Increasing residential projects to impact distribution panels market outlook
The increased emphasis of government towards the electrification of rural areas coupled with growth in the number of installations of electrical systems that are energy efficient are some major factors contributing to the increased usage of distribution panels. Increasing the necessity for protective devices and growing refurbishment activities of existing power networks will bolster the demand for the product over the coming years.
On this note, the distribution panel market revenue is predicted to exceed USD 8 billion by the end of 2027.
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Growing integration of renewable resources to spur the usage of medium voltage distribution panel
Rapid industrialization and urbanization have increased the overall energy needs. Along with that, growing concern for the environment has resulted in the integration of renewable energy sources. Therefore, the governments across the world are expanding their existing manufacturing capabilities for reducing their dependency on imports.
In addition, private and public players are extensively examining the scale of utilizing renewable energy sources. Considering these factors, the market for distribution panel will bolster over the projected timeframe.
Distribution panel to witness rise in demand across utility applications
Growing concern regarding dependable power supply coupled with increased investments towards the replacement of existing power infrastructure will bolster the production of distribution panels. Furthermore, the emergence of smart grid technology and upscaling small-scale industries will boost the consumption of the product. These factors justify the growing developments in the distribution panel industry.
Middle East & Africa garnering huge demands for distribution panels
Growing demand for electrical supply coupled with increased disposable income has increased the installations of advanced distribution panels in Middle East & Africa. Additionally, with increased usage of electronic appliances like smartphones, energy consumption is escalating across households in the region. Regulators are providing financial assistance in collaboration with private players for establishing and expanding the power infrastructure in countries like UAE and Saudi Arabia. Considering these factors, the distribution panel industry will witness a growth rate of over 8% during the forecasted timeframe.
The impact of COVID-19 on the deployment of distribution panels
The ongoing COVID-19 outbreak has prompted governments across the world on imposing strict lockdowns. This has resulted in the shutting down of factories and production facilities which has severely impacted many product-based industries.
Although the emergence of various vaccines has enabled the resuming of operations across many countries, they are facing challenges in bringing manufacturing operations to its full potential. This significantly reduced the electricity requirements from the industrial sector.
However, the expansion of the healthcare sector has increased the demand for electricity across medical institutions, which has prompted the establishment of transmission and distribution networks to satisfy these demands. Owing to the aforementioned factors, the market for distribution panels will prosper with excellent growth numbers over the projected timeframe.
Many key players are involved in strategic mergers and acquisitions to establish their position in the market. For instance, Schneider Electric has successfully acquired the electrical and automation business of L&T in collaboration with Singapore-based state funded firm Temasek Holdings. Such business ventures will encourage the utilization of distribution panels over the coming years.
