CEM Initiative Releases Groundbreaking Study with Insights into Critical Emerging Market
The global market for off-grid appliances is ready for rapid and significant growth, according to market research sponsored by the Global Lighting and Energy Access Partnership (Global LEAP), a Clean Energy Ministerial initiative led by the U.S. Department of Energy.
According to The State of the Global Off-Grid Appliance Market, Global LEAP’s new study, growth in clean energy access markets and the global off-grid appliance market are inextricably linked, and success in applications such as off-grid LED lighting provides a “springboard” for expanded focus on emerging off-grid energy service technologies.
High-quality, highly energy-efficient off-grid appliances are critical tools in achieving global clean energy and sustainable development goals. Over the past several years, a strong market for off-grid lighting products and clean energy systems has emerged, supplying energy to under-electrified communities around the developing world. Off-grid appliances like fans, televisions, and refrigerators deliver the energy services that under-served households and businesses demand, and represent the next big phase of the off-grid clean energy market.
Among the study’s findings:
- Globally, off-grid consumers spent close to $525 million on off-grid fans, televisions, and refrigerators in 2015. Energy efficiency and design improvements will make these products more affordable and attractive to off-grid consumers. With these improvements, consumer spending on these appliances could reach over $4.7 billion per year by 2020. Projected annual growth is 15% for fans, 25% for televisions, and 37% for refrigerators.
- Energy efficiency and price are significant drivers of growth in the market, but advances there cannot come at the expense of product quality and usability. Product value – a balance of energy performance, cost, design, and quality – is essential for market expansion.
The research also points to challenges the market must overcome to achieve its potential. Support by governments, multilaterals, and philanthropies will help accelerate the off-grid appliance market and related sustainable development goals. Among the key needs in the market: access to actionable market intelligence and product data, access to working capital and commercial finance, and policy reforms such as quality and performance standards as well as import duty improvements.
The State of the Global Off-Grid Appliance Market was developed in coordination with the Global Off-Grid Lighting Association, the World Bank Group’s Lighting Global Program, and Bloomberg New Energy Finance, whose study Off-Grid Solar Market Trends Report 2016 will be available on www.lightingglobal.org soon.
For more information about the Clean Energy Ministerial Secretariat: +1.202.586.4131, CEMSecretariat@hq.doe.gov
For more information about the study: Matt Jordan, CLASP, +1.650.283.8352, email@example.com.