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Nuvera Fuel Cells Selected for Funding by the U.S. DOE for Manufacturing Next-Gen Fuel Cell Stacks

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Global Trade Daily, Technology, United states news

Nuvera Fuel Cells Selected for Funding by the U.S. DOE for Manufacturing Next-Gen Fuel Cell Stacks

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Nuvera Fuel Cells, a prominent player in fuel cell power solutions, has secured a significant boost with its inclusion in the latest round of funding announced by the U.S. Department of Energy (DOE). Under the Bipartisan Infrastructure Law (BIL), Nuvera has been earmarked for a portion of the $750 million allocated to 52 projects supporting the national clean hydrogen strategy.

The DOE has selected Nuvera’s project, which requests $30 million in federal funds, aimed at developing advanced manufacturing processes for its next-generation fuel cell stack technology. Upon final approval, Nuvera intends to establish high-volume manufacturing capabilities for its innovative fuel cell stacks tailored for heavy-duty vehicle applications.

The proposed automated production system, to be showcased at Nuvera’s headquarters in Billerica, Massachusetts, anticipates an impressive capacity of over 2,000 fuel cell stacks per year, with scalability towards the DOE’s ambitious target of 20,000 stacks annually.

Neil Gillen, Nuvera’s chief operations officer, expressed confidence in their ability to deliver cost-effective, scalable solutions crucial for driving fuel cell adoption in the heavy-duty vehicle market. Gus Block, Nuvera’s corporate development director, extended gratitude to the DOE for selecting their project, acknowledging the pivotal role of federal support in making clean hydrogen more accessible and affordable.

With over three decades of expertise in hydrogen fuel cell technology, Nuvera is poised to significantly contribute to the U.S. National Clean Hydrogen Strategy and Roadmap. Leveraging their ninth-generation stack technology, Nuvera aims to accelerate the adoption of fuel cell power systems across various sectors, including vehicle, equipment, maritime, and rail, crucial for decarbonizing challenging transportation segments.

Federal funding not only facilitates faster market entry for Nuvera’s fuel cell stacks but also ensures cost-effectiveness, vital for widespread adoption. Beyond technological prowess, Nuvera actively supports the federal Justice40 initiative, aligning with the goal of directing 40 percent of clean transportation investments towards benefiting disadvantaged communities.

The project underscores Nuvera’s commitment to workforce development, supplier diversity, and community outreach, all pivotal for advancing clean transportation objectives. With this substantial DOE backing, Nuvera is poised to lead the charge in revolutionizing fuel cell manufacturing and advancing clean hydrogen technology towards a sustainable future.

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Global Trade Daily

Top Import Markets for LPG

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1. China – $20.2 Billion USD

China leads the way as the world’s largest importer of LPG, with a total import value of $20.2 billion in 2023. The country’s high demand for LPG is driven by its rapidly growing economy and expanding industrial sector.

2. India – $10.9 Billion USD

India comes in second place with an import value of $10.9 billion in 2023. The country’s strong demand for LPG is due to its large population and increasing use of LPG for cooking and heating purposes.

3. South Korea – $5.9 Billion USD

South Korea is the third largest importer of LPG, with an import value of $5.9 billion in 2023. The country relies heavily on imported LPG to meet its energy needs, particularly in the industrial sector.

4. Japan – $5.7 Billion USD

Japan is another major importer of LPG, with a total import value of $5.7 billion in 2023. The country’s high demand for LPG is driven by its need for energy sources to power its industrial and residential sectors.

5. Indonesia – $4.5 Billion USD

Indonesia ranks fifth in terms of LPG imports, with a total import value of $4.5 billion in 2023. The country’s increasing population and expanding economy have led to a growing demand for LPG as an energy source.

6. United States – $2.7 Billion USD

The United States is the sixth largest importer of LPG, with an import value of $2.7 billion in 2023. The country’s strong demand for LPG is driven by its use in the industrial, residential, and transportation sectors.

7. Turkey – $2.2 Billion USD

Turkey ranks seventh in terms of LPG imports, with a total import value of $2.2 billion in 2023. The country’s increasing urbanization and industrialization have led to a growing demand for LPG as a reliable energy source.

8. Mexico – $2.1 Billion USD

Mexico is the eighth largest importer of LPG, with an import value of $2.1 billion in 2023. The country’s strong demand for LPG is driven by its use in the residential, commercial, and transportation sectors.

9. Netherlands – $2.1 Billion USD

The Netherlands ranks ninth in terms of LPG imports, with a total import value of $2.1 billion in 2023. The country’s strategic location as a hub for energy imports has made it a key player in the global LPG market.

10. Belgium – $2.1 Billion USD

Belgium rounds out the top-10 import markets for LPG, with an import value of $2.1 billion in 2023. The country’s strong demand for LPG is driven by its use in the residential, commercial, and industrial sectors.

Overall, these top-10 countries play a crucial role in the global LPG market as major importers of this versatile energy source. As the world’s demand for LPG continues to rise, these import markets are expected to remain key players in the industry for years to come.

Source: IndexBox Market Intelligence Platform

 

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Global Trade Daily

The Growing Green Hydrogen Market: A Sustainable Energy Revolution

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Introduction 

In the search for a sustainable and clean energy future, green hydrogen has emerged as a frontrunner. Green hydrogen is poised to be pivotal in reducing carbon emissions and transitioning to a low-carbon energy landscape. Here we explore the burgeoning green hydrogen market, its potential, challenges, and the promise it holds for a greener world.

What is Green Hydrogen? How is it formed? 

Green Hydrogen is a hydrogen gas produced through a process known as electrolysis, using renewable energy sources like wind or solar power. Unlike conventional hydrogen production methods, which often rely on fossil fuels, green hydrogen is considered environmentally friendly and sustainable as it is produced using clean, renewable energy. 

The process of green hydrogen production involves splitting water (H2O) into its two constituent elements, hydrogen (H2) and Oxygen(O2). Electrolysis takes place within an electrolyzer, which requires electricity to drive the chemical reaction. When this electricity originates from renewable sources like wind or solar, the hydrogen produced is termed “green” because it has minimal impact on the environment and does not generate greenhouse gas emissions. 

Why is it necessary?

Green Hydrogen is necessary to address the pressing challenges of climate change and transition to a sustainable, low–carbon energy future. As the world grapples with the devastating effects of greenhouse gas emissions, green hydrogen offers a vital solution for several prospects:

First and foremost, green hydropower is essential in the battle against climate change. It provides a means to decarbonize sectors that are traditionally hard to electrify, such as heavy industry and long-haul transportation. By replacing fossil fuels with green hydrogen in these applications, we can significantly reduce carbon emissions, helping to limit global warming and its catastrophic consequences. 

Moreover, green hydrogen supports the integration of renewable energy sources like wind and solar power. It acts as an energy carrier that can store excess renewable energy, addressing the intermittency of these sources and ensuring a stable and reliable energy supply. Additionally, green hydrogen enhances energy security by Reducing reliance on fossil fuels, promoting energy independence, and fostering local production. It also drives technological innovation and economic growth, creating new job opportunities and promoting a sustainable energy ecosystem.

Applications:

  • Transportation– Fuel cell vehicles powered by green hydrogen offer a clean alternative to traditional gasoline-powered vehicles.
  • Industry– Green Hydrogen can be used in industrial processes, such as steel and ammonia production.
  • Energy Storage – Green Hydrogen can store excess renewable energy and release it when needed, supporting grid stability.
  • Heating– Hydrogen can be used for heating in residential and commercial buildings.

Market dynamics:

The size of the green hydrogen market is anticipated to exceed USD 515.66 billion by the end of 2025, expanding at a CAGR of 61% between 2023 and 2035. By 2022, the green hydrogen market was worth about USD 1.7 billion. The market is likely to develop as a result of electrolyzers’ increasing capacity, which is predicted to increase the generation of green hydrogen. By 2030, installed electrolyzer output should reach 134–240 GW, double that of the previous year’s predictions. The yearly production capacity of electrolyzers has increased to around 8 GW, nearly double from the previous year. Moreover, by 2030, home consumption is likely to have the largest electrolysis (green hydrogen generation) capacity in the world, at about 60 GW/5 million tons. 

Key factors aiding the market’s growth:

  • Clean Energy source– Green hydrogen is produced using renewable energy sources like wind and solar power. This means it generates minimal to no greenhouse gas emissions during its production, making it an environmentally friendly and sustainable energy source.
  • Versatility– Green hydrogen has a wide range of applications across various sectors. It can be used in transportation to power fuel cell vehicles, in the industry for processes like steel and ammonia production, for energy storage, and as a clean alternative to fossil fuels in heating and electricity generation.
  • Energy Storage-Hydrogen can store excess renewable energy, which is especially valuable for balancing the intermittent nature of wind and solar power. It can be used to store surplus energy during periods of high production and release it when demand is high or when renewables are not producing energy.
  • Reducing Carbon Emissions– The use of green can significantly reduce carbon emissions in industries and applications where it replaces fossil fuels or other high-emission energy sources. This is crucial in the fight against climate change and meeting emissions reduction targets. 
  • Long–Term Sustainability– Green Hydrogen has the potential to be along long-term and sustainable energy solution, contributing to a reduction in sustainable energy solution, contributing to a reduction in fossil fuel dependency and a more sustainable future for generations to come.
  • Energy Security– Hydrogen can be produced locally, reducing dependence on imported energy sources. This enhances energy security and resilience, especially in regions with abundant renewable resources.

Regional Aspects:

In Europe, mainly due to increasing electrolyzer production capacities, the Green Hydrogen industry has a major market. In a joint declaration signed by the commissioner of the European Commission and 20 CEOs from related industries, the business agreed to tenfold its capacity to reach 17.5 GW per year for producing electrolyzers by 2025.

Segmentation Aspect-:

The industry for green hydrogen is split into two categories based on application: transportation and power generation. The bulk of the market share will go to the transportation sector. The government’s growing endeavors to develop a green hydrogen-based transportation system are blamed for the development. Additionally, the growing popularity of fuel-cell electric cars is anticipated to support the segment’s expansion. More than 40,000 fuel cell electric vehicles worldwide have been put into service since June 2021, of which almost 90% are in four countries: Korea, the USA, China, and Japan.

Key Players in the Industry

  • Siemens Energy- Energy transition is the greatest challenge our generation faces. The company reduces emissions while also increasing energy supply. The company’s mission is to support companies and countries with what they need to reduce greenhouse gas emissions and make energy reliable, affordable, and more sustainable.
  • Cummins Inc.- In both China and India, Cummins has evolved to become one of the largest engine manufacturers. But Cummins is more than an engine manufacturer, it’s a global leader in the manufacture of diesel and natural gas engines, hybrid engines, and generators, and it’s about to enter the electrified power market.
  • Linde plc– With a 2022 sales volume of $33 billion, Linde is the world’s leading industrial gas and engineering company. They aim to make our world more productive every day through the provision of high-quality solutions, technology, and services that result in a higher level of success for customers who help maintain, decarbonize, and protect their planet.

Green Hydrogen Latest Trends:

Green hydrogen projects are making headlines more often. Significant global breakthroughs and investments in green hydrogen have developed in the last year:

  • An investment of EUR 4 billion is planned by the Norwegian steel company Blast Green Steel to build a low-carbon steel plant in Finland that would be one of the largest industrial projects in the Nordic country.
  • Spain sees itself as Europe’s future leader in the production of green hydrogen to clean up the heavy industries, thanks to its abundance of sun and wind. However, some energy sector experts are concerned about the rapid growth of an industry that will be wholly dependent on a massive increase in the availability of zero-carbon electricity.
  • The government in the United States is allocating a significant amount of funds to clear hydrogen initiatives. And the states, too, are beginning to act. For instance, New York has signed an agreement with neighboring countries and 40 hydrogen ecosystem partners to establish a regional Hydrogen Hub to stimulate green hydrogen energy innovation and investment.
  • Normandy, France is receiving 12 electrolyzers from Siemens Energy, totaling 200 megawatts in capacity. They will be used in the Normandy project by Air Liquide, a global leader in gases, technologies, and services for industry and health. Air Liquide’s project in the Port-Jérôme industrial zone will generate 28,000 tons of renewable hydrogen per year for use in industry and the transportation sector starting in 2026. A road truck powered by hydrogen could travel 10,000 times around the globe with this much fuel.
  • The first hydrogen passenger train in North America is being powered by AcceleraTM by Cummins, the zero-emission business division of Cummins Inc. (NYSE: CMI), which represents a critical turning point and important advancement in the region’s shift to clean urban transportation. Alstom, the world leader in green and smart mobility, makes the train, the Coradia iLint.

Conclusion:

The green hydrogen market is a promising frontier in the transition to a sustainable energy future. While challenges exist, investments in research development and infrastructure are accelerating its growth. As the world seeks cleaner energy alternatives to combat climate change, green hydrogen’s potential to reduce carbon emissions and support a cleaner, greener future cannot be underestimated. This market’s evolution will be a critical factor in the fight against climate change and the realization of sustainable energy revolution. 

Source: 

https://www.researchnester.com/reports/green-hydrogen-market/4778

 

Global Trade Daily, Technology

The Growing Popularity of Compressed Natural Gas (CNG) as a Clean Energy Source

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The CNG tanks cylinders market reached US$ 1.7 billion in 2022. Demand for CNG tanks cylinders is estimated to surpass US$ 1.8 billion in 2023. During the forecast period, sales are poised to exhibit a 6.7% CAGR. Revenue is anticipated to cross around US$ 3.5 billion by 2033.

Key Market Highlights

The carbon fiber segment is likely to spearhead the material segment of the market. This segment is expected to expand at 6.6% CAGR during 2023 to 2033.

Growing concerns about environmental impact and emissions have led to an increased interest in CNG as a clean alternative to traditional fuels. This, in turn, is driving the demand for CNG cylinders.

CNG is becoming more popular as countries and companies move toward clean sources of energy to minimize carbon emissions. It will help reduce greenhouse gas emissions compared to traditional fossil fuels.

As per the data provided by the Department of Energy, in the United States, around 175,000 automobiles run on natural gas, while about 23 million vehicles do so globally. Compressed natural gas (CNG) fuelling is a consistent source in many regions.

High availability makes natural gas vehicles (NGVs) an excellent option for high-mileage, centrally fuelled fleets. NGVs might have applications that are confined to those areas with similar fuel range support. CNG is being utilized as a fuel for automobiles more often, particularly in fleets of public transit and commercial vehicles. This drives the demand for CNG tanks and cylinders for storing and transporting the fuel.

The expansion of CNG refueling infrastructure is crucial to support the adoption of CNG as a fuel. As a result, more CNG tanks and cylinders need to be produced and installed. CNG might be utilized to store energy, particularly when there is extra renewable energy that has to be kept for later use. This application calls for more CNG storage space. Clean energy sources such as CNG can also find applications in industries that require heat or power generation. This diversifies the demand for CNG tanks and cylinders beyond just transportation.

Strict environmental regulations on emissions can encourage companies to switch to clean fuels such as CNG. This drives demand for the necessary storage and transport infrastructure.

CNG can be a solution for reducing energy waste in situations where excess renewable energy is generated but cannot be immediately used. Storing this energy in the form of CNG can mitigate waste and bolster demand for storage solutions. As the global energy landscape evolves towards sustainability, CNG can play a role in reducing reliance on traditional fossil fuels. It will help in creating a sustained demand for CNG tanks cylinders.

Historical Performance of CNG Tanks Cylinders Market

The market experienced steady growth at 8.2% CAGR during the historical period from 2018 to 2022. In the forecast period, the CNG tanks cylinders industry is set to register 6.7% CAGR.

There has been a recent increase in the popularity of compressed natural gas (CNG) as a vehicle fuel, particularly in commercial fleets and public transit. This is likely to increase the demand for CNG tanks cylinders for storing the gas for usage in cars and buses. The growth of CNG as a transportation fuel necessitates the development of refueling infrastructure. This infrastructure expansion would require a greater number of CNG tanks and cylinders.

CNG is seen as a way to reduce carbon emissions in transportation. This will stimulate demand for CNG tanks and cylinders to support the growing fleet of vehicles running on CNG. Governments offer incentives and subsidies to encourage the adoption of clean fuels. These policies can increase the demand for CNG-powered vehicles and, subsequently, for CNG tanks and cylinders.

Apart from transportation, CNG is used in different industrial processes and power generation. The demand for CNG tanks and cylinders in industrial applications is likely to rise as businesses seek clean energy solutions. The diversification of energy sources for transportation and industrial sectors through CNG can enhance energy security. Thereby driving the demand for CNG tanks and cylinders.

The growth of the CNG market might lead to innovations in tank and cylinder design, material, and manufacturing processes, further contributing to market demand. Geopolitical considerations can influence energy transitions. Countries with ample natural gas resources might encourage CNG adoption, boosting the demand for associated tanks and cylinders. As the energy transition spreads to more regions globally, the demand for CNG tanks and cylinders could see increased adoption in previously untapped markets.

Latest CNG Tanks Cylinders Market Trends Listed by Future Market Insights (FMI)

Government Regulations

Strict emissions regulations and incentives to promote the use of alternative fuels are encouraging the adoption of CNG vehicles, thereby boosting the CNG cylinder market.

Advancements in Composite Materials

The development of lightweight and durable composite materials for CNG cylinders enhances their safety, capacity, and efficiency, making them more attractive to consumers.

Increased Adoption in Transportation

CNG is gaining traction in commercial fleets and public transportation due to its cost-effectiveness and lower emissions, driving the need for more CNG cylinders.

Infrastructure Expansion

Expanding CNG refueling infrastructure supports the growth of the CNG market and encourages fleet operators to invest in CNG vehicles and cylinders.

Urbanization and Air Quality Concerns

Increasing urbanization and air quality concerns in cities are pushing for clean transportation solutions, which in turn drives the demand for CNG tank cylinders.

Growing Popularity of Renewable Energy Pushing Sales of CNG Tanks Cylinders in the United States

According to Future Market Insights (FMI) analysis, the United States market for CNG tanks cylinders is set to hold a total of around US$ 632.7 million by 2033. It is predicted to expand at 6.6% CAGR during the forecast period (2023 to 2033).

Growing popularity of vehicles that operate with CNG gas is likely to drive demand in the United States. The demand for more affordable and sustainable fuel choices is what’s fueling growth.

Government regulations aimed at reducing emissions and promoting clean transportation have played a role in the growth of the CNG tanks cylinders market. The use of CNG and other alternative fuels is encouraged by these policies. Several commercial fleets, including taxis, buses, and delivery trucks, have started switching to CNG-powered vehicles. This has led to increased demand for CNG tanks cylinders to store the fuel.

Compressed natural gas, which produces fewer toxins and particles than gasoline or diesel, is seen to be a safer fuel than those two. It is a more enticing choice for consumers and businesses because it is less costly than conventional fuels.

The expansion of CNG refueling infrastructure is critical for the growth of the CNG tanks cylinders market. As more refueling stations are built across the country, the demand for CNG tanks cylinders is likely to increase.

Several companies are involved in the manufacturing and distribution of CNG tanks cylinders in the United States. These companies compete in terms of technology, design, and safety features. The CNG tanks cylinders market is also influenced by global energy trends and geopolitical factors that impact natural gas supply and demand.

Increasing Adoption of Natural Gas to Boost CNG Tanks Cylinders Market in China

China CNG tanks cylinders industry is poised to exhibit a CAGR of 6.6% during the assessment period. By 2033, China market size is expected to reach US$ 795.6 million.

The CNG tanks cylinders market in China is expected to witness decent growth during the forecast period. This is due to the increasing adoption of natural gas as a clean alternative to traditional fuels. China government’s focus on reducing air pollution and carbon emissions has driven the demand for CNG-powered vehicles. This is consequently boosting the CNG tanks cylinders industry in the country. China has been investing in the expansion of CNG refueling infrastructure, encouraging the use of CNG-powered vehicles across various regions.

Government policies, such as subsidies for CNG vehicles and refueling stations, have played a role in promoting the growth of the CNG tanks cylinders market. Several domestic and international companies are engaged in manufacturing CNG tanks cylinders in China to cater to the increasing demand.

Ensuring the safety of CNG storage and transportation is crucial, leading to the implementation of stringent safety standards and regulations for CNG tanks cylinders. Ongoing research and development efforts aim to improve the efficiency, capacity, and safety of CNG tanks cylinders, driving innovation in the market.

Competitive Landscape

To satisfy consumer requests and safety regulations, leading companies concentrate on producing lightweight, strong, and high-capacity CNG cylinders. To improve the effectiveness, safety, and performance of CNG cylinders, they are merging cutting-edge materials and production procedures.

Leading manufacturers seeking to expand into new markets by forming alliances, distribution networks, and partnerships with regional players.

For instance,

In April 2023, The Altroz iCNG, Tata Motors’ much-anticipated premium hatchback, made its formal debut. This design now boasts a new twin-cylinder CNG tank technology, making it the first vehicle in India.

In August 2023, The Tiago and Tigor upgraded CNG vehicles, which now have the upgraded twin-cylinder CNG tank layout, have been released by Tata Motors.

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Global Trade Daily

Investing in Emerging Markets: Capitalizing on Trade Growth Potential

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Investors are always looking for the next big thing, and it makes sense that many of them are flocking to emerging markets. These developing economies have attractive valuations, and the promise of their growth can translate to significant earnings. Today we’ll discuss emerging markets in detail and provide some of the most notable examples. 

What are emerging markets?

Emerging markets are countries that are undergoing rapid industrialization and economic growth and, as a result, are getting more and more enmeshed in the global economy. They often present significant growth potential and exciting investment opportunities but come with commensurate risks compared to older, more established markets and economies. 

Advantages of emerging markets

Investing in an emerging market can greatly enhance your earning potential. Let’s take a look at their positive aspects. 

Attractive regulations and incentives

Emerging markets recognize the importance of attracting foreign investors to stimulate economic growth and development. They implement regulatory reforms that create a favorable investment climate to achieve this. These reforms encompass various areas such as business regulations, tax incentives, intellectual property rights (IPR) protection, foreign ownership restrictions, transparency and anti-corruption measures, infrastructure development, and investor protection. 

Emerging markets streamline business regulations, simplify bureaucratic procedures, and establish investor-friendly legal frameworks. They offer tax breaks, exemptions, and reductions to incentivize foreign investment. 

Robust IPR protection is prioritized, with the enforcement of copyright, patent, and trademark laws. Foreign ownership restrictions are relaxed to leverage foreign expertise and capital. Transparency, accountability, and anti-corruption measures are strengthened to build trust among investors. 

Investments in infrastructure development, including transportation, energy, and telecommunications, enhance competitiveness and attract sector-specific investments. Mechanisms for investor protection and dispute resolution ensure investor rights are prioritized to further boost the market’s attractiveness to foreign cash flow.

Access to untapped markets and natural resources with significant growth potential

The transition from an emerging market into a developed economy can be tumultuous, but with the right resources, economic guidance, and luck, the development can bring about plenty of opportunities to get into new, untapped markets. 

In a similar vein, emerging markets may be just starting to discover and utilize their country’s natural resources to their fullest extent. These include but are not limited to, minerals, energy, water, agricultural resources, precious stones, and metal. One example of a current market trend is the demand for lithium, which is used to power environment-friendly electric vehicles. Countries like Chile and Zimbabwe, with their extensive lithium reserves, are now prime candidates for foreign investments. 

Favorable demographics

Emerging markets usually have a younger population with almost unlimited potential in terms of growth and experience. The younger workforce is more adaptable to change, especially regarding technology. Aside from that, they offer diverse skills and outlooks that can be useful in problem-solving and decision-making, along with their long-term potential for contributing to the development of their country. 

 

Infrastructure Development

Developing countries present great opportunities for investors in real estate, construction, and other related industries. The drive to improve and urbanize their infrastructure often leads to creating and improving new consumer markets that further bolster their economies. Improved housing projects, commercial developments, and construction and improvement of transportation and other infrastructure are some of the positive signals that investors need to look out for in emerging markets. 

 

Disadvantages of emerging markets

Like any investment, it’s important to weigh the pros and cons before making a decision. Here are some of the pitfalls of investing in emerging markets. 

 

Political and economic instability

It’s not uncommon for emerging markets to face political and economic turmoil during their journey to development. Due to the increased investment and cash flow, their governments are susceptible to fluctuations in policy goals, corruption, and regulatory uncertainties, all of which can cause an unpredictable business environment and negatively affect investor outlook. 

 

Volatile markets

The sudden influx of foreign investments and funds can lead to significant volatility in emerging markets. Since their economies are still in their infancy (or are not yet equipped to withstand foreign trade,) their trade regulations are often found lacking regarding investor protection, liquidity regulations, and risk management guidelines. 

 

Inadequate competencies and education

Emerging markets may face skill gaps and inadequate educational systems that limit the availability of a skilled workforce. This can impact productivity, innovation, and the competitiveness of industries. These issues can often be resolved through government intervention, but it may take time, which is a premium nowadays, considering that several industries, particularly in technology, are experiencing a significant uptick in advancement and development. 

Limited infrastructure

Developing countries often do not enjoy the kind of infrastructure that first-world countries have. And while this presents another opportunity for investments, the deficiencies also often lead to delays in development and business expansions, not to mention the increased costs.

 

Four emerging markets to look out for

There are agencies and foreign market analysts that identify emerging markets around the world. One of the most notable is the Morgan Stanley Capital Internation (MSCI), which has a dedicated Emerging Markets Index. The composition of the MSCI Emerging Markets Index has evolved over time, with countries being included or excluded based on a market classification framework that evaluates economic development, market size, liquidity, and accessibility. Here are some of the most viable selections from their list: 

 

Philippines

Touted as one of the fastest-growing emerging economies in the world, with expert forecasts predicting a trillion-dollar economy by 2033, the Philippines is one of the best bets in Southeast Asia for emerging markets. The country is notable for its strong, consistent economic growth, strategic location, varied natural resources, growing consumer market, skilled workforce, attractive investment programs, and stable political environment. 

The country saw a 7.6% increase in GDP back in 2022, and most experts agree that it will continue to increase in the neighborhood of 6% in 2023 despite a challenging economic climate in the area. The previous growth was, as some claim, a mere result of a rebound from the COVID-19 pandemic economy, but experts are confident that the momentum will push the Philippines into a brighter development path. 

 

South Korea

Like Japan, South Korea’s transformation from a nation devastated by war to a thriving economy is a model that most emerging markets emulate. Strategic government policies have massively contributed to the country’s average annual GDP growth of 10% from 1926 to 1994. However, the Asian financial crisis identified several underlying economic weaknesses, like high levels of short-term foreign borrowing, resulting in a sharp decline in GDP. Still, South Korea is now a global center for innovation and technology, with well-known companies and brands like Samsung Electronics Co. Ltd., Hyundai Motors Company Limited, Kia Motors Corporation, Hyundai Heavy Industries Company Limited, and POSCO spearheading its economy. 

With a projected GDP of $1.72 trillion in 2023, South Korea ranks as the 12th largest economy globally. Furthermore, it is expected that its GDP will reach $2.12 trillion by 2028. South Korea remains highly reliant on exports, solidifying its position as one of the world’s most export-dependent industrialized nations. The country’s continued economic success underscores its resilience and ability to adapt to an ever-evolving global market.

India

India remains a strong contender for emerging markets despite economic uncertainties. The country has consistently shown solid macroeconomic fundamentals, fiscal discipline, attractive saving rates, increasing domestic demand, and political stability. The government remains steadfast in its commitment to augment capital spending, particularly in infrastructure, to stimulate growth and enhance competitiveness. With the expanding middle class and their evolving spending patterns, India’s economy is increasingly driven by domestic consumption. 

The nation’s nominal GDP, projected at $3.76 trillion for 2023, is anticipated to reach $5.57 trillion by 2028, positioning India as the world’s third-largest economy, as the International Monetary Fund (IMF) estimates. India currently falls into the lower middle-income category, according to the World Bank. Looking ahead, an EY report predicts that by 2047, the country’s 100th year of independence, India’s economy will soar to a staggering GDP size of $26 trillion, with per capita GDP surpassing $15,000.

Mexico

Mexico is considered an emerging market due to several key factors. First, the country has achieved consistent economic growth, driven by sectors like manufacturing, services, and tourism. Its strategic location has also led to significant trade integration and investment opportunities. Mexico’s extensive network of trade agreements, including the USMCA and other free trade agreements, facilitates access to diverse markets. 

The country’s competitive labor force, characterized by a growing young population, attracts foreign investment, particularly in manufacturing-related industries. Furthermore, Mexico’s large domestic market, with a growing middle class and increased consumer purchasing power, creates business opportunities. The implementation of structural reforms and infrastructure development initiatives further supports economic growth. Despite existing challenges, Mexico’s efforts to address them and favorable economic conditions make it an appealing destination for investors seeking emerging market prospects.

Closing thoughts

Emerging markets present an opportunity for investors to get in on the ground floor of an impressive developing economy. However, risks and opportunities go hand in hand, and smart investors should conduct due diligence to weigh the pros and cons of these potential investments. 

 

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Global Trade Daily

The Global Subsea Power Grid Systems Market is Estimated to Capture a Valuation of US$ 5.2 Billion by 2033

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The global subsea power grid systems market is estimated to capture a valuation of US$ 1.6 billion in 2023 and US$ 5.2 billion by 2033. The market is anticipated to secure a CAGR of 12.5% during the forecast period.

Several driving factors influence the global market. Here are some key factors that contribute to the growth and development of the market:

Increasing offshore oil and gas exploration: The subsea power grid systems are widely used in offshore oil and gas exploration activities. As the energy demand continues to rise, there is a growing need for exploring offshore oil and gas reserves. It drives the demand for subsea power grid systems, as they provide reliable power transmission and distribution solutions for offshore platforms.

Growing offshore wind energy installations: Offshore wind farms are being established in various regions worldwide to harness the abundant wind energy resources available at sea. Subsea power grid systems are essential for transmitting electricity from offshore wind turbines to the onshore grid. Expanding offshore wind energy installations contributes to the demand for subsea power grid systems.

Expansion of underwater cable networks: Subsea power grid systems are also used to install and maintain underwater cable networks, such as submarine power cables and interconnectors. These cable networks are essential for transmitting electricity between countries, connecting offshore wind farms to the grid, and enabling intercontinental power exchange. Expanding underwater cable networks drives the demand for subsea power grid systems.

Technological advancements: Continuous advancements in subsea power grid system technologies have improved efficiency, reliability, and performance. These advancements include developing advanced insulation materials, underwater connectors, and high-voltage direct current (HVDC) transmission systems. Technological progress enhances the capabilities of subsea power grid systems and encourages their adoption in various applications.

Government initiatives and environmental regulations: Many governments worldwide are promoting the development of renewable energy sources and adopting stricter environmental regulations. It encourages the deployment of offshore wind farms and other renewable energy projects, which, in turn, drives the demand for subsea power grid systems. Government incentives and policies supporting the growth of renewable energy further contribute to the market expansion.

Need for reliable and efficient power transmission: Subsea power grid systems offer reliable and efficient solutions for offshore applications. They provide a stable power supply, reduce transmission losses, and enhance system performance. Adopting subsea power grid systems becomes crucial as the demand for reliable power transmission increases, particularly in remote offshore locations.

Increasing investments in offshore infrastructure: Significant investments are being made in developing offshore oil and gas fields, offshore wind farms, and other subsea infrastructure projects. These investments drive the demand for subsea power grid systems, as they are integral to the efficient operation of offshore facilities and power transmission to onshore facilities.

These driving factors collectively contribute to the growth of the global market, creating opportunities for technology providers, equipment manufacturers, and service providers in the industry.

Subsea Power Grid Systems Market Restrain Factors

While the global market has significant growth potential, certain factors can restrain its expansion. Here are some key restraining factors that can affect the subsea power grid systems market :

High installation and maintenance costs: Subsea power grid systems involve complex engineering and installation processes, which can be expensive. The costs associated with manufacturing, installing, and maintaining subsea power cables, connectors, and other components can be substantial. These high costs can challenge market growth, particularly for projects with budget constraints or uncertain financial viability.

Technical challenges and operational risks: Operating in subsea environments presents unique technical and operational risks. Harsh underwater conditions, such as high pressures, extreme temperatures, corrosive seawater, and marine life interactions, can impact the performance and reliability of subsea power grid systems. Overcoming these challenges and ensuring the robustness of the systems can be demanding, requiring advanced technologies and expertise.

Environmental considerations and regulatory compliance: The installation and operation of subsea power grid systems must comply with strict environmental regulations and guidelines to protect marine ecosystems. Environmental impact assessments, permits, and approvals are often required, which can add complexity and delays to project timelines. Compliance with environmental regulations and mitigating potential ecological risks can pose challenges and increase project costs.

Uncertainty in regulatory frameworks and policies: Regulatory frameworks and policies related to subsea power grid systems can vary across regions and jurisdictions. Uncertainty or changes in regulations can impact market dynamics and investment decisions. Inconsistent or inadequate regulations may discourage market players from entering certain regions or delay project developments, affecting market growth.

Subsea Power Grid Systems Market Between 2018 and 2022, and Forecast From 2023 to 2033.

Between 2018 and 2022, the global market experienced significant growth due to increasing offshore oil and gas exploration activities and expanding offshore wind energy installations. The global market captured a CAGR of 15% between 2018 and 2022.

During this period, offshore wind farms globally were notably expanded globally, particularly in regions such as Europe, Asia, and the United States. Additionally, there were ongoing investments in offshore oil and gas exploration and production activities, particularly in regions such as the Gulf of Mexico, the North Sea, and Brazil.

Subsea power grid systems provided power transmission and distribution solutions for offshore oil and gas platforms, contributing to market growth.

The market also witnessed advancements in subsea power grid system technologies, including improved insulation materials, connectors, and high-voltage direct current (HVDC) transmission systems. These technological advancements aimed to enhance subsea power grid systems’ efficiency, reliability, and performance.

Furthermore, during this period, there was an increasing focus on renewable energy sources and environmental sustainability. Governments worldwide introduced favorable policies and regulations to promote the development of offshore renewable energy projects, including offshore wind farms.

Which Power Supply Segment is Highly Influenced?

Based on power supply, wind power dominates the global market. Wind power is estimated to register a CAGR of 12.4% in the global market during the forecast period.

Wind power is a dominant contributor to the subsea power grid systems market. Expanding offshore wind energy installations has significantly influenced subsea power grid system adoption.

Offshore wind farms are typically located far from the shore, in deeper waters, with abundant wind resources. Subsea power grid systems are essential. These systems facilitate the transmission of the electricity generated by offshore wind turbines to the mainland, which can be integrated into the power grid and distributed to consumers.

The offshore wind industry has experienced remarkable growth in recent years, with the development of large-scale wind farms in various regions globally. Countries like the United Kingdom, Germany, Denmark, China, and the United States have invested substantially in offshore wind projects. These projects have significantly contributed to the demand for subsea power grid systems.

Subsea power grid systems have been developed to handle higher voltages and transmit power over longer distances. High-voltage direct current (HVDC) transmission systems are commonly used in these applications due to their ability to efficiently transmit large amounts of power over long distances with minimal losses.

Moreover, advancements in subsea cable technologies, including insulation materials and connectors, have improved the efficiency and reliability of subsea power transmission. These technological developments have further facilitated the integration of wind power into the subsea power grid systems.

How the United States is Significant Growing the Global Market?

The United States has emerged as a significant player in the industry. The United States is anticipated to register a CAGR of 12.5% with a valuation of US$ 1 billion. Here are some factors that contribute to the United States’ growth and significance in the global market :

Offshore wind energy development: The United States has immense offshore wind energy potential, particularly along its coasts. The country has made substantial progress in developing offshore wind projects in recent years, driven by supportive government policies, renewable energy targets, and declining costs. The growth of the offshore wind sector in the United States has led to an increasing demand for subsea power grid systems to transmit electricity from offshore wind farms to the onshore grid.

Policy and regulatory support: The United States government has implemented various policies and regulatory frameworks to support the development of offshore wind energy projects and subsea power grid systems. Initiatives such as the Bureau of Ocean Energy Management (BOEM) lease auctions and the Investment Tax Credit (ITC) have encouraged investments in the sector. These supportive policies have created a favorable environment for developing subsea power grid systems in the United States.

Investments and project pipeline: The United States has attracted significant investments in offshore wind energy projects, resulting in a robust project pipeline. Several large-scale offshore wind farms are planned along the East Coast and the Great Lakes region. These projects require deploying subsea power grid systems for efficient power transmission. The investments and project pipeline contribute to the significant growth of the subsea power grid systems market in the United States.

Market competitiveness: The United States has a highly competitive market for subsea power grid systems, with domestic and international companies providing solutions. Domestic manufacturers and suppliers are crucial in meeting the growing demand for subsea power grid components, such as cables, connectors, and transformers. This competitiveness contributes to the overall growth and significance of the United States in the subsea power grid systems market.

Competitive Landscape

The global market is highly competitive by the number of key players around the globe. These players contribute a key role in the global market by innovating advanced products. These key players adopt marketing tactics such as mergers, acquisitions, collaborations, product launches, and partnerships.

Other Prominent Players in the Global Market are :

  • ABB Ltd.
  • Siemens AG
  • General Electric Company
  • Prysmian Group
  • Nexans SA
  • Subsea 7 S.A.
  • JDR Cable Systems Ltd.

Recent Developments in the Global Market

Prysmian Group has been actively involved in developing subsea power cable projects. In 2021, Prysmian Group secured a contract to provide submarine cables for the Viking Link interconnector project, enabling electricity transmission between the United Kingdom and Denmark.

Nexans has been engaged in several offshore wind projects. In 2020, Nexans was awarded a contract to supply and install subsea power cables for the Empire Wind offshore wind farm in New York and the United States.

energy
Global Trade Daily

The Future of Energy Investing: Where to Invest in 2023 and Beyond

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Let’s make this clear right from the outset: The future of energy investing is in renewable, clean, and green energy. Renewable energy is projected to grow steadily over the next 3 decades, accounting for at least 50% of global energy production/consumption by 2050. Solar power, in particular, will be big over the coming years according to the US Energy Information Administration.

Shifting from the dirty fossil fuels that dominate today’s energy market to a renewable energy future will require a huge investment. Top energy companies around the world have already taken note of this and are putting their money into clean energy. Shell, for example, has pumped more than $2 billion into renewable energy over the last 5 years. A recent study by Octopus, an alternative-investment manager, shows that pension funds and other institutional investors are betting on renewables as the best investment route to go. These institutional investors are projected to invest in excess of $700 billion in renewables over the next decade.

Why invest in clean energy? Because it is ethical and lucrative. You will be helping the world combat the negative effects of climate change and at the same time enjoying a solid return on investment (ROI). Here are 3 lucrative and ethical clean energy investment routes you can take in 2023 and beyond:

1.  LNG

Liquefied natural gas (LNG) is touted by many energy experts as the transition fuel that will bridge the gap between dirty fossil fuels and clean, renewable energy. It’s easy to see why LNG is the perfect transition fuel. First, there are massive reserves of natural gas around the world. Each continent has enough natural gas to last more than 100 years at current rates of production. Secondly, LNG is the cleanest fossil fuel available today. Compared to other energy sources such as diesel, oil, and coal, LNG has negligible greenhouse gases, soot, and particulate emissions. It is, indeed, ethical to invest in LNG.

Besides being an ethical investment, LNG is also quite lucrative considering that its market has full support from governments around the world. Governments are committed to the long-term viability of a sustainable and responsible energy sector, and LNG promotion and adoption are right at the heart of that commitment. Investing in the LNG sector gives you access to incentives, international market insights, subsidies, and other valuable resources from governments.

Investing in LNG presents you with endless business opportunities throughout the natural gas value chain. These opportunities include upstream exploration, natural gas liquefaction at the source, shipping, regasification, pipeline infrastructure, LNG terminals, and city gas distribution (CGD) networks. You can put your money anywhere within that value chain and make a decent ROI. The LNG sector also presents you with a chance to have a positive impact on local communities, especially the underserved, unserved, and the forgotten. You get to provide employment opportunities to local communities, on top of providing them with affordable clean fuel for both domestic and industrial use. 

Many companies are betting their money on LNG. Atlantic, Gulf & Pacific International Holdings (AG&P), for example, has made huge investments in underserved markets in the Philippines and India. The Joseph Sigelman-led company helps create jobs, injects money into local communities in the form of investments, employment opportunities, and even taxes, and revives manufacturing and industrialization in rural Asia. Its floating storage unit (FSU) in Batangas Bay, for example, is revamping manufacturing and industrialization in the Luzon region, Philippines. On the other hand, Cheniere Energy, the biggest U.S. LNG exporter, is bringing jobs back to Louisiana and Texas as it pursues more liquefaction expansion opportunities. 

2.  Solar

Solar is the fastest-growing clean energy and arguably the most viable option in combating climate change. This is because solar energy is readily available from the sun and can be tapped and used in small quantities for domestic use or in large quantities for industrial use.

In the US, the Biden administration has injected $82 million into domestic solar manufacturing, a move that’s likely to triple the solar market in the country over the next five years. Europe, through the REPowerEU Plan, has also stepped up its investment in solar energy infrastructure.

Some of the solar energy companies you can consider investing in include First Solar Inc. (FSLR), a company that deals with solar panels and photovoltaic power plants. Another option is Enphase Energy (ENPH), a software-driven home energy solutions provider that specializes in solar and battery systems.

3.  Compressed Natural Gas (CNG)

CNG-powered cars are changing our everyday transportation. CNG is free of sulfur, benzene, and lead toxins. It’s non-corrosive and produces negligible amounts of carbon dioxide, carbon monoxide, and other suspended particles during combustion. CNG vehicles are, therefore, cleaner, more efficient, and more sustainable than diesel cars. Their maintenance and operation costs are competitive too because without lead, the longevity of their spark plugs is enhanced.

In India, the market share of CNG cars hit a record high of 8.60% in 2022, up from 6.30% in 2021. It’s projected that this figure will rise to up to 10% in 2023. The global demand for CNG vehicles is projected to grow to more than $312 billion over the next decade, up from $110.5 billion in 2022. This steady growth shows you how lucrative CNG investment will be in the near future. You can borrow a leaf from Joseph Sigelman’s huge investment in CNG stations in Asia. His company, AG&P, is in the process of building a network of 1,500 CNG stations to serve India’s transport sector.

Final word

Changing government incentives will push the world towards renewable and sustainable energy. Consumers are also more cautious than ever before about global warming and climate change. Any investor looking to invest in the energy sector must, therefore, buy shares in sustainability-focused energy stocks.

 

lng GAS
Global Trade Daily, News

Major Shifts in Global Energy Market Could Spell the End of Cheap Natural Gas

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Surging international demand for LNG could bring tighter supplies, rising prices, increased volatility.

While U.S. natural gas futures prices have fallen sharply in recent months, higher prices and increased volatility could be on the long-term horizon as the energy transition accelerates and European markets respond to recent supply constraints. Rising U.S. exports of liquefied natural gas (LNG), fewer opportunities for fuel-switching between coal and gas and supply chain bottlenecks could all contribute to higher domestic energy costs in the years to come.

According to a new report from CoBank’s Knowledge Exchange, growth in U.S. LNG export capacity will lead to an increasing interconnection between previously disconnected markets, creating a situation where events in one market will strongly influence outcomes in others.

The shale production boom ultimately led to the commissioning of LNG export facilities to absorb the excess supply. Today, the U.S. produces almost double the amount of natural gas it did in 2006 and total exports account for one-fifth of that production.In the next five years, upwards of 90% of gas demand growth could come from LNG exports, with as much as one-third of U.S. production possibly reserved for international trade. When Russia cut off natural gas to most of Europe last year, it created a supply vacuum that enabled U.S. LNG terminals to form the market equivalent of a land bridge to Europe. That laid the groundwork for greater competition between foreign and domestic markets.

Signs of the interconnection between the U.S. and European markets appeared last year as U.S. natural gas spot prices for delivery near Boston peaked in December around $35.00/MMBtu, as Northeast buyers outbid their Asian and European counterparts to sustain a continued flow of LNG imports. While true competition last year was fleeting, Viswanath expects to see greater ties later this decade as the next buildout introduces greater spare capacity to the system.

Over the past three decades, competition between natural gas and coal enabled fuel switching in response to price surges of either resource. However, that competition is fading quickly as coal production declines and the market impact of electric power fuel-switching has diminished. Structural changes are now driving more pronounced price movements for natural gas.

It is unclear if U.S. natural gas production can ramp up fast enough to meet the simultaneous acceleration of export growth and domestic electric generation. Until recently, fracking has simply not proved a great investment. Many shale operators consistently outspent cash flows, burning through hundreds of billions of dollars to fund the past two decades of growth. Production rose, but lack of returns sparked an investor exodus that has yet to meaningfully reverse.

Watch a video synopsis and read the report, Is This the Beginning of the End for Cheap Shale Gas?

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Archives, Global Trade Daily, Market insight

The Rising Usage of Power Generators in Military Applications is Driving the Global Market Forward

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Power Generator for Military Market Outlook (2023 to 2033)

The global power generator for military market size is predicted to reach US$ 1,127.1 million in 2023 and further expand at 3.6% CAGR. Total military power generator sales are set to rise at a steady CAGR between 2023 and 2033, totaling a valuation of US$ 1,605.3 million by 2033.

By 2033, the top five companies are projected to hold a significant share of the military power generator industry. Based on the capacity, up to 60 KW generators are set to create lucrative growth opportunities in the global market. This is due to their portability size and instant power generation ability.

During the projection period, the global market for military power generators is predicted to increase by 1.45x times its present level.

In 2023, the global market for military power generators is expected to account for about 3% to 6% of the worldwide generator sales market. FMI estimates the global generator sales market to reach US$ 32.2 billion in 2023.

In recent years, power generators have become essential equipment across the thriving defense and military industry due to their numerous applications. These power generators have become ideal backup power systems at military bases and other critical locations. This is due to their ability to provide a reliable power supply during a grid outage.

The increasing need for uninterrupted and reliable power sources for successful military operations is acting as a catalyst triggering the development of power generators for military industry.

Increasing spending on military and defense coupled with surging demand for advanced power generation solutions that can provide continuous and constant power supply is expected to boost military power generator sales.

Robust development of military bases in nations such as the United States, China, Russia, and Germany is expected to drive up demand for power generators for the military.

In the field, where it’s difficult to transport a bulky generator to areas such as hills and water boundaries, armed forces rely on lightweight, portable generators. Hence, the growing popularity of mobile and portable generators in military applications is expected to create lucrative growth opportunities for military power generator manufacturers.

Advancements in military generators and the development of compact tactical power generators are projected to boost military power generator sales through 2033. Subsequently, shifting preference towards eco-friendly power generators is expected to bode well for the market.

Currently, diesel generators remain the top-selling category. However, with tightening environmental laws due to increasing air pollution levels, demand for natural gas generators is expected to rise at a high pace during the projection period.

Increasing usage of thermoelectric generators for specific military applications due to their compact & lightweight construction and quiet operation is expected to further boost the market.

Leading military power generator manufacturers are focusing on developing innovative power generators with better efficiency, low carbon footprint, and reduced size. They are getting new assignments and projects from several military organizations for developing customized solutions. For instance, in order to manufacture the X-Engine platform for powering small tactical generators ranging from 2-5kW, LiquidPiston, Inc. was awarded Small Business Innovation Research contract by the United States Army.

2018 to 2022 Power Generator for Military Sales Outlook Compared to Demand Forecast from 2023 to 2033

Global sales of power generators for the military grew at a CAGR of 1.9% during the historical period from 2018 to 2022. However, according to Future Market Insights, global power generator for military demand is set to rise at a steady CAGR of 3.6% between 2023 and 2033.

The demand for distributed energy is increasing notably in the military sector. This trend is projected to continue over the coming years in tactical military communications, battlefields, locations, bases, field hospitals, and command systems. As a result, power generator sales in the military sector are set to rise at a significant pace.

Similarly, government spending on military and defense coupled with high demand for reliable power generation sources is projected to bolster military power generator demand.

Several military agencies worldwide are focusing on establishing integrated power systems such as microgrids to accommodate advanced power generators. This is creating a high demand for hybrid generators as they enable users to reduce expenses and carbon footprint.

Geographic Forecasts

North America to Remain a Significantly Lucrative Market for Military Power Generator Manufacturers

According to Future Market Insight, North America held around 36.6% share of the power generator for military industry in 2022. It is expected to retain its dominance throughout the projection period.

The robust expansion of the military & defense sector and the rising need for continuous power supply for military applications are key factors driving North America power generators for military market.

North America has become one of the most promising markets for mobile and portable power generators. Military power generators continue to be an area of investment for regional governments.

The heavy presence of leading power generator companies and the growing popularity of environmentally friendly generators and hybrid generators are expected to boost the North American market.

East Asia power generator for military market is poised to exhibit significant growth over the next ten years. Increasing government spending on advanced military equipment and easy availability of technologically advanced power generators at low prices are a few of the factors driving the East Asia market.

Burgeoning Spending on Defense and Military Fueling Military-grade Generator Sales in the United States

According to Future Market Insights, the United States power generator for the military market is forecasted to exhibit a steady growth rate during the forecast period. It is expected to hold around 34.5% share of the global market by 2033.

The rapid expansion of the military & defense sector and the high demand for reliable power-generating resources in military applications are key factors propelling power generators for military sales in the United States.

Similarly, escalating defense spending and the presence of leading power generator manufacturers are expected to boost the United States power generator for the military industry during the projection period.

Since its independence, the United States government has been rigorously spending to strengthen and expand its military and defense sector. However, with recent global developments and rising national security concerns, this spending has skyrocketed. For instance, the United States defense budget and military spending reached US$ 801 billion in 2021, according to the EXECUTIVEGOV. A significant portion of the military budget is spent on equipment required for combat operations.

As a result of the increased defense expenditure, military power generator sales in the country are estimated to rise at a significant pace over the next ten years (2023 to 2033). By the end of 2033, the United States is predicted to hold a massive share of North American power generators for the military market.

Competitive Dashboard: A Closer Look at the Marketspace

To meet the rising demand from the military and defense industry, power generator manufacturers are developing efficient and cost-effective power production technologies. They are putting efforts into producing hybrid generators to increase sales.

Recent Developments:

HIMOINSA: In October 2022, the company revealed its entire range of diesel generator sets at Bauma 2022.

Kohler Co.: In November 2022, the company completed the extension of its prevailing North American generator manufacturing unit in Mosel, Wisconsin. This project commenced in March 2021 and includes a customer experience centre of 10,000 sq. ft. and a testing, production, and warehousing space of 155,000 sq. ft. The company continues to observe the demand for its integrated power systems and KD Series large diesel industrial generators.

Rolls-Royce Holding plc: In July 2021, the company developed a high-functioning hybrid-electric propulsion system to be used in aerospace.

Cummins Inc.: In August 2022, Cummins Inc. completed the acquisition of Meritor, Inc. Earlier in March 2019, the company launched the HSK78G series of natural gas generators. Each model in this series features efficient gas technology innovations.

distribution
Archives, Global Trade Daily, Market insight, Technology

The Increasing Energy Demand is Fueling the Consumption of Distribution Transformers

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The global distribution transformers market was estimated to reach a valuation of USD 26.1 Billion in the year 2022. With a steady CAGR of 6% from 2023 to 2033, this market is expected to reach USD 27.5 Billion by 2023 and USD 49.4 Billion by 2033.

The globally increasing energy demand along with the introduction of various regulatory reforms for the improvement of distribution and transmission networks will accelerate the penetration of technology. The rising investments in supporting the distribution networks to provide electricity in remote areas will also affect this technology positively during the forecast period. These networks are gaining huge popularity nowadays based on three aspects: compactness, cost-effectiveness, and simple installation features.

The key players in the global market are aimed at investing in innovative smart technology, like smart transformers, that would take immediate steps during any fluctuations and hence enhance the power quality being received at various homes. Such factors are predicted to open up new opportunities for the manufacturers in this market.

During the projected period, the oil-filled distribution transformers segment is anticipated to rule the distribution transformer market. Liquids are used to cool the oil-filled transformers, which makes them ideal for outdoor usage. They have more dependable overload capabilities, are more efficient, and have longer service lifetimes. The utilization of a liquid as a cooling medium makes these sorts of converters a better choice than dry ones.

 

The main benefit of an oil-filled transformer is its ability to take larger ratings as well as overloads. To enhance their rates of electrification, nations like India and China are extending their transmission & distribution networks, which is anticipated to drive the demand for oil-filled distribution transformers. For instance, the Pradhan Mantri Sahaj Bijli Har program of the Indian government seeks to electrify every home.

Region-wise, one of the top regions for distribution transformer production is Asia-Pacific. Along with increased family income as well as urbanization, developing countries like India and China have seen rapid population expansion. The market for distribution transformers is growing quickly as a result of the sudden increase in demand for power. To address the growing demand for power in China, the government is creating new generation projects, notably those utilizing renewable energy.

 What is Driving Demand for Distribution Transformers

Distribution transformers are used for providing final voltage transformation in electric power distribution system. It steps down the high voltage used in the distribution line to the level used by consumers.

These are designed to provide maximum efficiency at lower loads hence they generally do not operate at full load.

Distribution transformers market growth is anticipated to be influenced by increasing demand for substituting and refurbishing of aged transformers and initiatives for increasing power generation capacities around the globe.

The rising demand for electricity in emerging countries such as China, India, etc. is driving the rapid investments in power transmission and distribution infrastructure subsequently augmenting the consumption of distribution transformers.

Power generation from natural gas sector and renewable energy and is increasingly taking over fossil fuel along with other conventional methods so as to meet the requirements.

The investments in renewable power infrastructure are projected to ascend the demand for distribution transformers.

The competition between Power distribution and transmission sector with each other and partnerships with tech firms to deliver improved and innovative solutions is compelling the steady growth in the market.

The increasing activities for expansion of electrical distribution network and retrofitting of existing networks are fueling the consumption of distribution transformers.

Asia Demand Potential

Asia Pacific region is projected to witness highest growth over the forecast period, on the back of large scale manufacturing in China and Japan coupled with substantial investments in new technologies.

The shift of manufacturing locations in the emerging countries such as Taiwan, China, etc. is paving the way for market growth in the region.

China is witnessing robust growth in the electricity demand from recent couple of decades, on the back of infrastructural developments and high levels of industrialization. This, in turn, is projected to create positive growth prospects for the distribution transformers market growth.

Europe Market Growth Outlook

The developed countries from Northern and South Western Europe also hold prominent share in the distribution transformers market on the account of increasing electricity demand and technology upgradation.

The rapid growth in investments in smart grid technologies with integration of IoT and artificial intelligence is projected to positively influence the growth in demand over the forecast period.