The energy sector encompasses the production, distribution, and utilization of a wide range of energy sources, including nuclear power, renewable energy, and fossil fuels. It is necessary for sparking economies and maintaining global infrastructure. Oil and gas, power generation, renewable energy, and energy storage are important segments of the energy economy. Geopolitical unrest, environmental concerns, and the shift to renewable energy sources are some of the obstacles the business must overcome. Technological developments like smart grid systems and renewable energy technologies are changing the face of industry. In addition, to meet the rising demand for energy worldwide while reducing the effects of climate change, the energy sector is putting more and more emphasis on resilience, sustainability, and efficiency. Join us as we explore the “Top Energy industry trends” in this article that have evolved the industry trends in the energy sector.
Top Energy Industry Trends
- Renewable Energy
- Internet of Energy (IoE)
- Energy Storage
- Blockchain
- Energy as a Service (EaaS)
Let’s discuss each one in detail.
1. Renewable Energy
The world’s energy landscape is changing due to renewable energy, characterized by sources like biomass, solar, wind, and hydroelectric power. It provides environmentally friendly substitutes for conventional fossil fuels, lowering greenhouse gas emissions and slowing down global warming. Photovoltaic panels are used in solar energy to capture sunlight, whereas wind turbines are used in wind power to generate electricity. Electricity is produced by hydroelectric dams using water flow, while biomass energy is produced from organic resources such as wood or agricultural waste. Technologies for renewable energy are developing steadily, becoming more efficient and affordable. Globally, governments are promoting the use of renewable energy through investment incentives, subsidies, and legislation, which is causing the industry to expand quickly. Renewable energy, with its availability and advantages for the environment, is well-positioned to satisfy future energy demands and advance a cleaner, more sustainable future.
The 554 MW Babilonia wind power project will be developed through a joint venture between ArcelorMittal and Casa dos Ventos, a Brazilian renewable energy firm, according to an announcement made by the company in April 2023. The project will be situated in northeastern Brazil’s central area of Bahia and will be developed for USD 800 million. Casa dos Ventos will own the remaining 50% of the joint venture, with ArcelorMittal holding the other 55%.
Figure 1: Installed Capacity for Renewable Energy in India (2023)
Source: Invest India
2. Internet of Energy (IoE)
The Internet of Energy (IoE) is revolutionizing the energy business and promoting the development of a more flexible, efficient, and sustainable energy environment by combining cutting-edge digital technology with traditional energy infrastructure. The IoE enables smooth coordination and communication between energy generation, delivery, and consumption through networked devices, sensors, and smart grids. The IoE leverages real-time data analytics and predictive algorithms to optimize energy management, improve grid reliability, and enable dynamic demand-response mechanisms. Energy and information technologies are coming together to allow consumers to take an active role in the energy market, boost energy efficiency, and reduce carbon emissions. Furthermore, by facilitating the integration of renewable energy sources like solar power, IoE encourages the shift to a cleaner and more resilient energy future.
The official completion of Chevron Corporation’s acquisition of PDC Energy, Inc., took place in August 2023. As part of this deal, Chevron Corporation acquired several assets. These properties are located advantageously next to Chevron’s present activities on 275,000 net acres in the Denver-Julesburg (DJ) Basin. The proved reserves contributed by these recently acquired properties total about one billion oil-equivalent barrels. In addition, production now owns 25,000 net acres in the Permian Basin that are part of the deal.
3. Energy Storage
In the current energy landscape, energy storage is essential because it enhances grid stability, makes it possible to integrate renewable energy sources, and meets fluctuating energy demands. Batteries, pumped hydro storage, thermal energy storage devices, and other technological advancements are all included. These systems store excess energy during periods of low demand and release it during periods of high demand, balancing supply and demand dynamics. The heightened scalability, reduced cost, and better efficiency of energy storage technologies have made them indispensable for both decentralized and centralized energy systems. As the world evolves towards a more sustainable energy future, energy storage devices are critical to deliver backup power in an emergency, incorporate intermittent renewable energy sources like solar and wind, and improve grid resilience.
For example, in February 2022, Albania received 14 PVS-100 inverters, a three-phase string solution, from FIMER and Vega Solar. FIMER’s PVS-100/120-TL is a cloud-connected three-phase string inverter intended for affordable decentralized solar systems installed on rooftops and the ground.
4. Blockchain
The methods for storing, protecting, and exchanging data in digital settings are completely transformed by blockchain technology. Peer-to-peer transactions are made possible by its distributed and decentralized ledger operation, which eliminates the need for middlemen. Since each transaction is documented in a “block” and connected to the others in a chronological “chain,” the data is transparent and unchangeable. Beyond cryptocurrency, supply chain management, identity verification, smart contracts, and decentralized finance (DeFi) are among the uses of blockchain technology. Transparency, security, and traceability are some of its primary advantages that boost efficiency and confidence across a range of businesses. But issues like energy usage, scalability, and regulatory problems still exist. Nevertheless, blockchain is still developing, with new projects and research aimed at resolving these problems and realizing blockchain’s full promise to transform sectors and open up new digital ecosystems.
In January 2023, the widespread adoption of blockchain technology by all spheres of society, from huge multinational corporations to casual DeFi aficionados, is crucial to the industry’s long-term growth and viability. The news that Ava Labs, the primary creator of the Avalanche blockchain technology, has formally partnered with Amazon Web Services (AWS), a cloud computing platform under the management of e-commerce behemoth Amazon.com, has greatly bolstered this aim. AWS is the biggest supplier of cloud infrastructure globally.
The blockchain market has grown significantly in North America because of its growing usage in several areas, including supply chain, healthcare, banking, and government. A hospitable legislative landscape, a strong technological foundation, and widespread interest and investment in blockchain technology are some of the factors driving this rise. Businesses in the area are using blockchain because of its ability to improve digital transactions’ efficiency, security, and transparency. Furthermore, alliances among tech companies, financial institutions, and governmental organizations are quickening the creation and application of blockchain solutions and establishing North America as a primary center for blockchain innovation and application.
5. Energy as a Service (EaaS)
The energy sector is seeing a rise in the practice of providing energy demands as a holistic solution rather than just as a commodity, or energy-as-a-service, or EaaS. It entails the provision of energy services—such as power, lighting, heating, and cooling—through creative business models that put economy, sustainability, and efficiency first. Energy management systems, renewable energy installations, demand response plans, and energy-efficient technology are common components of EaaS solutions. With this strategy, customers may obtain dependable and environmentally friendly energy options without having to pay for new equipment or infrastructure upfront. By outsourcing their energy requirements to specialized service providers, businesses can maximize energy efficiency, minimize operating expenses, and meet their sustainability objectives. Additionally, EaaS models encourage the transition to decentralized energy systems and the incorporation of renewable energy sources.
Reputable cleantech integrator Ameresco, Inc., with an emphasis on energy efficiency and renewable energy, announced today that it has extended its EaaS agreement with Northwestern University. Without needing any up-front funding, the deal will help the university handle its energy-related deferred maintenance challenges while advancing its academic and sustainability goals. As per the agreement, Ameresco will design and implement energy-saving improvements for the 175 buildings on campus and the central plants, in addition to providing ongoing energy monitoring and associated services. Energy efficiency initiatives aimed at these buildings will use state-of-the-art technologies to create more efficient, high-performing building systems, in addition to enhancing the learning environment for students.
Lentil Protein a Healthy Option for Health-Conscious People
BlogThe Lentil Protein market was valued at US$15.801 million in 2020.
Lentils are a member of the legume family and are regarded as an important protein source. Lentils have a high protein and fibre content but a low-fat content. The growing awareness of protein-rich food products is driving up demand for plant protein and, as a result, the growth rate of various types of protein ingredients. Furthermore, in order to achieve economies of scale, food processing companies are increasingly investing in product innovations that necessitate the use of plant-based protein, such as lentil protein. These strategic initiatives not only allow them to expand their product portfolio, but also allow them to expand their regional presence, thereby augmenting the projected growth of the lentil protein market over the next few years. Moreover, the growing awareness of the benefits of vegan products over animal-based products in developed countries is fueling a surge in demand for this product. Consumers are looking for healthier, lower-cost protein sources that will improve their health. Other plant-based protein ingredient sources, such as soy and wheat, are also acceptable protein sources, but they contain gluten and other potentially harmful compounds that may not be suitable for all consumers. Intolerance of soy and protein sources, as well as the prohibition of animal protein in diets, are among the primary factors expected to influence the growth of this market.
Types of Lentils:
Lentils are of two types organic and inorganic. Organic lentils are legumes famous for their ease of preparation, earthy flavour, and high protein content. It is produced using processes without synthetics such as chemical fertilizers and pesticides. Inorganic lentils, on the other hand, are produced using synthetics. Rising global awareness of organic lentils is one of the factors that is expected to accelerate the growth of the organic food market. Furthermore, rising public concern about the use of hazardous chemicals in agriculture and farming, as well as their negative health effects on consumers, has led to an increase in global demand for organic lentils.
Application of Lentil Protein
Based on application, the lentil protein is divided into animal feed, food and beverage, pharmaceuticals and nutraceutical. Lentil protein powder is high in nutrients and is thought to have numerous health benefits. This powder can also help build muscles, which can be used in conjunction with resistance training. Having a large muscle mass is a popular trend among modern consumers. The highly popular body-building culture has created a market for various supplements, which invariably boosts market growth prospects. Lentil protein is an excellent source of post-workout nutrition for athletes who may struggle to consume other types of protein. Lentil protein producers are eyeing lucrative opportunities in the sports nutrition market. Lentil protein has made its way into the sports nutrition and supplement market as a result of the growing emphasis on health and fitness.
In the global animal feed industry, quality has become increasingly important. Until recently, the industry paid little attention to feed quality; however, the tide has now turned. The industry has been compelled to invest in higher quality feed due to increased awareness of the importance of livestock health and changing consumer perceptions of the quality of food derived from livestock. As a result, the demand for high-quality, nutrient-dense protein ingredients is increasing. Lentils are regarded as an excellent source of protein for livestock, assisting in their proper development and yield. As a result, demand for lentil protein for livestock consumption is expected to increase.
Increasing Consumer Health Awareness:
Consumers are becoming increasingly concerned about their health. Synthetic colours and additives add exciting tastes and flavours to food products but have a long-term negative impact on the body. As consumers become more aware of these additives and preservatives, they are choosing healthier food products that will assist them in maintaining good health. The majority of consumers consume functional foods, dietary supplements, and other nutritional supplements. As their consumer bases become more proactive, developed regions such as Europe and North America are increasingly moving toward health consciousness. Because health consciousness is a growing consumer trend, the demand for it is increasing globally.
Consumers prioritise the prevention of chronic diseases, which influences their consumption of health-promoting foods. It is regarded as an important source of nutrients such as protein, vitamins, carbohydrates, and so on. It also has disease-fighting properties.
Regional and Geographical Insights:
On a Geographical note, The European region is expected to hold a significant market share during the forecast period, facilitating subsequent lentil protein market growth. The European Commission acknowledged in its communication titled A Farm to Fork Strategy for a Fair, Healthy, and Environmentally Friendly Food System, published in May 2020, that agriculture is responsible for 10.3% of the EU’s GHG emissions, with livestock farming accounting for nearly 70% of those emissions (animal sector). These are non-CO2 GHG emissions (methane and nitrous oxide). Furthermore, animal agriculture consumes 68% of the total agricultural land. To help reduce the environmental and climate impact of animal production, avoid carbon leakage through imports, and support the ongoing transition to more sustainable livestock farming, the Commission will reportedly facilitate the market inclusion and utilisation of sustainable and innovative feed additives. It will reportedly examine EU rules to aid in the reduction of reliance on critical feed materials, such as soy grown on deforested land, by fostering EU-grown plant proteins as well as other alternative feed materials. Furthermore, the commission reportedly proposes to spend EUR 10 billion on research and innovation (R&I) to accelerate the transition from primary production to consumption of sustainable, healthy, and inclusive food systems. One of the key research areas has been reported to include, among other things, increasing the availability and source of alternative proteins based on plants. As a result, such an international initiative will unquestionably create a favourable environment for the growth of the lentil protein market during the forecast period.
Lentil Protein Market Scope:
AI Chipsets: Powering Smarter Devices, From Edge to Cloud
Thought ArticlesAn AI chip is a special integrated circuit that is specifically designed to perform AI tasks. It is specialized computing hardware used in the development and deployment of artificial intelligence systems. The field programmable gate arrays (FPGAs), graphics processing units (GPUs), and application-specific integrated circuits (ASICs) are all examples of AI chips.
Global Production Trends
The production of AI chipsets has been steadily increasing over the years and the industry has been booming in recent times, driven by factors such as rapid growth in its various applications across various industries. In the automotive industry, they drive tasks such as identifying objects, merging sensor data, and making decisions, thus bolstering safety and enabling self-driving capabilities. Also, in the healthcare industry, AI chips play a major role in analyzing medical images and facilitating diagnoses from X-rays, MRIs, and CT scans.
Moreover, the rise of automation in technology is also a factor contributing to AI chipset production growth. The use of automation to automate tasks using robotics is becoming very common, and many firms are adopting AI and robots to automate their tasks in the organization rather than using any other advanced technology. For instance, as per the United States Census Bureau, around 30% of all workers are potentially exposed to advanced technologies used for automation purposes.
Figure 1: AI and Robotics Adoption, in Percentage, 2023
Source: Census.gov
In recent years, there has been a notable increase in the production of AI chipsets in emerging economies with technological advancements in the AI field. They have a diverse set of end-users and can cater to all their needs. For instance, companies creating AI-centric products and services, smartphones featuring AI-powered technologies, and enterprises use these AI chips within data centers to tackle tasks such as refining business operations through predictive analysis and training expensive machine learning models.
IBM launched the AI Hardware Center to improve the technology of AI and reach its true potential so that they can improve AI hardware efficiency continuously each year. By 2029, the goal is to train and run AI models much faster than the company could in 2020.
AI chipsets production
Nvidia has been in the market for a long time. They have been producing GPUs (Graphics Processing Units) for the gaming sector like PlayStation, and Xbox since the 1990s. The company also makes AI chips such as Volta, Xavier, and Tesla. Additionally, owing to the generative AI boom in the tech industry, NVIDIA reached a trillion in valuation and reached the status of leader of GPU and AI in hardware markets. Also, companies like AMD (Advanced Micro Devices), and Intel are a major part of AI chipset production.
Furthermore, NVIDIA is raising the production of AI chips to meet surging demand in the market. Nvidia has come to dominate the market for Artificial Intelligence (AI) chips used in various things like robotics, electric vehicles like Tesla, and others. Additionally, the computer chip designer Nvidia shares have soared, taking the company’s valuation above the one trillion dollar mark. This also means that it joins tech giants Apple, Amazon, Alphabet, and Microsoft in the elite club of $1tn US companies.
Figure 2: Revenue Growth of Nvidia, in USD Millions, 2021-23
Source: NVIDIA Annual Reports
Market Dynamics and Drivers
Several factors drive the AI chipsets market, including a rise in generative AI in recent times coupled with the launch of ChatGPT has contributed to boosting the overall AI market. So, with this rapid growth in AI technology and popularity, the need for AI chipsets is rising proportionally. AI chipsets are used in a wide range of products such as electric vehicles with self-drive features, and smartphones which allow the processing to be done more efficiently, reducing power consumption and increasing battery life. Therefore, with a rise in demand for these products in the market, the AI chipset market is also predicted to grow.
The importance and rise in big data across several industries is one of the growth factors in the AI chipsets market. The growing need to handle this big data by using deep learning techniques and neural networks contributes to the market’s growth. An AI chip is an important part of processing AI algorithms. The more fast the chip will be the more amount of data it will be able to process quickly. These chips are mostly deployed at high-end servers or data centers because end computers are not able to process such huge loads of data and they don’t have enough time frame & power to process that data.
Challenges and Constraints
Despite the huge advantages and use cases of AI chipsets the companies that manufacture them require a lot of investments, a skilled workforce, and experts to manage, develop, and implement these AI technologies. The cost to do all these can be a hindrance to market growth. Also, the workforce should know AI technologies such as machine learning, neural networks, and deep learning and should be able to manage them after developing them.
The expansion of AI technology worldwide will require to integrate AI technology to be integrated into already existing technologies. The process of integrating AI into already existing technology will require special research and development to implement this practically. There can be no mistakes during this process as even one mistake and the whole operation of research and development will fail and the cost to do that is also very high which affects the market negatively. Furthermore, the lack of significant investments and skills required to work in developing and managing AI technologies will hinder the growth of the AI chipsets market in the forecasted period.
Emerging Opportunities and Innovations
The AI chipsets market presents numerous opportunities for innovation and growth. Advances in AI chipsets technology have led many major smartphone manufacturers to adopt AI chipsets in their devices like Samsung, Apple, and other smartphone manufacturers. These AI chipsets provide AI hardware with increased data privacy and security, sensitive data can remain on the device and doesn’t need to be sent over the internet for processing in the cloud. They will allow for processing to be done more efficiently, reducing power consumption, increasing battery life, and lowering response time.
For instance, Nvidia is integrating AI into GPUs (graphics processing units) that can utilize the Hopper architecture to accelerate AI applications. Nvidia is working with global system manufacturers and cloud service providers to make them available. The new GPU has 1.4x more memory bandwidth and 1.8x more memory capacity, improving its ability to handle intensive generative AI work.
Key Developments
In conclusion, the AI chipsets market presents significant opportunities for growth and innovation, driven by the increasing popularity of AI technologies like self-driving cars, ChatGPT, and 5G and smartphone technology. While facing challenges such as a lack of knowledgeable workforce and huge investments for research and development, the industry is poised to capitalize on technological advancements and innovations to meet the needs of a growing global demand for AI chipsets.
Demand for Communications and Electronics to Fuel the Semiconductor Dry Etch Systems Market
Thought ArticlesSemiconductor dry etch systems are equipment used in the production of semiconductors, microprocessors, and other microelectronics. The technique is selectively removing or etching specific layers of material from a wafer, leaving behind the patterns and structures required for the device’s operation.
Dry etching systems use a variety of processes to remove material from the wafer surface, including plasma etching, reactive ion etching, and deep reactive ion etching. Dry etching is an important stage in semiconductor production because it enables accurate patterning and the development of detailed patterns on the wafer’s surface. These characteristics may include channels and trenches, which are key components of contemporary semiconductor devices. The capacity to create exact and consistent patterns is required to improve device performance, minimize size, and expand functionality.
The semiconductor dry etch systems market is being pushed by rising demand for improved semiconductor devices and high-resolution patterning capabilities. The drive for better processing speeds, smaller form factors, and more functionality is driving the development of more accurate patterning and etching capabilities. As a result, dry etching has become an important stage in the semiconductor production process.
In the 1980s, the US semiconductor industry lost more than half of its global market share. This was due to fierce competition from Japanese manufacturers, illegal “dumping,” and a severe industrial slump in 1985–86. The sector lost 19 worldwide market share points, surrendering leadership to Japan’s semiconductor industry.
However, the company rebounded throughout the next decade, regaining its leading position and peaking at 50% global market share by 1997. US semiconductor companies maintain a competitive edge in microprocessors, R&D, design, and process technology, with a current market share of 48%, Korea 19%, Japan 9%, the EU 9%, Taiwan 8%, and other nations’ industries accounting for 7–20% of global market share.
Figure 1: Semiconductor Industry Countries Market Share
Source: World Semiconductor Trade Statistics (WSTS), Omdia, and SIA Estimates
The demand for modern semiconductor and electronic equipment, such as microprocessors, memory chips, and sensors, as well as mobile devices, tablets, and laptops, is fast expanding due to the widespread use of digital technology in numerous industries. Higher processing speeds, smaller form factors, and greater functionality are increasing demand for more accurate patterning and etching capabilities.
Furthermore, technical improvements in semiconductor production, such as the development of novel materials, methods, and devices, are increasing demand for more sophisticated dry etch systems. For example, the developments of novel materials like silicon carbide and gallium nitride for high-power and high-frequency devices needs more accurate and uniform etching skills. Furthermore, the growing need for three-dimensional (3D) architecture in semiconductor devices drives the need for deep reactive ion etching (DRIE) equipment.
Consumer-purchased items, including laptops and cellphones, fuel most of the semiconductor demand. Consumer demand is growing in emerging markets such as Asia, Latin America, Eastern Europe, and Africa. Global semiconductor sales are generated by goods that are eventually purchased by customers.
Semiconductors are critical components in a wide range of consumer electronics and products, including smartphones, tablets, laptop computers, TVs, gaming consoles, digital cameras, smart home appliances, wearables, and automotive electronics, among others. These semiconductor chips, also known as integrated circuits (ICs), perform a variety of activities in electronic devices, including processing, memory storage, communication, display control, sensor input, and power management.
According to data from World Semiconductor Trade Statistics Communication sectors have the largest market share of 30% followed by PC/Computer devices that holds the et share of 26% followed by industrial, automotive, consumer sector holding market share of 14% each and government holding 2%.
Figure 2: Global Semiconductor Sales Share by End User
Source: World Semiconductor Trade Statistics (WSTS)
Semiconductor technology is continually evolving to meet the needs of many sectors through enhanced products and processes. Memory, logic, analog, and mpu have been the leading segments of the global semiconductor business in recent years. In 2022, these items represented 78% of semiconductor industry sales.
Figure 3: Worldwide Semiconductor Sales by Product Segment 2022
Source: World Semiconductor Trade Statistics (WSTS)
In conclusion, semiconductor dry etch systems are critical equipment in the semiconductor manufacturing industry for accurate material removal and patterning. They employ plasma, a state of matter made up of ionized gases, to remove material layers from wafers. Compared to wet etching procedures that employ liquid chemicals, this process provides more control, accuracy, and selectivity, making it excellent for generating delicate patterns and features on semiconductor devices.
Key Developments
Commercial Aviation Aircraft Tires Soaring High
BlogThe global commercial aviation aircraft tires market was valued at US$1.232 billion in the year 2020, while growing at a CAGR of 3.14%, and is estimated to reach a market size of US$1.531 billion by 2027.
An aircraft tire is a unique kind of tire, which is specially designed for different types of aircraft that range from military jets to private jets, commercial jets, and cargo planes, among many others. These tires are made out of rubber and are designed in a way that offers good stability in crosswind conditions and also offers a way to channel away from the water, which is primarily done to prevent hydroplaning and also to make the braking effect more efficient.
The primary factor which drives the growth of the commercial aviation aircraft tires market is the globally growing aviation industry, despite a slip up by the pandemic, and the inclining number of investments by numerous major airline companies for the procurement of new generation aircraft. Air travel is growing across the globe, which can be attributed to factors like the rise of the tourism sector, inclining disposable income, a rise in business travel, as well as medical tourism, among others. The market is also expected to show substantial growth due to the presence of even more stringent regulations when it comes to the maintenance and operations of commercial aircraft tires by numerous government organizations across various countries in the world. However, the outbreak of the COVID-19 pandemic caused a major slowdown in market growth to an extent, especially during the initial phases of the pandemic that resulted in nationwide lockdowns in many countries.
Single-aisle aircraft to witness substantial growth
On the basis of aircraft type, the commercial aviation aircraft tires market is segmented into Single-aisle and wide-body. During the forecast period, the single-aisle segment is expected to show robust growth. The neck-to-neck competition between major single-aisle commercial aircraft market players has propelled the market for single-aisle aircraft to a great degree. For instance, Bahamas Trade Info reported in July 2022 that Airbus had climbed past Boeing in single-aisle market share. Such tough competition among the market players is the prime reason for the growth of this market segment. Further, due to the benefits such as low operational cost, ease of maintenance, and economical purchase. The demand for small-size aircraft has witnessed a surge in the past years which has been supporting the demand for commercial aviation aircraft tires in this segment. However, it is anticipated that wide-body aircraft are expected to hold a considerable market share. Owing to the growing air passenger traffic the companies are expanding their fleet capacity with large-size aircraft, because of which, this segment is expected to show substantial growth during the forecast period. For instance, in September 2022, Air India announced the signing of a lease agreement with Boeing to progressively induct five wide-body aircraft from December 2022 to boost its domestic and international operations over the next 15 months. Such developments are expected to create opportunities in the commercial aircraft tires market during the forecast period.
Participation by key players to augment market size
There is a significant number of companies that are working in the commercial aviation aircraft tires market and some of them have solidified their position in this industry as the leading providers. These players are involved in a broad range of product launches, investments, and R&D, which form a part of their growth strategies, in order to strengthen their positions even further and aid their con summers with better products and services worldwide. This factor is expected to augment the growth of the market in the analyzed period. For instance, in June 2019, a major market player, Goodyear Tire & Rubber Company, announced a partnership with Airbus in order to supply its Flight Radial tires as the main and nose landing gear for the new Airbus aircraft, A321XLR.
The stir caused by COVID-19
The outbreak of the coronavirus pandemic is one of the major factors that has caused a restraint to the growth of the market, due to the slowdown of activities by the commercial aviation sector on a global level. The COVID-19 scenario resulted in a reduction in the volume of production of commercial aircraft, owing to which, the demand for aviation tires market was very negatively affected. Furthermore, there was also a halt in the overall commercial flights across the globe which also led to a decrease in the demand in the market. The IRBD (International Bank for Reconstruction and Development) reported that the spread of the virus affected the aviation industry as it recorded very less air passengers in 2020 as compared to 4,3 million in 2019. Major aircraft manufacturers in the industry, like Boeing and Airbus, were reported to have reduced their production forecasts by approximately 50%. The airline industry reported a drop in their revenue by about 40% to a figure of $328 billion in 2020 due to the declining demand for air travel and a wide-scale cancellation of flights. Thus owing to the pandemic, there has been a drastic decline in the active fleet by airlines, further adding to the negative impact on the commercial aviation aircraft tires market.
Commercial Aviation Aircraft Tires Market Scope:
Exploring the Top Energy Industry Trends
Thought ArticlesThe energy sector encompasses the production, distribution, and utilization of a wide range of energy sources, including nuclear power, renewable energy, and fossil fuels. It is necessary for sparking economies and maintaining global infrastructure. Oil and gas, power generation, renewable energy, and energy storage are important segments of the energy economy. Geopolitical unrest, environmental concerns, and the shift to renewable energy sources are some of the obstacles the business must overcome. Technological developments like smart grid systems and renewable energy technologies are changing the face of industry. In addition, to meet the rising demand for energy worldwide while reducing the effects of climate change, the energy sector is putting more and more emphasis on resilience, sustainability, and efficiency. Join us as we explore the “Top Energy industry trends” in this article that have evolved the industry trends in the energy sector.
Top Energy Industry Trends
Let’s discuss each one in detail.
1. Renewable Energy
The world’s energy landscape is changing due to renewable energy, characterized by sources like biomass, solar, wind, and hydroelectric power. It provides environmentally friendly substitutes for conventional fossil fuels, lowering greenhouse gas emissions and slowing down global warming. Photovoltaic panels are used in solar energy to capture sunlight, whereas wind turbines are used in wind power to generate electricity. Electricity is produced by hydroelectric dams using water flow, while biomass energy is produced from organic resources such as wood or agricultural waste. Technologies for renewable energy are developing steadily, becoming more efficient and affordable. Globally, governments are promoting the use of renewable energy through investment incentives, subsidies, and legislation, which is causing the industry to expand quickly. Renewable energy, with its availability and advantages for the environment, is well-positioned to satisfy future energy demands and advance a cleaner, more sustainable future.
The 554 MW Babilonia wind power project will be developed through a joint venture between ArcelorMittal and Casa dos Ventos, a Brazilian renewable energy firm, according to an announcement made by the company in April 2023. The project will be situated in northeastern Brazil’s central area of Bahia and will be developed for USD 800 million. Casa dos Ventos will own the remaining 50% of the joint venture, with ArcelorMittal holding the other 55%.
Figure 1: Installed Capacity for Renewable Energy in India (2023)
Source: Invest India
2. Internet of Energy (IoE)
The Internet of Energy (IoE) is revolutionizing the energy business and promoting the development of a more flexible, efficient, and sustainable energy environment by combining cutting-edge digital technology with traditional energy infrastructure. The IoE enables smooth coordination and communication between energy generation, delivery, and consumption through networked devices, sensors, and smart grids. The IoE leverages real-time data analytics and predictive algorithms to optimize energy management, improve grid reliability, and enable dynamic demand-response mechanisms. Energy and information technologies are coming together to allow consumers to take an active role in the energy market, boost energy efficiency, and reduce carbon emissions. Furthermore, by facilitating the integration of renewable energy sources like solar power, IoE encourages the shift to a cleaner and more resilient energy future.
The official completion of Chevron Corporation’s acquisition of PDC Energy, Inc., took place in August 2023. As part of this deal, Chevron Corporation acquired several assets. These properties are located advantageously next to Chevron’s present activities on 275,000 net acres in the Denver-Julesburg (DJ) Basin. The proved reserves contributed by these recently acquired properties total about one billion oil-equivalent barrels. In addition, production now owns 25,000 net acres in the Permian Basin that are part of the deal.
3. Energy Storage
In the current energy landscape, energy storage is essential because it enhances grid stability, makes it possible to integrate renewable energy sources, and meets fluctuating energy demands. Batteries, pumped hydro storage, thermal energy storage devices, and other technological advancements are all included. These systems store excess energy during periods of low demand and release it during periods of high demand, balancing supply and demand dynamics. The heightened scalability, reduced cost, and better efficiency of energy storage technologies have made them indispensable for both decentralized and centralized energy systems. As the world evolves towards a more sustainable energy future, energy storage devices are critical to deliver backup power in an emergency, incorporate intermittent renewable energy sources like solar and wind, and improve grid resilience.
For example, in February 2022, Albania received 14 PVS-100 inverters, a three-phase string solution, from FIMER and Vega Solar. FIMER’s PVS-100/120-TL is a cloud-connected three-phase string inverter intended for affordable decentralized solar systems installed on rooftops and the ground.
4. Blockchain
The methods for storing, protecting, and exchanging data in digital settings are completely transformed by blockchain technology. Peer-to-peer transactions are made possible by its distributed and decentralized ledger operation, which eliminates the need for middlemen. Since each transaction is documented in a “block” and connected to the others in a chronological “chain,” the data is transparent and unchangeable. Beyond cryptocurrency, supply chain management, identity verification, smart contracts, and decentralized finance (DeFi) are among the uses of blockchain technology. Transparency, security, and traceability are some of its primary advantages that boost efficiency and confidence across a range of businesses. But issues like energy usage, scalability, and regulatory problems still exist. Nevertheless, blockchain is still developing, with new projects and research aimed at resolving these problems and realizing blockchain’s full promise to transform sectors and open up new digital ecosystems.
In January 2023, the widespread adoption of blockchain technology by all spheres of society, from huge multinational corporations to casual DeFi aficionados, is crucial to the industry’s long-term growth and viability. The news that Ava Labs, the primary creator of the Avalanche blockchain technology, has formally partnered with Amazon Web Services (AWS), a cloud computing platform under the management of e-commerce behemoth Amazon.com, has greatly bolstered this aim. AWS is the biggest supplier of cloud infrastructure globally.
The blockchain market has grown significantly in North America because of its growing usage in several areas, including supply chain, healthcare, banking, and government. A hospitable legislative landscape, a strong technological foundation, and widespread interest and investment in blockchain technology are some of the factors driving this rise. Businesses in the area are using blockchain because of its ability to improve digital transactions’ efficiency, security, and transparency. Furthermore, alliances among tech companies, financial institutions, and governmental organizations are quickening the creation and application of blockchain solutions and establishing North America as a primary center for blockchain innovation and application.
5. Energy as a Service (EaaS)
The energy sector is seeing a rise in the practice of providing energy demands as a holistic solution rather than just as a commodity, or energy-as-a-service, or EaaS. It entails the provision of energy services—such as power, lighting, heating, and cooling—through creative business models that put economy, sustainability, and efficiency first. Energy management systems, renewable energy installations, demand response plans, and energy-efficient technology are common components of EaaS solutions. With this strategy, customers may obtain dependable and environmentally friendly energy options without having to pay for new equipment or infrastructure upfront. By outsourcing their energy requirements to specialized service providers, businesses can maximize energy efficiency, minimize operating expenses, and meet their sustainability objectives. Additionally, EaaS models encourage the transition to decentralized energy systems and the incorporation of renewable energy sources.
Reputable cleantech integrator Ameresco, Inc., with an emphasis on energy efficiency and renewable energy, announced today that it has extended its EaaS agreement with Northwestern University. Without needing any up-front funding, the deal will help the university handle its energy-related deferred maintenance challenges while advancing its academic and sustainability goals. As per the agreement, Ameresco will design and implement energy-saving improvements for the 175 buildings on campus and the central plants, in addition to providing ongoing energy monitoring and associated services. Energy efficiency initiatives aimed at these buildings will use state-of-the-art technologies to create more efficient, high-performing building systems, in addition to enhancing the learning environment for students.
The Global Scenario of Human Drugs for Veterinary Use
BlogThe global human drugs for veterinary use market are expected to grow at a compound annual growth rate of 2.90% to reach a market size worth US$4.102 billion by 2028. This market was valued at US$3.357 billion in 2021.
Human-labeled pharmaceutical drugs that are often prescribed in veterinary medicine, include the pain relievers pregabalin and gabapentin, as well as ketamine, hydrocodone, morphine, buprenorphine, and others.
Veterinary healthcare practitioners prescribe medications to treat injuries and diseases in animals suffering from a variety of health issues. These pharmaceuticals serve as preventive medications for the spread of infectious diseases in animals.
Furthermore, Congress passed legislation in 1994 that allows veterinarians to prescribe approved human and animal drugs for off-label uses in animals in some circumstances. Additionally, under certain conditions, the Animal Medicinal Drug Use Clarification Act allows veterinarians to prescribe off-label uses of certain approved animal drugs and approved human drugs for animals.
The market for animal healthcare is expanding rapidly as pet ownership and awareness of animal healthcare products grows around the world. As a result, several human drugs are available in pharmaceuticals that can also be used on pets.
The global rise in pet adoption rate will boost the market for human drugs for veterinary use
During the coronavirus outbreak, 23 million American families got a new pet. Americans spent $42 billion on pet food and treat in 2020, according to the American Pet Products Association, and are further spent an estimated $44 billion in 2021. Therefore, the number of animals suffering from various diseases has increased significantly as the adoption rate of pets has increased.
As a result, some human medications, such as Pepcid AC, Claritin, Tagamet HB, Benadryl, Aspirin, and others, can help treat conjunctivitis, itches and hives, skin illnesses, fungal infections, and other conditions in dogs and cats.
Healthcare investments and other innovative key developments in the market
A noticeable increase in the number of firms engaging in the animal healthcare sector has occurred. This will cause the market to develop even higher in the anticipated years. For example, in 2021, a consortium led by private equity company Multiples Alternate Asset Management agreed to pay $397 million for an animal health business from a fully owned entity of Cadila Healthcare Ltd.
Various pharmaceutical corporations have also made substantial investments and initiatives in animal healthcare in India which has led the market to rise. For example, Fujifilm India Pvt Ltd, a pioneer in medical imaging and diagnostic technology, came into a partnership arrangement with A’alda Vet India Pvt Ltd in 2021 to improve pet healthcare services. As part of the collaboration, Fujifilm India delivered advanced medical and screening instruments to DCC (Dogs, Cats & Companions) Animal Hospital, an A’alda Vet initiative to improve veterinary care standards in India. Furthermore, Aurobindo Pharma paid $56 million for a majority stake in generic veterinary pharma manufacturer Cronus Pharma Specialties India during the same year.
In addition, the number of dogs and cats adopted in North America has increased. As a result, corporations in this region have undertaken finance and investment projects. For example, in 2022, Easyvet, a rapidly expanding limited-service veterinary clinic franchise based in the United States, announced the completion of a $5 million Series A-1 funding round led solely by UNAVETS, an animal healthcare investment portfolio backed by funds managed by Oaktree Capital Management, L.P.
According to analysts, the North American region is expected to occupy the dominant share of the market in the upcoming years.
Pet health insurance premiums in the United States increased from US$1.56 billion in 2019 to US$1.99 billion in 2020, according to the North American Pet Health Insurance Association. Furthermore, from 2016 to 2020, this spending grew at a steady pace of 24.2% on average.
Companies in the United States had taken several initiatives for the betterment of the animal healthcare market. For instance, Merck Animal Health, a company of Merck & Co., Inc., Kenilworth, N.J., USA, announced a $100 million investment in facility expansion and upgrade operations at its DeSoto, Kansas, production location in 2020. During the same year, a technical extension of the vaccine manufacturing plant was completed, and an additional $66 million investment was made to permit for future upgrade capabilities to be achieved in the following years. Due to investments like these the North American region is anticipated to hold a significant portion of this market in the future ahead.
COVID-19 Insights
The COVID-19 pandemic had an unprecedented impact on veterinarians, who play a critical role in ensuring the safety of our food supply, protecting animal and public health, supporting biomedical research and development, and others. Therefore, the market for animal healthcare witnessed a slowdown during the lockdown period.
Global Human Drugs for Veterinary Use Market Scope:
A Life Saviour Paper Adhesive Tape
Thought ArticlesThe Paper Adhesive Tape Market was worth US$9.725 billion in 2020 and is projected to expand at a 6.70% CAGR over the predicted period to reach US$15.315 billion by 2027.
Crape, craft, or any other sort of recyclable coating adhesive is offered on the paper adhesive tapes. They’re comprised of crepe paper that’s been coated with rubber glue. These tapes come in a various colours. These are heat-insulating, temperature-resistant, and hold a lot of weight. They’re light, silky, and bendable. The paper adhesive tape’s qualities make it suited for applications such as vehicle and aircraft manufacture, appliances production, ventilating, heating and air, to seal envelopes for sending and paper and printing. These are used to seal cartons in order to extend the life of the contents. These tapes are resistant to humidity and moisture, they are being used to enclose folded cartons containing heavy products.
The adhesive is supplied within one side of acting in single-coated tapes. The backing substance might be thermoplastic film, parchment, foil, microfiber, or high thread counts woven cloth, while the adhesion could be natural or synthetic, silicone, or acrylic. These tapes, make it easier to adhere the material to a surface and link two adjoining or overlapping materials altogether.
Due to their increased consumption, double-coated tapes are expected to replace previous sealing and adhesive techniques due to their endurance, superior surface adherence, and high shear strength. Due to a strong production base, significant growth in the automotive industry, and the substitute of screws, traditional fasteners bolts, and screws.
Rise in Demand in the Healthcare Industry
Adhesive tapes are employed in the assembly of medical equipment, wound care, and surgical cloth adhesion. Skin-friendly adhesives are also commonly utilised in the production of diapers for both babies and adults. In the future years, demand for paper tapes is likely to rise due to an excess supply of adhesive tapes in the healthcare and pharmaceutical industries. Surgical paper tapes are expected to become a new phenomenon in the market due to its widespread use by doctors and experts. These surgical paper tapes help to speed up healing and maintain skin integrity by forming a long-lasting adhesive and removing them gently without leaving any residue. As people become more accustomed to using paper tapes to gently treat wounds and injuries, producers will have more opportunity to break into the market.
Use in Constructions Sector
The construction industry’s continued expansion in various parts of the world has a substantial impact on adhesive tape demand. Marking, masking, painting, sealing, and other applications are all common uses for paper tapes in the construction sector. The construction industry’s constant demand for paper tapes, as well as the industry’s consistent expansion, are expected to present significant prospects for manufacturers.
Decreased use of adhesives
Due to increased knowledge among rivals about the benefits of adhesive tapes there is a growth in the economy. The application category has grown as a result of several research and development initiatives, and the market appears to be rising at a remarkable rate. The new trend of using adhesives instead of bolts, screws, rivets, and other adhering or attaching procedures has been propelling the adhesive market forward at a global level. It also extends the life of objects by preventing corrosion and rust. Furthermore, there is a rising desire for light-weight automobiles, which is propelling the adhesive market’s rise.
Emerging Use In E-commerce Industries
The need for paper tapes in the retail and logistics industries has been driven by mass transportation of goods. Previously, in the logistics business, plastic tapes were used to package goods, but as awareness of the environmental destruction done by plastic tapes grew, paper tapes were preferred. Paper tapes can also withstand outdoor use, which makes them popular among industry participants, particularly in the construction and shipping industries. Additionally, these are obtainable of exceptionally thin paper, they have allowed individuals to continue packing activities with maximum precision even at sharp edges. According to a poll done by the B2B e-commerce establishment of the U.S., the proportion of e-commerce purchases in merchandise trade was around 12.2 percent in 2018 and climbed to 13.8 percent in 2019, with growth expected to continue to 19.6 percent in 2021. These reasons are projected to dramatically increase the business for paper adhesive tapes.
Need for Water-Based Tapes
Water-based tapes are in limited supply mostly in the building and construction industry because of their durability, flexibility, and cost-effectiveness. They are utilized for packaging reasons across numerous industries, water-based adhesives are best for both adaptabilities, greater protection, and UV resistance, permeable and semi-substrates. In the future, market growth for water-based tapes in the food service industry is likely to promote market growth. Furthermore, the development of water-based tape will be aided by developments in the building and construction sector.
Requirement for paper adhesive tapes advancements in the automotive industry
One of the automotive industry’s megatrends is car modification/renovation. Nowadays, customers are more interested in adding new cosmetic aspects to their automobiles. These are commonly used for automotive customization for a variety of purposes, including covering, spray painting, varnishing, and sealing. Additionally, sludge dismantling of paper adhesive tapes during car paintwork reduces time spent and additional work. The capacity to give excellent surface protection and a clear paint line following surface painting has increased their popularity among end-use sectors, especially in these industries. According to the Specialty Equipment Marketing Association, over 32 million families around the world modify their cars or vehicles every year. This global trend of automotive alteration is projected to result in a significant increase in the production of paper tapes.
North America to dominate the market
North America is expected to account for a considerable share of the paper adhesive tape market. Europe are established adhesive tape markets, with a variety of small-scale companies and local industrial equipment. In the United States, major production industries such as consumer products and healthcare companies use sticky tapes more frequently. The surge of food packaging industry in the Middle East and Africa is expected to drive the market for paper adhesive tapes, while the paper and packaging industry will be leading the growing in Latin America.
Insight of COVID-19
COVID-19 has had a negative impact on the growth of the global paper adhesive tape market as the offline markets were shut down. Various governments have implemented lockdown and strict rules during the epidemic, effectively shutting down the global production process in the first half of 2020. However, the increased e-commerce purchase during COVID-19 has accelerated the market growth.
Paper Adhesive Tape Market Scope:
Powdered Surgical Gloves for the Safety and Comfort of Physicians
Thought ArticlesPowdered Surgical Glove Market was estimated to be valued at US$189.796 million in 2020.
Surgical gloves are used to prevent cross-contamination between caregivers and patients during clinical examination and procedures. Besides hospitals and biological laboratories, these gloves are also predominantly used in chemical and biochemical laboratories. The gloves are manufactured from a wide range of natural and artificial polymers, including nitrile rubber, neoprene, latex, and polyvinyl chloride. Latex gloves are widely used and are made from a pure natural rubber by-product known as latex. They are extracted in liquid form from rubber trees. By making a cut on a rubber tree bark, they are extracted in the form of the bright milky white-colored liquid from the trees. Post-processing, the latex liquid is then used to make gloves via specialized machines and processes. These natural rubber gloves are extremely flexible and resilient and are available in various sizes to facilitate optimal fitting to the physician’s hand. These gloves are further segmented into two: Powdered and Unpowdered. As the name implies, gloves with powder are called powdered surgical gloves. Corn starch powder is frequently added to surgical gloves to reduce friction. The powder acts as a lubricant and makes it easier to wear gloves. It also helps to absorb any sweating, if any. Furthermore, wearing gloves with wet hands proves a challenge thus, in such instances, the powdered surgical gloves help make the task easier.
During the projected period, the burgeoning healthcare sector is expected to add impetus to the growth of the powdered surgical gloves market.
The growing demand for personal protective equipment, the increasing number of surgeries, and infectious cases are prime factors attributing to the market’s growth. Surgical gloves serve as a barrier against disease transmission, particularly during surgical procedures. Thus, the growing number of surgeries is bound to affect the consumption of surgical gloves. According to European Union StatIstics, for instance, in 2018, at least 1.16 million cesarean sections were performed in the EU-27. Cataract surgery (ICD-9-CM codes 13.1-13.8), or the extraction of an eye’s lens, was performed 4.3 million times in 2018 across the EU Member States, making it one of the most common surgical operations and procedures performed. Additionally, Cataract surgery was performed 1000 times or more per 100,000 inhabitants in 13 of the Member States, with Latvia having the highest rate at 1 656 times per 100,000 inhabitants. At the same time, Transluminal coronary angioplasties were the most common in Germany and Croatia.
At the same, the increasing prevalence of healthcare-acquired infections (HAIs) in hospitals across the globe is another affecting the increasing demand for proper healthcare infrastructure. HAIs or nosocomial infections are infectious diseases that patients contract while undergoing medical or surgical treatment. The prevalence of HAIs has been observed in a wide variety of settings, including hospitals, ambulatory clinics, surgical centers, and long-term care facilities like surgical centers, nursing homes, and rehabilitation centers. According to the statistics derived by the Center for Disease Control (CDC), approximately 1.7 million infections and 99,000 deaths in hospitals in US alone per year are caused due to HAIs. Among these infections, urinary tract infections account for 32% of the overall healthcare-acquired infections. While various other infections like surgical site infections, lung infections, and bloodstream infections account for 22 percent, 15 percent, and 14 percent of HAIs, respectively. Proper application of hair covers, gloves, masks, and gowns by the service providers in the settings mentioned above is expected to lower incidences of such infections.
Furthermore, the growing number of cancer cases is also expected to supplement the growth of surgical gloves. As safe handling of chemotherapy drugs necessitates the use of personal protective equipment, including chemotherapy gloves, for any form of direct contact with chemotherapy drugs leads to risk. According to the World Cancer Research Fund International, over 18 million patients were diagnosed with cancer in 2020. Such factors are expected to contribute to the growth of the powder surgical gloves market.
During the forecast period, Asia Pacific is likely to account for a considerable proportion of the global powdered surgical market.
The global powdered surgical market landscape has been divided into five regions: Asia Pacific, Europe, North America, South America, Europe, and the Middle East and Africa. During the forecasted period, the Asia Pacific market is expected to hold a dominant market share. The prime growth is attributed to the changing economies in the countries like China, India, Australia, South Korea, and Japan in the regions. The growing number of research and developments along, coupled with the burgeoning healthcare industries in the region, is expected to drive the market. According to the Indian Brand Equity Foundation, for instance, India’s healthcare sector is one of the country’s largest markets with over 4.7 million employees and is estimated to reach US$ 372 billion by 2022. The country’s government’s plan to introduce an incentive program worth US$ 6.8 billion to boost India’s healthcare infrastructure is estimated to bound the market further in the country. Similarly, according to the Australian Industry and Skills Committee, the Healthcare and social assistance market in the country is one of the largest markets, with over 1.8 million employees in 2021. Furthermore, the government initiatives taken by the governments in the region are further expected to propel market growth.
The complications caused by powdered gloves are anticipated to hinder the market growth.
Corn starch powder used in the powdered gloves causes surgical site infections, granulomatous peritonitis, peritoneal adhesions, as well as latex allergy. The disadvantages of powdered gloves and their adhesions in the animal models’ abdominal cavity were found back in 1994. At the same time, glove powder was shown to increase tumor cell adhesion and growth. In animal models, starch particles can migrate from the vaginal to the abdominal cavity and cause postoperative adhesions. The presence of many alternatives for powder-free gloves in the market serves as a restraint for the market growth. For, they ensure not only the health of patients but also physicians and also offer quality healthcare. Furthermore, owing to the aforementioned reasons, effective in January 2017, the FDA announced the ban on powdered surgical gloves. The ban was also extended to veterinary use in animal surgery centers and veterinary clinical care. Currently, the use of powdered surgical gloves is strictly prohibited in major countries like US and UK, among a few others.
Covid-19 Insights
The global pandemic had a positive influence on the powdered surgical gloves market. When treating infectious diseases, it is mandatory for healthcare providers to use personal protective equipment. Similarly, due to the onset of covid, the consumption of medical gloves drastically increased owing to the easy transmission of the disease. To avoid cross-contamination and slow down the spread of the infection, the gloves were increasingly being used not only by healthcare providers but also by the citizens when traveling to avoid contaminations. Consequently, during the pandemic, the demand for surgical gloves, including powdered surgical gloves, witnessed rapid growth.
Powdered Surgical Glove Market Scope:
Surging Demand in Data Center Colocation Market
Thought ArticlesThe global data center colocation market is estimated to grow at a CAGR of 15.56% to reach US$154,574.702 million in 2028 from US$56,1175.945 million in 2021.
Colocation data centers are becoming more popular as a way for businesses to increase their network’s reach and capabilities. Large data analytics workloads can be adapted by data centers, especially in the case of software-defined data centers (SDDCs), which may offer scalable virtualized server choices at a cheap cost. Furthermore, market development is aided by trends toward colocation products that seek to seamlessly combine hyper-scale and edge data centers to serve emerging AI, the Internet of Things, autonomous cars, big data, and other applications.
Assistance in Corporate Applications Lead To Increased Adoption
Data centers, which are responsible for operating essential corporate applications, have become an inseparable component of current business operations. IT infrastructure has become a need for organizations that want to conduct their operations efficiently throughout time. As the need for data centers grew in recent years, cloud and colocation became a valuable asset for several organizations looking to expand their IT capabilities. Enterprises that needed fast IT upscaling benefited from colocation data centers, but often lacked the knowledge and financial means to accomplish it.
High Expenses of Owning and Operating Individual Data Centers Facilitate Market Growth
The high expenses of owning and operating a data center, especially for businesses that generate irregular data volumes, are likely to be a major driver of market growth. Customers benefit from data center colocation for a variety of reasons, in addition to cost reductions. According to research, owning or building a data center facility can cost more than USD 300 per square foot, not including the cost of laying the needed fiber cable. For SMEs, handling an entire data center facility in-house is a high-cost component in instances like these, but large-scale businesses may easily tolerate this expense.
Working with admission to stockpiling frameworks, facilitating workers, frameworks for suffocating fire, unified information reinforcements, and firewall assurance are the major drivers of Data Center Colocation Market expansion. With on-premises server farms, each of these administrations is restricted, and the equipment needs constant power as well as cooling. It assists the market is focusing on the core business and reduces the capacity to recover from a negative event.
Advent and Adoption of New Technologies Contribute to Market Expansion
Increased demand for larger bandwidths and quicker data processing has come from the advent of technologies such as the Internet of Things, cloud computing, driverless cars, and sophisticated robotics. Lower latency and quicker network connectivity are required for the successful implementation of these technologies. Colocation data centers are well suited to meet such needs since operators may place their data center facilities close to users, resulting in improved storage and networking capabilities. Furthermore, the introduction of 5G is projected to accelerate the development of colocation services by allowing colocation providers to offer services in remote areas.
Favorable Structural Characteristics Are Driving the Market Growth
The IT sector, in general, necessitates a data colocation emphasis and is seen as a market need. Because of the offices and administrations it provides, the Data Center Colocation Market is rapidly expanding. The simple openness of facilitating workers or monitored security are two factors that influence market development. In addition, as compared to on-premises server farms, colocation server farms include firewall security, data storage, fire suppression systems, and environmental controls, making them more convenient. Indeed, the data colocation industry has experienced an unusual development known for colocation server farms, even in the COVID19 circumstance. Exorbitant online stages resulted in a surge in information flow, necessitating an increase in the number of data storage and inspection offices required by companies.
Impact of COVID-19 Pandemic
The Data Center Colocation Market’s broad interest will not wane any time soon. The market is expected to surge into a fantastic condition in the next years. When the pandemic struck, the continuing need for a data colocation concentration was rendered moot. Up until 2019, the information designation focus demands grew quickly, but following the flare-up, companies required more information stockpiling. Indeed, the COVID19 epidemic aided the data colocation sector in maximizing its potential in information storage. The lockdown restrictions forced a company to work remotely, which resulted in less information being used. The data colocation market trends are evolving in lockstep with current and new developments.
The market potential is limited when regions adjacent to a certain association are inaccessible for the development of a server farm nearby. Many companies are less motivated to accept and operate server farms. The source of this anxiety is an over-reliance on workers and a willingness to let them run roughshod over them. Over the long run, each of these factors will limit the growth of the data center colocation industry.
Increasing Adoption in the Healthcare Sector Is a Major Parameter of Increasing Market Size
The need for colocation is rising as the adoption of digital technologies in the healthcare industry accelerates. The healthcare sector produces massive volumes of data. Many healthcare departments are gathering data from clinical trials and a variety of outpatient records to evaluate the information and extract some useful conclusions. However, the vast majority of hospitals participating in such data collecting lack the necessary infrastructure.
As a result, many healthcare institutions are under pressure to decrease their company’s cost structure, while still delivering complete regulatory compliance and efficient solutions, all while dealing with the ever-increasing volume of data collected.
The Asia Pacific to Dominate the Market
During the projected period, the APAC region is expected to have substantial market growth. The market is rising as a result of increasing digitalization, industrialization, technical advancements, and the expansion of data centers, among other factors. The data center colocation industry is dominated by the rapidly increasing IT & Telecom category. This is due to the growing digitalization of the industry and the advent of technologies such as big data and the cloud. Data storage and availability are being put to the test as a result of these changes. To successfully meet demand, businesses are lobbying for improved data storage, networking, and IT infrastructure.
Global Data Center Colocation Market Scope:
Impact of the Technological Advancements in the Automated Material Handling Market
BlogThe automated material handling market was evaluated at US$28.769 billion for the year 2021, growing at a CAGR of 7.17%, reaching a market size of US$46.711 billion by the year 2028.
The Global Automated Material Handling Market is becoming more popular as a result of numerous development reasons. Materials management and automation techniques have become more important in a variety of areas. Material handling is seen as a network that eliminates the need for product transfer from one place to another. It is a time-saving procedure that employs innovative technologies and machines. Even the increased digitalization of supply chain procedures and order customization opens new chances for the market. The increase in technical innovation, effectiveness and efficiency in running organizations benefits the market tremendously. The rising trend toward smart manufacturing is projected to boost the automated material handling sector. To assess operational efficiency and reduce waste, the whole production floor must now be monitored at every stage of the process. Smart factories with material handling allow constant monitoring of all operations in such instances.
Furthermore, several intuitive materials handling system technologies, such as cloud connection and data analytics, increase asset performance and provide real-time actionable data. In addition, most of the companies have launched new partnerships and investments that have boosted the profitability of the automated material handling market. For instance, Honeywell established a strategic partnership with OTTO Motors, a division of Clearpath Robotics, in March 2022, giving warehouses and distribution facilities across North America an automated option to fulfill some of the most labor-intensive positions in an increasingly scarce work market. Due to all these factors, the automated material handling industry will be highly benefitted in the coming years.
The automated material handling market is expanding due to the rise in the technology industry
The introduction of new technologies into these systems, such as deep learning, AI, IoT, and robots, is a significant driver driving the expansion of the automated material handling systems market. The technologies provide seamless and real-time order picking in production operations, allowing enterprises to accelerate their material handling procedures. Implementing sophisticated technology in distribution centers, such as Automated Guided Vehicles (AGV), allows enterprises to process enormous numbers of repeated material moves, resulting in increased throughput. Such systems enable cars to make route decisions based on real-time feedback from environmental circumstances as well as the simplicity with which navigational corrections may be made. Due to the rise of collaborating with robotics companies, the market for automated material handling is primarily driving growth from this segment. For instance, in May 2021, Rockwell Automation, a business that specializes in industrial automation and digital transformation, and Comau, a company that specializes in industrial automation and robotics, are collaborating to create unified robot control solutions to improve efficiency. Comau offers a variety of robotics solutions utilized throughout sectors, such as more than 40 industrial robotic arms with load capabilities ranging from 3 kg to 560 kg. Engineers can program a whole machine in a single environment, machine builders may use digital engineering tools, and operators can view both lines and robot control systems on a single platform. Additionally, Jungheinrich AG, located in Hamburg, purchased a share in Magazino, a robotics start-up based in Munich, in September 2020. Officials from the two firms signed the contracts Wednesday in Dingolfing, near Munich. Simultaneously, Jungheinrich and Magazino committed to a wide strategic partnership and plan to integrate their skill sets in mobile automation.
The development of the e-commerce sector will influence the profitability of the market
As the e-commerce sector develops, the market for automated material handling systems is expected to increase. The global e-commerce business is developing, producing high demand for process automation. Several companies have partnered with each other to extend their product range, in addition, to implementing the automated material handling segment into the e-commerce industry. Due to this reason, the rise of the e-commerce industry will benefit the automated material handling market. For instance, Dematic, an industry-leading automation supplier, announced a collaboration with Upshop in September 2022 to deliver integrated fulfillment solutions that grow with the grocery sector. The collaboration has enabled supermarkets wishing to expand their fulfillment operations to keep and control their consumer data. Upshop eCommerce fulfillment users may utilize Dematic to integrate automation features while maintaining their software base swiftly and efficiently. This news follows the August 2022 introduction of Upshop’s whole store operations platform, which includes a cutting-edge fulfillment orchestration solution. Additionally, in January 2020, Amazon signed an agreement with Baylo, a French robotic software company. This business agreement increased the value of the design and development of breakthrough robotic systems for materials management vehicles. This strategic strategy enhanced Amazon’s warehousing material management, resulting in a smoother e-commerce operation.
According to analysts, the Asia Pacific region is expected to occupy a notable share of the market in the coming years.
Due to the rising e-commerce industry and the emergence of technology in the Asia Pacific region, the market for this geographical segment is anticipated to grow in the upcoming years. For instance, according to China’s National Bureau of Statistics, overall retail sales in China’s consumer goods market in 2021 are expected to be roughly CNY 44.1 trillion. Retail sales in urban regions totaled CNY 38.2 trillion, while revenues in rural China reached CNY 5.9 trillion. Furthermore, in 2021, around 24.5% of all retail sales in China were made online, a slight decline from 24.9% in 2020, as per the same source. Additionally, South Korea has embraced the Fourth Industrial Revolution. Smart factories are going to be one of the most significant sectors in Korea. South Korea intends to build 30,000 smart factories by 2022. South Korea’s government launched an assistance program to assist existing businesses in becoming carbon-neutral smart factories.
Automated Material Handling Market Scope: