Market Trends of Laminated Busbar Industry
This section covers the major market trends shaping the Laminated Busbar Market according to our research experts:
Power Utility Sub-sector to Dominate the Market
- The power utility sector is expected to dominate the laminated busbar market in the forecast period, owing to factors like a rising share of distributed power generation in total electricity generation, increasing demand for clean energy, and a rise in focus on energy efficiency in the sector.
- According to the BP Statistical Review of World Energy 2022, global electricity generation capacity in 2021 was 28,466.3 TWh (Terawatt-hours), up from 24,270.5 TWh in 2015. With the rise in population and urbanization, the electricity demand is bound to grow, and with it, the market for laminated busbars is expected to grow during the forecast period.
- In recent years, significant countries in the Asia-Pacific region have witnessed high rates of electricity demand, owing to the unprecedented growth of the economy along with the rapid industrialization and urbanization of the region. For instance, China's economy grew by around 8.1% in 2021, and the average annual electricity consumption during the 2020-2021 period grew by nearly 5.4%.
- Increasing demand for clean energy is one of the primary drivers for the power distribution sector and, in turn, for the laminated busbars in the industry. Electricity generation from renewable energy sources grew from 1,634.4 TWh in 2015 to 3,657.2 TWh in 2021.
- Therefore, with the increase in the demand for electricity and clean energy, the power utility sector is expected to rise. In turn, the market is expected to grow for laminated busbar in the power utility sector.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the fastest-growing market during the forecast period. Asia-Pacific is among one of the fastest-growing regions worldwide due to the increasing population, urbanization, and industrialization. As a result, the demand for a guaranteed power supply is high. Many countries are investing in the renewable energy sector and transmission and distribution infrastructure to address these demands.
- As per the International Energy Agency (IEA), the world's most populated country China is expected to install 36% of total worldwide hydroelectricity generation capacity and 40% of all global wind energy between 2015-2021. Already, China has over 259,000 MW of new coal plants in various stages of development and accounts for more than one-third of the global coal plant pipeline.
- According to the BP Statistical Review of World Energy 2022, in 2021, the Asia-Pacific region reached 1,690.1 Terawatt-hours of renewable power generation capacity, creating demand for grid development, including electrical equipment, which will drive the market for laminated busbar in the region.
- On the other hand, both China and India hold a significant share of the world's industrial sector, mainly the energy-intensive manufacturing sector. For Instance, in China, Industrial production grew by 4.3% Y-o-Y in December 2021.
- Moreover, the region has several upcoming transmission and distribution projects like the Changji-to-Guquan project in China, and the 23 interstate transmission system projects in India are likely to support the growth of the market during the forecast period.
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