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The advanced energy market size is forecast to increase by USD 41.09 billion, at a CAGR of 4.96% between 2022 and 2027.
The growth of the market depends on several factors, including increasing investments in clean energy technologies, innovations in advanced energy technologies, and growing government support for advanced energy. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing investments in clean energy technologies are notably driving the market growth, although factors such as growing demand for lack of standardization market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing investments in clean energy technologies are notably driving the market growth. Nearly half of the electricity consumed is provided to commercial and residential buildings across the U.S. One of the main electricity users is the residential sector. Similarly, in Europe, a large part of electricity is consumed for heating purposes in the residential sector. The construction industry is adopting multiple efficiency measures, including improved designs and materials that promote a healthy and productive environment, minimize the issues associated with GHG emissions, and reduce fossil fuel-based consumption. The concept of ZEBs is an efficient technology where the building generates its own power from renewable sources. To prevent leaks of heating and cooling, ZEBs are built and equipped with the use of specific materials like well-insulated building structures in order to ensure that construction efficiency is increased.
however, To generate the power required by buildings, renewable sources such as solar PVs, fuel cells, and energy storage technologies are used. The power required by buildings is generated using low-carbon energy systems, and the interior design mechanism of the building supports reducing the amount of power consumed. The major advantages of ZEBs are on-site renewable energy production and efficiency. To achieve a cleaner and greener future, ZEBs are using synergies between these two factors to produce emissions less energy. Therefore, these ZEBs help level the peak energy demand by providing clean energy back to the grid. The use of solar PV will increase as more ZEBs become available, which is forecast to fuel the market growth over the coming years.
The emergence of zero-energy buildings is a primary trend in the market. The residential sector is one of the major consumers of electricity. Similarly, in Europe, a large portion of the electricity is consumed for heating purposes in the residential sector. Several efficiency measures shall be implemented by the construction sector, e.g. improved designs and materials promoting health and productivity in an environmentally secure way, minimizing problems linked to greenhouse gas emissions, and reducing fossil fuel-based consumption. The concept of ZEBs is an energy-efficient technology in which the building obtains its energy using renewables.
The power needed by the buildings is generated from renewable sources such as solar PV, fuel cells, and energy storage technologies. Low-carbon energy systems are being used for power generation in buildings, and the structure's interior design mechanism is supporting a reduction of electricity consumption. Moreover, with the assistance of legislation and directives from governments, ZEB concepts are being put into practice in some countries. The increased adoption of ZEBs will proliferate the use of solar PV systems, which is expected to drive the growth of the market during the forecast period.
The lack of standardization is the major challenge faced by the market. As a result of the lack of standardization within the grid system, there is an increased gap between power systems' interoperability. A wide range of advanced systems and technologies, such as storage that is embedded in the main server, are part of smart grids. The deployment of systems that are interoperable has not yet been completed by utilities. Thus, the implementation of security standards within diverse networking systems is a serious challenge faced by utilities. Authorities can resolve this complexity by enforcing standardized security practices, which can be applied to utilities.
There are technologies that promise various levels of performance, security, cost, and development by adhering to different standards, such as the standards developing organizations, industry user group standards, and proprietary standards. The resulting divergence in standards results in a significant mismatch of system compatibilities that constitutes an obstacle to the deployment of advanced technology, thereby affecting the smooth and secure functioning of the Energy System. Thus, a lack of standardization is expected to hinder the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers advanced energy solutions for electrical energy through power plants.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the On-grid segment will be significant during the forecast period. The global market by application can be segmented into various categories, one of which is the on-grid segment. The advancement of on-grid technologies will primarily focus on coordination between Renewable Energy, efficient energy use, and the Smart Grid. The major driver for the growth of the on-grid segment is the growing adoption of the smart grid and the integration of various clean energy such as solar and wind and technologies, including storage systems.
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The On-grid segment shows a gradual increase in the market share of USD 89.56 billion in 2017 and continue to grow by 2021. The growth rate of the on-grid segment has been driven by lower costs for solar PV plants and high levels of Government support, which have made it more feasible to install solar PV systems in a public utility or residential sector. On-grid installation in the residential sector is also expected to drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 28% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The region held the major share of the market in 2022. The market in APAC will grow significantly during the forecast period. In 2020, the major leading countries in the region were China, Japan, India, Australia, and South Korea. The major growth of the market in APAC is due to financial incentive programs such as subsidies in China, India, and other countries in the region.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing substantial growth, driven by the increasing focus on renewable infrastructure and sustainable practices. Wind turbine manufacturing, a key component, contributes significantly to the electricity generation sector, complemented by solar energy, wind energy, hydropower, and biofuels. The demand for electric vehicles further propels the need for clean energy sources, emphasizing the importance of building efficiency and power efficiency.
The electricity delivery management sector plays a crucial role in optimizing power distribution, while demand response strategies enhance overall grid efficiency. A comprehensive Porter's Five Forces analysis identifies key players and stakeholders shaping the market landscape. As building construction evolves to incorporate renewable infrastructure, the market growth strategies emphasize innovation and collaboration among industry participants. With a focus on water and transportation efficiency, the market aims to drive sustainable practices and address the global demand for cleaner and more efficient energy solutions.
Advanced Energy Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.96% |
Market growth 2023-2027 |
USD 41.09 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.47 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 28% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., BYD Co. Ltd., Electricite de France SA, EOS Energy Enterprises Inc., General Electric Co., Hitachi Ltd., INEOS Group Holdings SA, LG Chem Ltd., LyondellBasell Industries Holdings B.V., NEC Corp., Panasonic Holdings Corp., S and C Electric Co., Samsung SDI Co. Ltd., Schneider Electric SE, Sensata Technologies Inc., Tesla Inc., The AES Corp., Toshiba Corp., TotalEnergies SE, and UCAP Power Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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