Market Research Report
Load Break Switches
|Published by||Global Industry Analysts, Inc.||Product code||908042|
|Published||Content info||499 Pages
Delivery time: 1-2 business days
|Load Break Switches|
|Published: September 1, 2020||Content info: 499 Pages||
After a temporary fall in sales in the year 2020, the global market for Load Break Switch is projected to reach US$2. 9 billion by 2027. The ongoing corona virus pandemic has lined up several immediate term challenges for the market. Shuttered factories and commercial establishments come as a short-term blow to utilities and for all players in the energy value chain, including Load Break Switch manufacturers. The market is expected to witness a dip in revenues in the year 2020, as the COVID-19 pandemic brings approximately 25% of the world population under lockdown. As the world enters into a more critical phase of the infection spread, more countries are expected to follow with even more stringent lockdown and stay-at-home measures to curb the spread of the virus. The implications for businesses and industries are grim. The lockdown is severely impacting energy consumption which in turn is taking a toll on cash flows for energy companies. The falling consumption rates can very likely be a real-time indicator of coming economic damage. Several energy companies including oil exploration companies and utilities have already suspended projects and slashed capex. While the blow to business activities, and revenue has and still continues to be great, the coming years will still be tougher as the world now stares at a looming recession. The world economy is heading towards the worst-of-its kind recession, worse than even the "Great Recession" of 2009. Governments are beefing up emergency budgets for healthcare, sanitation and social security to fight the pandemic. The shutdown has disrupted economic activities in a manner hitherto unimagined and the human cost of the pandemic is continuing to grow and is expected to deal an unprecedented blow to economies worldwide. As businesses struggle to keep afloat, job cuts and bankruptcies are expected to rise sending millions into unemployment. With fiscal coffers rapidly depleting and with emergency budgets beefed up for healthcare, new infrastructure development, upgrade and expansion projects will receive a blow.
As focus on power transmission and distribution infrastructure temporarily recedes, demand in transformer switching applications will soften. Demand for load break switches in ring main gears (RMG) applications will also be hit as investments in electrical power distribution both in primary and secondary distribution substations take a beating. As Industrial activity weakness, opportunities will shrink in applications such as switching of condensers. Upgrades from manual to motorized load break switches will likely witness delays. In the post COVID-19 period, the market`s fundamental growth drivers will re-emerge to help growth recover including investments in smart grids. Grids and smart grids constitute the major consumers of load break switches, accounting for robust share in overall sales. Re-emerging focus on upgrade and modernization of grid infrastructure and rising emphasis on smart grids will accelerate deployments of load break switches over the medium term. Similarly, with the rapid rise of automation and wider adoption of electrical and electronic systems in industrial environments, demand for load break switches will improve as migration to Industry 4. 0, smart factory, and smart manufacturing regains pace.
Competitors identified in this market include, among others,