Companies In The Power Generation Market Are Adopting Digital Technologies To Improve Efficiency
The global power generation market size is expected to grow from $1,341.6 billion in 2018 to $1,537.5 billion in 2022 at an annual growth rate of 3.5%. The power generation market is segmented by type of energy source into hydroelectric power generation, fossil fuel electric power generation, nuclear electric power generation, solar electric power generation, wind electric power generation, geothermal electric power generation, biomass electric power generation, and other electric power generation.
Growth in the historic period resulted from increased consumption of electricity in both developed and developing countries, government initiatives for energy infrastructure, economic growth in emerging economies, and improvements in power generation technologies. Developments in such technology is expected to act as a significant driver for the power generation market in the forecast period (2018-22).
Digital technologies are increasingly making their way into the power generation industry. Digital technologies such as smart grids, sensors and smart meters provide companies and customers with an accurate and real-time account of power usage. These technologies help improve productivity, efficiency, safety, compliance and reliability in power generation, which results in improved asset management, planning, execution, and an improved level of service with high customer satisfaction.
The power generation industry is expected to see increased investment activity in the forecast period. Investments in micro grid technology, renewables and other advanced technologies are expected to drive the market.
To continue driving growth forward, companies in the power generation market are adopting digital technologies to optimize electricity production, IIoT (Industrial Internet of Things) to improve performance in power plants, investing in offering cost efficient nuclear power generation technologies to capitalize on their low-emission capabilities, and implementing carbon capture and storage (CCS) technologies in power generation operations to reduce carbon emissions. The increasing power consumption, government initiatives for energy infrastructure, emerging economies, technological improvements, and energy deregulation make the market attractive for new entrants. Power generation companies, to capitalize on the growing inclination towards green technologies, should market themselves as green companies and emphasize on the green techniques adopted by them in the power generation processes. Implementing such technologies using renewable energy sources for minimal impact on the environment is likely to increase companies’ presence in the renewable energy market as well.
Utilizing Industrial IoT in their operations to help streamline the operations and improve performance, and technologies that help reduce time and save money in power plant installations will allow companies to get a good return on investment.