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New York, NY, USA, January, 11, 2021 – Thanks to the promising expected rise in demand for electric vehicles, diesel generators, and favourable change in the energy scenario, there will be a stable growth the industrial belt drives market during 2020-2025. According to Credible Insights, the global industrial belt drives market will grow at a stable 3.1% CAGR during 2020-2025. The market reached a sizable valuation of $5,842.6 million in 2019.
As world grapples with fallen investments in renewable energy due to Covid-19 crisis, the demand for diesel generators, and electric cars will remain at their peak during 2020-2025. Thanks to the changing consumer preferences, the International Energy Agency (IEA) estimates, as many as 9 million consumers have deferred their car purchase in 2020. This will be a major boost for electric vehicles which promise to get cheaper, and save thousands in fuel costs for individual consumers.
Diesel Generators to Remain Key Promise for Growth in the Industrial Belt Drives Market
Moreover, despite falling demand of Oil, the demand for diesel will likely remain the same. Diesel remains a backbone of the heavy-duty transport sector, and in military applications like trucks, and diesel. Moreover, more turbulence in weather conditions are also forcing institutions around the world, and especially in Asia Pacific, to purchase diesel generators of varying capacities. Power outages, and stand-by availability of diesel generators with high efficiency of (upto 30-40%) is a major impetus for growth for rising demand for diesel generators. Diesel generators remain safe to use. Furthermore, traditionally, their maintenance costs posed a challenge. However, expansion of low-cost repair services, and increased maintenance contract availability from manufactures promise to overcome the conventional challenge. Gas engines, as alternative sources of power also show promise. However, these are often limited to portable, light-duty applications. Their operating costs, which can be 3 to 4 times higher also remain a challenge for growth.
Diesel generators will remain key to growth in countries like the US as well. The demand for diesel generators remains high in large buildings, institutional facilities, electric utilities, hospitals, and important for small-large players alike in sectors like Agriculture.
Rising Unpredictability in Weather Changes to Drive Demand for Additional Electricity
In remote locations in landscapes like Alaska, diesel remains the primary source of electricity generation. The increasing turbulent weather around the world, and freezing temperatures will also make way for higher need to produce electricity to power life-essential applications like HVAC. The importance of this power generation cannot be underestimated, despite its low-key coverage in the news. For example, according to Bloomberg reports, in January, 2020, Beijing recorded its lowest temperatures since 1996. The sudden fall in temperatures due to a La Nina weather phenomenon soared energy markets, and in countries like Japan, electricity prices soared 10-folds. Japan, China, and South Korea witnessed energy (mainly electricity) prices at record levels due to the weather disruptions.
Such weather disruptions will further deepen dependence on diesel generators as countries like China have rationed electricity supplies to industries as need to preserve energy to confront an extreme-weather crisis remains a grave threat. The weather-crisis resulted in record spike for diesel prices in China. According to the data from the bureau of Statistics, fuel inventory stocks fell by as much as 5.20% during the crisis.
Rising Usage of Solar Energy, and Fall in Usage of Coal to Drive Growth
According to IEA forecasts, the renewables will likely meet 90% of the strong growth in electricity generation during 2020-2040. This is good news for players in the industrial belt drives market. The demand for electricity remains at an all-time high. Moreover, heavy-duty turbines widely used in power generation require heavy-workload belt drives, which are key to power transmission. Furthermore, IEA predicts that the high level of solar deployment around the world will reduce use of coal for power generation, and drop its levels to below 20% by 2040.
The pandemic has resulted in increased uncertainties in the oil and gas industry. According to IEA’s optimistic forecast, the oil demand will likely remain a dampened prospect, as the global oil demand in 2030 will remain low at 2mb/d, and will remain at similar levels thereafter. This is a major opportunity for growth for players in the industrial belt drives market. According to the IEA forecast, the demand for electric vehicles remains resilient. Moreover, the upgradation of vehicular norms around the world to BS-6 will push up prices significantly. This will likely shift more consumers towards cheaper, and feasible alternative of electric vehicles, driving demand for industrial belt drives, in a two-fold manner.
Rising Demand from Industrial Sectors to Fuel Electricity Generation in the US
According to the US Energy Information Administration, the industrial sector comprised of mining, manufacturing, construction, and agriculture accounted for largest share of energy consumption in 2018. Moreover, the sector will likely consume over half the energy output between 2018-2050. Its energy usage will likely increase by 30% during 2018 and 2050. Furthermore, the sector of transportation, amidst the dynamic shift of the electric revolution, will likely consume 40% of energy resources by 2050. The demand for energy consumption in conventional sectors like construction also remains high. The demand for energy in the construction sector will likely increase by 65% during 2018, and 2050. Today, the consumption of energy stands at 91 quadrillion, and will likely rise to 139 quadrillion Btu. The rising urbanization in the US, the rising income, and increased access to electricity will remain major drivers of growth for the industrial belt drives market in the US.
On the basis of product, this report is primarily segmented into: Industrial V-belt Drives, Industrial Synchronous Belt Drives, Industrial Pulleys
On the basis of applications, the report is segmented by end-user into: Mining and Mineral Industry, Material Handling Industry, Industrial Machinery Sector, Agriculture Industry
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