Market Trends of Power Quality Equipment Industry
Industrial and Manufacturing Segment to Dominate the Market
- The power quality equipment market witnessed a notable share contributed by the industrial and manufacturing segment in 2022, and this sector is anticipated to maintain its dominance throughout the forecast period. Furthermore, the growing adoption of Industry 4.0 across diverse industrial equipment is poised to bolster the market's expansion.
- The industrial sector, encompassing mining, manufacturing, agriculture, and construction, plays a substantial role in overall energy consumption. The heightened requirement for a consistent and dependable power supply, particularly in manufacturing facilities, is foreseen to drive an increased demand for power-quality equipment. This trend underscores the critical role these solutions play in meeting the escalating power needs of industrial operations.
- According to the Energy Institute Statistical Review of World Energy, electricity generation globally has been on a constant rise in recent years, except for 2020, due to the increasing energy demand for industrial and commercial sectors, especially in developing nations, as they aim to increase their manufacturing sector. In 2022, the cumulative electricity generation was recorded at around 29165.1 TWh, which was 2.3% more than in 2021.
- In August 2023, The United States National Center for Defense Manufacturing and Machining (NCDMM) and America Made announced two new open projects. The first project call, Powder Alloy Development for Additive Manufacturing (PADAM), is worth USD 6 Million and is being funded by the AFRL. The second project call, Proliferation of AM Material Datasets, is offering a total of USD 5.75 Million in funding through OSD(R&E) and the AFRL.
- Increasing investments in the industrial and manufacturing sectors and the rise in demand for uninterrupted power supply to the machines used in the industrial and manufacturing sectors are expected to drive the market for power-quality equipment globally.
- Therefore, owing to the above points, the industrial and manufacturing segment is expected to dominate the power quality equipment market during the forecast period.
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Asia Pacific to Dominate the Market
- The Asia-Pacific region, marked by ongoing development, grapples with frequent blackouts and an unreliable power supply in several countries such as Malaysia, Cambodia, and the Philippines. Notably, the rapidly expanding industrial and manufacturing sector, the telecom sector, and the commercial sector stand out as substantial end-users of power quality equipment in the region.
- Within the Asia-Pacific region, the manufacturing sector plays a pivotal role in contributing significantly to the economies of various countries, with China serving as the foremost contributor to global manufacturing output. Other notable contributors from the region include Japan, India, South Korea, and Indonesia. Concurrently, countries like Vietnam, Malaysia, and Singapore are expected to bolster their share in this sector during the forecast period. This underscores the diverse landscape of manufacturing activities across the Asia-Pacific region, shaping the demand for power-quality equipment.
- Many countries in this region, such as India and South Korea, are driving the manufacturing industry with various initiatives. In India, the 'Make In India' and 'Production Linked Incentive (PLI)' schemes have given the manufacturing industry a substantial boost in various verticals, and according to India Brand Equity Foundation, by 2025, India’s manufacturing sector has the potential to reach USD 1 trillion.
- Similarly, in August 2023, JSW Steel, a domestic entity, collaborated with Japan's JFE Steel Corporation to establish a joint venture (JV) company in India dedicated to the production of CRGO steel. It's noteworthy that JFE Steel Corporation is already a shareholder in JSW Steel, holding a 15% stake in the Indian company.
- In November 2022, Taiwan Semiconductor Manufacturing Co (TSMC) announced a plan to build a USD 7 billion chip plant on Kyushu island, with production of 12 and 16-nanometre chips slated to begin in 2024.
- The power quality equipment market in the region is anticipated to experience growth during the forecast period, propelled by supportive government policies and a rising influx of investments into the power sector. Additionally, the region has witnessed a substantial surge in electricity demand in recent years, attributed to the growing population and urbanization. This surge is expected to further contribute to a notable demand for power-quality equipment in the region, accentuating the pivotal role these factors play in shaping the market landscape.
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