Energy and Power

Multi Energy Systems Market is Expected to Reach USD 4,506.99 Billion by 2031

Jun 2024

Energy and Power

As per the report published by Kings Research, the global Multi Energy Systems Market was valued at USD 2,475.36 billion in 2022 and is projected to reach USD 4,506.99 billion by 2030, growing at a CAGR of 7.96% from 2023 to 2030.

The multi-energy systems market is experiencing rapid growth due to the increasing demand for integrated energy solutions that can optimize efficiency and reduce costs. This expansion is also driven by technological advancements, the rising need for flexible and sustainable energy infrastructure, and the surging focus on energy security. Companies are increasingly investing in multi-energy systems that can incorporate various sources of energy such as solar, wind, and battery storage to diversify their energy supply mix and reduce their reliance on traditional fossil fuels.

Moreover, by incorporating renewable energy sources, companies are managing their energy consumption and minimizing their environmental impact. These multi-energy systems provide a more reliable and efficient source of power, aiding in the reduction of carbon footprints to meet sustainability goals. Additionally, the advent of smart grid technology is driving product adoption across various industries. Driven by their benefits of cost savings and sustainability, the demand for multi-energy systems is expected to grow substantially in the coming years.  

Key Insights

  • Based on fuel type, the petroleum segment held the largest market share in 2022
  • Based on energy type, the electricity segment accounted for 48.21% of the segment’s share in 2022.
  • Based on application, the residential segment dominated the market in 2022.

General Electric Expanded its Solar and Battery Energy Storage Systems Manufacturing Capacity

June 2022: GE announced the tripling of its solar and battery energy storage Power Electronics Systems manufacturing capacity to 9 GW per annum by year end, due to the strong growth in backlog over the past few months and a robust demand outlook.

Growing Awareness of Energy Saving and Higher Efficiency of Multi Energy Systems to Boost Market Development

The multi energy system enhances energy efficiency while also reducing carbon emissions. In addition, it complements the advantages of energy sources, optimizes the grid structure, and provides proactive control and services by conserving energy.

Furthermore, the multi energy systems work on transforming the structure and efficiency of energy utilization, thereby increasing the consumption rates of oil, coal, and other traditional sources. Furthermore, the implementation of multi energy systems effectively improves the utilization of renewable energy sources and promotes the preservation of the environment. 

Rise in Adoption of Renewable and Green Energy to Drive Market Growth

The increasing pollution levels, which disrupt the environment, coupled with increased awareness about the benefits associated with green energy, are expected to increase the demand for green energy in the market.

In addition, the continued rise in carbon dioxide, and greenhouse gas emissions from fossil fuels such as oil, coal, and gas remains a significant factor contributing to global climate change. This, in turn, has enabled humans to reduce emissions by decreasing reliance on fossil fuels and exploring new alternative energy sources such as green and renewable energy, thus contributing to market growth.

The adoption of renewable and green energy solutions is notably high in countries such as China, India, among others, driven by substantial demand and utilization of sustainable energy sources within these regions. This trend reflects a significant shift towards environmentally conscious energy consumption patterns, aligning with global sustainability goals and national green energy initiatives. For instance, the Central Electricity Authority (CEA) of India also set a target of producing 50% of total electricity from non-fossil fuel sources by 2030 Thus, growth in application and usage of green energy across the globe increases its demand and drives the market growth.

North America to Dominate the Market due to Increased Need for Energy Security and Resilience

Based on region, the global multi energy system market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

In 2022, North America dominated the market, accounting for a valuation of USD 481.21 billion and registering a 34.78% share of the global value.  This growth is attributable to the increased awareness of the benefits associated with multi-energy systems such as energy saving, and high efficiency, among others. Also, multi-energy systems cut down on environmental harm, which attracts more customers and helps the market grow in the area.

Companies to Focus on Several Marketing Strategies in Order to Meet Rising Demand

The global multi energy systems market is fragmented with key players such as General Electric, Siemens Energy, Vestas Wind Systems, First Solar, ABB, Hitachi, Enel Green Power, Argus Solar Power, Global Power Corporation, and Evergreen Renewable Technologies., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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