Electrical equipment demand is driven by increasing commercial properties
The Electrical Equipment Market in India will grow by US$70.69 billion during 2020-2024, posting a year-over-year growth rate of 13.15%, according to @Technavio.
“One of the primary growth drivers for this market is the ncrease in the number of commercial building projects,” said Technavio.
The number of infrastructural projects related to commercial and residential buildings is increasing in India, owing to factors such as population growth and support from government bodies.
Growth in population also increases the need for residential and commercial spaces. The number of residential and commercial buildings is growing rapidly in cities such as Bengaluru and Gurugram.
Backing the demand for electrical equipment, the report highlighted investments in new office space including DLF Ltd’s US$213 million investment announced in November 2019 to build over three million sq ft office space in Gurugram.
These developments have increased the demand for electricity, which has been driving the need for power generation as well as transmission and distribution equipment in India, said the report. Consequently, the electrical equipment market growth in India has been substantial.
It listed other factors boosting demand:
The power transmission and distribution network forms an integral part of the power sector, as it helps in distributing electricity to the final consumer.
The power generated in power plants needs to be transported over long distances to load centers, from where it is distributed to the end consumers using transmission lines and towers.
Although India has adequate power generation capacity, still a substantial proportion of the population has limited access to electricity, mainly because of the lack of proper transmission and distribution infrastructure.
Significant investments in the distribution sector by the government will drive the demand for transmission and distribution equipment, which will fuel the electrical equipment market growth over the forecast period.
The growth of the electrical equipment market share in India by the transmission and distribution segment will be slower than the growth of the market by the generation segment, said Technavio on 3 Nov 2020. #investment #electrical #manufacturing #construction #energy /fiinews.com
