The global High Voltage Circuit Breakers (HVCB) market is expected to grow from $2.27 billion in 2015 to $2.52 billion by 2020, representing a compound annual growth rate (CAGR) of 4%, according to research and consulting firm.
The company’s latest report states that in the emerging economies of Asia-Pacific (APAC), South America, Africa and the Middle East, extensive power plant capacity additions, and the need to improve access to electricity are driving grid expansion and the growth of the HCVB market. In developed economies like North America and Europe, growth is being driven by the need to upgrade the existing, aging transmission network and grid interconnection.
“China is particularly important to the HVCB space, currently accounting for 16% of market share and anticipated to dominate the field during the forecast period, retaining the same share and reaching a market value of $421 million by 2020.
"China presents abundant opportunities for HVCB manufacturers as the transmission and distribution sector has started receiving stronger support from the government in response to the rapid growth of electricity demand in the country.
“The power transmission market in the country is set to benefit the HVCB market, and will itself be driven by the large geographical distances between power demand centers and energy-rich areas, non-unified power grids and insufficient grid capacity, the government’s efforts to incorporate renewable energy, and smart grid deployment.”
India is also making huge investments in the renewable energy sector, which is set to continue growing rapidly and drive the demand for HVCB. The total value of HVCB market in India increased from $123 million in 2010 to $154 million in 2015 with a CAGR of 4.6%. The country is expected to witness an increase in the HVCB market, reaching $174 million by 2020 and growing at a CAGR of 11.5%.
Shameem continues: “Along with growth in the renewable energy sector, the rise in market value will be driven by the need for grid strengthening. Currently, the capacity of India’s transmission and distribution sector is lagging behind that of generation capacity. In this way, the transmission sector needs more investment, which would increase demand for HVCB in the country.”