Market Trends of Condition Monitoring Equipment Industry
Increasing Focus on the use of Renewable Energy Drives the Market
- The various regions are inclined toward renewable energy sources, which is further expected to drive the studied market. Several new projects have been initiated in renewable energy in the past few years. According to the IEA, renewable energy capacity is anticipated to expand by 43 percent or more than 920 gigawatts by 2022. Furthermore, solar energy is anticipated to dominate the renewables market, generating far more electricity in the next four years than wind and hydropower.
- The increasing technological advancements are resulting in lower renewable energy costs, and the increasing competitiveness of battery storage systems is favorably boosting the growth of the renewable energy market. The growing global concern about climate change and ESG issues is driving massive investments in the adoption of renewable energy sources.
- In order to promote sustainability and preserve the environment, governments in various developed and developing economies are providing subsidies to the corporate sector to shift toward clean and green energy. Several elements are important in the global expansion of the renewable energy sector.
- According to a recent study by the IFPRI, the population of the South-Saharan countries is expected to grow 2.5 times by 2050. This population growth, coupled with the rise in income levels, is expected to increase the demand for energy generation in the region. One such country is Morocco, which has pledged to increase the renewables in its electricity mix to 52 percent by 2030, made up of 20 percent solar, 20 percent wind, and 12 percent hydro.
- Further, in June 2021, Morocco updated its UN climate pledge with a promise to reduce its greenhouse gas emissions by 17-18 percent by 2030 compared with a business-as-usual scenario, with a stretch target of a 42-46 percent cut on the condition of receiving international support.
- The Union Cabinet, chaired by India's Prime Minister, has approved the introduction of the Production-Linked Incentive (PLI) Program in High-Efficiency Solar PV Modules for Boosting India's Manufacturing Capabilities and Exports - Atmanirbhar Bharat. The national high-efficiency solar PV modules' program: Tranche 1: INR 4500 Crore (USD 549.4 million) Tranche 2: INR 19,500 Crore (USD 2380.8 million). The second phase launched on September 21, 2022, and it is expected to build 65 GW of annual manufacturing capacity.
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North America is Expected to Hold the Largest Market Share
- The United States is one of the world's largest and most advanced markets for vibration monitoring solutions. The strong economy, with substantial port traffic, increased oil and gas output, and key manufacturing indices, results in significant growth in manufacturing and is poised to drive the demand for condition monitoring equipment in the country. Sectors, including automotive, food and beverage, pharmaceutical, aerospace, and defense, are the largest sources of demand for condition monitoring solutions in the country.
- New technologies such as 3D printing, the Internet of Things (IoT), and artificial intelligence (AI), among others, are rapidly transforming the country's manufacturing industry as part of the 4th Industrial Revolution. The COVID-19 pandemic and the country's commitment to net zero by 2050 have further accelerated this trend. Lower costs, increased productivity, and carbon emission reduction are some of the benefits manufacturers are reaping from the adoption of these technologies.
- Developing smart factories provides a significant opportunity for the manufacturing industry to enter the fourth industrial revolution. The analysis of large amounts of data collected from sensors on the factory floor enables real-time visibility of manufacturing assets. It can offer tools for predictive maintenance to minimize equipment downtime.
- Canada is one of the prominent economies in North America and is slowly adopting industrial automation to gain a considerable market share in the market studied, with multiple companies manufacturing automation systems to further the growth of the market.
- Canada's economy is reviving, with consistent growth over the last few years. With the strengthening of the American economy and the resurfacing of the European economy post-recession, the manufacturing sector is expected to perform better in the coming years.
- The manufacturing industry is one of the largest consumers of vibration monitoring equipment. Canada is home to eight large manufacturing plants operated by Ford, Chevrolet, Honda, and Toyota. Additionally, the country has 700 manufacturers that produce automotive parts. The automotive industry is the most significant industry in this region and contributes the most to the manufacturing sector. It is expected to positively impact the market studied.
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