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The Asia Pacific load break switches market (hereafter referred to as the market studied) valued USD 922.54 million in 2020. It is expected to reach USD 1,378.26 million by 2026, registering a CAGR of 5.95% during 2021-2026 (hereafter referred to as the forecast period). In the long run, the demand for renewable energy across the Asian Pacific region accelerated by the pandemic is also expected to boost the market's growth. However, the uncertainty in the supply chain and demand brought by the short-term repercussions is expected to stall the market's growth as the pandemic affects the large projects in all end-user industries.
- Switchgear, Switchboards, Motor Control Centers and Panelboards, Photovoltaic circuits are a few areas where a load break switch is applied. A load break switch typically switches the power "on or off" or changes the position when the transformer has a load on it, and the switch breaks it. Trends such as the growing power generation sector, refurbishment of aging power infrastructure, and increased investment in the power distribution sector are expected to drive the load break switch market in the region.
- In December 2020, ABB launched a range of load switch switches broadly used for medium-voltage (MV) secondary switchgear, e.g., in-ring main unit (RMUs), assigned with the task of switching load currents. This SF6-freeload break switches for MV applications is available with Dry Air rated up to 12 kV and AirPlus for 24 kV. The load break switch paves the way for the environment-friendly RMUs. Such investments by major players are also leading to the growth of load breaker switches applications in the region.
- In the event of an outage, utilities cannot afford to have personnel visiting remote sites to open load-break switches. This increasing pressure leads to the deployment of remote grid access as a major agenda. Also, remote power generation projects also contribute to the growth of the load break switch markets. China is expected to become a part of the One Sun One World One Grid (OSOWOG) to connect the power grids of China, Korea, Japan, and the Association of Southeast Asian Nations (ASEAN). The Australia-Asia power link is currently being developed to transmit renewable energy from Darwin in Australia to Singapore.
- However, these switches are associated with higher costs due to the increasing costs of innovations, which might impact the growth of the studied market. Further, a high level of technical expertise is required for the development and maintenance of load break switches. These factors might hinder the market growth of the market.
Scope of the Report
A load break switch refers to a disconnect switch whose function is to make or break the electrical connection at certain specified current levels. A load break switch is generally used for medium voltage level systems for switching and protection. The Asia Pacific Load Break Switches is segmented by End User (Utilities, Industry and Commercial) and by Type ( Gas-Insulates, Air-Insulated) and Country.
|Industrial and Commercial|
|South East Asia|
|Australia and New Zealand|
|Rest of Asia Pacific|
Key Market Trends
Industrial and Commercial Segment Holds Major Share
- The Asia Pacific is also witnessing developments in motor technologies, thus, increasing applications of electric motors rated 746 W to 18.6 kW is expected in the near future. Motors with power ratings between 186.4kW and 372.8kW are witnessing significant demand from process industries, including oil and gas, food and beverages, metal, and mining.
- Moreover, digitalization is changing how industries use electricity in their machinery, factories, and operations. As the companies intends to keep working environments safe and reduce maintenance downtime and costs across the food and beverage sector, in September 2021, ABB redesigned its low-voltage switchgear to launch NeaGear in China (under trial currently).
- Renewable sources of electricity are also gaining applications in a manufacturing setting. For instance, recently, Singapore LNG adopted distributed solar energy to supply clean energy to its LNG (Liquefied Natural Gas) Terminal. The allied step has been taken to reduce the carbon across the LNG supply chain. Then, Men-Chuen Vietnam Co. Ltd, a textile manufacturer in Vietnam, constructed a powerful solar rooftop to power 40%Men-Chuen'sen’s needs.
- According to World Bank, in 2020, the industrial sector generated almost 30.8%China'sna's GDP. Furthermore, with emphasis on factory automation, leading players, such as FANUC, have been investing USD 240 million to expand its Shanghai plant. Similarly, several other companies are making huge investments in industry upgradation following industry 4.0.
- With the goal to be integrated into smart cities, the safety of commercial sector electrical equipment by fast disconnection of the power supply in case of fault events like leakage current, electrical arc, over current or overvoltage, is taken care of through switchgear such as disconnecting switches, circuit breakers, etc. And, for the systems up to 33kV, the more costly circuit breakers are getting replaced with load break switches.
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Air Insulated will Gradually Observe Significant Growth
- This air-insulated load break switch offers control and protection to devices that are typically used in three-phase AC 50Hz 24kv power distribution networks. Also, these are suitable for power distribution stations of urban buildings, industrial production companies, mining sites, etc.
- The Asia Pacific accounts for the majority of these switches as air-insulated switchgears are most widely adopted. For high voltage substations, insulation based on air requires significantly more space than gas-insulated configurations. One of the most common air-insulated switchgear arrangements combines air-insulated busbars with gas-insulated switching devices. Hybrid switchgear combines air-insulated busbars with prefabricated modules integrating circuit breakers, disconnectors, earthing switches, and instrument transformers in a single, gas-insulated housing.
- Moreover, the increasing electrification rate across the developing countries in Asia-pacific is driving the air-insulated load break switches segment. According to the Ministry of Energy and Mineral Resource, electrification in Indonesia accounted for 99.2% in 2020 from 72.95% in 2011.
- With a growing wind turbine segment, ABB’s NALFWind switch-fuse combination is developed to protect transformers in the wind power industry, adapted to 36 kV with high breaking capabilities of 31.5 kA (peak 79 kA).
- Moreover, Siemens Energy recently won a contract from Technology Resources Energy to equip two onshore wind farms in Vietnam with digitally enhanced transmission equipment. The two wind farms IaPet-Dak Doa 1 and IaPet-Dak Doa 2, will have a capacity of 100 MW each. The wind farms development constitutes the Power Development Master Plan to push the integration of renewable energy sources.
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The Asia Pacific Load Break Switch market is moderately consolidated, with many market players cornering a very minimal share in the market. The development of regional markets and increasing shares of local players in foreign direct investments are the major factors promoting the fragmented nature of the market.
- December 2020: ABB has introduced a ring main unit (RMU) with a first-of-its-kind load break switch (LBS) that employs sustainable alternative gases to SF6 for improved performance and lower environmental impact. When opposed to air-insulated switchgear, SF6 gas has a number of advantages: it minimizes the size of switchgear while maintaining high safety standards.
- November 2020: Siemens Smart Infrastructure's offering for climate-neutral electricity distribution is growing all the time. The business has totally eliminated fluorine-based gas mixes (F-gases) from the blue portfolio's medium-voltage switchgear while keeping the compact design and safe, proven performance. The new focus for F-gas-free medium-voltage applications in secondary distribution grids from 12 to 24kV is an innovative load-break switch with a customized vacuum interrupter.
- November 2021, Chubu Electric Power planned to make strategic investments of JPY 1 trillion over the next-10 years in overseas and renewable energy. The company also raised a 2030 renewable energy capacity target in Japan to 3.2 gigawatts (GW) from its previous goal of 2 GW.
- March 2021: China's power crisis started with the Inner Mongolia imposition of power usage restrictions on a few heavy industries. In May 2021, authorities in Guangdong imposed curbs on electricity consumption in manufacturing facilities. Local governments in Zhejiang, Jiangsu, and Yunnan provinces also asked factories to halt production during peak power-consumption periods or shut operations entirely for a few days per week. For instance, factories, including soybean processing plants in Tianjin, were closed until further notice.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Impact of COVID-19 on the Industry
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Deployment of Smart Grid Networks and Integration of Renewable Energy Sources into Energy Mix
5.2 Market Challenges
6. MARKET SEGMENTATION
6.1 By End-User
6.1.2 Industrial and Commercial
6.2 By Type
6.2.3 Other Types
6.3 By Country
6.3.3 South Korea
6.3.4 South East Asia
6.3.5 Australia and New Zealand
6.3.6 Rest of Asia Pacific
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 ABB Ltd
7.1.2 Schneider Electric SE
7.1.3 Rockwell Automation, Inc.
7.1.4 Fuji Electric FA Components & Systems Co., Ltd.
7.1.5 ENSTO Oy
7.1.6 LARSEN & TOUBRO LIMITED
7.1.7 Simens AG
7.1.8 Powell Electric
7.1.10 General Electric
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Asia Pacific Load Break Switches Market market is studied from 2019 - 2026.
What is the growth rate of Asia Pacific Load Break Switches Market?
The Asia Pacific Load Break Switches Market is growing at a CAGR of 5.95% over the next 5 years.
Who are the key players in Asia Pacific Load Break Switches Market?
ABB Ltd, Schneider Electric SE, Rockwell Automation, Inc., Simens AG, Eaton are the major companies operating in Asia Pacific Load Break Switches Market.