Market for Distributed Energy Resources in Low Process Heat Manufacturing Is Expected to Grow to $24 Billion by 2031
Market drivers include cost savings, resilience needs, and investor pressure for asset risk valuation
A new report from Guidehouse Insights analyzes the market for distributed energy resources (DER) systems in four low process heat (LPH) manufacturing sectors that are currently most amenable to short-term decarbonization through DER deployment: pulp & paper, food, consumer goods, and fertilizer.
The market for DER systems in industrial settings is rebounding from COVID-related market impacts. DER in these sectors can manage peak loads, reduce costs, and support enterprise decarbonization. According to a new report from Guidehouse Insights, LPH industrial DER revenue in manufacturing will likely grow to $24.1 billion by 2031 at a CAGR of 9.3%.
“The business case for LPH industrial DER technologies rests upon improved efficiency, cost savings, supply resiliency, and decarbonization,” says Daniel Talero, research analyst with Guidehouse Insights. “To meet new demand for these benefits, technology vendors in the industrial sector are developing utility partnerships needed to acquire industrial customers with high energy demand and security-of-supply requirements.”
Market drivers include cost savings and cheaper DER as industrial customers control peak demand charges from utilities by load-shifting. DER also addresses resilience needs by supporting security-of-supply and outage prevention Finally, investor pressure to assess the industrial carbon footprint is an increasingly scrutinized factor in asset risk valuation using environmental, social, and governance (ESG) methods, according to the report.
The report, Industrial DER in Low Process Heat Applications, provides market sizing and analyzes spending on industrial DER installations and software across five global regions from 2022-2031, and the four industrial DER market segments listed above. This report highlights major trends across these industries and regions, exploring factors driving and hindering market growth as well as key players in the market. It focuses on industrial DER revenue, not including spending on industrial inputs outside of energy. It includes revenue on DER forecasting and optimization software, excluding spending on large utility managed DER management system (DERMS) software. An executive summary of the report is available for free download on the Guidehouse Insights website.
Contact:
Jennifer Peacock
+1.404.575.3859
jpeacock@guidehouse.com
*The information contained in this press release concerning the report, Industrial DER in Low Process Heat Applications, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.