Electrical Bushings Market

Market Overview

The global electrical bushings market size was valued at USD 2.43 billion in 2022. It is estimated to reach USD 3.22 billion by 2031, growing at a CAGR of 3.18% during the forecast period (2023–2031). With surging industrialization and urbanization, there is a growing electricity demand globally. The world is rapidly transforming from conventional to cleaner energy sources, which has led to the rapid adoption of renewable energy. Electrical bushings are essential for connecting power-generating sources, including renewable energy. This is expected to drive the global electrical bushings market.

Electric bushing refers to a hollow electrical insulator that enables the safe passage of an electrical conductor via a conducting barrier, such as the casing of a transformer, walls, or circuit breaker, without establishing electrical contact with it. Bushings are commonly fabricated from porcelain, although alternative insulating materials may also be employed. They provide multiple crucial roles in electrical systems, such as insulation, support, and sealing. They are vital elements in diverse electrical apparatus, guaranteeing power systems' secure and dependable functioning.

Market Dynamics

Market Drivers

Adoption of Renewable Energy Sources

As per the International Renewable Energy Agency (IRENA), the global capacity for renewable energy grew by 10.3% in 2020, reaching a total of 2,799 gigawatts (GW). Moreover, as per the International Energy Agency (IEA), renewable energy sources are projected to contribute to about 95% of the development in global power capacity by 2026.

Hydropower, solar, wind, and biomass are some of the most prevalent renewable energy sources due to their low environmental impact, high efficiency, and reliability in delivering electricity. Incorporating renewable energy sources necessitates the assimilation of fluctuating and dispersed generation sources into the current power grids, presenting obstacles to power quality and dependability. Electrical bushings are essential for connecting renewable energy sources to power networks. They serve the purpose of insulating and safeguarding against overvoltages, harmonics, and surges.

Growing Demand for Electricity

As per the International Energy Agency (IEA), the global electricity demand is projected to escalate by 80% by 2050. This phenomenon can be attributed to the swift process of urbanization, industrialization, and electricity in multiple areas, including transportation, heating, and cooling. The increasing need for electricity necessitates expanding and improving power transmission and distribution networks, thereby driving the demand for electrical bushings. Electrical bushings are crucial in establishing connections between power generation sources, including thermal, hydro, nuclear, and renewable sources, and the end-users. They also enhance the efficacy and robustness of the power systems by mitigating losses and malfunctions.

Market Restraint

High Cost and Maintenance of Electrical Bushings 

Electrical bushings are costly components requiring periodic maintenance and inspection to guarantee their best functionality and durability. Electrical bushing maintenance includes cleaning, examining, fixing, and substituting impaired or deteriorated components, such as gaskets, seals, insulators, and conductors.

Furthermore, skilled manpower and specialized equipment are necessary for maintaining electrical bushings, contributing to the overall operational cost. The malfunction of electrical bushings can lead to significant ramifications, including fire, explosion, power failure, and harm to the machinery and individuals. Hence, the exorbitant expenses and upkeep required for electrical bushings can impede the expansion of the market.

Market Opportunities:

Development of Smart Grids

Smart grids are enhanced power grids that utilize information and communication technology (ICT) to oversee, regulate, and enhance electricity flow, demand, and supply. Smart grids provide a range of advantages, including enhanced efficiency, dependability, safety, and sustainability of electricity systems.

Smart grids enable the integration of renewable energy sources, electric vehicles, energy storage devices, and demand response programs. The emergence of smart grids presents opportunities for the electrical bushings market, as it necessitates sophisticated electrical bushings capable of enduring dynamic and intricate power conditions. Electrical bushings equipped with online monitoring, self-healing capabilities, and fault detection can improve the performance and operation of smart grids.

Regional Analysis

Based on region, the global electrical bushings market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global electrical bushings market shareholder and is expected to expand substantially during the forecast period. The region is undergoing the fastest growth in electrical bushings due to the rapid urbanization, industrialization, and electrification in this region. The Asia-Pacific region is projected to allocate USD 3.3 trillion toward electricity generation in the upcoming decade, emphasizing renewable energy sources significantly. According to Wood Mackenzie's newest analysis, wind and solar energy would constitute 49% of the investment, while energy storage would receive 12% of the overall capital. Furthermore, over the next five years, the region is projected to increase its capacity by 1,840 GW, surpassing the combined growth of the rest of the globe. This growth is driven by investments from India and China in a combination of coal and renewable energy sources to meet the rising power demand. This is anticipated to generate the need to expand the power grid, which encompasses the installation of transformers, switch gears, and other related components. The anticipated expansion is projected to persist in the foreseeable future, generating a need for electrical bushings.

China's dominance in the region stems from its position as the global leader in power generation, both in production and consumption. China is globally dominant in renewable energy, particularly wind and solar power. China is currently in the process of constructing its Ultra-High Voltage Direct Current (UHVDC) transmission systems, which necessitate the use of high-performance electrical bushings. Moreover, India, Japan, South Korea, and Australia are significant markets because of their efforts to expand power capacity, enhance power quality and dependability, and incorporate renewable energy sources. All these factors are anticipated to boost the electrical bushings market in the Asia-Pacific region.

North America is a significant market for electrical bushings due to its existing power infrastructure, growing electricity demand, and adoption of smart grid technology. The United States holds the top position in the region, boasting the largest installed power capacity and the highest electricity consumption globally. The United States achieved the second-highest position globally regarding renewable energy capacity in 2021, following only China. In 2021, the United States possessed a total capacity of 325 gigawatts (GW) of renewable energy. There is a surging demand for renewable energy sources. The United States is also expanding its accessibility and advancing renewable energy initiatives across all sectors. The renewable energy market will expand by at least 305 gigawatts annually until 2026. Moreover, the United States is making substantial investments in upgrading and enhancing its power infrastructure, generating prospects for the electrical bushings market.

In Europe, several aspects impact the market, including electrical supply and demand, regulatory and environmental laws, and technology advancements. As per the European Network of Transmission System Operators for Power (ENTSO-E), the European region is projected to have a yearly growth in power consumption of 1.5% by 2030. Similarly, the European region's electrical supply is shifting from traditional fossil fuels to sustainable energy sources, including wind, solar, hydro, and biomass. The percentage of power generated by renewable sources increased from 34.6% in 2019 to 38% in 2020, as reported by the European Commission. The primary factors influencing the shift in supply are the European Green Deal, which seeks to attain climate neutrality by 2050, the EU Renewable Energy Directive, which establishes a goal of 32% renewable energy usage by 2030, and individual member states' energy and climate strategies. Thus, the factors above augment the global market in the European region.

Segmental Analysis

The global electrical bushings market is segmented by type, insulation, voltage, application, and end-user.

Based on type, the global electrical bushings market is segmented into oil-impregnated paper (OIP), resin-impregnated paper (RIP), and others. 

The oil-impregnated paper (OIP) segment dominates the global market. OIP bushings are electrical bushings that utilize oil-impregnated paper as the insulating medium. OIP bushings typically consist of porcelain insulators, higher insulators designed for air-side applications, and bottom insulators for oil-side use. OIP bushings are extensively utilized for electrical bushings because of their exceptional characteristics, including superior dielectric strength, thermal stability, and moisture resistance.

OIP bushings are specifically engineered to accommodate different voltage and current capacities. They link power generation sources to the final consumers, including thermal, hydro, nuclear, and renewable sources. OIP bushings may incorporate upper and lower insulators of other materials, such as epoxy or fiber-wound polymer shells. Their extended lifespan results in decreased expenses for maintenance and replacement. They also possess exceptional mechanical resilience, allowing them to endure substantial stress and vibrations.

Based on insulation, the global electrical bushings market is divided into porcelain, polymeric, and glass. 

Porcelain is the predominant insulation material utilized for electrical bushings due to its superior mechanical and thermal characteristics, affordability, and widespread accessibility. Porcelain was utilized in the initial bushing designs for both indoor and outdoor uses. Porcelain was initially chosen for its characteristics of being impermeable to moisture once sealed with a fired glaze and its cost-effectiveness in manufacturing. Porcelain's primary drawback is its low linear expansion value, which necessitates substantial metal connectors and flexible seals, which cause manufacturing and operational complications.

A simple porcelain bushing is a hollow porcelain structure inserted through an aperture in a wall or metal enclosure, enabling a conductor to traverse its core and establish connections with other equipment at both ends. These bushings are commonly manufactured using wet-process-fired porcelain, which is subsequently glazed. A glaze with semi-conducting properties can equalize the electrical potential gradient along the bushing length.

Based on voltage, the global market is bifurcated into medium voltage, high voltage, and extra high voltage. 

High-voltage electrical bushings are crucial in electrical power systems, especially transformers, switchgear, and other high-voltage equipment. High-voltage bushings are specifically engineered to accommodate certain voltage classifications. The voltage class of a bushing represents its maximum voltage tolerance before experiencing a breakdown. High-voltage electrical bushings are utilized in the range of 52 kV to 800 kV for various purposes, including power transformers, generators, and transmission lines.

Based on application, the global electrical bushings market is divided into transformers, switchgear, and others. 

The transformer segment is the largest shareholder in the global market. An electrical transformer is an inert part used to transfer electrical energy between one or more circuits. Transformers are utilized to modify alternating current (AC) voltage levels. These transformers are called step-up or step-down transformers, depending on whether they increase or decrease the voltage level. Transformers can offer galvanic isolation between circuits and can also be utilized to connect different stages of signal-processing circuits.

Transformers dominate the electrical bushings market due to their extensive power transmission and distribution use. Electrical bushings are crucial in establishing connections between the transformer windings and the external circuits while ensuring insulation and protection.

Based on the end-user, the global market is segmented into utilities, industries, and others. 

The utilities segment dominates the global market. Electrical bushings are essential elements in utilities, fulfilling the functions of insulating, supporting, and connecting conductors in various electrical apparatus. Ensuring the dependability and safety of the electrical infrastructure in utilities requires competent design and maintenance. Bushings play a crucial role in transformers and switchgear by regulating the electric field and mitigating electrical pressures. Several utility companies are enhancing or expanding their transmission and distribution capacity, which in turn is increasing the need for electrical bushings.

Furthermore, the utility sector yielded the highest revenue due to persistent endeavors to mitigate fire hazards and extend the lifespan of operations. Their ability to tolerate mechanical stress and high voltage, as well as their ease of installation and mobility, will also enhance utility utilization.

Recent Developments

• June 2023- Hitachi Energy presented innovative solutions at CWIEME Berlin 2023 by introducing new products. The company showcased its most recent advancements in transformer insulation and components during a product launch and interactive sessions with industry professionals regarding EasyDry®, a new dry-type, paperless bushing added to its portfolio.
• December 2023- Bechtel Energy Inc. was awarded ABB the contract to provide integrated automation, electrical, and digital solutions for Phase 1 of the NextDecade Corporation-designed Rio Grande LNG facility (RGLNG Phase 1) in Brownsville, Texas.