Electric fuse market has been one of the major recipients of the environment sustainability trend worldwide. With enhanced regulatory focus towards minimizing carbon emissions in vehicles along with the emergence of electric and hybrid cars, the global electric fuse industry landscape has witnessed a revolution of sorts.
Rapid urbanization and commercialization across developing countries due to large-scale suburban migration coupled with evolved standards of living among consumers is further fueling the product adoption. In this regard, Asia Pacific countries have witnessed a considerable demand for electric fuse market over the recent years. The growth can be accredited to factors such as soaring population, increasing electricity demand and rising innovations in grid infrastructure.
While developing economies are strong contenders in the electric fuse market landscape, the developed regions are also forecast to contribute significantly to the revenue dynamics. Listed below are 3 major trends that are projected to transform the electric fuse market outlook over 2019-2025.
Shifting end-user preference towards electric and hybrid vehicles
Recent high-profile demonstrations by approximately 1.5 million students across 100 countries highlighted rising level of public concern over global climate change. With the automotive segment accounting for 24% of carbon emissions globally, automakers are stepping up to the challenge and setting ambitious targets to minimize the effect of greenhouse gasses.
Electric mobility is advancing at a soaring pace. Electric and hybrid vehicles are gradually replacing conventional fossil fuel-driven cars owing to several operational benefits including optimized efficiency and low maintenance. Mounting concerns pertaining to reducing the global carbon footprint and meeting future climate goals will bolster the adoption rate for electric vehicles, thereby influencing electric fuse industry share.
International Energy Association (IEA) had reported that the global electric fleet surpassed 5.1 million during the year 2018. China remains the world’s largest EV market, followed by the U.S. and Europe.
Leading countries in the electric mobility space are using a variety of measures such as fuel economy standards combined with incentives for zero- and low-emissions cars, economic tools that help bridge the cost gap between traditional and electric vehicles and support the deployment of efficient charging infrastructures.
Growing investments towards modernization of grid systems
Current trends in energy supply and storage are environmentally, economically and socially unsustainable. An upsurge in fossil fuel demand will increase concerns over the energy-related supplies and carbon emissions are estimated to be twice as much by the year 2050.
Smart grids enable real-time monitoring and management of electricity distribution from power generation sources to end-users. These systems also promote the use of low-carbon technologies, including renewable energy sources, which will help address the present concerns regarding electricity system infrastructure.
According to the IEA, investments towards the enhancement and modernization of preexisting grid energy storage and distribution systems climbed 10% in 2018. The development and deployment of smart grids is crucial if the global community has to achieve shared goals for climate change mitigation, economic development and energy security.
Undeniably, the large deployment of smart grids on a global scale will massively impact the worldwide electric fuse market demand.
Burgeoning power demand across the Asia-Pacific (APAC)
The global demand for electric power surged 4% in 2018, the fastest growth since 2010, with Asia-Pacific region having a substantial share in the power consumption charts. China and India were the two major power markets driving electricity consumption trends across the APAC, with Japan, South Korea and Australia not too far behind.
In China, the demand for electricity rose by 8.5% over 2018, a significant rise compared with recent years, led by expansion of industrial sectors including iron, steel and other metal, building & construction coupled with increased adoption and deployment of electrical appliances such as room heaters and air-conditioners due to unpredictable changes in climate conditions.
Power demand in India hiked by around 5.4% during the same period, driven by escalated demand across the building & construction sector combined with greater access to electricity. In fact, India managed to electrify majority of its rural residential areas, with power connections extending to over 30 million people.
Rising disposable incomes, growing investments in commercial and residential infrastructural developments owing to population rise and rapid urbanization will further foster APAC electric fuse market trends
All in all, with rising innovations in electric infrastructure worldwide, the electric fuse application spectrum is expected to expand exponentially over the years ahead, As per an analysis report by Global Market Insights, Inc., global electric fuse market share is estimated to surpass USD 4 billion by 2025.