In the energy & power sector, the only thing that is constant is change. High end-user demand, volatile resource prices, changing government regulations, environmental concerns, and FDI norms are impacting the energy and power market. There is always a race to find alternatives to the existing resources to provide efficient and clean or green energy. Energy demand will continue to increase in the future with rising applications in end-use industries. There will be a huge demand for green energy from renewable resources such as solar, wind, hydropower, and biomass, etc., due to diminishing conventional energy resources such as coal, natural gas, oil, and nuclear.
The energy & power sector has a pivotal role in the country’s economy. The macro and micro economic factors and government policies and decisions are impacting the health of the sector. The world is shifting to green energy, which is fuelling technological advancement and innovations in the energy and power ecosystem. Increasing environmental concerns and stringent government policies for the energy & power sector have increased the need for green energy to substitute the current energy and power sources. Companies such as Tesla, BMW, Daimler AG, and others have introduced electric vehicles in recent years, implying the shift from petrol and diesel vehicles to vehicles running on green energy.
The energy & power sector is mainly controlled by the government. Governments of most developing regions such as Latin America and Asia Pacific are investing heavily in the energy & power sector. Private-public partnerships in the energy sector are playing a big role to keep the sector growing and to implement rules and regulations effectively. Around 65-75% of the energy market is dominated by the Oil and Coal segment. The renewable energy market share is expected to grow due to the recent trend of technological advancements in solar panel, charging & storage devices, and related electronic and electrical components.
Advancements in technologies such as artificial intelligence (AI), internet of things (IoT), augmented and virtual reality, 3D printing, and smart manufacturing are driving the global market. In the oil & gas sector, companies are adopting the best industry practices such as digital transformation, efficient upstream and downstream methods, advanced machines, and a high-tech industrial environment. For instance, technological advancements in metering and grid to manage services and reduce transmission losses are helping to fulfil the growing demand for electricity.
The consumption of oil and gas is increasing owing to their growing use in the automotive and transportation industry and also due industrialization in many sectors. With the development of the energy and power market, many other markets such as electrical & electronics, consumer, automotive, etc., have experienced positive traction during the last two decades.
The key players in this sector are adopting strategies such as geographic expansion, new product launches, mergers & acquisitions, and regional and global level strategic partnerships. Some of the major players in the energy & power sector are British Energy plc, Centrica plc, Chevron Corp., ConocoPhillips, Electricite de France, ExxonMobil Corporation, Kinder Morgan Energy LP, Lukoil, Marathon Oil, Norsk Hydro AS, Occidental Petroleum, and Oil & Natural Gas Corp. Ltd.