Busbars Market

The global busbar market witnessed a valuation of USD 17,592.1 million in 2021 and is projected to reach USD 26,545.74 million by 2030, growing at a CAGR of 4.2% during the forecast period of 2023 to 2030. Busbars offer advantages such as increased capacitance, reduced wiring errors, enhanced reliability, and decreased system costs. They also contribute to higher capacitance and lower inductance. The design of busbars provides unique characteristics for mechanical applications.

The market for busbars is primarily driven by the rising demand for uninterrupted power supply in the commercial and residential sectors. Additionally, the growth is expected to be fueled by the increasing development of smart and sustainable cities, the expansion of solar power capacity, and the growing demand for high voltage direct current (HVDC) transmission.

Many governments around the world are actively promoting the adoption of electric vehicles to reduce pollution and promote the use of clean energy sources. Busbars play a crucial role in efficiently distributing electric power in electric vehicles. They are specifically designed to meet the shock and vibration requirements of the vehicles. Moreover, busbar devices are known for their easy installation, safety, and reliability, making them ideal for use in electric vehicles. The growing popularity of electric vehicles is expected to drive the demand for busbars in the foreseeable future.

Global Busbar Market Segmental Analysis

The segmentation of the Global Busbar Market is based on Type, Power Rating, End-user, and region. In terms of Type, the market is divided into Copper, Aluminum, and Others. The Power Rating segment is categorized as Low, Medium, and High. The End-user segment comprises industrial, commercial, and residential. Geographically, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and MEA.

Analysis of Busbar Market by Type

The global busbar market is segmented into copper, aluminum, and others based on Type. Among these, copper busbar dominates the market in terms of revenue share and was valued at USD 12.49 billion in 2021. However, the aluminum busbar segment is expected to witness the fastest growth throughout the forecast period. In terms of volume share, aluminum busbar outperforms copper busbar due to its lower cost. Aluminum busbars are up to 70% lighter and more affordable compared to copper busbars. Interestingly, aluminum busbars are 50% more conductive than copper when compared on a weight basis. They find a wide range of applications, including transformers, distribution boards, and electrical panel boards. The lightweight nature of aluminum busbars makes them cost-effective for mass production.

Global Busbar Market Regional Insights

The market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa based on region. The Asia Pacific region holds the dominant position in the global busbar market, with a valuation of USD 5.84 billion in 2021. The region's strong market position can be attributed to the increasing focus on energy efficiency and the rise in energy consumption driven by urbanization and industrial growth. The Asia Pacific busbar market is particularly driven by significant investments in smart cities, sustainable development, high-rise buildings, and transportation systems in the region.

In the Asia-Pacific region, China leads the busbar market, followed by India. India is expected to experience the fastest growth in the region due to substantial market investments. The Indian government's massive investment in electricity distribution across the country is a key driver for market growth. For example, in 2019, ABB Limited secured a contract worth US$ 640 million from Power Grid Corporation of India Limited, the national electricity grid operator. Under this contract, ABB will supply an 800 kilovolt (kV) ultra-high-voltage direct current transmission link spanning over 1,800 km to provide electricity to more than 80 million people.

Global Busbar Market Dynamics

Busbar Market Driver

Low Maintenance Cost and Affordability

The installation of busbars offers cost savings as there are no additional expenses for electrical experts. They require minimal maintenance and are more cost-effective for renovation or expansion projects. Busbars can be installed quickly and efficiently, reducing installation time. By replacing cables and other components, busbars primarily reduce installation costs. Furthermore, busbars are known for their safety, reliability, and eco-friendliness, which contribute to the overall expansion of the busbar market. The recognition of these features and their various applications across multiple end-user industries are expected to create favorable growth opportunities in the global busbar market.

Growing urbanization and commercialization offers growth of the market.

The growth of the market is facilitated by the development occurring in major cities of developing countries. These countries aim to install energy-efficient and energy-saving equipment, in which busbars play a crucial role. Laminated busbars are utilized as key components in smart devices such as energy meters, parking meters, and intelligent traffic management systems. Commercial and residential construction projects, particularly high-rise buildings, incorporate busbars to save space and eliminate the need for complex cabling.

Countries and cities are implementing various measures to achieve economic stability by enhancing efficiency and optimizing energy consumption, leading to a brighter and more sustainable future.

Busbar Market Restraint

Instability Of Raw Material Prices

The busbar manufacturing industry faces a significant challenge due to the increasing costs and uncertainty associated with raw materials, particularly copper and aluminum, which make up a major portion of the product's cost. Fluctuations and rising costs of raw materials have become a key concern for the global busbar industry. These unexpected hurdles, such as escalating energy costs and volatile fluctuations in raw material prices, are causing disruptions in supply chains and posing profitability challenges for manufacturers. The instability in commodity prices may not be a temporary issue, as securing supplies for various raw materials becomes more challenging. Manufacturers are left with the options of absorbing additional costs, finding new ways to mitigate expenses, or passing on price increases to customers who may already be hesitant to spend. Additionally, the cost of raw materials significantly influences the pricing of busbars, and the high rate of fluctuation in raw material prices is expected to constrain the busbar market in the forecast period.

Global Busbar Market Competitive Landscape

Medium and small players dominate the busbar market, with large companies increasingly outsourcing the manufacturing of busbars to these smaller entities. Key players in the market are implementing strategies such as innovation in busbar technology, product launches, and mergers & acquisitions to capture a substantial market share. These companies are providing customers with a diverse range of options to choose from, allowing them to evaluate product offerings based on their specific requirements and costs. Furthermore, the growth of B2B e-commerce platforms and supplier discovery platforms has facilitated customer engagement with various players operating in the global market.

Busbar Market Top Player's Company Profiles

• Schneider Electric SE
• Eaton Corporation PLC
• Legrand S.A.
• Siemens AG
• ABB Ltd.
• TE Connectivity Ltd.
• Mersen S.A.
• Rittal GmbH & Co. KG
• Rogers Corporation
• Methode Electronics, Inc.
• C&S Electric Ltd.
• Chint Group
• Natus GmbH & Co. KG
• Oriental Copper Co. Ltd.
• Pentair PLC
• Universal Electric Corporation
• Watteredge, LLC
• Aetna Insulated Wire Co.
• Gersan Elektrik A.S.

Busbar Market Recent Developments

• C&S Electric Ltd introduced the C&S Track Busway as part of their Metabar range of Low Voltage Power Busbar Solutions, offering various ratings. The Track Busway is specifically designed for power distribution applications in Data Centers, IT Parks, Process Plants, Manufacturing Industries, and other similar settings. C&S Electric is a prominent manufacturer of bus trunking systems in India, catering to global busbar solution requirements.
• ABB launched the NeoGear low-voltage switchgear in February 2020, featuring an innovative laminated bus plate technology. This groundbreaking advancement has resulted in a 25% reduction in footprint size for NeoGear, revolutionizing the perception of busbar technology within switchgear systems. The compact design makes NeoGear an ideal solution for space-constrained environments where optimizing space is crucial.

Global Busbar Market Segmentations:

By Type

• Copper
• Aluminum
• Others

By Power Rating

• Low
• Medium
• High

By End-user

• Industrial
• Commercial
• Residential

By Regions

• North America (US, Canada)
• Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe)
• Asia Pacific (China, India, Japan, Rest of Asia-Pacific)
• Latin America (Brazil, Rest of Latin America)
• Middle East & Africa (South Africa, GCC Countries, Rest of MEA)