Global Solar Industry Equipment Transportation Market to be Worth USD 35.53 Billion by 2021: Technavio

Technavio in its report said need for rural electrification as one of the key trends behind the growth of the solar industry equipment transportation market

Technavio in its latest market study projects the global solar industry equipment transportation market to grow to USD 35.53 billion by 2021, at a CAGR of more than 7% over the forecast period.

The logistics of solar industry equipment involves movement and storage of oversized cargo to aid the large-scale setting up of solar-based power plants at highly inaccessible locations. The solar energy market has been showing impressive growth due to the falling cost of procurement and improving the efficiency of the solar system. This is creating additional demand for solar industry equipment transportation and thereby driving the market growth.

The demand for smart energy applications including smart grids and energy efficient buildings is significantly increasing due to the rapid industrialization and the need for low-cost electricity in remote areas. Advanced energy storage technologies and distributed energy generated systems influence the demand of smart solar systems that are integrated with energy storage and smart grid systems. This will influence rapid investments in R&D to enable the adoption of smart energy technologies. As a result, the coming years will witness a rapid growth of the smart energy market. This will in turn, propel the need for the storage and distribution of large and small solar equipment, which will consequently demand the transportation of these equipment said the company in a statement.

According to the market research report, need for rural electrification as one of the key trends behind the growth of the solar industry equipment transportation market. Rural electrification is costly as the investment depends on the distance of the community from the existing main grid, population density, power quality, demand pattern, and various other factors. This induces governments and private communities to use stand-alone systems for decentralized power. Renewable resources such as wind and solar energy are utilized with energy storage systems to reduce the high electricity cost and the dependence on fossil fuel sources. This will in turn, demand the need for the transportation of solar equipment to rural areas, subsequently driving market growth.

Technavio notes that  solar industry equipment transportation market is moderately competitive and concentrated with the presence of established and well diversified international vendors. Vendors in the solar industry equipment transportation market mainly compete based on factors such as product differentiation, pricing, price, quality, market presence, and product portfolio. The international vendors provide a wide range of energy-related equipment transportation and services that can be personalized as per the customer requirements.

The research report from Technavio identifies DB Schenker, DHL, and Maersk Line as the key vendors in the global solar industry equipment transportation market.  Other prominent vendors in the market are Alder Energy Systems, Bolloré Logistics, Global Shipping Services, KBH Production Automation, Logistics Plus, McCollister’s Transportation Group, and SSI Logistics.

During 2016, the road segment accounted for the major shares of the solar industry equipment transportation market. Benefits of road transportation such as less idle time, the ability to use different routes, cargo safety and tracking, and last mile delivery will drive the growth of this market segment. Additionally, the availability of computerized vehicle routing and active traffic management will also contribute to the growth of this market segment in the coming years said Technavio.

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