Global hybrid power systems market dominated by APAC – India and China to emerge as key contributors

Renewable energy


Hybrid power systems: Key market research findings

  • APAC dominates the market geographically
  • The non-residential end-user segment accounts for a majority of the market revenue
  • Key vendors – Emerson, Heliocentris, Shanghai Ghrepower, Siemens, and SMA

Technavio’s market research analysts predict the global market for hybrid power systems to grow at a CAGR of around 6% between 2016 and 2020. The growth of this market can be accredited to the growing need for alternate power sources. Apart from energy security issues, the combustion of fossil fuels releases large amounts of greenhouse gases (GHGs), which causes global warming and other extreme weather conditions. Renewable technologies are used in a hybrid form to generate power in an attempt to overcome these issues. During 2015, the global hybrid power systems market was dominated by APAC with a market share of more than 38%, with India, China, and other Southeast Asian countries being the major contributors. The nonexistence of reliable grid infrastructure, which has driven the need for micro and mini-grids to supply power to the people and industries in remote areas, is expected to contribute to the growth of the hybrid power systems market in APAC in the coming years.

The new market research report from Technavio presents a breakdown and analysis of the hybrid power system segments based on the end-user.

“The increase in the deployment of microgrids is expected to have a positive influence on the growth of the market globally. A microgrid is a composition of multiple energy generation sources such as solar, wind, biomass, geothermal and fossil fuel generators that are connected to the grid as a single point of load. They have energy storage systems that address the intermittent nature of renewable power. The entire network is managed using an energy management system,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.

The non-residential end-user segment accounted for around 70% of the overall market revenue to become the key revenue generating segment in the global market. In the non-residential sector, hybrid power systems are used where the grid power quality is poor due to frequent blackouts or where grid power is not available. These systems are mostly used to power telecom base transceiver stations (BTS), in the mining sector, resorts and hotels on islands, and for remote sensing in the oil and gas industry.

The key vendors in the global hybrid power systems market include Emerson, Heliocentris, Shanghai Ghrepower, Siemens, and SMA. The market is characterized by the presence of several established vendors who provide only PV systems and vendors who also provide complete turnkey solutions. The local or regional vendors dominate the market in several regions around the world, which increases the competition among vendors. Leading vendors have an extensive portfolio of energy management solutions, which covers a broad range of industries and can be customized according to the requirements of the customers. They also have high capital resources and make regular R&D investments to develop new data management systems. This makes it difficult for the medium and small vendors.The new vendors entering the market will find it difficult to compete with the existing vendors in terms of quality, functionalities, and services. An increase in product extensions and technological innovations is likely to intensify the competitive environment.

A more detailed analysis is available in the Technavio report, Global Hybrid Power Systems Market 2016-2020.


We can customize reports by other regions and specific segments upon request.

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