The global resistive load banks market size was worth USD 221 million in 2021 and is expected to reach USD 343 million at a CAGR of 5% during the forecast period (2022-2030).
A load bank is electrical equipment used to simulate and test an electrical power source without connecting it to its average operating load. Resistive load banks prove equivalent loading of both the generator and prime mover. They are used for testing lower power factor simulation and frequency convertors of full electrical system integration. Furthermore, they also have pre-commission and commissioned newly installed equipment in data centers, oil & gas companies, and shipyards.
Resistive load banks are likely to witness a healthy growth rate due to several tailwind factors such as a rise in power generation industries, nuclear installations, the oil and gas industry, and maritime industries, among others. The growing demand for data centers and the increasing demand for cloud computing and big data analytics also propels the resistive load banks market growth.
|Market Size||USD 343 million|
|Fastest Growing Market||Asia-Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The need for raw materials is due to investments from private players in growing economies in various manufacturing industries. Furthermore, travelers have an increasing demand for cruise liners for vacations. These factors are likely to translate into positive growth for the shipping industry. All backup systems must be tested on ships that travel for months at a time. Another advantage provided by Resistive Load Banks testing is that it allows one to try a prime mover and generator at 100 percent capacity. These factors are likely to create an upswing for the Resistive Load Banks market.
A data center is a dedicated space in a building to house multiple computer systems and their associated components, such as storage systems and telecommunications, among others. Data centers can be of various types, such as enterprise data centers, managed data centers, colocation data centers, and could data centers. With the rising adoption of cloud computing, extensive data analysis, digitalization of large physical data, and data being the new oil, there has been a burgeoning growth for data centers worldwide. Supercomputers play a crucial role in computational science and handle and perform various tasks, which would take months and years in days. They play a significant role in quantum mechanics computation, weather forecasting, and climate research, among other tasks. Furthermore, millions of devices are connected to the cloud in today's time. The data center's market growth is likely to increase the resistive load banks market during the forecast period.
The U.S.-China trade war has affected all the economies since they were the dominant trading partners in the world. This trade war resulted in China resorting to lowering the price and dumping the goods and commodities in other economies. Chinese products such as steel and electronics were dumped and sold at a much lower rate, which affected other nations' domestic electronics and energy industries in which the goods were being abandoned. Furthermore, in February, Brexit occurred, separating one of the EU's most important trading partners from the EU. The British economy will experience a significant slowdown before recovering. This will, however, benefit economies such as France and Germany. The trade war and the Brexit scenario indicated that the global economy was moving towards protectionism. The world economy was moving towards recession; however, it was not predicted to be as severe as the 2008 recession.
Additionally, the global pandemic has put several restraints on the global economy. It has brought international trade to a standstill, international borders have been sealed, and various economies have announced nationwide curfews and lockdown. The coronavirus pandemic has created a blip in the global economy and is likely to hamper the market demand for the Resistive Load Banks market. All these factors mentioned above are likely to inhibit the market growth.
Energy availability is a critical aspect of any country's economic progress. Global electricity consumption is expanding at a higher rate than the global population. A global energy shift is underway, driven by the twin goals of climate change mitigation and climate change promotion. Globally, there is a growing need for renewable energy initiatives. To raise the adoption rate of renewable energy power generation, the government should increase investments, provide fiscal incentives, and lower prices due to technological improvements.
Increasing investments, government support in terms of fiscal incentives, and reducing prices due to technological advancements to further improve the adoption rate of renewable energy power generation. Furthermore, Institutional investments by the World Bank and others also support renewable energy penetration and help in meeting sustainable development goals (SDGs). Solar power facilities employ load banks to demonstrate their functionality. They imitate operations to identify flaws and other problems. The market for Resistive Load Banks is projected to increase due to these factors.
North America accounts for most of the market share, followed by Europe and the Asia-Pacific. The region holds around 31% of the global market share in revenue. The North American resistive load banks market value is to reach an expected value of USD 96 million by 2030 at a CAGR of 3.7%. The rapid rise of cloud computing has dramatically increased the scale and economic effect of data center investments made by the four major service providers in the United States: Amazon, Google, Facebook, and Microsoft. Double-digit annual growth rates have become the new normal in recent years, with CAGR estimates of 14% to 17% becoming shockingly typical. The ever-increasing demand has pushed the necessity for resistive load banks in the North American region for data centers to store the unlimited data being pummeled from practically anytime and everywhere.
Asia-Pacific is estimated as the fastest-growing region in the resistive load banks market. It is estimated to reach an expected value of USD 95 million by 2030 at a CAGR of 6.4%. This growth in the region is primarily attributed to increased awareness among individuals for energy conversation and rising prices of fossil fuels. The region's development of resistive load banks is attributed mainly to increased awareness among individuals of energy conversation and the rising costs of fossil fuels. As a result, people are moving their energy to renewable and clean sources. South Korea is a global export leader and the world's sixth most complex economy, according to the Economic Complexity Index (ECI). In the South Korean region, shipping commerce is quite active. Ships convey about 80% of global trade by volume and more than 70% by value, with seaports handling the remainder. This stresses the importance of sea transportation for marketing and development, boosting the demand for load banks widely employed in shipbuilding.
The global resistive load market share is segmented by product type, application, sales channel, and region.
Based on type, the global resistive load banks market has been segmented into portable, trailer-mounted, and stationery. The portable resistive load banks account for the largest share, followed by paper and trailer-mounted. It is expected to reach an estimated USD 77 million in 2030 with a CAGR of 5.5%.
The portable resistive load banks is a robust steel enclosing with three switchable resistive loads banks. Each bank of resistors is electrically isolated, allowing them to be used as a star or delta load in three-phase circuits. Each bank of resistors is connected to a series of switches that enable the operators to study and comprehend the effects of balanced and unbalanced resistive loads. Each bank of resistors has a thermally operated circuit-breaker incorporated into the system to protect the load, which drives the market growth of the portable segment.
Based on application, the global resistive load banks market has been segmented into power generation, data centers, maritime/shipyards, oil, gas & nuclear, and government/military. The fastest-growing application for resistive load banks is the maritime/shipyard segment. It is estimated to reach an expected value of USD 74 million by 2030 at a CAGR of 5.6%.
The expansion of ports in the emerging economies is further bolstering the demand for load banks. Recently the government of Sri Lanka announced the addition of the Port of Colombo to cater to the burgeoning demand for services in the international shipping industry. After extensive speculations, the government proposed the development project called the "Colombo Port Expansion Project (CPEP)." The Colombo Port Expansion Project is situated west of the existing port of Colombo that encompasses an area of almost 600 hectares. The new harbor would boast three terminals, each having 1,200m in length and facilities to accommodate three berths. New buildings for the pilot station and crew accommodation will be built at the head of the secondary breakwater. The new port will necessitate massive resistive load banks to complete the transaction quickly, thereby offering new opportunities to load banks' manufacturers.
Based on the sales channel, the global resistive bank market is bifurcated into direct and distributor channels. The direct channel is the dominating segment. It is predicted to reach an expected value of USD 203 by 2030 at a CAGR of 5%. The direct sales channel eliminates the meddling of any third-party distributor as the products are directly shipped to the customers. The direct sales channel is the fastest-growing segment due to manufacturers' and end-users increasing transparency. The rising online trade has influenced the end users to buy products directly through the manufacturers rather than distributors.
Before the pandemic, several developments took place on an international level. The U.S.-China trade war has affected all economies. The U.K.'s exit from the EU is expected to result in a considerable slowdown for the British economy before it gains ground. However, France, Italy, and Germany are expected to benefit from the scenario. And Germany's dominance in the automobile, electronics, and pharmaceuticals sectors will prove beneficial for the Resistive Load Banks market. The U.S.-China trade war and Brexit hint at the global economy moving towards protectionism.
The pandemic has put several restraints on the global economy and brought international trade to a standstill. Manufacturers of resistive load banks are expected to have begun evaluating alternative raw materials suppliers. In addition, more prominent companies, which have a large balance sheet, are likely to adopt strategies such as vertical integration, which will gain control of the supply chain and aid in gaining a deeper understanding of domestic markets. These players are expected to absorb smaller players, with smaller businesses either shutting down temporarily or permanently. Key players are also likely to turn to increased automation, keeping in mind the uncertainty of the global economy and the workforce. This will also be done to improve just-in-time solutions (JIT) and is expected to aid in the provision of customizations.
List of Top Resistive Load Banks Market Suppliers