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.
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
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.
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.
The development of smart cities across the MEA region is one of the primary factors expected to positively affect demand for bus bars over the forecast period. Smart homes consist of smart equipment which helps to increase energy efficiency, which results in energy savings. Smart equipment such as parking meters, energy meters, and intelligent traffic management systems use bus bars as their primary component. In addition to this, government of UAE is focusing on smart city project deployment in Abu Dhabi. For instance, in October 2018, the Department of Urban Planning and Municipalities (DPM) in Abu Dhabi launched pilot phase of the five-year plan for Smart Cities and Artificial Intelligence (2018 – 2022) named Zayed Smart City Project. Hence, development of smart cities is one of the major opportunity which is expected to drive the market growth during the forecast period.
Fluctuation In Raw Material Prices
The price of copper depends on the ability of copper suppliers to extract and transport the product, as well as demand for goods and services that use copper. According to the International Monetary Fund (IMF) outlook 2018, an international organization, in 2017, the average price of copper was US$ 6,166 per metric ton compared to US$ 6,523 per metric ton in 2018.
Furthermore, due to high fluctuations in copper and aluminum prices, key bus bar vendors have to use a major share of their manufacturing cost for acquiring these raw materials. According to Coherent Market Insights’ analysis, the total cost of copper and aluminum metals account for roughly 50% of the total production cost. The cost variations in the supply chain becomes critical for manufacturers, as there is no product differentiation and the price of a product determines the dominance of a supplier in the market. Hence, fluctuations in raw material prices is one of the major factors which is expected to hamper the market growth during forecast period.
Increasing Adoption Of Electric Vehicles (EVS) And Hybrid-Electric Vehicles (HEVS)
Increasing adoption of electric vehicles will boost demand for bus bars during the forecast period. According to Coherent Market Insights’ analysis, in 2018, around 533 battery electric vehicles were sold across the MENA region. Electric vehicles (EVs) and hybrid-electric vehicles (HEVs) rely on power inverters, large-capacity battery packs, robust electric motor drives, and efficient distribution of power from charging source to battery and then throughout the vehicle.
Electric vehicles use a substantial amount of copper in batteries, inverters, copper rotor, electric motors, wiring, and in charging stations. According to International Copper Association (ICA), most cars use internal combustion engines that require up to 23 kg of copper, a battery electric vehicle uses 83 kg of copper, a plug-in hybrid electric vehicle uses 60 kg of copper, the hybrid electric vehicle uses 40 kg of copper, a battery-powered electric bus uses 224-369 kg of copper, and a hybrid electric bus uses 89 kg of copper which depends on the size of battery used.
Key players operating in the Middle East, North Africa, and Pakistan bus bar market are Eaton Corporation, Hyundai Electric & Energy Systems, Luvata, Siemens AG, Mitsubishi Electric Corporation, General Electric, ABB Limited, Hitachi Ltd., Fuji Electric, Schneider Electric, Hyosung Corporation, Nexans S.A, Furukawa Electric Co., LTD., and Bahra Electric
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