Technavio forecasts the global Buchholz relay market to increase by 5% between 2018 and 2022 owing to the changing energy landscape and growing utilities need for flexible power systems.
The Buchholz relay market includes power and distribution transformers.
Utilities are expected to increase investments in Buchholz relays as they increase power generation portfolios and modernise energy distribution and transmission systems to meet growing power demand.
Technavio forecasts power demand to grow as a result of increases in population and economic activities. Between 2016 and 2035, the research company forecast the global population to grow by 1.3 billion.
Changing energy landscape
According to a senior analyst at Technavio for tools and components research, “the global generation of electricity from fossil fuels is projected to reach 61% by 2020. However, this depends on the actions and execution of protocols regarding the creation of an environmentally sustainable system. The increasing population and rising developmental activities would require considerable amounts of power to sustain the pace of such economic growth.”
Increases in energy investments in emerging economies including India, Mexico, Africa and the Middle East is expected to positively impact on the global Buchholz relay market during the forecasted period.
For instance, reforms implemented in 2017 to encourage competition within the energy sector by governments in developing economies have created opportunities within the market and continue to attract international investors.
On the other hand, the high costs associated with deploying Buchholz relays will negative impact on the market.
Technavio says utilities will require huge amounts of investments to ensure their grid infrastructure is compactable with smart grid solutions. For instance, use of Buchholz relays require replacement of traditional systems with modern transmission lines, distribution systems, power delivering systems, substation digitisation, and digital controls.