Smart Ring Main Unit Market size was over USD 2.45 Billion in 2023 and is anticipated to reach USD 5.38 Billion by the end of 2036, growing at around 7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of smart ring main unit is assessed at USD 2.53 Billion. The growth of the market can be attributed to the increasing amalgamation of automation with electronic devices and systems, which has increased the prominence of electricity. The ring main unit is a vital part at the substation level, which is why, increasing the adoption of substation automation, is certain to boost the adoption of smart RMU. Furthermore, growing industrialization, and growing emphasis on renewable energy installations, are some major factors that are estimated to drive the growth of the global smart ring main unit market over the forecast period. According to the data from International Energy Agency (IEA), electricity generation from renewables including hydropower, wind, and solar PV grew strongly around the world by 8% in 2021.
In addition to these, factors that are believed to fuel the market growth of smart ring main units include the increasing electricity demand, and the rising government investment in electricity generation projects is also estimated to play a crucial role in the market growth. For instance, in the fiscal year, 2022, the Indian government invested around USD 14 billion in Indian renewable energy generation.
Growth Drivers
Increasing Deployment of Smart Appliances – Technological advancements in electrical and electronic products, appliances with voice assistants, Bluetooth, and Wi-Fi connectivity, have led to increasing reliance on electric power for consumer electronics and increased demand for smart monitoring and digital controlling devices. For instance, over 470 million units of smart appliances and gadgets were used in 2020, and is estimated to reach around 120 billion by 2030.
Increasing Investment in Industrial Infrastructure – Setting up industries requires complex electrical substations to fulfill their power requirements. Ring main unit facilitates switching gear equipment and maintains voltage fluctuations. Growing investment in industrial infrastructure is to propel the growth of the market. According to the reports, in 2021, Asian Development Bank, (ABD), approved around USD 200 million in loans to Indian Government, to support industrial development in the country.
Growing Demand for Renewable Energy – The growing concern over environmental safety and strict regulations of governments for reducing carbon emissions is increasing the demand for renewable energy. According to the International Energy Agency (IEA), from 2022-2027, renewable energy is estimated to grow by almost 2400 GW in the main forecast, 85% acceleration from the previous five years, and almost 30% higher than last year.
Enhancement in Transmission Infrastructure – Improvement in transmission infrastructure is anticipated to give rise to smart power systems using switching capabilities such as ring main units. According to the International Energy Agency (IEA), global spending on transmission reached USD 90 billion in 2019.
Growing Investment in Construction Industry - According to the reports, countries such as China, India, the US, and Indonesia are projected to account for around 57% of expected global growth in construction. The construction sector of India is expected to gross around USD 1.4 trillion by 2025.
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size (2023) |
USD 2.45 Billion |
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Forecast Year Market Size (2036) |
USD 5.38 Billion |
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Regional Scope |
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Type (Gas-Insulated, Air-Insulated, Oil-Insulated, Solid Dielectric)
The global smart ring main unit market is segmented and analyzed for demand and supply by type into gas-insulated, air-insulated, oil-insulated, and solid dielectric. Out of these segments of the smart ring main unit, the gas-insulated segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to its compact size, better functionality, and climatic resistance. The gas-insulated segment of the smart ring main unit has pertained in railways, mining, wind power plants, power grids, and underground installations. The gas-insulated ring main unit uses greenhouse gas as an insulation medium. According to the reports of the International Energy Agency (IEA), the quantum of electricity generated by wind increased by nearly 273 TWh in 2021 (over 17%), 45% more advanced growth in 2020. Wind-generated 1870 TWh in 2021 and remained the leading non-hydro renewable technology.
End-user (Distribution Utilities, Industries, Infrastructure, Transportation)
The global smart ring main unit market is also segmented and analyzed for demand and supply by end-user into distribution utilities, industries, infrastructure & transportation, and others, out of which, the distribution utilities segment is anticipated to hold the notable share in the global smart ring main unit (RMU) market over the forecast period on account of growing power generation technologies requirements backed by rising global population and fast-track urbanization.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Installation |
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By End User |
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APAC Market Statistics
The Asia Pacific smart ring main unit market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The growth of the market can be attributed majorly to the growing demand for electricity and industrialization projects in countries such as India, Japan, China, and others. According to the reports of the International Energy Agency (IEA), Japan is promoting innovation and new technologies such as next-generation solar cells and carbon recycling while ensuring a stable supply of energy by further enhancing energy efficiency, maximizing the introduction of renewable energies, as well as further advancing nuclear energy with the highest priority on safety while drastically changing Japan’s policies regarding coal-fired power generation. Furthermore, increasing urbanization and rapid industrialization are expanding the investment in industrial infrastructure in the region. Therefore, the surging investments in industries are also projected to further accelerate the regional growth of the smart ring main unit market.
North American Market Forecast
The North American smart ring main unit market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market can be attributed to the rising demand for smart power infrastructure, smart grid network, growing adoption of renewable energy, and increasing demand for electricity. Moreover, growing government investment in the development of renewable resources of energy in the region is estimated to boost the market growth.
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Author Credits: Dhruv Bhatia
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