20 Mar 2019
Posted in Press Release
Asia-Pacific and EMEA will drive the high voltage circuit breakers market over the next four years, says GlobalData
The global market for high voltage circuit breakers (HVCBs) is set to grow at a compound annual growth rate (CAGR) of 5.24% between 2019 and 2023, reaching $4.35bn in 2023. Asia-Pacific (APAC) and EMEA will be the dominant markets for HVCBs over the forecast period, according to GlobalData, a leading data and analytics company.
The company’s latest report: ‘High Voltage Circuit Breakers (HVCB), Update 2019 – Global Market Size, Competitive Landscape and Key Country Analysis to 2023’ states that the increasing electricity demand and new capacity additions in APAC and the Middle East; replacement of aging grid infrastructure, shift toward renewable energy, grid reliability issues, and technology innovations in the Americas and Europe are primary driving factors for the HVCBs market. With continuing investments into power transmission and distribution (T&D), the forecast for HVCBs is set to remain strong, during and beyond the forecast period.
Asia-Pacific will dominate the market, with its share increasing by 4% over the forecast period, to reach $2.82bn in 2023. Power sector development in several countries within the region is propelling the market considerably. Economic growth, expanding urban areas, and growing populations are spurring investments made towards developing the necessary infrastructure to sustain the demand for power.
Nirushan Rajasekaram, Power Analyst at GlobalData comments: “China and India, owing to their size and evolving market conditions are two primary markets for HVCBs. Their markets are progressing rapidly, with the demand for HVCBs supported by initiatives such as improving access to electricity, accommodating renewables, sustaining industrial growth, and grid augmentation.
“Together, China and India are expected to account for 84% of the regional market in 2023. Moreover, Southeast Asian markets underpinned by Vietnam, Indonesia, and Philippines will begin contributing significantly to the growth of the regional HVCBs market.”
The market in EMEA was valued at $0.63bn in 2018 and is expected to grow at a CAGR of 4.4%, over the forecast period. Inter-regional variations between Europe and Middle East and Africa (MEA) create discrete factors that influence the market.
Rajasekaram continues: “Strong economic growth, improving living standards, and existing power sector challenges will spur grid development initiatives within MEA. Saudi Arabia is one of the major countries undergoing a profound transformation, initiating an economic diversification program, along with other countries in the Gulf. The diversification program will prompt non-fossil fuel based industries to emerge, necessitating additional infrastructure to sustain requirements of the economic transition.”
In Europe, the Pan-European regional interconnection of the power grid, replacement of aging grid assets, and extensive addition of renewable energy capacity to the power mix are influencing the market for HVCBs
Rajasekaram concludes: “Demand for new grid infrastructure to support the progressive trends materializing in countries is driving grid development activities globally. Economic growth in developing nations is inextricably linked with high resource consumption such as electricity. As countries markets seek to consolidate their developing prospects, the demand for electricity and consequently, the investments into the power sector will grow, driving the HVCBs market.”