Transparency Market Research has published a new report "Hybrid Power Systems Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024" to its report store.
Albany, NY -- (SBWIRE) -- 08/09/2016 -- The declining costs of hybrid power systems owing to the rise in the use of renewable energy sources are making them an economically attractive and eco-friendly solution. The lower environmental impact is making hybrid power systems a potential replacement to traditional diesel power generators. While pure diesel power generation for industrial consumers in remote locations leads to increasing operational costs, PV-diesel hybrid power systems offer liberation from escalating diesel prices and also reduce operating costs. PV-diesel systems also offer efficient electricity supply at minimal maintenance costs.
The opportunities around off-grid power generation are growing and thus, the hybrid power systems market is expected to be worth US$703.5 mn by 2024, suggests a report published by Transparency Market Research (TMR). The market was valued at US$411.7 mn in 2015 and is expected to expand at a 6.1% CAGR from 2016 to 2024. The unreliability and lack of grid connectivity in rural areas are behind the growth of the hybrid power systems market.
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Q. What are the approaches taken by companies to succeed in the hybrid power systems market?
Companies are investing in emerging economies as there exists an abundant scope for hybrid power systems in the rural and remote areas of Asia Pacific and the Middle East and Africa. A case in point would be Borg Energy. On January 2014, the company extensively invested in India, for rural electrification and engineering, procurement, and construction (EPC). Another strategy adopted by players in the market is product development and innovation. For instance, Saphon Energy has attracted international attention for its innovative bladeless wind energy convertor.
Q. Which are the key challenges faced by the hybrid power systems market?
The high initial investments, installation, and infrastructural costs are major factors deterring the adoption of hybrid power systems. The longer return on investments (ROI) period for these systems as compared to traditional sources of energy are expected to hamper the adoption rates of these systems.
The extended period of waiting to get product certifications can also dampen the growth of the market. For instance, Bergey Windpower Co. spent three years to get the required product certifications for its wind turbines.
Q. Which regions are expected to flourish in the hybrid power systems market?
Asia Pacific led in the past and is expected to retain its leading position in the coming years. Players in the region can avert transmission expenses by installing hybrid power systems as standalone mini-grids. The cost of transportation of fuel to remote areas is also reduced owing to the integration of renewable energy production with the electricity mix. The surge of utility-scale and commercial projects in Japan is also driving the growth of the hybrid power systems market in Asia Pacific.
The Middle East and Africa is another lucrative market for hybrid power systems. The mandatory implementation of rural electrification has served as a key driving factor for the growth of the market in the region. Additionally, massive funding for various hybrid power projects by the Asian Development Bank and World Bank has also supported the growth of the market in the MEA region.
An overall growth of the market is predicted across the globe as an increasing number of upcoming power projects will augment the demand for hybrid power systems.