Ring Main Unit Market Share, Size, Trends, Industry Analysis Report, By Insulation Type (Gas-insulated, Air-insulated, Oil-insulated, Solid Dielectric); By Installation; By Voltage Rating; By Structure; By Application; By Region; Segment Forecast, 2023-2032
- Published Date:Apr-2023
- Pages: 116
- Format: PDF
- Report ID: PM3193
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global ring main unit market was valued at USD 2,324.05 million in 2022 and is expected to grow at a CAGR of 6.2% during the forecast period. Population growth has a direct impact on the development of the market. As the population grows, the demand for energy and electricity also increases, which drives the need for main ring units. According to the United Nations, the world's population is projected to rise by almost 2 billion people over the next 30 years, from the present 8 billion to 9.7 billion in 2050, with a potential peak of roughly 10.4 billion in the middle of the 1980s. RMUs are used for distributing electricity from the main grid to the end-user; thus, the demand for RMUs increases with the increasing population. Additionally, urbanization, industrialization, and technological advancements also contribute to the growth of the RMU market. In emerging economies, expanding the electricity network and upgrading the existing network are driving the demand for RMUs.
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Electricity consumption is positively impacting the growth of the ring main unit market. As the global population grows and becomes more reliant on electricity for their daily lives, electricity demand continues to rise. This increased demand for electricity requires upgrades and expansions to electrical distribution networks, including installing new ring main units. The growth in electricity consumption drives the need for more ring main units, thereby contributing to the development of the ring main unit market. According to official statistics by the government, India's electricity consumption grew by 11% in double digits from December 2021 to December 22, reaching 121.2 Bn units. Peak power consumption, or energy used daily, increased to 205 GW in December 2022.
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Industry Dynamics
Growth Drivers
With the growing population and rising standard of living, the electricity demand is increasing globally. RMUs are critical components of the electrical distribution network, and the growth in electricity demand drives the development of the RMU market. Governments and private players are investing in developing power infrastructure, including installing RMUs, to meet the growing energy demand. This is a major driver for the RMU market. Renewable energy sources such as wind and solar power are becoming increasingly popular, which has resulted in a growing demand for RMUs in renewable energy projects.
With the growing need to optimize the use of power and improve the efficiency of the electrical distribution network, there is an increased demand for smart grid technology. RMUs play a key role in smart grid networks, which drive the growth of the RMU market. RMU manufacturers constantly innovate and develop new and advanced RMU technology, attracting more customers and driving the market's growth. The development of the commercial and industrial sectors, especially in developing countries, is driving the demand for RMUs, as these sectors require a reliable and efficient electrical distribution network.
Report Segmentation
The market is primarily segmented based on insulation type, installation, voltage rating, structure, application and region.
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By Insulation Type |
By Installation Type |
By Voltage Rating |
By Structure |
By Application |
By Region |
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Gas insulation is expected to witness fastest growth during the forecast period
The gas insulation segment registered the highest growth over the study period. Application areas for the insulated units include underground installations, mining, wind farms, power grids, & railway systems. Due to its small size, improved functioning, & resistance to climate change, this category is anticipated to have a bigger market share than other segments.
Gas insulation is likely playing a significant role in the market's growth as it is one of the key features in the design and functionality of ring main units. Gas insulation is commonly used to insulate the high-voltage components in ring main 0units, making them more efficient & safer. The increasing demand for reliable and secure power distribution systems, coupled with advancements in gas insulation technologies, is expected to drive the growth of the ring main unit market, particularly in the gas-insulated segment. The growing demand for smart grid infrastructure and the increasing demand for renewable energy sources, such as wind and solar power, is also expected to drive the demand for ring main units with advanced gas insulation technologies.
Outdoor segment accounted for the fastest growth in 2022
The outdoor segment is influencing the growth of the ring main unit (RMU) market by increasing the demand for RMUs designed to withstand harsh weather conditions and protect electrical equipment from damage in outdoor environments. The growth of industries such as renewable energy, oil and gas, and infrastructure development drives the demand for outdoor RMUs. The development of compact, high-performance and cost-effective outdoor RMUs is also contributing to the growth of the RMU market.
In addition, the adoption of smart grid technologies and the need for reliable and efficient electrical distribution systems is driving the growth of the outdoor RMU market. During the projected period, the outdoor segment is anticipated to develop faster than the inside segment. Most outdoor ring main unit users are distribution utilities. A rise in the number of renewable power plants will result from increasing investments in the industry, which will boost the capacity of the distribution network and, in turn, drive up demand for outdoor ring main units.
High Voltage segment (Above 25 kv) is expected to hold the significant revenue share in 2022
Higher voltage ratings, such as those in the 25 kv -27 kV or above, are in higher demand as they can handle larger loads and power transmissions. Additionally, as the trend toward renewable energy sources and smart grid technologies increases, the demand for high-voltage RMUs is also expected to rise. On the other hand, lower voltage RMUs, such as those rated up to 15 kV, are typically used for distribution and are in lower demand. Therefore, the voltage rating of RMUs can significantly impact the overall growth of the market.
Over the forecast period, the highest CAGR is anticipated in the medium- and high-voltage segments due to their expanding use in industrial infrastructures. The increased demand for transmission and substation applications in the utility sector is anticipated to drive growth in the high-voltage market. Due to their great fault-surviving capacity, low-voltage RMUs are becoming increasingly necessary in distribution networks. The voltage rating of a ring main unit plays a significant role in determining its overall market growth.
Extensive segment is expected to witness fastest growth during forecast period
The market's growth is driven by the extensive electrical structure and the growing demand for reliable and efficient power distribution systems. As electrical systems become more complex, the need for ring main units, which provide protection and isolation for electrical systems, becomes more important. Additionally, with the increasing use of renewable energy sources and the need for safe, efficient power distribution, the demand for ring main units will continue growing in the coming years.
The market can be influenced using non-extensive structures in the distribution utilities industry. Non-extensive structures, such as pad-mounted transformers, can offer several benefits, including improved reliability, cost-effectiveness, and ease of maintenance. These benefits can increase demand for non-extensive structures and drive growth in the ring main unit market. Additionally, non-extensive structures can reduce the footprint required for electrical distribution and can be easily installed in urban areas, providing an opportunity for growth in the market.
Distribution Utilities segment is expected to witness fastest growth in 2022
The distribution utility sector dominates the market because of the varied usage across the many applications, such as the creation of power distribution infrastructure resulting from the rising energy demand driven by urbanization & industrialization. RMUs are more necessary as smart grid adoption soars due to the need to reduce losses and increase energy efficiency. It is projected that the market's distribution utility sector will increase due to expanding transmission and distribution networks and technical advancements in the RMU.
The increasing demand for reliable and efficient electricity distribution systems is driving the growth of the RMU market. Distribution utilities play a crucial role in electricity distribution, and the need for RMUs from these utilities is expected to increase as they aim to upgrade their distribution networks to meet the growing electricity demand.
The demand in North America is expected to witness significant growth over the forecast period
North America is expected to witness significant growth during the forecast period. The key factors driving the development of the market in the area are capacity increases, rising power consumption, and industrialization initiatives in nations like China, Japan, India, and South Korea. The need for ring main units is growing in India due to factors such as substation automation initiatives, the adoption of smart grids, and rural electrification.
The Asia Pacific region, particularly countries such as China and India, is expected to drive significant growth in the ring main unit market due to the increasing investment in power generation, transmission, and distribution infrastructure. The growing demand for electricity in the region and the rising focus on renewable energy sources drive the need for ring main units. Additionally, favorable government policies and regulations aimed at modernizing the electricity grid are also contributing to the market growth in the region.
The North American market is expected to grow due to various factors, such as increasing investment in the power distribution infrastructure, rising demand for renewable energy sources, and demand for reliable and efficient electrical systems. The region has a well-established power distribution network, and the growth of the industrial and residential sectors is expected to drive the demand for RMUs. Government initiatives for promoting energy-efficient solutions and investments in smart grid technologies are also likely to boost the region's growth.
Competitive Insight
Some of the major players operating in the global market include ABB, Schneider Electric, Eaton Corporation, Larsen & Toubro, Siemens, C&S Electric, LS Electric, Entec Electric & Electronic, General Electric Company, EPE Switchgear, Lucy Electric, Ormazabal, TIEPCO and Crompton Greaves.
Recent Developments
- In December 2022, Schneider Electric, a global leader in the digital revolution of energy management and automation, intends to increase its manufacturing capacity in the market with the construction of a new smart factory in Bengaluru. Six of the company's ten existing facilities in Bengaluru would be consolidated under one roof by the manufacturing house, which is expected to cost INR 425 crore.
- In January 2023, Schneider Electric introduced the "Altivar Soft Starter ATS 480" in the Indian market. The essential components of all industrial operations are motors. They use, on average, 60 to 95 percent of the electrical energy within the plant.
Ring Main Unit Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 2,463.03 million |
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Revenue forecast in 2032 |
USD 4,225.24 million |
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CAGR |
6.2% from 2023 - 2032 |
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Base year |
2022 |
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Historical data |
2019 - 2021 |
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Forecast period |
2023 - 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments covered |
By Insulation Type, By Installation, By Voltage Rating, By Structure, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
ABB, Schneider Electric SE, Eaton Corporation plc, Larsen & Toubro, Siemens AG, C&S Electric, LS Electric, Entec Electric & Electronic, General Electric Company, EPE Switchgear, Lucy Electric, Ormazabal, TIEPCO and Crompton Greaves. |
FAQ's
The global ring main unit market size is expected to reach USD 4,225.24 million by 2032
Key players in the ring main unit market are ABB, Schneider Electric, Eaton Corporation, Larsen & Toubro, Siemens, C&S Electric, LS Electric, Entec Electric & Electronic, General Electric Company.
North America contribute notably towards the global ring main unit market.
The global ring main unit market expected to grow at a CAGR of 6.2% during the forecast period.
The ring main unit market report covering key segments are insulation type, installation, voltage rating, structure, application and region.
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