricity as a result of industrial expansion and the construction of commercial infrastructure. Additionally, declining solar power generation costs are likely to boost the hybrid power generation business. Yet, many countries continue to rely on old energy-producing methods due to demographic concerns. This aspect is projected to hamper market growth during the Projection period.
Thus, owing to the aforementioned factors, the global hybrid power systems market is expected to grow at a CAGR of 7.4% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the hybrid power systems market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region dominated the hybrid power systems market and held a 39.2% share of the market revenue in 2022.
Global Hybrid Power Systems Market- Country Analysis:
Germany's hybrid power systems market size was valued at USD 46.6 million in 2022 and is expected to reach USD 83.1 million by 2030, at a CAGR of 7.5% from 2023 to 2030. Because of the exceptional qualities and characteristics linked with carbon emission reduction, hybrid solutions are becoming more popular in the region. Furthermore, these solutions use less fuel while producing maximum power.
China’s hybrid power systems market size was valued at USD 50.5 million in 2022 and is expected to reach USD 91.4 million by 2030, at a CAGR of 7.7% from 2023 to 2030. This is due to the region's growing renewable energy and business developments. China is the region's largest contributor. Government assistance is also boosting market expansion in this region.
India's hybrid power systems market size was valued at USD 38.86 million in 2022 and is expected to reach USD 69.8 million by 2030, at a CAGR of 7.6% from 2023 to 2030. The growing government support for the deployment of standalone hybrid systems in countries like as India would aid the expansion of the APAC hybrid power systems market during the Projection period.
Key Industry Players Analysis:
To increase their market position in the global hybrid power systems market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.4% |
Market Size |
670 million in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By System Type, By Power Rating, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Delta Electronics Inc., Siemens AG, elgris UG, General Electric Co., Vertiv Holdings Co., Huawei Investment and Holding Co. Ltd., SMA Solar Technology AG, MAN Energy Solutions SE, Schneider Electric SE, and Shanghai Ghrepower Green Energy Co. Ltd. |
By System Type |
|
By Power Rating |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Hybrid Power Systems Market By System Type:
Global Hybrid Power Systems Market By Power Rating:
Global Hybrid Power Systems Market By End-User:
Global Hybrid Power Systems Market By Region:
Global hybrid power systems market is expected to reach USD 1,186 million by 2030.
The hybrid power systems market is projected to have a CAGR of 7.4%.
Based on the system type, the hybrid power systems market is segmented into solar-wind-diesel, wind-diesel, solar-diesel, and others.
A major market driver is the ability of hybrid power systems to reduce pollution and carbon emissions. Another market driver is the reduction of fuel use in the power generation industry. The move towards more sustainable energy sources is a major driving force.
The segments covered in the hybrid power systems market are; system type, power rating, end-user, and regions.
Leading market players active in the global hybrid power systems market are Delta Electronics Inc., Siemens AG, elgris UG, General Electric Co., Vertiv Holdings Co., Huawei Investment and Holding Co. Ltd., SMA Solar Technology AG, MAN Energy Solutions SE, Schneider Electric SE, Shanghai Ghrepower Green Energy Co. Ltd. among others.
Political Factors- Government assistance for industry digitization presents an opportunity for General Electric to grow its business. This political external factor raises demand for digital technology, including some of GE's digital industrial technologies. This aspect is related to General Electric's mission and vision statements, which promote the corporation's goal of becoming the world's leading digital industrial enterprise. Government assistance for the transition to renewable energy, on the other hand, is a macro-environmental element that affects GE's Renewable Energy and Oil & Gas operational segments. This external issue, for example, poses a threat to General Electric's Oil & Gas sector, which is dependent on the expansion of the oil market.
Economical Factors- General Electric's revenue will rise. For example, the company's performance can be improved by expanding its activities in Asian regions. Increasing disposable incomes, on the other hand, is an economic external element that encourages growth in General Electric's business. An external aspect, for example, is related to customers' improved ability to purchase GE consumer appliances and lighting items. In contrast, this external analysis of General Electric points to the negative effects of increased global trade on developed-country corporations. Because it raises competitive rivalry in the conglomerate's industry contexts, such an external issue is a strategic management worry.
Social Factor- The growing popularity of environmentally friendly lifestyles creates opportunities in General Electric Company's distant or macro-environment. The company's Renewable Energy operating sector, for example, benefits from the increased demand caused by this external influence. This external research also recognizes the growing acceptance of mobile technology as a macroenvironmental issue that gives GE economic opportunities, such as technological innovation. The external factor, for example, raises demand for mobile-accessible online industrial services from corporations such as General Electric. Furthermore, growing public support for renewable energy threatens the company's oil and gas sector while creating chances for the GE Renewable Energy operating segment. The influence of these sociocultural external elements on employees' decisions to achieve company goals is reflected in General Electric's organizational culture.
Technological Factors- Given General Electric's industry environment, increasing digital technology adoption across all industries provides an opportunity. This technical external element increases the likelihood that industries will pay for GE's products. Digitalization in healthcare organizations, for example, makes it easier for a company to enter the market for digital healthcare equipment and services. This element is related to General Electric Company's business strengths in research and development, as determined in the SWOT analysis. Furthermore, the growing popularity of online mobile services encourages the availability of mobile-accessible services in industries where GE operates. This macro-environmental aspect presents an opportunity for General Electric's target clients to utilize mobile-accessible online industrial services. For example, the corporation might improve its current services to make them more mobile-friendly.
Environmental Factors- In this PESTEL/PESTLE research, limited oil reserves are identified as a macro-environmental constraint limiting the business performance of General Electric Company's Oil and Gas operational segment. This threat forces economies to seek alternatives. As a result, it offers up the new business potential for GE's Renewable Energy segment's strategic expansion. Furthermore, this external research demonstrates that the growing availability of recyclable materials presents an ecological opportunity in the company's remote or macro-environment. Aligning General Electric's corporate social responsibility plan, for example, with this external element can strengthen its brand image and the conglomerate's business leadership in the sector. On the other side, rising global energy consumption creates prospects for GE's renewable energy sector.
Legal Factors- The expanding scope of intellectual property protection legislation is an external factor that strengthens General Electric's legal protection against intellectual property theft in the industry environment. This is a big possibility, given that the conglomerate has one of the world's highest numbers of company-owned patents. In this GE external analysis, the rising complexity of waste disposal rules is viewed as both a threat and an opportunity. The macro-environmental element, for example, poses a threat to General Electric by necessitating costly modifications in corporate processes. The same element, however, presents an opportunity for the organization to increase its sustainability through appropriate changes in its activities.
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