ID: MRFR/E&P/9205-CR | 188 Pages | Published By Priya Nagrale on September 2021
Power relates to the electrical supply of electricity and energy. It includes the supply to various operation and energy measures, including smart meters, smart appliances, renewable energy resources, and energy-efficient resources. Electronic power conditioning and control of the production and distribution of electricity are essential aspects of the smart grid. Technological limitations on metering no longer force peak power prices to be averaged out and passed on to all consumers without any biasedness.
Dominant forms such as wind power and solar power are highly variable, so the need for more sophisticated control systems became apparent to facilitate the connection of sources to the otherwise highly controllable grid. Power from photovoltaic cells has also significantly called into question the imperative for large, centralized power stations. The rapidly falling costs point to a significant change from the centralized grid topology to one that is highly distributed, with power being generated and consumed right at the limits of the grid.
Based on type, the global power T&D equipment market has been segmented intotransformers, switchgear, circuit breaker, inductors & capacitors, meters, fuses & equipment, and others. The switchgear segment held a share of 37.9% of the global power T&D equipment market. Based on region, the global power T&D Equipment market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Asia-Pacific held a 40.5% share of the global Power T&D Equipment Market.
COVID-19 has led to severe impact across all the industries around the world. The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. The lockdown had a notable impact on the power sector overall as power demand had decreased majorly from commercial and industrial sectors.The pandemic has induced a steep decline in the global demand for power T&D equipment, especially in economies with complete lockdowns. As T&D equipment is used in utilities, commercial, water & wastewater treatment, and many other essential industries, manufacturers face supply chain disruption in the supply of global T&D equipment. However, the market has witnessed a steep decline from the utility, industrial, residential, and commercial sectors due to the decline in global energy demand. Furthermore,key global companies in the global Power T&D Equipment Market are facing a slowdown due to COVID-19 and are unable to initiate projects and execute product developments.
As per the International Energy Agency (IEA), as per the stated policies scenario, the global electricity demand is projected to grow at a rate of 2.1% per annum by 2040. Additionally, the share of electricity in the final energy consumption is estimated to rise from 19% in 2018 to 24% in 2040. The growing population, rapid industrialization & urbanization, and increasing infrastructure development are a few factors that are expected to increase the global electricity demand. Additionally, as per the United Nations, the global population is expected to reach approximately 8.5 billion and 9.7 billion by 2030 and 2050. The growth in the world’s population results in increased electricity demand and consumption. Hence, it can be interpreted that with the increasing demand for electricity, the need for T&D infrastructure is also expected to increase.
The investments in electric T&D for the infrastructure are subject to constant transformation owing to the developing infrastructure. According to World Energy Investment Outlook Special Report, Total energy investment was USD 1.7 trillion in 2016. Electricity sector investment overtook oil and gas for the first time, while energy efficiency was the biggest growth sector. OECD countries have invested heavily to achieve this, spending USD 3 trillion on new renewable and conventional power plants, T&D infrastructure, and energy efficiency measures. Out of this, the investment in T&D networks accounted for USD 240 billion in 2019. Over the next decade, electric utilities are expected to invest about USD 3.2 trillion globally in new and replacement T&D infrastructure. Large T&D investments are expected to replace aging infrastructure, maintain reliability, enable market efficiencies, and aid in global policy objectives, such as greenhouse gas reduction, in the next two decades.
Power T&D equipment are major components in the electrical infrastructure and contribute to around to half of the total cost of the T&D network. For instance, the total cost of installing a power Power T&D equipment for the owner is the summation of the initial purchase price and the cost of running it for its life of 30 - 40 years. The major issue related to the power transformers is the cost feasibility that does not compliment the operational life of the transformers. Similarly, other power T&D equipment such as circuit breakers, switchgear, and other components have a relative life span to their cost.
The electrical grid infrastructure for the supply of electricity to consumers across the globe, especially in developing countries, was constructed a long time ago. Thus, there is a need to upgrade and replace the aging infrastructure to ensure an uninterrupted power supply. Although the replacement of aging electrical infrastructure entails high capital investments, the need to replace and upgrade equipment such as transformers, circuit breakers, and switchgear in grid infrastructure plays an important role in reducing T&D losses and improving power efficiency. Unequal load distribution, lack of maintenance, and aging substations are some of the reasons that contribute to T&D losses and power failure in the power grid infrastructure.Power T&D Equipment Market Segment Overview:
A transformer is a passive electrical device that transfers electrical energy from one circuit to another through the process of electromagnetic induction. It is most commonly used to increase (step-up) or decrease (step down) voltage levels between circuits. Transformers are used in various fields like the distribution sector, power generation grid, electric energy consumption, and transmission. Transformers can be integrated into installations including free standing, substations, ground, pole-mounted, pad, platform, and should exhibit high performance thermally, electrically, and magnetically. Transformers need to be designed in such a way that they are easy to handle, install, lift, and transport.
Switchgear is used for controlling, regulating, and switching on or off the electrical circuit in the electrical power system. Switchgear in substations are located on both the high- and low-voltage sides of large power transformers. The switchgear on the low-voltage side of the transformers may be located in a building, with medium-voltage circuit breakers for distribution circuits, along with metering, control, and protection equipment. For industrial applications, a transformer and switchgear line-up may be combined in one housing, called a unitized substation (USS).
A circuit breaker is a switching device that interrupts the abnormal or faults current. It’s a mechanical device that disturbs the flow of high magnitude current and performs the function of the switch. It’s mainly designed to close or open an electrical circuit and protect the electrical system from damage. Circuit breakers are classified on the basis of rated voltages. Circuit breakers below 1000V are known as low voltage circuit breakers, and above 1000V are knowns as high voltage circuit breakers.
An inductor is used in the power electric circuit to store energy in the form of magnetic energy when electricity is applied. An inductor is opposing any change in the amount of current flowing through it. When current across the inductor changes, it either acquires charge or loses the charge in order to equalize the current passing through it. The inductor is also called reactor, coil, or choke.
A meter is a device used to measure the amount of electric energy consumed by a residence, commercial, utility, and industrial. Electric utilities use electric meters installed at customer premises to measure electric energy delivered to the customer for billing purposes.
Fuses are the protectors and safety devices that are used to protect the home appliances such as televisions, refrigerators, and computers from damage caused by high voltage. The fuse is made up of a thin strip or strand of metal. Whenever there is heavy current flow in an electrical circuit, the fuse melts, and it opens the circuit and disconnects it from the power supply. Also, it works as a circuit breaker or stabilizer, which protects the device from damage. Fuses strips are made up of aluminum, copper, or zinc, and it is always connected in series with the circuit to protect from overcurrent in the running cables.
Utility refers to those company stocks that provide basic services, including electricity, natural gas, and water. The utility segment has its own generating plants and T&D equipment that generates its own power system. T&D equipment are used to transport power generated at power plants to substation then to electric utility transformers. The electric utility delivers electricity to commercial, residential, and others sectors.
Commercial buildings are used for commercial purposes such as education facilities, government & office buildings, hospitals & medical centers, and hotels. Widespread installation of electrical appliances such as lighting systems, ventilators, and air conditioners in commercial spaces and increasing the demand for electric power T&D equipment will boost the demand for T&D equipment in the commercial sector. Moreover, the launch of various smart cities has led to the modernization of electrical grids, another crucial factor contributing to market growth. Additionally, increasing investments in renewable energy facilities and awareness regarding the need to reduce energy losses encourage the adoption of technologically improved T&D equipment across the globe.
The residential segment includes infrastructure that is dependent on power T&D equipment for electricity and thermal energy. However, the sale of residential properties has declined due to the ongoing COVID-19 pandemic, resulting in the lesser installation of power T&D equipment being deployed across the globe. Such factors indicate a steady growth in the residential sector in the world. However, the improving pandemic situation is likely to result in more installation of these systems in the coming months.
The industrial segment includes industries that are dependent on T&D systems to supply electrical equipment. The growing energy demand from industrial sectors is driving the growth of the market. The advent of smart cities has led to the modernization of electrical grids, contributing to market growth. The increasing investments in renewable energy facilities and awareness regarding the need to reduce energy losses encourage the adoption of technologically improved equipment across the globe. And market players are emphasizing providing equipment at competitive prices.
The others segment includes military and agriculture industry. Global power T&D equipment supplying power and thermal loads are required for barracks, training facilities, buildings, medical centers, and other staff supporting buildings. T&D equipment are expected to witness high demand in the coming days. Due to lockdown, there is a decline in supply. Increased investments in renewable energy and technological advancements propel the market for T&D equipment across the globe.
North America is one of the prominent regional markets for power T&D equipment, owing to an increase in the share of renewable energy sources and a growing need for upgrading the T&D networks in the region. The region is experiencing high investment in energy efficiency due to decreasing technology prices and third-party energy efficiency programs. As per North American Utility Energy Efficiency Program Implementation, the annual spending on energy efficiency is projected to reach USD 11.3 billion by 2028, thus driving the market for power T&D equipment. Moreover, data centers require a continuous and reliable power supply for the effective and uninterrupted functioning of computing and networking equipment of the data center, which leads to an increase in the demand for Power T&D equipment in data centers. Hence, the significant increase in power demand and the increasing number of data centers lead to the demand for Power T&D equipment in this region during the forecast period.
The Europe Power T&D equipment market is expected to witness significant growth during the forecast period due to the market's expansion through a rise in industrial growth, aging infrastructure, which leads to investment in smart grids, rising production of electricity, and growing demand for green energy. Besides, the region is expanding its T&D network due to new electricity addition in the grid. The region generated 3901.3 TWh in 2017, which accounted for around a 2% increase in total energy generation from the previous year. These factors are driving towards increasing demand for Power T&D equipment from Europe
The continuous need to update and upgrade existing transmission and distribution infrastructure to serve the growing demand for electricity will lead to a growth of the Power T&D equipment market over the forecast period. In the emerging economies of Asia-Pacific, extensive power plant capacity additions, economic growth, and the need to improve access to electricity are driving grid expansion and the Power T&D equipment market.
Middle East countries are currently focusing on increasing their power generating capacity through investments in renewable energy resources. Countries like Israel, Jordan, UAE, and Saudi Arabia are increasingly investing in solar energy to ensure energy security and potentially become electricity exporters. All the major Middle Eastern economies are also primarily focusing on grid expansion to withstand the growing demand for energy in the region.Most African nations are currently witnessing economic growth due to huge foreign investments in the developing industrialization sector and expanding energy generation capacity through renewable resources.
The region includes potential power transmission countries such as Brazil, Argentina, Chile, Mexico, and Peru. The electricity sector in Brazil is the largest in South America. The currently installed capacity is about 150 GW. Since 1970, the electricity sector in Brazil grew with an average yearly growth of 5.8% per year. The current investment in the renewable sector is creating a wide scope for the development of the Power T&D equipment market in Brazil.
The global Power T&D Equipment market is characterized by the presence of many local, regional, and global vendors. The market is highly competitive, with all the players continually competing to gain a larger market share. High competition, rapid technological advancements, frequent changes in government policies, and stringent environmental regulations are critical factors that could restrain the market growth. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. Vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their service. Hitachi ABB Power Grids (Switzerland), Schneider Electric (France), Siemens (Germany), Eaton Corporation (Ireland), Mitsubishi Electric Corporation (Japan), Hammond Power Solutions (Canada), Toshiba Corporation (Japan), General Electric (US), TE Connectivity (Switzerland), Powell Industries Inc. (US), Fuji Electric Co. Ltd (Japan), Bharat Heavy Electricals Limited (BHEL) (India), Chint Group (China), Basler Electric Company (US), CG Power and Industrial Solutions Limited (India), G&W Electric (US), S&C Electric (US), Itron (US), Landis+GYR (Switzerland) are some of the key players operating in the Power T&D Equipment Market.
The report for the global Power T&D Equipment marketof MRFRresearch covers extensive primary research. This is accompanied bya detailed analysis of qualitative and quantitative aspects by various industry experts.
|Market Size||2030: 312822.10|
|CAGR||7.4% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Hitachi ABB Power Grids (Switzerland), Schneider Electric (France), Siemens (Germany), Eaton Corporation (Ireland), Mitsubishi Electric Corporation (Japan), Hammond Power Solutions (Canada), Toshiba Corporation (Japan), General Electric (US), TE Connectivity (Switzerland), Powell Industries Inc. (US), Fuji Electric Co. Ltd (Japan), Bharat Heavy Electricals Limited (BHEL) (India), Chint Group (China), Basler Electric Company (US), CG Power and Industrial Solutions Limited (India), G&W Electric (US), S&C Electric (US), Itron (US), Landis+GYR (Switzerland)|
|Key Market Opportunities||Aging T&D Infrastructure in Developing Countries|
|Key Market Drivers||Rising Demand for Electricity Growing Investments in T&D Infrastructure|
The global power T&D equipment market size will grow at a favorable 7.4% CAGR by 2030
The forecast period for Power T&D Equipment market research report is 2022-2030.
Global Power T&D Equipment market is dominated by APAC region.
Top key players operating in the industry are Hitachi ABB Power Grids (Switzerland), Schneider Electric (France), Siemens (Germany), Eaton Corporation (Ireland), Mitsubishi Electric Corporation (Japan), Hammond Power Solutions (Canada), Toshiba Corporation (Japan), General Electric (US), TE Connectivity (Switzerland), Powell Industries Inc. (US), Fuji Electric Co. Ltd (Japan), Bharat Heavy Electricals Limited (BHEL) (India), and others.