Global Energy Contract Manufacturing Market Size, Share & Trends Analysis Report By End-User (Commercial and Government), By Services (Manufacturing, Design & Engineering, Assembly, Testing & Inspection, and Maintenance), By Source Type (Renewable Energy Sources and Non-Renewable Energy Sources) Forecast Period 2022-2028
The global energy contract manufacturing market is growing at a considerable CAGR of 6.8% during the forecast period (2022-2028). The factors that augment the growth of the market include a rise in consumption of renewable energy, an increase in oil & gas production across the globe, high use in automobile industries, and testing and inception of new technologies. The government of several countries works to meet their targeted energy installations and provide new energy projects which increases the manufacturing of several components which adds value to the market growth. For instance, by 2030, Italian’s National Energy Strategy aims to boost the share of wind and solar power in total final energy consumption. As per the National, Energy and Climate Plan presented to the European Commission in August 2019, solar capacity is expected to expand from 21 gigawatts (GW) to 50.9 GW by 2030, and wind capacity is expected to grow at a similar rate from 11 GW to 18.4 GW.
Moreover, with the help of contract manufacturing, the companies can save costs, increase flexibility within the firm, reduce operational and production cost costs, reduce fixed capital investments, and engages in increasing technical insights. However, government regulations regarding sustainable development, high initial investments, and lack of space requirements for heavy projects are some of the constraints that challenge the growth of the market in the forecast period. Conversely, rising demand for energy-efficient technologies and innovation in new technologies to meet consumer needs are the opportunities estimated for the market players. Moreover, targets set by the government to meet the pollution-free environment leading to more efficient energy equipment are also an opportunity estimated for the market players.
Impact of COVID-19 on the Global Energy contract manufacturing Market
The global energy contract manufacturing market is hardly hit by the COVID-19 pandemic since December 2019. The outbreak of COVID-19 in the major economies has disrupted the manufacturing and supply of energy manufacturing products across the globe which resulted in the decrease of market share. This was mainly due to the lockdowns imposed by the governments of several countries due to which many industries were not being operated and hence the pandemic created technical challenges for the industries. Moreover, the lack of workforce availability and logistics also hindered the growth of the market. In addition to this, according to the reports of the International Energy Agency (IEA), the pandemic resulted in a decrease in demand for weekly electricity by 10-35% across affected regions.
The global energy contract manufacturing market is segmented based on end-user, services, and source types. Based on the end-user segment, the market is segmented into commercial and government. Based on the services segment, the market is segmented into manufacturing, design & engineering, assembly, testing & inspection, and maintenance. Based on the source type segment, the market is segmented into renewable energy sources and non-renewable energy sources. Further, based on the renewable energy sources segment, the market is segmented into solar, geothermal, wind, hydropower, and bio-energy. Further, based on the non-renewable energy sources segment, the market is bifurcated into coal, natural gas, nuclear energy, and petroleum.
Global Energy Contract Manufacturing Market Share by Sources Type, 2020 (%)
Global Energy Contract Manufacturing Market Share by Sources Type
Renewable Energy Sources Segment to Hold a Lucrative Share in the Global Energy Contract Manufacturing market
Amongst the source type segment of the global energy contract manufacturing market, the renewable energy sources segment is projected to grow at a substantial rate over the forecast period. Among these, solar energy accounted for one of the largest shares in the renewable energy sources segment in 2020. The major factor that augments the growth of solar energy includes, government initiatives to store high solar energy through solar panels by huge installations. Moreover, the increase in use by the commercial sector also fuels the growth of the solar energy market as many companies are engaged in adopting solar panels instead of wind turbines due to space requirements, low cost of solar panels, and high energy.
The energy contract manufacturing market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America (the US and Canada), Europe (Germany, Spain, Italy, France, the UK, and the Rest of Europe), Asia-Pacific (India, China, Japan South Korea, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). Europe and North America are estimated to have a significant share in the market owing availability of a highly-skilled workforce for the development of new technologies, and the presence of major market players in the region.
Energy contract manufacturing Market, by Region 2022-2028
Energy contract manufacturing Market, by Region
Asia-Pacific is projected to highest Contributor to the growth of the Global Energy Contract Manufacturing market
Asia-Pacific is anticipated to be the fastest-growing region in the global energy contract manufacturing market. In the region, China, South Korea, Japan, Singapore, and India are showing rapid progress. Asia-Pacific region is estimated to have one of the largest shares in this market. An increase in electricity demand in emerging economies like India and China due to industrialization and government initiatives to focus on renewable energy sources are some of the factors that drive the growth of the energy contract manufacturing market in the Asia-Pacific region. For instance, China’s target is of producing 110 GW of solar energy by 2022, and India’s target is of producing 100 GW of solar energy.
Market Player Outlook
The key players of the global energy contract manufacturing market are Hyundai Heavy Industries Co., Ltd., General Electric Co., Eni S.p.A., Marubeni Corp., ABB Ltd., Engie SA, and Mitsubishi Heavy Industries, Ltd, among others. These key manufacturers are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships and collaborations, and many others in order to thrive in a competitive environment. For instance, in January 2021, Eni gas e luce a wholly-owned company of Eni SpA announced the acquisition of Aldro Energía. The company aims to expand its business in the Iberian energy market. Aldro Energía operated in the market for the sale of electricity, gas, and energy services to residential customers, small and medium-sized businesses, and big companies.
The Report Covers
- Market value data analysis of 2020 and forecast to 2027.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global energy contract manufacturing market based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where in the market.
Table of Contents
- Current Industry Analysis and Growth Potential Outlook
- Impact of COVID-19 on the Global Energy Contract Manufacturing Industry
- Recovery Scenario of Global Energy Contract Manufacturing Industry
1.2. Market Breakdown
1.2.1. By Segments
1.2.2. By Geography
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
3.1.2. Financial Analysis
3.1.3. SWOT Analysis
3.1.4. Recent Developments
3.2. Key Strategy Analysis
3.3. Impact of COVID-19 on Key Players
5.2. Global Energy Contract Manufacturing Market by Services
5.2.2. Design & Engineering
5.2.4. Testing & Inspection
5.3. Global Energy Contract Manufacturing Market by Source Type
5.3.1. Renewable Energy Sources
5.3.2. Non-Renewable Energy Sources
6.1.1. United States
6.2.6. Rest of Europe
6.3.4. South Korea
6.3.5. Rest of Asia-Pacific
6.4. Rest of the World
7.2. B&W Energy Services.
7.3. Black & Veatch Holding Co.
7.4. Bladt Industries A/S
7.5. Bruce Power Limited Ltd.Partnership
7.6. Edison S.p.A.
7.7. Engie SA
7.8. Eni S.p.A.
7.9. First Solar, Inc.
7.10. Flexenergy, Inc.
7.11. General Electric Co.
7.12. Hyundai Heavy Industries Co., Ltd.
7.13. Jabil, Inc.
7.14. Marubeni Corp.
7.15. Mitsubishi Heavy Industries, Ltd.
7.16. Ontario Power Generation, Inc.
7.17. PJSC (Public Joint Stock Co.)Gazprom
7.18. Sinopec Group
7.19. SoEnergy, Inc.
7.20. SunPower Corp.
A selection of companies mentioned in this report includes:
- ABB Ltd.
- B&W Energy Services.
- Black & Veatch Holding Co.
- Bladt Industries A/S
- Bruce Power Limited Ltd.Partnership
- Edison S.p.A.
- Engie SA
- Eni S.p.A.
- First Solar, Inc.
- Flexenergy, Inc.
- General Electric Co.
- Hyundai Heavy Industries Co., Ltd.
- Jabil, Inc.
- Marubeni Corp.
- Mitsubishi Heavy Industries, Ltd.
- Ontario Power Generation, Inc.
- PJSC (Public Joint Stock Co.)Gazprom
- Sinopec Group
- SoEnergy, Inc.
- SunPower Corp.