The growth of the market will be driven by increased installation of smart grid equipment and technologies such as distributed generation equipment and smart meters.
The transformation of the energy sector from centralised generation systems to decentralised power generation systems is pushing the rise in installation of electrical equipment in the power distribution segment.
Regulatory policies and power distribution
For instance, due to increased calls for global utilities to adopt low carbon energy sources, the rooftop photovoltaic segment has emerged as the fastest growing renewable energy technologies globally.
Policies at state and federal levels stipulating utilities to install smart meters and net metering systems are driving the growth of the global electrical equipment market for the power distribution industry.
[quote] Europe will witness high demand in smart grid based equipment due to automated metering infrastructure rollouts currently being implemented in the region.
The organisation which compiled the report. Technavio, finds China and India to be among the leading economies in the power generation segment but in need to reform their power distribution policies.
Commenting on the nature of the electrical equipment market for the power distribution industry in India, Anju Ajaykumar, an analyst at Techanavio, said: “The country’s aging power infrastructure and increasing AT&C losses have compelled policymakers to implement reforms in the distribution sector. Many reforms and grants are being implemented in the country to reduce these losses, which augurs well for the growth of the market.”
Technavio is also predicting that the increase in development of microgrids in Africa and Southeast Asia will drive the market as countries in the region will want to improve access to electricity to their populations at lower costs. [EIP partners to boost adoption of distributed generation]
Indonesia is reported to be planning to invest $4 billion in microgrids to improve its electrification rate by 90% by 2020.
In Kenya, Anju said: “The lack of energy access in the country offers a large scope for microgrid deployment, which will, in turn, drive the electrical equipment market in the power distribution industry.”