The laminated busbar market is expected to grow at a CAGR of more than 5% over the period of 2020 - 2025. Factors such as an increase in power consumption, rise of industrial activities, along with a rising focus on distributed power generation, are expected to drive the market in the forecast period. Added drivers for the market are a rise in investment in power infrastructure and a rising focus on increasing energy-efficiency. However, growing competition from the unorganized sector is likely to restrain the growth of the laminated busbar market in the coming years.
- The power utilities have dominated the market in recent years and are expected to be the largest market during the forecast period, owing to factors like rising in investment on power infrastructure and rising focus on distributed power generation.
- Globally, the focus has increased on investments in clean energy projects and the development of smart cities. As a result, the extensive development of new renewable projects and the development of green constructions are likely to create an excellent opportunity for the laminated busbar market in the future.
- Asia-Pacific is expected to fastest-growing market in the forecast period, with the majority of the demand coming from China, Japan, and India, mainly due to a rise in electricity consumption and an increase in the renewable energy sector.
Key Market Trends
Power Utilities Sector to Dominate the Market
- Power utilities 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 rise in focus on energy efficiency in the sector.
- The global electricity production of 20433 TWh in 2008, grew over 30% and reached 26614 TWh in 2018. With the rise in population and urbanization, the electricity demand is bound to grow, and with it, the market for laminated busbar is expected to grow in the forecast period.
- The robust economic growth in China reached nearly 7%, and the gross electricity consumption grew by 7.7%, exceeding 7,000 TWh, for the first time in 2018. China has witnessed high rates of demand for electricity, owing to the unprecedented growth of the economy, along with the rapid industrialization and urbanization of the region.
- 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 sector. Electricity generation from renewable energy sources grew by around 14% from 2166.5 TWh in 2017 to 2480.4 TWh in 2018.
- Therefore, with the increase in the demand for electricity and in particular clean energy, the power utility sector is expected to rise, and in turn, the market is expected to grow for laminated busbar in the power utility sector.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the fastest-growing market in the forecast period. Asia-Pacific is one of the fastest-growing regions in the world because of the increasing population, urbanization, and industrialization. As a result, the demand for guaranteed power supply is high. For addressing these demands, many countries are investing in the renewable energy sector and transmission and distribution infrastructure.
- •As per the International Energy Agency (IEA), the world’s most populated country China is likely 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.
- On the other side, India is also investing heavily in the renewable sector heavily, with USD 11.1 billion invested in 2018 alone.
- On the other hand, both China and India hold a major share of the world’s industrial sector, mainly the energy-intensive manufacturing sector. While China’s industrial energy consumption in the highest in the world at a 29% share of the global industrial energy consumption in 2018, India is rapidly catching up with a steady increase in its industrial sector.
- Therefore, the aforementioned factors are expected to drive the market in the forecast period.
The laminated busbar market is highly fragmented. Some of the key players in this market include Methode Electronics Inc., Rogers Corporation, Mersen SA, Sun.King Power Electronics Group Ltd., and Amphenol Corporation.
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