Silicon-based Electrical Bushing Market Trends

Growth Drivers

• Expansion of high-voltage direct current (HVDC) transmission projects: The growing expansion of the high-voltage direct current (HVDC) transmission projects owing to less power loss than AC lines necessitates the use of bushing solutions. Silicon-based bushings are suited for HVDC applications such as HVDC convertor station owing to their superior insulation properties while withstanding high voltages. For instance, in January 2024, the Istanbul Technical University announced the development of Zinc Borate-filled HTV silicon rubber insulators to be used in HVDC power transmission systems. As the adoption of HVDC projects picks steam for cross-border electricity transmission, the demand for silicon-based bushing is poised to grow in HVDC converters leading to a profitable surge in the silicon-based electrical bushing sector.

• Technological advancements in insulation materials: Continuous research & development (R&D) in the field of electrical insulation is positioned to improve silicon-based bushing solutions, leading to greater adoption rates. For instance, a 2023, report on improving the surface performance of silicone rubber for composite insulators by multifunctional nano-coating found the coating to exhibit super hydrophobic and self-cleaning properties on insulators. Companies investing in improving the efficacy of silicon formulations to improve heat resistance and longevity are poised to boost the silicon-based electrical bushing sector by increasing the adoption rate. Additionally, the eco-friendly nature of silicon-based bushing insulation solutions owing to the recyclable properties of silicon rubber increases the adoption rate.

• Growing industrialization and urbanization: The rapid urbanization globally fuels the demand for electricity and reliable power transmission infrastructure. For instance, the World Bank estimates nearly 7 out of 10 people globally live in cities, and the urban population to double by 2050. Increased urbanization leads to an increase in demand for electricity and the need for robust electrical infrastructure. Additionally, the industrialization rate is growing increasing the demand for high-voltage power solutions. For instance, in December 2023, the United Nations Industrial Development Organization estimated a 2.3% global growth in industrial sectors. The growth is poised to benefit the silicon-based electrical bushing market as demand for insulators that can withstand high voltage increases.

Challenges

• Stiff competition from alternative materials: The silicon-based electrical bushing market can face challenges from alternative bushing materials such as epoxy and porcelain-based composites. Alternative materials with established market presence can cause challenges to the growth of the sector. Additionally, slower rates in shifting to silicone-based bushing by industries can stymie the market’s growth.

• High manufacturing costs: The silicon-based electrical bushing market’s growth curve can face challenges owing to the high manufacturing costs of silicone-based electrical bushings. The manufacturing process involves the cost of different raw materials such as silicone rubber, alumina trihydrate as reinforcing fillers, and antioxidants which can be pricey if the supply chain faces any challenges. High manufacturing costs can also discourage competitive pricing which in turn can prove to be a challenge for small-scale power projects.