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The mobile power plant market size is estimated to increase by USD 406.85 million and grow at a CAGR of 4.65% between 2022 and 2027. The expansion of the market is influenced by various factors, including the rising need for emergency power during natural calamities, escalating infrastructural developments, and the growing demand from the mining and oil and gas sectors. Challenges arise from heightened investments required in electricity networks to hasten energy access, elevated project implementation costs, and the increasing uptake of energy storage systems like traditional batteries and flow batteries.
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The natural gas segment is estimated to witness significant growth during the forecast period. Natural gas is an affordable and effective fuel among non-renewable resources for power generation, as fuel. In terms of efficiency, gas is superior to other fossil fuels as well as requiring lower operating costs. According to the US Energy Information Administration (EIA), the capacity utilization percentage of natural gas-fired combined-cycle was highest among the other fossil fuels in 2018.
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The low cost of gas has resulted in significantly reduced operational costs, which have led to significant savings on the part of the organization benefiting from this service. In major cities, where gas is supplied by pipelines, supplies are easily available. Hence, fuel storage in large amounts is not required in gas generators in cities with a sufficient supply of natural gas. The above-mentioned factors have increased the use of gas generators in the systems. This is expected to drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 38% 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.
North America is another major contributor to the global market and is expected to maintain its market share during the forecast period. The development of the region's renewable energy market is driven by a variety of government regulations and policies focused on reducing greenhouse gas emissions, which results in substantial investments that are expected to drive demand. Thus, the factors are significantly driving the growth of the market in North America.
The market is experiencing a surge in demand driven by several key market drivers and trends. Firstly, the increasing need for electricity in remote areas and during emergency situations is fueling the adoption of mobile power plants. These plants, equipped with thermal electric type power plants and electric generators, offer a versatile solution for electric power generation in regions lacking traditional infrastructure. Moreover, the growing emphasis on renewable energy integration is propelling the market forward. Mobile power plants are increasingly being equipped with solar power grids to harness renewable energy sources, contributing to a sustainable energy landscape. This trend aligns with global efforts to reduce carbon emissions and combat climate change.
Additionally, the transportation sector, including big vehicles, trucks, tracked vehicles, and trailers, plays a crucial role in driving the mobile power plant market. These vehicles facilitate the transportation and deployment of mobile power plants to various locations, including construction sites, remote areas, and disaster-stricken regions. Furthermore, advancements in self-propelled chassis and railroad flatcars enhance mobility and accessibility, expanding the reach of mobile power plants. Alongside these developments, the sales channel for mobile power plants is evolving, with manufacturers exploring diverse avenues to market their products, catering to the diverse needs of industries, construction work, and telecom sectors. This combination of factors presents a significant opportunity for stakeholders in the mobile power plant market to capitalize on the increasing demand for reliable and sustainable electricity solutions.
The development of floating offshore wind is a primary trend in the market. Over the past 15 years, offshore wind power generation has evolved from a new technology to one of the most competitive alternative energy sources, helping to combat climate change. One of the drawbacks of offshore wind is the high capital requirement. The size of the wind turbines, as well as the type of foundations that are needed to be installed and built, is determined by water depth and seabed conditions. This, in turn, influences the CAPEX for offshore wind projects.
However, deep-sea areas provide greater potential for generating higher-capacity wind. It may be possible to reduce costs by using floats of wind energy where the structure is equipped with suction anchors. Floating offshore wind has moved from the R&D stage to mainstream applications, and, like onshore wind, the cost is expected to reduce. Apart from these factors, it is expected that more floating wind farms will develop over the forecast period as they can be floated to take advantage of areas with high wind speeds. All these factors are positively influencing the growth of the global market.
The market is experiencing a surge in demand driven primarily by the escalating need for emergency power supply during natural disasters. With the intensifying impact of climate change, there has been a notable increase in the frequency and severity of unpredictable disasters and weather events. Instances like the Puerto Rico earthquake in January 2020 and the widespread blackout affecting multiple Venezuelan states in March 2019 have underscored the vulnerability of centralized network architecture, prompting the exploration of alternative backup solutions for uninterrupted power supply. In such crises, mobile power generation systems emerge as indispensable, offering swift deployment of emergency power to critical facilities and mitigating the disruptive effects of grid failures.
These natural disasters have propelled the demand for rental power solutions from market vendors, highlighting the crucial role of mobile power plants in disaster recovery efforts. Vendors are witnessing heightened requests for power equipment such as fuel tanks, load banks, cables, and transformers, which are integral components of mobile power plants. To meet this demand, vendors are offering integrated energy solutions encompassing a range of equipment packages. This surge in demand for rental power solutions and associated equipment is expected to drive substantial growth in the mobile power plant market during the forecast period as industries and regions prioritize resilience and preparedness in the face of increasingly frequent and severe natural disasters.
The increasing investment in electricity networks for accelerating energy access is a major challenge faced in the market. Due to insufficient network infrastructure, a majority of the world's population does not have access to electricity. To speed up their programs of electrification, major government investments would be needed to make sure that grids are accessible to the world's population. Currently, one of the ways in which power supply is being achieved is using alternative methods such as microgrids, power barges, mini diesel grids, and other forms.
However, while they help meet the immediate need, urbanization, and industrialization create the need for developing the power network as a long-term solution. Billions of dollars are being spent worldwide in the development of networks for power distribution, with a view to increasing global electrification. Thus, as networks develop and power plants start generating electricity, the demand for alternative solutions is expected to reduce, thereby negatively impacting the growth of the global market during the forecast period.
The market research 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.
ATLAS Corp. - The company offers mobile power plants such as TM2500TM GEN8 Mobile Gas Turbine that produce up to 35 megawatts of power and are quick to dispatch, achieving full power in less than 10 minutes.
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth, driven by the need for alternative power supply solutions in remote regions and rural areas. With a focus on the expansion of renewable energy integration, manufacturers are developing biofuel and solar-powered units. These portable power plants cater to emergency purposes and construction activities alike, utilizing diesel fuel or natural gas/LNG. Equipped with automation and signaling systems, these units ensure efficient electric power generation in limited energy capacity scenarios. The market's global focus emphasizes reliable energy in challenging environments, enhancing rural electrification, and supporting railway projects.
In a world with a burgeoning population surpassing billions of people, the demand for reliable energy sources is paramount. Mobile power plants, fueled by biofuels or natural gas, offer alternative power supply solutions, especially in remote areas where traditional infrastructure is lacking. Equipped with auxiliary equipment and electric generators, these units cater to industrial use and construction work, even in the face of natural hazards. Their versatility extends to exploration activities and road and railway projects facilitated by big vehicles and tracked vehicles. With solar panels and inverters, they contribute to solar power grids and remote region electrification, mitigating the reliance on oil & gas. Through telecom and cable networks, these plants reach distant locales, ensuring reliable power with a control console and power modelers and controllers.
Mobile Power Plant Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.65% |
Market growth 2023-2027 |
USD 406.85 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.35 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Electric Power Company Inc., ATLAS Corp., Caterpillar Inc., Dynamis Power Solutions, FERROPLAN OY, General Electric Co., Kawasaki Heavy Industries Ltd., Korindo Energy, MAPNA Group Co., Meidensha Corp., Mitsubishi Heavy Industries Ltd., MTU Aero Engines AG, Mytilineos S.A., Porsche Automobil Holding SE, Siemens AG, Turbine Technology Services Corp., and EthosEnergy Group Ltd. |
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 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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