Fixed Mounting Power Distribution Component Market Trends

Growth Drivers

• Emergence of digital technologies: The integration of digital technologies such as artificial intelligence, machine learning, and deep learning is leading to the development of smart fixed mounting power distribution components. These advanced technologies make sure that the energy flows from plants to end users most efficiently and safely. These smart technologies also enhance the features of power distribution components such as demand forecasting, predictive maintenance, real-time analysis, improved grid stability, move towards smart connectivity, and more. IEA estimates that AI has more than 50 different applications in energy systems, and the demand for this technology in the energy sector is expected to be over USD 13 billion in the coming years.
• Hike in infrastructure developments: The rise in infrastructure development projects worldwide is expected to fuel the fixed mounting power distribution component market growth during the forecast period. Governments are investing heavily in upgrading aging infrastructure or developing new infrastructure, which is creating high-earning opportunities for fixed-mounting power distribution component manufacturers. The high-speed rail line California, the Skagerrak Railway line, and the Trans-Asean Railway line are some of the major infrastructure development projects initiated, globally, and to meet the effective and safe power distribution and transmission the adoption of advanced fixed mounting power distribution components in these projects is set to gain high traction.

Challenges:

• High initial investments: The high costs of advanced power distribution components can significantly hamper sales in poor economies. Many small-scale organizations or companies running on limited budgets may find it difficult to invest in advanced technologies and prefer conventional alternatives. Thus, even though technological advancements are enhancing operational efficiency, their high prices are expected to create hurdles for such organizations.
• Supply chain disruptions: The ongoing geopolitical tensions among countries such as Israel-Palestine, Russia-Ukraine, and the Sudanese civil war, scarcity of raw materials, and increased logistic prices are leading to supply chain disruptions of raw materials, increasing final product costs. The supply chain disruptions also lead to delays in final product production because of which many fixed mountings power distribution component market players are deterred from profitable opportunities.