The Middle East, North Africa, and Pakistan Bus Bar Market, By Bus Bar Size (Tin-plated Bus Bar)(25 x X (1.60, 2.00, 3.00);40 x X (2.00, 2.50, 3.00, 4.00); 60 x X (5, 10, 12); 80 x X (3.00, 4.00, 5.00, 6.00); 100 x X (5.00, 8.00, 10.00, 12.00); 120 x X (10.00, 4.00) and Others), By Bus Bar Size (Bare Copper Bus Bar) (80 x X, 90 x X, 100 x X, 125 x X and Others), By Bus Bar Type (Bare Copper Bus Bar, Aluminum Bus Bar, and Tin Plated Bus Bar), By Application (Distribution, Substation, Motor Control, Oil And Gas, and Others) and By Region (Middle East, North Africa, and Pakistan) - Forecast to 2027, is expected to be valued at US$ 1,462.5 million by 2027, exhibiting a CAGR of 5.6% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Overview
Bus bars are used in power infrastructure such as switchgear, substations, transformers, and other transmission and distribution (T&D) equipment. Bus bars are essential components in electrical power grids as these can decrease power loss by reducing the corona effect. The bus bar market is expected to exhibit growth at significant pace, owing to rising electricity demand from countries in the Middle East such as Saudi Arabia and the UAE. To meet the electricity demand, the Saudi Arabia is estimated to increase its power generation capacity from 77 GW in 2014 to 156 GW by 2040, according to Coherent Market Insights. In addition to this, in January 2014, ABB Ltd. received an order of US$ 60 million for substations that will boost the transmission capacity as well as supply electricity to King Abdullah Economic City (KAEC).
Furthermore, in MEA region, investment in power infrastructure is growing, with rising demand for electricity. For instance, in December 2018, Larsen & Toubro Limited (L&T), an Indian multinational conglomerate company, won a major order for the construction of 115kV substations with associated cable circuits and transmission lines in Saudi Arabia. The orders are for construction and other engineering job for power transmission and distribution (T&D) project. These projects either involve setting up of new plants and T&D network, leading to an increased demand for bus bars.
The Middle East, North Africa, and Pakistan Bus Bar market is estimated to account for US$ 996.4 Mn by the end of 2020
Market Driver
Increasing Energy Consumption Due To Urbanization And Industrialization Across Middle East Region
Increasing demand for electricity, increase in energy consumption due to urbanization & industrialization, and growth of the oil and gas industry across Middle East region are the factors which are expected to surge demand for switchgears, and consequently aid in growth of the bus bar market over the forecast period.
Furthermore, growth in the petrochemicals, power generation & distribution, natural gas exploration, and telecommunications sector will further increase demand for bus bars in Middle East region. For instance, according to the International Trade Administration, in 2016, Saudi Arabia introduced an investment plan of US$ 14.7 billion to refurbish as well as develop electricity transmission grids and another US$ 13.7 billion for an efficient distribution of electricity in the country.
Moreover, countries in the Middle East such as Saudi Arabia and the UAE have derived strong revenues from the oil sector that has led to the healthy GDP growth rates, owing to increase in revenues from the oil and gas sector. According to World Bank, an international financial institution, the GDP growth rate of Saudi Arabia was 2.2%, and that of the UAE was 1.4%, in 2018.
Increasing implementation of sustainable power transmission facilities to achieve continuous rising electricity demand will propel growth of bus bar market in Middle East region. For instance, in 2017, Saudi Electricity Company (SEC) announced the construction of six power plants and building of five interconnecting 380 kV transmission lines which require 1,376 miles of electrical conductors at an estimated cost of US$ 1.46 billion. Thus, high demand for electric power is leading to increasing requirement for transformers in these countries, which in turns, boost the bus bar market growth in Middle East region during the forecast period.
Market Opportunity
Smart Cities Development
Bus bar is one of the crucial components of switchgear & power distribution systems and the growing need for better energy distribution systems has boosted its demand significantly, especially in smart city projects. A smart city uses variety of electronic IoT sensors to collect data and then uses this data to manage assets and resources in an efficient way. In this scenario, energy/electricity distribution is crucial which mandates smart cities to have a smarter energy infrastructure. Switchgear & power distribution systems are used to achieve higher energy efficiency in smart buildings, distributed energy resources (DER), street lightings, smart transportation, and others. Among these, energy is plays a vital role, which is why utility companies play key role in smart city projects.