Busbar Trunking Market - Growth, Trends, and Forecasts (2023 - 2028)

The busbar trunking market is expected to grow at a CAGR of more than 5% over the period of 2020-2025. Factors such as an increase in power consumption, multiple operations such as for power transmission, distribution and lighting, and technical advantages of busbar trunking, along with a rising focus on distributed power generation, are expected to drive the market in the forecast period. However, the high cost of busbar trunking systems, making them unviable for small and medium enterprises is likely to restrain the growth of the busbar trunking market in the coming years.

Key Highlights

• The industrial sector is expected to dominate the market during the forecast period, owing to factors like increasing electricity demand from the sector and rising focus on energy-efficiency.
• Globally, the focus has increased on investments in clean energy projects and the development of smart cities. As a result, the extensive development of new renewable projects and the development of green constructions are likely to create an excellent opportunity for the busbar trunking market in the future.
• Asia-Pacific is expected to fastest-growing market in the forecast period, with the majority of the demand coming from China, Japan, and India, mainly due to a rise in electricity consumption and an increase in the renewable energy sector.

Busbar Trunking Market Trends

Industrial Sector to Dominate the Market

• The industrial sector is expected to dominate the busbar trunking market in the forecast period, owing to factors like the increased adoption of energy efficiency practices, government mandates to save electricity, increasing demand for safe supply of electricity, and rise in focus on energy efficiency in the sector.
• The industrial sector energy consumption grew by over 12% from around 214 quadrillion British thermal units in 2010 to around 240 quadrillion British thermal units, in 2018. The energy consumption of the industrial sector is more than 50% of the total global energy consumption. With the rise in energy demand came the need for a safe supply of electricity, where busbar trunking has become irreplaceable.
• The majority of the energy consumption in the industrial sector comes from energy-intensive manufacturing industries involved in the manufacturing of basic chemicals, iron, and steel, food, non-ferrous metals, non-metallic minerals, refining, and paper. Energy-intensive industries are expected to occupy half of the share of the industrial sector energy consumption during the forecast period.
• India and China maintain a major share in the energy-intensive manufacturing sector. Both the countries combined had an industrial energy consumption of 63 quadrillion British thermal units in 2018.
• Therefore, with the increase in electricity demand from the industrial sector and rise in the industrial sector, especially in countries like India and China, the market for busbar trunking is expected to grow with it, due to its higher heat absorption capability, better resistance, and flexibility.

Asia-Pacific to Dominate the Market Growth

• Asia-Pacific is expected to be the fastest-growing market in the forecast period. Asia-Pacific is one of the fastest-growing regions in the world because of the increasing population, urbanization, and industrialization. As a result, the demand for guaranteed power supply is high. For addressing these demands, many countries are investing in the renewable energy sector and transmission and distribution infrastructure.
• As per the International Energy Agency (IEA), the world's most populated country China is likely to install 36% of total worldwide hydroelectricity generation capacity and 40% of all global wind energy between 2015-2021. Already, China has over 259,000 MW of new coal plants in various stages of development and accounts for more than 1/3 of the global coal plant pipeline. Busbar trunking is expected to be the most obvious choice for these developments owing to factors like low maintenance and safety.
• On the other side, India is also investing heavily in the renewable sector heavily, with USD 11.1 billion invested in 2018 alone.
• On the other hand, both China and India hold a major share of the world's industrial sector, mainly the energy-intensive manufacturing sector. While China's industrial energy consumption in the highest in the world at a 29% share of the global industrial energy consumption in 2018, India is rapidly catching up with a steady increase in its industrial sector.
• Therefore, the aforementioned factors are expected to drive the market in the forecast period.

Busbar Trunking Market Competitive Analysis

The busbar trunking market is highly fragmented. Some of the key players in this market include Larsen & Toubro Limited, Eaton Corporation PLC, General Electric Company, Schneider Electric SE, and Siemens AG.

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