Global Electrical Equipment Market for the Power Distribution Industry 2016-2020
About Electrical Equipments
Electrical equipment in the power industry is dependent on electric current or electromagnetic field involved in generation, transmission, and distribution of electricity. In the recent years, the transformation of the global power distribution sector through reforms and infrastructure upgrades has triggered the demand for electrical equipment. Rise in environmental concerns has led to significant growth of the renewable energy sector across utilities, residential, and commercial segments worldwide.
Technavio’s analysts forecast the global electrical equipment market for power distribution industry to grow at a CAGR of 8.9% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global electrical equipment market for power distribution industry for 2016-2020. To calculate the market size, the report estimates the demand for electrical equipment in the power distribution industry across the Americas, APAC, and EMEA.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Electrical Equipment Market for Power Distribution Industry 2016-2020
Technavio recognizes the following companies as the key players in the global electrical equipment market for power distribution industry: ABB, Eaton, Emerson Electric, Schneider Electric, and Siemens.
Other Prominent Vendors in the market are: Aggreko, Carling Technologies, General Electric, Honeywell, Universal Electric, and 3M.
Commenting on the report, an analyst from Technavio’s team said: “One of the key trends for market growth will be the delay in commissioning of power projects in India. India has a large scope for upgrading distribution networks, as the country’s T&D and AT&C losses is one of the highest in the world. India's AT&C losses stand at 22.7% and T&D losses stand at about 21.46%. Though the government had launched several schemes such as IPDS and R-APDRP in the past, implementation of power projects is delayed due to delay in transmission and sub-transmission projects. These projects are delayed due to various reasons such as the need for environmental clearances, land acquisitions, signing of PPAs, and the high cost of finance. In addition, the DISCOMs in India are not financially strong, which is one of the key reasons for implementation of projects. Distribution is considered to be the weakest link in the value chain, with DISCOM losses mounting upto $64 billion as of March 2015. The delay in commissioning of projects or hindrances at various stages will affect the revenues of companies that are involved in the contracts.”
According to the report, growing implementation of smart grid technology will be a key driver for market growth. The global electricity sector is transforming from centralized power generation to decentralized distributed power generation. This has resulted in transformation of customers into prosumers. A prosumer consumes as well as generates power, which will be supplied to the grid. In the recent years, rooftop PV has emerged as one of the fastest growing renewable energy technology in the world. Policies at state and federal levels have encouraged widespread deployment of distribution systems.
Further, the report states that damage to distribution systems due to grid instability will be a major challenge for the market. The majority of current distribution systems across the world is prone to grid failures due to aging infrastructure. The growing environmental concerns across countries have triggered massive deployment of renewables. However, renewable energy is intermittent in nature and the energy storage facilities are in the developing phase. As existing grid infrastructures are not adequate to integrate renewable energy, this has resulted in grid instability causing grid failures.
ABB, Eaton, Emerson Electric, Schneider Electric, Siemens, Aggreko, Carling Technologies, General Electric, Honeywell, Universal Electric, 3M.
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