Laminated Busbar Market

Market Overview

The global Laminated Busbar Market size was valued at USD 680 million in 2022. It is estimated to reach USD 1158 million by 2031, growing at a CAGR of 6.1% during the forecast period (2023–2031). The cost-effectiveness and operational advantages of laminated busbars, the necessity for safe and secure electrical distribution systems, and the emphasis on renewable energy stimulate market growth.

Laminated busbars are electrical conductors for efficient power distribution in various industries and applications. They are made up of numerous conductive layers separated by insulating layers.

The laminated busbar market share is expected to rise at 7.6% CAGR due to laminated busbars' cost-effectiveness and operational advantages, the necessity for safe and secure electrical distribution systems, and the emphasis on renewable energy. Furthermore, the industry is driven by several factors, including rising power demand and increased demand for safe and secure electrical distribution systems. Furthermore, increased renewable energy integration will drive the market forward.

Market Dynamics

Global Laminated Busbar Market Drivers:

Rising Demand for Electric Vehicles

Laminated busbars have become critical components for effective power distribution within EVs as the Laminated busbar market trend continues and the automotive industry transforms toward electric mobility. Laminated busbars are essential in EVs because they efficiently distribute power inside the vehicle's electrical systems. They can be found in various components such as battery packs, power inverters, motor drives, and charging systems. Tesla, a renowned maker of electric vehicles, uses laminated busbars in its Model 3 electric automobile. The power distribution technology in the Model 3 is based on laminated busbars, which efficiently distribute electricity between the battery, inverter, and electric motor. Electric vehicle markets are expanding exponentially, with sales exceeding 10 million by 2022. Electric car sales have more than tripled in three years, from roughly 4% in 2020 to 14% in 2022. EV sales are predicted to remain strong through 2023. 

As more automakers launch EV models and governments promote clean transportation, laminated busbars will play a critical role in establishing efficient power distribution, contributing to the global success of electric vehicles.

Global Laminated Busbar Market Restraints:

High Cost

While laminated busbars provide numerous advantages, including space efficiency and heat control, the initial investment required may be prohibitive for some customers, particularly those in cost-sensitive industries. To achieve electrical and thermal requirements, laminated busbars require specialized conductive and insulating materials with precise qualities. Multiple layers, precision cutting, and bonding procedures, which can be sophisticated and require specialist equipment, are all part of the laminated busbar production process. The pricing barrier may impact the adoption of laminated busbars in areas such as automotive, renewable energy, and power electronics, where cost-effectiveness is crucial.

Due to increased rivalry in the solar energy business, solar inverter manufacturers, in particular, suffered cost constraints. Some manufacturers chose cost-effective alternatives like classic busbars to preserve competitiveness. These factors hinder the market growth.

Global Laminated Busbar Market Opportunities:

Renewable Energy Integration

The global market has a major opportunity for integrating renewable energy sources such as solar and wind power. Laminated busbars play an important role in improving the efficiency and performance of energy conversion and distribution systems as the globe strives to convert to cleaner energy sources. Using laminated busbars in renewable energy systems improves energy conversion efficiency, minimizes energy losses, and increases the overall reliability of renewable energy installations. As a result, laminated busbars are an essential component in reaching a sustainable energy future.

According to the International Renewable Energy Agency (IRENA), global renewable capacity additions are expected to expand by 107 GW in 2023, the greatest absolute increase ever, to more than 440 GW. The dynamic expansion is occurring in all of the world's major markets. As renewable energy installations increase globally, manufacturers of laminated busbars are anticipated to find greater demand for their goods.

Regional Analysis

The global laminated busbar market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global market shareholder. The Asia-Pacific market accounted for most of the market and is predicted to grow at a substantial CAGR during the study period. This is related to population growth, urbanization, and industrialization. As a result, there is a strong demand for a reliable power source. This is due to the strong economic performance of nations like China, India, Malaysia, Singapore, South Korea, and Thailand, which have been key manufacturers of laminating busbars in recent years. Furthermore, these countries are major consumers of lamination busbar products due to their large commercial and residential spaces and high T&D spending by governments on power transmission lines, including increased investments to implement smart grids. As a result of major reasons such as increased T&D spending, growing real estate and construction activities, rising population, and higher spending on electricity transmission lines, Asia-Pacific is predicted to lead the market. Many countries are investing in renewable energy and transmission and distribution infrastructure to meet these demands.

Furthermore, the China laminated busbar market had the greatest market share, while the Indian market was the fastest expanding in the Asia-Pacific region. According to the International Energy Agency (IEA), China, the world's most populous country, is predicted to install 36% of total global hydroelectricity generation capacity and 40% of global wind energy capacity between 2015 and 2021. China already has approximately 259,000 MW of new coal plants under construction, accounting for over one-third of the worldwide coal plant pipeline. Furthermore, the region's forthcoming transmission and distribution projects, such as the Changji-to-Guquan project in China and the 23 interstate transmission system projects in India, are expected to promote market expansion during the projection period.

Europe's laminated busbar market is anticipated to Grow over the forecast period, owing to increased vehicle production in Mexico and a movement of manufacturers from the European Union, which will likely enhance the usage of laminated busbar in Mexico's automobile sector. Furthermore, according to the market insights, Germany had the biggest market share, while the market in the United Kingdom was the fastest expanding in the European region. Wind and solar power have been heavily invested in by European countries such as Germany and Denmark. Laminated busbars are critical for efficiently integrating renewable energy into the grid and optimizing power distribution in renewable energy projects. The European Wind Energy Association (EWEA) estimates that Europe will deploy 19 GW (16 GW in the EU-27) of new wind capacity in 2022.

Similarly, Europe is a center for manufacturing and uptake of electric vehicles (EVs). Laminated busbars are essential in EV power distribution systems, assisting automakers in creating efficient and space-saving designs. As Europe continues moving toward cleaner, more efficient energy systems, demand for laminated busbars is projected to stay robust, providing possibilities for producers while contributing to the region's sustainability goals.

The laminated busbar market in North America is expected to develop at the quickest CAGR during the projected period because of its superior corrosion resistance and temperature tolerance; it is gaining popularity in the automobile industry. Renewable energy installations, such as wind and solar farms, have increased significantly in the United States and Canada. Laminated busbars help ensure grid stability by efficiently distributing electricity from various sources. According to the US Department of Energy, the wind industry in the United States installed 13,413 megawatts (MW) of new wind capacity in 2021, increasing the total to 135,886 MW.

In order to remain competitive in the North American market, businesses must innovate regarding materials, design, and efficiency. The continual expansion of renewable energy projects, particularly in areas with high wind and solar potential, provides prospects for laminated busbar manufacturers. Furthermore, the market in the United States had the biggest market share. In contrast, the market in Canada was the fastest-expanding market in the North American area.

Segmental Analysis

The global laminated busbar market is segmented based on insulation, conductor, end-user, and region.

Insulation is further segmented into Epoxy powder coating, polyimide film, polyester resin, PVF film, heat-resistant fiber, and others.

Epoxy powder coating holds the major market share. Epoxy powder coating is a thermosetting polymer substance that is applied as a powder and then cured on the surface of laminated busbars to provide a protective and insulating layer. It has good electrical insulation and is resistant to environmental conditions. Polyimide film is a high-temperature-resistant polymer noted for its outstanding electrical insulation and thermal stability. It can endure high temperatures while maintaining its insulating properties.

Based on the conductor, the market is sub-segmented into Copper and aluminum.

Copper contributes the largest share of the market. Copper is a highly conductive metal with great electrical conductivity. It is ideal for applications requiring high electrical efficiency and low energy losses. Copper laminated busbars are extensively utilized in high-current applications, power distribution systems, power electronics, and other industries that require high electrical conductivity. They are also used in applications that need small designs and low heat generation. Aluminum is a lightweight, low-cost conductor material. While it has somewhat poorer electrical conductivity than Copper, it provides advantages in terms of weight and price.

By end-user, the segment can be further bifurcated into Utilities, commercial, industrial, and residential.

Utilities are the major end-users in the market. Utility firms are major consumers of laminated busbars in power distribution and grid equipment. Laminated busbars help utilities distribute electricity more efficiently, manage grid stability, and improve system reliability. Laminated busbars are used for effective and compact power distribution within commercial organizations such as corporations, data centers, and retail facilities. In commercial settings, laminated busbars increase energy efficiency and space usage.

Recent Developments

• July 2023- Mersen began graphite production in the U.S.
• May 2023- Rogers will increase power substrate capacity in China to meet increasing EV and renewable energy demand.