Ring main unit market is charting down a profitable growth path, primarily due to the growing demand for uninterrupted power supply across the globe. Growing focus on energy efficiency along with rising environmental constraints have secured lucrative growth potential for the global ring main unit market. Favorable governmental initiatives toward rural electrification and upgradation coupled with the development of smart grid networks have further stimulated product demand.
U.S. Ring Main Unit Market Size, By Insulation (USD Million)
According to a 2011 report published by International Energy Agency, the global power demand is projected to cross 30,300 TWh by 2035, with a rise of over 2.2% every year from 2008 to 2035. As climate change induced by the emission of GHG from anthropogenic activities is the greatest challenge mankind is facing, it is quite important to maintain efficient power distribution network to control these environmental constraints. In response to this fact, efficient energy systems will turn out to be an obligate in the coming fiscals, thereby fueling ring main unit industry expansion.
In 2017, the Western European countries including Italy, Germany, Sweden, and UK collaboratively proposed to invest USD 133.7 billion, in a bid to expand smart grid networks across the region. Furthermore, the African Development Bank has also announced an investment worth USD 12 billion across the region to electrify its power supply department. Such instances across the globe validate the growing number of initiatives that will allow ring main unit market to garner massive share in the coming years.
Sources claims that the power demand in the industrializing economies will account for more than 80% of power consumption, given that the regions are witnessing rapid population growth, economic development, and urbanization. Given the massive pickup in demand for efficient distribution networks, it comes as no surprise that ring main unit market in the developing countries of Asia Pacific will witness thriving growth prospects.
Rural electrification projects across the underdeveloped regions of Asia have provided significant impetus to Asia Pacific ring main unit market. These electrification programs necessitate the deployment of ring main units on massive scale, which will make a direct impact on overall ring main unit industry share. Several financial institutes such as Asian Development Bank, the World Bank, and the International Finance Corporation have been monetarily supporting the electrification projects across the developing landscapes.
The World Bank for instance invested USD 40 million in 2003 for the Cambodia Rural Electrification and Transmission Project to improve the power sector efficiency by strengthening and expanding rural electricity supplies. In addition, recently, the World Bank have proposed an investment of around USD 4 million towards the expansion of electrical grids across the Pacific island.
Speaking of the impact of the electrification projects on Asia Pacific ring main unit market, China is one of the major counties in the region witnessing huge demand pertaining to governmental electric grid installations and renewable energy expansion. As per sources, around 40% of the rural localities in China had no access to power toward the end of 20th century. In 2017, the National Energy Administration announced an approximate investment of worth USD 326 billion for the expansion of renewable energy networks across China by 2020. Owing to such favorable government norms, China ring main unit market share is foreseen to collect quite some returns by 2024. Furthermore, driven by the increasing demand for reliable grid support, U.S. ring main unit industry is also poised to garner profitable growth curve in the ensuing years.
As per a recent report compiled by Global Market Insights, Inc., the overall ring main unit market is anticipated to exceed a valuation of USD 3 billion by 2024. As the industry experts foresee the ring main unit market to uplift its valuation considerably, leading companies are poised to compete vigorously with respect to product diversification and innovation. Prominent ring main unit industry players are focusing on introducing highly energy efficient systems and compact all-in-one units that can be deployed across various end-use domains. EATON, Larsen & Turbo, General Electric, ABB, Schneider Electric, and Lucy Electric are few of the renowned participants accumulating a significant ring main unit market share.