Originally published on Technavio:Forecast and Analysis 2024-2028
Generation Market Dynamics, Trends, and Challenges
Summary:
The India Captive Power Generation Market is poised for significant expansion, with a projected increase of USD 7.81 billion at a robust CAGR of 7.6% from 2023 to 2028. This report offers comprehensive insights into market dynamics, trends, and challenges, encompassing historic data from 2018-2022. The market growth analysis report delves into factors such as the growing adoption of cogeneration plants, evolving project regulations, and the rising emphasis on renewable energy sources.
Market Overview:
The metals and minerals segment emerges as the fastest-growing sector during the forecast period, having been the largest segment valued at USD 5.36 billion in 2018. The report provides an in-depth analysis of high industrial power tariffs, the shift towards renewable energy sources, and challenges related to coal shortage for captive power generation.
Market Trends:
A prominent trend shaping market growth is the shift towards renewable energy sources. India is increasingly prioritizing renewable energy for power generation, driven by competitive prices compared to traditional energy sources. The report projects a substantial investment of over USD 16 billion in the Indian renewable energy sector by the end of 2024. The market is significantly influenced by this shift, resulting in the establishment of renewable energy-based plants, meeting stringent emission standards and fostering sustainability.
Market Largest-Growing Segments:
Metals and Minerals Analysis:
The metals and minerals segment, reliant on significant energy consumption for extraction and production processes, holds a pivotal role in captive power generation. Major contributors to India’s overall generation capacity, such as Essar Global Fund Ltd., Jindal Steel and Power Ltd., and Tata Power Co. Ltd., dominate this segment. The demand for metals and minerals, including energy-intensive processes like aluminum smelting, fuels the growth of captive power generation.
Market Dynamics:
Key Drivers:
High industrial power tariffs stand out as a primary driver, influencing market growth. These tariffs create challenges for industries reliant on electricity, intensifying competition between domestic and international manufacturers. Industries with energy-extensive processes, such as metal smelting and steel manufacturing, face increased operational costs due to high industrial power tariffs. As a response, companies are turning to captive power generation to reduce dependence on the grid.
Significance Challenges:
A critical challenge is the shortage of coal for captive power generation. Government prioritization of coal supply for power-producing utilities results in scarcity for plant owners. Coal scarcity negatively impacts the operations of power plant operators, affecting the production of steel, cement, aluminum, and fertilizers. The shortage hampers manufacturing facilities, posing a threat to operational capacity.
Customer Landscape:
The report includes an adoption lifecycle analysis, covering stages from innovators to laggards. It assesses adoption rates across regions based on penetration and provides insights into key purchase criteria and price sensitivity drivers to aid companies in evaluating growth strategies.
Major Market Companies:
Key companies are employing diverse strategies such as alliances, partnerships, mergers, acquisitions, expansions, and product/service launches to fortify their market presence.
Aditya Birla Management Corp. Pvt. Ltd.: Known for its Utkal alumina refinery and captive Baphlimali bauxite mines, the company boasts a 90MW captive co-generation power plant and a 5MW solar power plant.
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The report offers detailed competitive landscape analyses of 20 market companies, facilitating a qualitative and quantitative understanding of their strengths and weaknesses. Companies are categorized based on focus and dominance for a comprehensive evaluation.
The market report provides revenue-based growth forecasts at global, regional, and country levels. It analyzes trends and growth opportunities from 2018 to 2028, offering stakeholders valuable insights into market dynamics.
For a detailed exploration of the India Captive Power Generation Market’s trajectory and strategic recommendations, download the complete report.
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Technavio Research
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