Market Trends of North America Electrical Bushing Industry
This section covers the major market trends shaping the North America Electrical Bushing Market according to our research experts:
Transformer Application to Dominate the Market
- Electrical bushings in transformers carry current at high voltage through equipment enclosures and provide an insulating barrier between the live conductor and the metallic (conducting) body of electrical apparatuses.
- In August 2022, the Midcontinent Independent System Operator (MISO) announced plans to invest about USD 10.3 billion over the next eight years in building major transmission lines to help states like Michigan with goals to reduce greenhouse gas emissions and boost renewable energy generation. The investment aims to upgrade its electric transmission network substations and build new substations.
- According to BP Statistical Review of World Energy 2022, North America's electricity generation capacity in 2021 was 5383.5 TWh (Terawatt hours), up from 5259.7 TWh in 2020. In line with electricity generation capacity, the demand for transformers and electrical bushings has grown significantly in the past.
- The increasing power infrastructure development worldwide is expected to drive the segment's growth during the forecast period. For instance, in April 2022, the Ontario government announced plans to invest in fast-tracking five electricity transmission infrastructure projects for the southwestern region, which aims to fuel the auto and agricultural industries in the Windsor-Essex area. Ontario is set to spend about USD1 billion on the projects between Windsor, London, and Sarnia, which will be completed in phases over the next eight years.
- Therefore, the growing demand for electricity and the efforts by governments to upgrade grid structures are expected to drive the electrical bushings market in the coming years.
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United States to Dominate the Market
- The United States has significantly developed its power industry by expanding power transmission and distribution networks and including renewable technologies in its electricity generation mix.
- According to BP Statistical Review of World Energy 2022, in 2021, the United States reached 4,406.4 Terawatt-hours of power generation capacity. The increasing power generation is expected to create more demand for grid development, including transformers, switchgears, and others. This growth is likely to continue in the future and will drive the need for electrical bushings.
- Moreover, California and Texas have massive solar installations. These solar farms, either built or proposed, are expected to connect to the state grid via transmission lines. Some of these solar farms have also installed their substations, having transformers on-site to plug into the state grid directly.
- The United States has several offshore wind energy projects that are under construction, proposed, or got clearance from the government. All these projects require transmission lines and distribution systems to transmit electricity from the offshore facility to the onshore. These offshore wind installations are likely going to install offshore substations with transformers to step-up the voltage.
- In May 2022, the US administration launched efforts to shape the USD 2.5 billion Transmission Facilitation Program (TFP), an essential Infrastructure Investment and Jobs Act (IIJA) initiative dedicated to building critical new transmission lines and related facilities across the country. Under the TFP, the Department of Energy anticipates purchasing the right-to-use transmission capacity of up to 50% of an eligible project's total proposed transmission capacity for a limited term of up to 40 years.
- Therefore, with various ongoing smart grid development projects, the United States is expected to dominate the North American electrical bushings market during the forecast period.
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