North America Electric Insulator Market
Rise in investment in renewable energy projects and aging grid and transmission infrastructure favor the North America Electric Insulator market growth. Further, expansion of transmission and distribution infrastructure is expected to bring new North America Electric Insulator market trends in the coming years.
Aging Grid and Transmission Infrastructure to Fuel North America Electric Insulator Market Growth During Forecast Period
According to the White House, most of the electric grids in the US were built in the 1960s and 1970s. Currently, over 70% of the electricity grids in the country are more than 25 years old. Due to such aging infrastructure, the citizens have to face various challenges. For example, as per the data from the U.S. Energy Information Administration, in 2021, US electricity customers were without power for more than seven hours on average. More than five of those seven hours were during different major events, such as snowstorms, hurricanes, and wildfires. This shows that the country’s existing energy infrastructure will not be able to endure the continuing impacts of extreme weather events such as Hurricane Ida, Dixie Wildfire, and the 2021 Texas Freeze. Furthermore, the lifespan of transmission infrastructure lasts between 50 and 80 years. For the regular and uninterrupted supply of electricity, the need for regular maintenance and replacement of transmission infrastructure is required. According to the 2022 report from the transmission policy group Grid Strategies, American Electric Power, an energy company that owns 40,000 miles of transmission lines, announced that 30% of its transmission lines need to be replaced over the next 10 years. Thus, the aging grid and transmission infrastructure is fueling the need for refurbishment of the existing infrastructure, propelling the growth of the electric insulator market in North America.
North America Electric Insulator Market: Industry Overview
The North America electric insulator market analysis has been carried out by considering the following segments: type, material type, voltage, application, and end user. Based on type, the North America electric insulator market is segmented into pin insulators, suspension insulators, molded insulators, and others. Based on material type, the market is segmented into ceramic, composite, glass, and others. In terms of voltage, the market is segmented into low, medium, and high. By application, the market is classified into transformers, switchgear, busbars, cables, surge protection devices, and others. Based on end-users, the market is segmented into utilities, industries, and others. The utilities segment held the largest North America electric insulator market share in 2023.
The North America electric insulator market is segmented into the US, Canada, and Mexico. The region is witnessing a rise in the demand for electricity owing to the economic and population growth. According to the International Energy Agency (IEA), in 2021, the total electricity production was 5,397,346 GWh, 19% of the global share. Also, as per the same source, natural gas is the largest source of electricity generation in the region, contributing ~36% of the total electricity generation. Similarly, hydropower, wind, and solar PV contribute 12.8%, 8.1%, and 3.1%, respectively, in the total electricity generation.
To increase electricity generation from renewable sources, the governments of various countries in the region are taking different initiatives. For instance, on 4th April 2024, the US Department of the Interior announced an investment of US$ 19 million to install solar panels over irrigation canals in Oregon, California, and Utah, which will simultaneously decrease evaporation of critical water supplies and advance clean energy goals. Similarly, in September 2023, the government of Canada announced it would support the funding for 12 clean energy projects across Alberta. The funding for these projects has been provided through the Smart Renewables and Electrification Pathways Program (SREP). The program will invest ~US$ 3.32 billion (CAD 4.5 billion) by 2035 for smart renewable energy and electrical grid modernization projects. Thus, such government initiatives in renewable electricity generation are expected to fuel the growth of the electrical insulators market in the region.
North America Electric Insulator Market: Competitive Landscape and Key Developments
Hitachi Energy Ltd, Hubbell Inc., MacLean Power LLC, TE Connectivity Ltd, Lapp Insulators Group, Powertelcom, Power Grid Components Inc., Peak Demand Inc., Victor Insulators, Inc., and CK Composites Co., LLC are among the key players profiled in the North America Electric Insulator market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem.
The North America Electric Insulator market report provides detailed market insights, which help the key players strategize their market growth. A few recent developments by the key players, as per company press releases, are mentioned below.
- In September 2023, MacLean Power, LLC, one of the leading manufacturers of products for the electric utility and communications infrastructure, announced it completed the acquisition of Inertia Engineering & Machine Works, a manufacturer of transmission and distribution air break switches.
- In July 2023, Hubbell Incorporated acquired Electro Industries GaugeTech, Inc. for US$60 million in the second quarter of 2023. Associates from Electro Industries GaugeTech, Inc. join Hubbell. Hubbell Incorporated completed the acquisition of Electro Industries GaugeTech, Inc. in the second quarter of 2023. The cash purchase price of approximately US$60 million, net of cash acquired, is subject to customary purchase price adjustments.
