Energy efficiency and design improvements will make off-grid products more affordable and attractive to off-grid consumers.
The global market for off-grid appliances is poised for rapid, significant growth, according to forthcoming market research sponsored by the Global Lighting and Energy Access Partnership (Global LEAP), a U.S. Department of Energy-led initiative of the Clean Energy Ministerial. Key findings from the market research were announced today at the 4th International Off-Grid Lighting Conference and Exhibition in Dubai.
Over the past several years, a vibrant market has emerged for off-grid lighting products and clean energy systems that provide modern energy services to underserved off-grid communities around the world. Appliances like fans, televisions, and refrigerators represent the next phase of this market and have the potential to unlock significant additional growth.
According to the new research, off-grid consumers will spend 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, and with these improvements, consumer spending on these products could reach over $4.7 billion by 2020.
“The global off-grid appliance market is a major emerging commercial opportunity,” said Gaurav Gupta, a Partner at Dalberg Global Development Advisors and one of report’s authors. “We’re seeing more and more appliances that work well with off-grid energy solutions, and that’s helping to drive the entire market forward. A lot of smart companies are aware of this opportunity, and I think we’re going to see more of that in the coming years.”
The research also points to challenges the market must overcome to achieve its potential. These challenges, similar to what the off-grid lighting and clean energy market faced in its early days, fall into five broad categories: finance, tariffs and taxes, distribution, consumer awareness, and customer service. The report will provide specific recommendations to help market stakeholders—including multilateral development organizations, donor organizations and off-grid market governments, and industry leaders—address these barriers. The recommendations focus on improving market intelligence and data, increasing access to finance, in particular debt finance and credit, and enacting a range of policy reforms.
A summary of the key findings is now available, and the full report will be released by the end of the year. To receive a copy of the full report, sign up for the Global LEAP mailing list, follow Global LEAP on Twitter (@GlobalLEAPaward) or contact email@example.com.