Significant Rise in Investments and Government Support to Bolster North America & Europe Power Distribution Component Market
Power transmission and distribution technologies, particularly in North America have garnered considerable attention over the past few years, as there is a consistent need for upgrading and expansion due to which, the demand for power distribution components has increased at a steady pace. The surge in the overall power loads coupled with outdated power transmission equipment in several parts of North America and Europe have led to a steady rise in the demand for newly developed power distribution components that are in primarily developed in line with current requirements. The increasing risk of power outages and blackouts across the North American region is another factor that is expected to augment the sales of power distribution components.
Over the past few decades, lack of adequate investments coupled with the growing demand for efficient power transmission and distribution has led to the development of power distribution components. Increasing government investments, along with the surge in private investments have led to significant rise in the demand for power distribution components worldwide. Moreover, as governments across North America and the European Union continue to emphasize on the modernization of electric transmission & distribution systems, the demand for power distribution components is on the rise– a trend that is expected to continue during the forecast period and drive the North America & Europe power distribution component market.
Request a sample to get extensive insights into the Power Distribution Component Market
Regulatory Oversight Coupled with Various Economic Drivers to Influence Market Growth
The growth of the North America & Europe power distribution component market is likely to be influenced by various factors, including regulatory oversight, economic drivers, new technologies, and a range of organizational structures such as federal, municipal, and state governments. Although government regulations are expected to influence the growth of the North America & Europe power distribution component market, power transactions majorly occur on lines that are owned by investor-owned regulated utilities (IOUs). However, in deregulated areas, transmission and distribution of power are likely to be operated by a range of entities. As more number of players involved in the North America & Europe power distribution component market are increasingly focusing on providing electricity to end users via privately owned distribution systems in an efficient and reliable manner, the demand for power distribution components across the regions is on the rise.
Due to reliability and economic factors, the long-distance power transmission distribution space has grown at a rapid pace in North America and Europe. In addition, to cater to this growth, new wholesale markets for electricity have gradually gained center stage due to which, the demand for power distribution components is increasing.
The onset of digital technologies, IT, and smart panels across power solutions is another factor that is expected to drive innovations across the current North America & Europe power distribution component market during the assessment period. The shift toward the development of renewable and clean energy technology is likely to provide lucrative opportunities to the players involved in the current North America market landscape. Market players are expected to focus on the current utility technical, business, and regulatory models and launch products in line with laid down guidelines and requirements.
To understand how our report can bring difference to your business strategy, Ask for a brochure
Production to Slow Down amid COVID-19 Pandemic
The outbreak of the novel COVID-19 pandemic is likely to have a moderate impact on the expansion of the global power distribution component market in 2022. Delay in the delivery of raw materials required to develop power distribution components, restrictions on cross-border trade, trade war between the U.S. and China, and plateauing investments for the development of new power distribution components due to the novel COVID-19 crisis are anticipated to have a strong influence on the North America & Europe power distribution component market in 2022. While movement across the market is projected to remain slow in terms of deployment of new technology and manufacturing, the North America & Europe power distribution component market is expected to show signs of recovery toward the end of 2022.
Stuck in a neck-to-neck competition with other brands? Request a custom report on Power Distribution Component Market
The North America & Europe power distribution component market is expected to expand at a healthy CAGR of ~6% during the forecast period. The market growth can be primarily attributed to a range of factors, including increasing need to upgrade the current transmission and distributions systems, advent of new distribution technologies, and entry of a number of private companies in the North America & Europe power distribution component market landscape. Market players should focus on the development of new products that are in line with the regulatory landscape and the evolving demand of the end users.
North America & Europe Power Distribution Component Market: Overview
- According to Transparency Market Research’s latest research report on the power distribution component market in North America and Europe for the forecast period 2022–2030, demand for power distribution component has been rising in these regions owing to increase in urbanization and industrialization. Rise in demand for electricity in various end-use industries is estimated to boost the power distribution component market in North America and Europe during the next few years.
- In terms of value, the power distribution component market in North America and Europe is estimated to exceed US$ 7.1 Bn by 2030, expanding at a CAGR of ~6% during the forecast period
Increase in Construction & Infrastructure Activities: Key Driver of North America & Europe Power Distribution Component Market
- Power distribution component is the primary element of an electric supply system for commercial, residential, and industrial sectors. The main cable comes into the distribution board and distributed in the secondary circuits such as lights and plugs via power distribution components.
- The global construction industry expanded by 3% in 2019, after 3.5% in 2018 and 2.7% in 2017. The residential segment held major share of the global construction industry. Implementation of smart grids in the residential sector has boosted the demand for power distribution component.
- Construction volumes in the U.S grew by 3% y/y in 2018 and 2.1% y/y in 2019. Construction spending growth in 2018 was driven by non-residential and residential sectors. In the U.S., the residential construction sector has been expanding largely due to low unemployment rates, wage improvements, inventories, tax restructure, and increase in interest rates.
- According to the French Builders Association FFB, the construction sector in France grew by a robust 5% in 2017, mainly driven by a surge in the new residential building sector. Output in non-housing construction is expected to increase by 3% in 2019, driven by ongoing dynamism in office buildings. The construction sector in Germany performed strongly in 2018. The outlook for 2019 remains positive, primarily driven by increase in orders in the residential construction segment and also in public construction.
- Thus, increase in construction & infrastructure activities is anticipated to boost the demand for power distribution component over the next few years
Increase in Demand for Electricity to Drive North America & Europe Power Distribution Component Market
- Global demand for electricity rose by 4% in 2018 since 2010. Renewable and nuclear power majorly contributed to the growth in demand for electricity in 2018. Total electricity consumption in the U.S. stood at around 5151.0 terawatt-hour (TWh) in 2018 compared to 5002.3 TWh in 2016.
- Rise in demand for electricity in the U.S. can be ascribed to weather conditions. Demand for air-conditioning rose during the summer in 2018, which ranked as the fourth hottest year on record. Colder-than-average winters in North America are driving the need for heating systems.
- The U.S. and China, the world’s two major power markets, accounted for 70% share of global demand for electricity in 2018. Increase in demand for electricity is likely to boost the demand for power distribution component in the near future.
North America & Europe Power Distribution Component Market: Competition Landscape
- Detailed profiles of providers of power distribution component have been included in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the power distribution component market in North America and Europe are
- ABB Ltd
- Lucy Electric
- Schneider Electric SE
- Larsen & Toubro Limited
- Hyundai Electric & Energy Systems Co. Ltd.
- Fuji Electric Co. Ltd.
- Mitsubishi Electric Corporation
- Crompton Greaves Consumer Electricals Ltd.
- GENERAL ELECTRIC
More Trending Reports by Transparency Market Research – https://www.nsenergybusiness.com/pressreleases/companies/transparency-market-research/floating-solar-panels-market-escalating-investments/
North America & Europe Power Distribution Component Market: Major Developments
- Key service providers of power distribution components, such as GENERAL ELECTRIC, Mitsubishi Electric Corporation, Schneider Electric SE, Eaton, and ABB Ltd., are focusing on expansion of power distribution component facilities owing to the rising demand for power distribution components. Other prominent developments in the power distribution component market in North America and Europe are highlighted below:
- In June 2022, Eaton announced its agreement to purchase a new facility in Hodges, South Carolina, establishing a new home for its busway product line currently spanning three facilities across Greenwood County. The investment in the new facility is expected to consolidate operations to one location to support accelerated growth of the comprehensive portfolio of power distribution component and control equipment solutions used in hospitals, data centers, factories, and commercial, residential, and industrial facilities.
- On June 11, 2022, Mitsubishi Electric Corporation acquired Sharp Fukuyama Semiconductor Co., Ltd., previously owned by Sharp Corporation located in Fukuyama, Hiroshima, Japan. The plant would serve as a new manufacturing site for Mitsubishi Electric Corporation. The new production facility, scheduled to start in November 2022, is expected to enable Mitsubishi Electric Corporation to expand its power distribution component business.
- In the power distribution component market in North America and Europe report, we have discussed individual strategies, followed by company profiles of providers of power distribution component facilities. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the power distribution component market in North America and Europe.
Request for covid19 Impact Analysis – https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19&rep_id=64104