The global power insulator market is expected to hold an aggregate market value of $5.72 billion during 2018–2022.The market was valued at $979.3m in 2012 and held an average annual value of approximately $1.04bn between 2013 and 2017. According to GlobalData’s latest report Insulators for Power Transmission, Update 2018- Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022, the Asia-Pacific region was the largest market in 2017, holding 53.5% share in terms of market value. EMEA (Europe, Middle East, and Africa) was the second-largest market, representing 26.7%, followed by the Americas with 19.8%. In growing economies such as those of Asia-Pacific and the Middle East, new capacity addition in the generation and transmission sector to meet the rise in electricity demand is driving the market for insulators. In the Americas and Europe, replacement of aging grid infrastructure and large-scale integration of renewables are driving the new transmission projects, which is increasing the demand for insulators.
During 2017, the Asia-Pacific region led the market in terms of market value witnessing $532.9m and is estimated to reach $657.7m in 2022. The rise in economic activity has resulted in increasing electricity demand in the region leading to higher power sector investments. The EMEA region registered a market value of $266.1m in 2017 and was the second-largest market for insulators next to Asia-Pacific. The market was driven mainly by the rise in economic activities in the Middle East, especially in Gulf Cooperation Council (GCC) countries, and electricity market integration in the EU along with renewable energy sources (RES) integration. The Americas registered a market value of $196.8m in 2017. The US, Canada, and Brazil are the largest markets for insulators in the Americas region. The future demand for insulators in the Americas will be dependent on commitment by utilities to upgrade the grid in order to replace the aging assets and accommodate the growing RES.
It is expected that large transmission and distribution (T&D) investments will be made globally during and after the forecast period in order to accommodate the dynamic requirements of the future grid and enhance power trade.
Power insulators, regional market value (%), 2012, 2017, 2022
|Source: GlobalData, 2018|
The global power insulators market is highly fragmented with global and local players competing for market positions. Various competitive factors determine the ability to sustain in the market amid growing competition. Prior expertise and timely delivery are considered by utilities as key factors for awarding the contracts. Larger scale of production is a key advantage, where a manufacturer can stockpile raw materials, allowing large-scale production at the time of demand and delivering them in much shorter lead times. The global market for insulators and their manufacturing base is mostly concentrated in regions such as the US, Western Europe, China, India, and some Southeast Asian countries.
Power insulators, top countries, market volume (%), 2017 and 2022
|Source: GlobalData, 2018|
According to the report, China was identified as the top country for insulators in terms of market volume with the installation of approximately 1,800,000 units in 2017, followed by India and the US. China is expected to install over 2,100,000 units by 2022. India emerged as the second-largest market for insulators, with the installation of approximately 900,000 units in 2017, contributing over 14% to the global market, and it is estimated to hold over 1,000,000 units by 2022. China and India are the fastest-growing economies, consuming more than a quarter of global power. Both these countries are undertaking extensive capacity addition in the power generation and transmission sector. China and India are the world leaders in UHV transmission owing to their large investments in transmission systems of voltage level 765 kilovolts (kV) and above. In China, the 110kV segment was the largest contributor to the market, followed by the 500kV and 220kV segments. In India, the 400kV, 765kV, and 132kV segments were the largest contributors to the total market volume in 2017.
The US installed approximately 540,000 units in 2017 and ranked third among the key countries. In the US, coal-based power plants are being retired and replaced by RES, witnessing a high degree of RES penetration, especially wind farms. Thus, the utilities are actively engaged in grid investments to renovate and modernise the country’s electric grid in order to make it more resilient to accommodate intermittent sources of power. The country is expected to install a little less than 550,000 units by 2022.
The other key countries in the insulator market during 2017 include Brazil, Canada, Saudi Arabia, Japan, Germany, and the UK.
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