Market Trends of Electrical Bushing Industry
This section covers the major market trends shaping the Electrical Bushing Market according to our research experts:
Transformer Application to Dominate the Market
Electrical bushings in transformers carry current at high voltage through equipment enclosures and provide an insulating barrier between the live conductor and the electrical apparatus's metallic (conducting) body.
In February 2020, American Electric Power's Indiana Michigan Power announced a USD 77 million investment to upgrade its electric transmission network substations and build new substations.
According to BP Statistical Review of World Energy 2021, global electricity generation capacity in 2020 was 26,823.2 TWh (Terawatt hours), up from 24,270.5 TWh in 2015. In line with electricity generation capacity, the demand for transformers and electrical bushings has grown significantly in the past.
Additionally, increasing power infrastructure development in countries worldwide will drive the segment's growth during the forecast period. For instance, in July 2021, GE Renewable Energy's Grid Solutions announced that it had received multiple orders to supply 765 kV transformers and reactors in India from Power Grid Corporation of India Limited (PGCIL). As part of the order, GE is expected to provide 13 units of 765 kV transformers and 32 units of 765 kV reactors.
With increasing power demand and projects to upgrade the grid structure, the electrical bushings market is expected to witness significant growth.
Asia-Pacific to Dominate the Market
Asia-Pacific has significantly developed its power industry with the expansion of power transmission and distribution networks and the inclusion of renewable technologies in its electricity generation mix.
According to BP Statistical Review of World Energy 2021, in 2020, the Asia-Pacific region reached 1,322 Terawatt-hours of renewable power generation capacity, creating demand for grid development, including transformers, switch gears, and others. This growth is expected to continue in the future and will drive the need for electrical bushings.
The transformer capacity growth in India has been continuous. As of June 2021, India's total alternating current (AC) transformer capacity (at 220 kV and above) stood at 1,006,360 MVA (Mega Volt Ampere), and the high voltage direct current (HVDC) transformer capacity stood at 30,500 MW. The growth in transformer capacity is expected to drive the electrical bushings market in India.
In 2020, Schneider Electric partnered with Tricolite Electrical Industries Limited for a new generation MV switchgear. Such a collaboration would drive the demand for electrical bushings in countries like India.
Asia-Pacific is also leading in renewable energy and has several ongoing smart grid development projects, creating significant demand for electrical bushings in the region.
