Captive Power Generation Market Research Report: Information By Technology (Heat Exchangers, Turbines, Gas Engines, Transformers, Others), Fuel (Diesel, Gas, Coal, Others), Ownership (Single Ownership and Multiple Ownership), Connectivity (Off-Grid and On-Grid), End Use (Industrial, Commercial, Residential) and Region (North America, South America, Europe, Asia- Pacific and Middle East & Africa) - Forecast till 2030

Captive Power Generation Market is expected to register a ~ 5.5% CAGR during the forecast period 2022-2030.

Captive Power Generation Market Scenario

A captive power generation plant functions as a facility that produces electricity used. Industrial and commercial energy consumers manage it for their energy consumption. Energy-intensive industries use captive power generation plants. The continuity and quality of the power supply are crucial such as in the cement manufacturing industry, iron & steel manufacturing industries, chemical plants, and aluminum smelters. Captive power generation plant helps to cater to the equipment for power generation like heat exchangers, boilers, generators, transformers, turbines, and photovoltaic panels.

The captive power generation consists of equipment such as electricity precipitators, transformers, heat exchangers, generators, boilers, and turbines. The capital and operational cost of captive power generation depend on location, technology, and fuel choice. Rapid industrialization and technological advancements worldwide have significantly increased the demand for electricity and power in the market. As energy-intensive industries in developing countries grow, cross-subsidies in electricity rates exist, and an increase in power generation cost stimulates the growth of the captive power generation market. The industrial sector further consumes 54% of all energy produced globally.

Captive power generation refers to the electricity generation which is managed by an industrial and commercial energy user for their own energy consumption. Captive power generation plants can be classified into gas turbine plants, co-generation plants, diesel engine plants, and wind & hydro plants.

The major factors driving the growth of the global captive power generation market is the increasing energy intensive industries in developing countries. Moreover, existence of the element of cross subsidy in power tariff and rise in per unit cost of power generation is expected to contribute to the growth of the captive power generation market. Also, the industrial sector uses about 54% of the total energy generated worldwide.  Industrial production is expected to grow substantially during the forecast period, owing to the rising demand for manufactured products. Based on energy consumption, there are three types of industries- energy-intensive manufacturing, non-energy-intensive manufacturing, and non-manufacturing. The energy-intensive manufacturing industries are among the largest users of energy sources for production. Additionally, increasing industrialization in the developing countries is expected to positively trigger the demand for captive power generation as most of the industries require continuous power supply and operate remotely. For instance, most companies are focused on reducing the use of carbon-based fuels for energy production. The oil & gas industry is also gradually moving towards clean and continuous sources of energy for providing electricity to certain production activities, such as lighting and fluid pumping, which is likely to boost the demand for captive power plants in the oil & gas sector. Similarly, companies in the food & beverage industry are either fully automated or semi-automated, which leads to high demand for electricity from food manufacturing plants. All these factors are likely to increase the demand for captive power generation facilities during the forecast period.  

Amongst developing countries, captive consumption in India has increased steadily over the years and has reached nearly 14% of total electricity consumption in 2019. States of Gujarat, Odisha, Chhattisgarh, Uttar Pradesh, Karnataka, and Rajasthan are the states with the highest captive consumption volumes, with 61%, 24%, and 47% share of captive consumption in overall state’s electricity consumption, respectively.

Captive Power Generation Market Key Players

The Key Players operating in the Global Captive Power Generation Market are Doosan Corporation, ArcelorMittal, Hindustan Zinc., General Electric, Reliance Industries, Jindal Steel & Power, Hindalco Industries, Essar Steel, Bharat Heavy Electricals, Clarke Energy, a Kohler Company, Thermax Limited, NALCO India, Siemens, Wartsila, and LafargeHolcim.

Recent Developments in Captive Power Generation Market

Manufacturing and production industries are on the lookout for a steady and reliable power supply to function smoothly. With its Make in India reforms, the Indian government continues to reduce barriers and regulatory limitations on foreign investment, which, in turn, is helping to strengthen the industrial and manufacturing sectors over the coming years. Historically, India had a refining capacity of 249.366 million metric tons per annum, significantly higher than the domestic demand. However, the country’s demand for oil is expected to almost double in the upcoming decade. To meet the growing demand, the government plans to increase the refining capacity by 77% in the coming years. The growth of the refining sector in the country is expected to drive the demand for captive power requirements.

Many major players such as Clarke Energy, Thermax, Siemens, Wartsila, and GE are actively focusing on signing contracts and agreements for captive power generation. For instance, Thermax is one of the leading companies in captive power generation and has installed base of captive power plants of more than 2,200 MW spread over 90 projects. Such developments are expected to drive the growth of the global captive power generation market during the forecast period.

Global Captive Power Generation Market is expected to rate high growth during the forecast period due to the increasing share of renewable energy in the total energy mix and increasing industrialization. This is expected to drive the demand for captive power generation during the forecast period.

Captive Power Generation Market Segmentation

Global Captive Power Generation Market has been segmented based on Technology, Fuel, Ownership, Connectivity, and End Use. Based on technology, the captive power generation market is divided into heat exchangers, turbines, gas engines, transformers, and others. The gas engines segment is expected to hold the largest share in the global market during the forecast period as gas engines make ideal captive power plants where there is a localized supply of gas. This might be from a gas pipeline but can also be transported via vehicle as compressed or liquefied natural gas or biomethane. Such factors are anticipated to lead to a significant share of the gas engine segment. Based on fuel, the global market is divided into diesel, gas, coal, and others. The gas segment is expected to hold a largest market share as many key companies are utilizing gas for captive power plants. For instance, Reliance Industries (India) operates a 2,100 MW captive power plant at its Jamnagar refinery in Jamnagar, Gujarat. Moreover, with new innovations coming up, the gas segment is anticipated to hold a largest share as gas as a fuel offer higher efficiency.

Based on region, the captive power generation market is segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America. Asia Pacific accounts for the largest share of the captive power generation market due to increasing urbanization and industrialization. Moreover, with increasing focus on Make in India reforms, the Indian government continues to reduce barriers and regulatory limitations on foreign investment, which, in turn, is helping in strengthening the industrial and manufacturing sectors over the coming years. Such factors are likely to drive the demand for captive power generation in the region as increasing number of industries will lead to rising demand for electricity.

Intended Audience

• Government and Research Organization


• Consulting Companies in the Power Industry


• Research Consultants


• Investors and Shareholders