Table Of Contents
- Advancements in cylindrical Lithium-ion batteries accelerating the sector’s growth and success
- Integration of Artificial Intelligence in energy creating new investment opportunities in the domain
- Growing applicability of bunker fuel opening new avenues in the sector
- Technological advancements in heat exchangers transforming the domain significantly
- The transition toward e-fuels reshaping the dynamics of the energy and power domain
- Winding up
Yerukola Eswara Prasad
Koyel Ghosh
Energy and Power Domain: Analyzing the Top 5 Trends Reshaping the Sector in Q4 2024
Since the 1800s, the global population has grown rapidly, driven by advancements in healthcare, greater access to food, and improved living conditions in developed and developing countries. An overall increase in global population has led to a huge surge in power consumption. Mover, the growing deployment of machines and digital technologies in the past few decades has led to a rise in electricity usage in domestic and commercial applications. Moreover, the growing concerns regarding pollution and environmental degradation have led to a transition toward renewables and green energy. As a result, over the years, power companies have invested in new technologies to cater to these escalating energy needs and improve their footprint globally. AMR recently published a study on the latest developments and upcoming trends in the energy and power domain that have reshaped the landscape in Q4 2024.
Advancements in cylindrical Lithium-ion batteries accelerating the sector’s growth and success
A cylindrical lithium-ion battery is a rechargeable power unit with a cylinder-shaped metal cell housing to facilitate the motion of ions. These batteries have gained significant prominence in the last few years due to their robust designs and energy efficiency. The increasing shift toward electric mobility solutions has increased their applicability substantially. Several countries have signed multinational agreements to decarbonize their public transportation systems, thus leading to a surge in investments in these batteries. As per a report published by Allied Market Research, the cylindrical Li-ion battery industry is expected to gather a revenue of $49.7 billion by 2033. The market accounted for $9.1 billion in 2023 and is projected to rise at a CAGR of 18.6% during 2024-2033. The technological developments in battery design have played an important role in the expansion of the landscape. The high energy requirements of modern EVs have increased the preference for these batteries in Q4 2024.
Integration of Artificial Intelligence in energy creating new investment opportunities in the domain
The emergence of AI has transformed almost every sector of the global economy. Many power generation companies are adopting AI-based tools and technologies to improve their operational efficiency and productivity. In the last few years, there has been a rising integration of AI in the energy landscape to control smart grids by identifying and managing local and regional changes in power consumption effectively. Along with this, machine learning algorithms are being used to predict grid breakdowns before they take place, thus reducing downtime and repair costs. The rising deployment of AI in carbon capture, utilization, and storage (CCUS) systems to bring down carbon emissions has increased the revenue share of the industry. Along with this, with the advent of the carbon credits mechanism, private players are using ML algorithms to process data on supply and demand trends, pricing details, portfolio information, etc., to reduce the volatility in carbon trading. Allied Market Research published a report on the AI in energy market which highlights that the industry accounted for $5.4 billion in 2023. The landscape is anticipated to gather a revenue of $14.0 billion by 2029, rising at a CAGR of 17.2% during 2024-2029. The growing transition toward renewable energy sources is predicted to broaden the scope of the market in the coming period.
Growing applicability of bunker fuel opening new avenues in the sector
Bunker fuel is a type of fuel used to power large vessels such as container ships, bulk carriers, and tankers. Also called marine fuel, it is characterized by high sulfur content and viscosity, making it an ideal solution for shipping activities. As per a report published by Allied Market Research, the bunker fuel market is expected to amass a sum of $185.7 billion by 2033. The industry accounted for $120.3 billion in 2023 and is estimated to surge at a CAGR of 4.5% from 2024 to 2033. The increasing demand for marine transportation has contributed to the growth of the landscape in the fourth quarter of 2024. Additionally, the overall rise in the number of oil and gas exploration activities is estimated to create numerous investment opportunities. Moreover, government initiatives to increase the adoption of cleaner fuels have impacted the market positively. Also, the overall expansion of e-commerce platforms has accelerated the growth rate of the market.
Technological advancements in heat exchangers transforming the domain significantly
A heat exchanger is a device specifically designed to transfer heat and thermal energy between different fluids or gases without mixing them. These machines are some of the most widely used equipment in industrial processes and devices such as HVAC systems. Additionally, the rising use of heat exchangers in automobiles to improve their fuel efficiency is anticipated to strengthen the foothold of the industry. As per AMR’s report on the heat exchanger market, the industry, which accounted for $19.7 billion in 2023, is anticipated to gather a revenue of $33.2 billion by 2033, citing a CAGR of 5.4% during 2024-2033. Over the last few years, many power companies have invested heavily in renewable energy projects which has impacted the landscape positively in the fourth quarter of 2024. The launch of innovative heat exchange systems by leading companies is anticipated to maximize the revenue share of the landscape.
The transition toward e-fuels reshaping the dynamics of the energy and power domain
E-fuels are synthetic fuels produced from unconventional, renewable energy sources such as solar and wind energy. Also called power-to-gas liquids, they offer a sustainable alternative to traditional fossil fuels that are used for automotive and transportation applications. Allied Market Research, recently, published a report on the e-fuel market which states that the industry is expected to amass a revenue of $48.5 billion by 2030, rising at a CAGR of 34.3% from 2024 to 2030. The market accounted for $6.2 billion in 2023 and is estimated to expand its footprint in the coming period. The shift toward sustainable aviation fuels (SAF) has helped the landscape flourish in Q4 2024. Along with this, government entities around the world are promoting the use of e-fuels by launching several initiatives and providing subsidies for these renewable fuel products. This, too, has played a role in augmenting the growth rate of the sector. Also, the invention of direct injection and jet ignition technologies has increased the usage of e-fuels, thus opening new avenues for climate-neutral transportation systems.
Winding up
In essence, the energy and power domain has witnessed huge growth in the fourth quarter of 2024 due to the rising electricity consumption in developed and developing countries. The gradual shift toward sustainable e-fuels and energy-efficient technologies has contributed to the expansion of the sector. The adoption of innovations such as AI and ML by power generation companies has expanded the scope of the landscape.
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