The Total Addressable Market (TAM) for busbar was valued at USD 17.03 billion in 2022. It is estimated to reach USD 27.55 billion by 2031, growing at a CAGR of 5.5% during the forecast period (2023-2031).
A busbar is a conductive material made of a conducting strip of aluminum or copper. These metallic strips or bars are placed in various equipment such as switchgear, distribution panels, and switchboards that operate on electricity. Growing concerns regarding energy consumption and cost and operational benefits of busbars over cables are the major factors that drive the growth of the busbar market. In the transportation industry, aluminum busbars are widely used to connect batteries to electrical components.
Since these busbars play an essential role in vehicular operations, an increase in the demand for vehicles will support the growth of the market during the forecast period. Moreover, emerging switchgear applications in the commercial sector, along with innovations in the power sector and transmission and distribution expansions, are expected to offer opportunities in the global busbar market. The market is expected to gain traction due to the rising demand for busbars from the transportation and logistics sectors, as busbars play a vital role in electrical interconnections.
Due to the constant demand for electricity and energy on all continents, which is attributed to ever-increasing urbanization and population growth, the market for busbars is inclining. The U.S. Energy Information Administration (EIA) predicted that as the economy expands, power consumption in the USA will reach new highs in 2022 and 2023. Power demand is expected to increase from 3,930 billion kWh in 2021 to 4,010 billion kWh in 2022 and 4,019 billion kWh in 2023, according to the EIA. In addition, it is anticipated that by 2050, the demand for electricity will have increased by about 80% as more nations become highly industrialized. Therefore, major investments in adequate power generation and distribution grids are being made by industry leaders, which has led to greater use of high-quality insulation and conducting materials. Consequently, producers are making more busbars for a variety of industrial applications.
Busbar installation is generally more affordable, and electrical experts don't need to hire outside help. They are less expensive to develop or renovate and don't need regular maintenance. Busbars are quickly and efficiently installed with no downtime. The use of busbar shapes has reduced the amount of copper required because the busbar's increased perimeter provides better heat exchange, allowing for a reduction in cross-section while maintaining the busbar's ampacity (current capacity), and saving expensive material.
A few important factors that could limit market growth include low-quality and inexpensive product offerings by rivals and changes in the price of raw materials like copper and aluminum.
Similar to cables, a busbar essentially transports electricity between units. Busbars, however, are intended to simplify, reduce the size, and increase the safety of the electrical connection. Busbars can be used for complex electrical systems that transport high-voltage energy because of their better resistance and heat absorption characteristics. Busbar systems are good for saving money because they reduce energy loss, have a low installation cost, and allow for reduced energy loss. In addition, a busbar's flexible design makes it simpler to modify than cables. Busbars are less likely to be damaged by rodents than cables because they are fitted with a steel casing. In relation to the voltage they carry, busbars don't take up much room. In contrast to the time- and money-consuming cable installation process, they can be installed in buildings without causing holes in the walls. Busbar systems hold the key to the future of electricity transmission because they are used in high-tech products and find more applications every day. In comparison to cables, a busbar trunking system has many benefits, including quicker installation, lower lifetime costs, and more flexible configuration options. Traditional cables will soon be a thing of the past, and busbars will become more significant.
The global busbar market is segmented by material, power range, and end-user.
the global market is bifurcated into copper and aluminum.
The copper segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Copper offers superior properties such as high thermal conductivity, ductility, corrosion resistance, and long and reliable service life, which enhances the efficiency of the product. Copper busbars find applications in power generation plants and transmission and distribution projects across the globe. Growing consumer awareness regarding the energy efficiency of copper busbars over other cables due to their cost-effectiveness is also likely to support the growth of the busbar market during the forecast period.
The aluminum segment is expected to witness a higher CAGR. Because of its high mechanical strength and lightweight, it has a wide range of applications in high-power overhead transmission networks. The ability to carry heavier loads over longer distances, as well as cost-effectiveness over other available alternatives, will accelerate product adoption even further.
The global market is bifurcated into low power, medium power, and high power.
The low-power segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period, as these busbars are widely used in distribution panels and switchboards across various utilities and industries. Ongoing investments in the renovation and redevelopment of existing commercial facilities, as well as a positive outlook for the industrial sector's development, will stimulate the business landscape.
The high-power segment is expected to grow at a significant rate. High power ranges above 36Kv, and positive expectations for the modernization of ultra-high transmission lines to reduce line losses and meet electricity demand will boost the business outlook. Effective supply features over long routes will boost product demand.
The global market is bifurcated into commercial, residential, and industrial.
The commercial segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period, owing to the increasing demand for electricity and rapid industrialization and commercialization. Additionally, the introduction of energy-saving programs to improve energy efficiency across different commercial establishments, including commercial business centers and shopping malls, and complexes, will further accelerate the growth of the industry. Copper busbars are widely used in the commercial sector due to their high conductivity.
The industrial segment is expected to grow at a significant rate because of the manufacturing industry's brighter future and strong economic growth. Rising foreign direct investments in electricity distribution and generation, as well as increased public and private funding for infrastructure development, will support the business landscape.
The global busbar market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to ongoing technological innovations in the structural integrity of conductors. Several government initiatives toward cutting down on carbon emissions and an increasing change in infrastructure amidst the growing preference for electric vehicles are likely to create opportunities in North America's busbar market during the forecast period. For instance, Siemens PLC has planned to cut down on its carbon emissions and become carbon neutral by 2030 completely by using renewable energy at its facilities. The strong presence of manufacturers such as ABB Ltd and Siemens AG in the region also contributes to market growth. The busbar market will witness considerable growth from sandwich insulation due to the ability of busbars to withstand lower voltage drops. Government regulations regarding energy consumption and growing consumer awareness regarding energy usage are fueling the adoption of busbars in the market.
Asia-Pacific is expected to witness significant growth in the busbar market during the forecast period. Several government initiatives regarding projects based on power generation, transmission, and distribution are expected to contribute to the growth of the busbar market. Increasing the development of smart cities, rising demand for high voltage direct current transmission, and rising solar power capacity is set to create opportunities for the stakeholders operating in the region. According to power ministry data, India's power consumption increased by nearly 2% to 130.35 billion units (B.U.) in August 2022. Power consumption in August 2021 was 127.88 BU, up from 109.21 BU in the same month in 2020. Rising power consumption and power generation capacity in the region will increase and drive the growth of the busbar market throughout the forecast period.
Europe is expected to witness dynamic growth in the busbar market during the forecast period due to increasing government funding and financing toward the development of energy infrastructure projects to support electricity generation. The aluminum busbar market in the region is expected to witness considerable growth on account of the superior properties of aluminum, such as lightweight and the ability for economical transportation. New regulations by E.U. to reduce power consumption and promote power efficiency in transmission will propel the growth of the busbar market in the region.
The LAMEA region is expected to witness moderate growth in the global busbar market during the forecast period. New generation power plants are continually being constructed in emerging countries such as Brazil, Saudi Arabia, and African countries while existing infrastructure is being renovated, which is positively impacting the demand for busbars in the region. Moreover, governments of several countries are taking up initiatives to improve the existing power infrastructure to enhance electricity production.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|