Shunt Capacitor Market Trends

Growth Drivers

• Growing Need for Distribution Energy - The increased urbanization along with industrialization has prompted the rise in consumption of electricity for varied processes. Also, the high demand from end-use industries is expected to increase the production of electricity and energy which, in turn, is projected to expand the market size of shunt capacitor. In 2021, the U.S. primary energy consumption by energy sources used 36% petroleum, 8% nuclear electric power, 11% coal, 12% renewable energy, and 325 natural gas which adds to a total of 97.33 quadrillion Btu (British Thermal Units).

• Rapid Adoption of Electricity in Rural Areas - The worldwide population with access to electricity increased from 87.7% of the population in 2016 to 90.5 % of the population in 2020.

• Increasing Demand for Telecommunication - The Federal Communications Commission and Department of Education working together to promote remote learning with the use of USD 16 billion funds from the CARES Act’s Education Stabilization Fund.

• Rise of Industries and Manufacturing Units - U.S Manufacturing contributed USD 2269.2 to U.S GDP in 2020 which is 10.8% of total GDP. Also, in 2019, the U.S. manufacturing imported value of intermediate goods and services is 14.7% leading to 10.7% output from foreign origin.

• Increase in Power Generation and Supply - As per Electricity Market Report, coal-fired electricity generation is targeted to increase by 5% in 2021 and 3% in 2022 to reach a new high record. With current policy settings and economic trends, the world electricity generation is set to track 8% electricity demand in 2021 and higher than 6% in 2022.

Challenges

• Unfavorable Production During COVID-19 Pandemic - As per the Economic Commission for Latin America and the Caribbean more than 2.7 million companies were expected to close down of which 2.6 million microenterprises and 8.5 million jobs were at stake during the pandemic in 2020. Since, the company was shut down the production capacity was also reduced. However even though the market tried to boost after the pandemic still the growth is relatively slower as compared to that of before pandemic.
• High-Cost Investment
• More Product Alternatives