PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1618298
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1618298
Global busbar market is projected to witness a CAGR of 5.14% during the forecast period 2025-2032, growing from USD 16.33 billion in 2024 to USD 24.38 billion in 2032. The growing industrialization and advanced residential structures have increased the demand for modern electrical circuits. The growing demands for electricity from rapid urbanization and industrialization make efficient distribution systems, like busbars, crucial for such distribution. In this regard, developing economies show greater trends where infrastructure is booming. New energy infrastructures are witnessing investment on a large scale, and using busbars has emerged as the connecting bridge for renewable energy systems into the grid. This integration requires reliable power distribution networks, which busbars can effectively provide. As the number of electric and hybrid electric vehicles keeps increasing, sophisticated power distribution systems are needed, increasing the demand for busbars in charging infrastructure and energy management.
New technologies such as 3D printing are being used in busbar manufacturing, enabling the production of complex designs and reducing lead times while minimizing material waste. This supports sustainability goals and increases production efficiency. High-rating busbars meet the rising demand for high electrical loads for safety and reliability, which conventional low-rating ones are incapable of doing. High-capacity applications are sought across various fields, including renewable energy sectors. Major companies also deliver opportunities for end users to design their own busbars and integrate advanced systems like SiC and GaN.
For instance, in June 2022, A free online tool for determining laminated bus bar parameters was made available by Mersen Corporate Services SAS. The purpose of the Bus Bar Calculator is to assist with bus bar design in various power converters. The new product uses a frequent Modified Nodal Analysis to generate simulations, and a physics solver called GT-PowerForge, created by Gamma Technologies, to determine power converters' electrical, thermal, and magnetic requirements. Numerous design projects requiring a broad range of converter topologies, partial discharge test circumstances, and SiC and GaN technologies can be completed with the Bus Bar Calculator.
Rapid Urbanization and Industrialization Along with Sustainable Energy to Fuel Market Growth
Rapid urbanization and industrial growth significantly increase electricity demand globally, particularly in emerging economies. This surge necessitates efficient power distribution systems, with busbars emerging as a preferred solution over traditional cabling due to their space-saving and efficiency advantages.
The global shift towards renewable energy sources, such as solar and wind, propels investments in new energy infrastructure. Busbars connect renewable energy systems to the grid, facilitating efficient electricity transmission from generation points to end-users. This integration is essential for meeting sustainability goals and reducing carbon footprints. The commercial and residential sectors are witnessing significant growth due to urbanization, leading to a higher need for efficient electrical systems. Busbars are increasingly installed in new buildings to ensure safe and reliable power distribution. Government initiatives promoting green buildings also contribute to this trend.
For instance, in November 2024, Eaton Corporation plc introduced its new xEnergy Elite low voltage motor control and power distribution center for loads up to 7,500 A and 690 VAC in an attempt to give business-critical applications in mining and other industries more flexibility and uptime while lowering maintenance costs. In accordance with the applicable International Electrotechnical Commission (IEC) requirements, the xEnergy Elite motor control center (MCC) is built to provide maximum power availability and safeguard both operating and maintenance personnel.
Technology like Smart Grid and Adoption of EVs to Shape the Market Dynamics
The increasing implementation of smart grid technologies enhances the demand for busbar solutions. These technologies require sophisticated electrical systems capable of real-time monitoring and efficient energy distribution, making busbars vital in modern power networks. Many governments are prioritizing the modernization of aging electrical infrastructure, including refurbishing existing power grids. This shift from conventional cables to busbars is driven by their superior performance and efficiency in handling increased loads. Investments in infrastructure projects, especially in Asia-Pacific regions like China and India, further stimulate market growth. Hence, companies focus on introducing busbars specially designed for distribution systems.
For instance, in September 2022, Vertiv Group Corp. launched its Busbar Power Distribution System, which supports the critical digital infrastructure of data centers and other dynamic environments. Without requiring more floor space, the scalable Vertiv Powerbar iMPB allows continuous expansion, upgrades, and service. With capabilities ranging from 160 to 1,000 amps, the powerbar can be installed in data centers of any size, labs, distribution centers, flexible manufacturing facilities, and other dynamic settings.
The rising adoption of electric vehicles necessitates robust power distribution systems for charging infrastructure. Busbars are integral to managing the high-power requirements associated with EV charging stations and onboard vehicle systems, thus driving demand in this sector.
Commercial and Residential Segment Becomes the Biggest Segment with Rapid Electrification
Based on the end-use industry, commercial and residential segments lead the market with rapid electrification and technological advancements. Fast-paced urbanization and continued infrastructural development spur growth. With the increase in new building development, the demand for power and efficient electrical systems grows to satisfy the needs of these cities, and the installation of busbars is on the rise since they are compact and very efficient compared to traditional wiring. Government initiatives toward efficiency in energy use and green buildings accelerate this trend by promoting the installation of modern busbar systems that minimize energy losses in line with sustainability goals.
Additionally, the electrification of transportation, particularly with the rise of electric vehicles (EVs), necessitates robust power distribution solutions, positioning busbars as essential components in charging infrastructure. Technological advancements in busbar design and their integration with smart grid technologies also contribute to their attractiveness in commercial and residential applications.
For instance, in July 2024, Siemens AG launched the BD2 busbar trunking system. The BD2 launch is a perfect fit for the increasing demand for global data centers, which is driven by developments in big data, AI, and IoT. The busway factory in Vietnam is strengthened by the strategic technology combination of BD2 and LI, which gives end users a significant competitive advantage and allows the company to provide a full busway system to satisfy a range of customer needs.
Asia-Pacific Leads the Busbar Market
Based on the region, Asia-Pacific holds the major share of the market. The rapid growth is due to rapid industrialization, urbanization, and significant government investments in infrastructure development. Countries like China and India are at the forefront, experiencing surging electricity demand driven by growing populations and expanding commercial activities. Modernizing electrical grids and enhancing power distribution networks is a focus for this region in supporting the rising energy demands. In addition, government initiatives supporting energy efficiency and using smart grid technologies further fuel the market's growth. Increasing smart cities and renewable energy projects open new opportunities for busbar solutions since these systems are integral to efficient power management. More to this, technological advancements in manufacturing processes improve the performance and reliability of busbars, making them more attractive for application in various fields. For instance, in November 2024, Exxelia announced the acquisition of 70% of SVM Private Limited, a prominent Indian company specialized in designing and manufacturing critical magnetic components and busbars, specifically serving the healthcare and industrial end-markets. Through this partnership, Exxelia is reinforcing its footprint in India, enhancing its product offer with busbars, and expanding its know-how and expertise in magnetics while strengthening its position in the medical sector, a key development area.
Future Market Scenario (2025-2032F)
The integration of IoT technology in busbars enables real-time monitoring of electrical parameters, enhancing predictive maintenance and operational efficiency.
There is a growing trend towards using eco-friendly materials, particularly aluminum, in busbar manufacturing due to its lightweight, corrosion resistance, and recyclability.
The shift towards renewable energy sources is driving demand for efficient electrical distribution systems, where busbars are crucial for connecting solar and wind power installations to the grid.
The rise of electric vehicles (EVs) necessitates advanced busbar systems for charging infrastructure, supporting faster charging and improved thermal management.
Key Players Landscape and Outlook
The busbar market is characterized by a competitive landscape dominated by key players such as ABB Ltd., Schneider Electric SE, Siemens AG, and Eaton Corporation plc. These companies strategically focus on product innovation, sustainability, and regional expansion to enhance their market positions. Key strategies include a strong focus on product innovation, where firms are developing advanced busbar solutions that integrate smart technologies for improved energy management and efficiency. Additionally, many players are pursuing mergers and acquisitions to expand their product portfolios and geographic reach, allowing them to serve diverse market needs better and respond to regional demands. Furthermore, there is a significant emphasis on sustainability, with companies investing in eco-friendly materials and energy-efficient designs to align with global trends toward renewable energy integration and reduced carbon footprints.
For instance, in September 2024, Siemens announced its agreement to acquire California-based Trayer Engineering Corporation (Trayer), a key player in designing and manufacturing medium voltage secondary distribution switchgear suitable for outdoor and below-ground applications. Trayer specializes in hermetically sealed pad mounts and submersible switchgear that are resistant to extreme weather conditions.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.