The global market for high voltage circuit breakers is expected to grow from $2.27bn in 2015 to $2.52bn by 2020, according to new research.
Consulting firm GlobalData states that this growth will be driven by emerging economies in the Asia-Pacific, South America, Africa and the Middle East, where high voltage circuit breakers (HVCB) are needed to deliver extensive power plant capacity additions and improve access to electricity.
Meanwhile in developed economies such as North America and Europe, GlobalData says growth is being driven by the need to upgrade existing, aging transmission networks and grid interconnections.
“China is particularly important to the HVCB space,” explained GlobalData power analyst Mohamed Shameem, “currently accounting for 16 per cent of market share and anticipated to dominate the field during the forecast period, retaining the same share and reaching a market value of $421 million by 2020.”
Shameem said that China “presents abundant opportunities for HVCB manufacturers as the transmission and distribution sector has started receiving stronger support from the government in response to the rapid growth of electricity demand in the country”.
“The power transmission market in the country is set to benefit the HVCB market, and will itself be driven by the large geographical distances between power demand centres and energy-rich areas, non-unified power grids and insufficient grid capacity, the government’s efforts to incorporate renewable energy, and smart grid deployment.”
The GlobalData report also points out that India’s huge investments in renewables is set to drive demand for high voltage circuit breakers. The total value of the HVCB market in India increased from $123m in 2010 to $154m in 2015 according to the report, which adds that this figure is expected to rise to $174m by 2020.
Shameem continued: “Along with growth in the renewable energy sector, the rise in market value will be driven by the need for grid strengthening. Currently, the capacity of India’s transmission and distribution sector is lagging behind that of generation capacity. In this way, the transmission sector needs more investment, which would increase demand for HVCB in the country.”