(MENAFN- GlobeNewsWire - Nasdaq) Global load center market is experiencing significant growth, driven by increasing electricity consumption, data center expansion, urbanization, electrification, and renewable energy adoption. Asia Pacific leads the market, with main breaker load centers in high demand due to their safety, versatility, and compliance advantages.New Delhi, May 06, 2024 (GLOBE NEWSWIRE) -- The global load centers market is anticipated to reach US$ 2,608.87 million by 2032 from US$ 1,443.15 million in 2023 at a CAGR of 6.8% during the forecast period 2024 to 2032.
The global load centers market is poised for significant growth, with electricity consumption projected to nearly double from 23,398 TWh in 2020 to 41,558 TWh by 2050, representing a robust 77% increase. This surging demand, particularly in the U.S. where electricity use is forecast to rise by nearly 30% from 2021 to 2050, is a key driver for the expansion of load centers – the critical infrastructure that distributes electricity to end users. Further fueling this expansion is the ever-growing global population expected to reach 9.7 billion by 2050, with a majority residing in urban areas. This urbanization trend concentrates electricity demand in load centers responsible for serving these growing metropolitan hubs. Take Tokyo for instance, with its population projected to exceed 37 million by 2030. To meet the rising power needs of such megacities, significant expansion of their load centers is essential.
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The electrification of transportation and heating sectors is another major factor driving the load centers market. Electric vehicles are expected to experience a meteoric rise, capturing over 30% of the global passenger vehicle fleet by 2040, compared to a mere 1% share today. Similarly, the use of electricity for residential heating is projected to double, reaching 20% by 2050 from its current 10% share. This influx of new electrical load necessitates the expansion of load centers to ensure adequate capacity. Moreover, as the world embraces renewable energy sources like wind and solar, load centers play a pivotal role in integrating these variable resources into the grid. By 2050, renewables are expected to contribute a staggering 50% of global electricity, up from 29% in 2020. Load centers play a critical role in balancing supply and demand by storing excess renewable generation and releasing it when needed, ensuring a stable and reliable power supply.
The need for resilience and reliability in the face of more frequent extreme weather events and aging grid infrastructure presents another significant opportunity for the load centers market. In the U.S. alone, weather-related power outages inflict an economic burden of up to $70 billion annually. To minimize these disruptions, utilities are actively upgrading load centers with advanced technologies like microgrids, battery storage, and automated switching systems. Apart from this, the growth of power-intensive industries like data centers, cryptocurrency mining, and advanced manufacturing further fuels demand for new load centers in many regions. Data center electricity use, for example, is expected to surge by nearly 50% from 2020 to 2030. Similarly, the global market for industrial robots is projected to more than double by 2030, requiring a corresponding expansion of load center capacity to support this growth.
Key Findings in Global Load Centers Market
| Market Forecast (2032) | US$ 2,608.87 million |
| CAGR | 6.8% |
| Largest Region (2023) | Asia Pacific (32.6%) |
| By Type | Main Breakers (68.5%) |
| By Application | Commercial (48.1%) |
| Top Trends | Growing demand for data centers and cloud services, especially in Asia Pacific Increasing power density and cooling requirements in commercial facilities Expansion of renewable energy and green data centers |
| Top Drivers | Rapid economic growth, urbanization, and rising electricity consumption Booming digital economy, e-commerce, and internet usage Government initiatives and digital transformation policies |
| Top Challenges | Meeting the evolving electrical codes and safety standards Adapting to the shift towards electrification in HVAC and transportation Integrating load centers with renewable energy systems and microgrids |
Main Breakers are Dominating the Global Load Centers Market, With Revenue Contribution of US$ 987 Million
Main breaker leads the market due to their exceptional capabilities that ensure safe, dependable, and efficient power distribution. Let's explore the key statistics that solidify their leading role. Safety and control are paramount. Main breakers in the global load centers market integrate a master circuit breaker, safeguarding all branch circuits within a building with overcurrent protection. In case of an overload or fault, it swiftly cuts off power to the entire panel, preventing potential damage. This translates to a single disconnect point for all the loads the load center supplies. Moreover, Compliance with electrical codes and standards is another key benefit. Many jurisdictions enforce the use of main breaker load centers. For instance, the National Electrical Code (NEC) mandates a main breaker if the load center is fed by more than two branch circuits. Additionally, these panels facilitate the installation of AFCI and GFCI breakers in specific locations, offering protection against arc faults and ground faults, as mandated by codes.
Versatility and Scalability Plays a key Role in Dominance
Versatility and scalability are key features. Main breaker load centers cater to diverse applications due to their availability in a wide range of sizes and configurations. Popular current ratings include 50A, 60A, 100A, 200A, and even 400A, offering exceptional adaptability. This allows for installation in both indoor and outdoor environments. Compatibility with modern technology is ensured. Leading manufacturers create main breaker load centers compatible with the latest circuit breaker technologies. This compatibility ensures that main breaker panels can accommodate advanced breakers with enhanced safety features and monitoring capabilities.
Future-proof design is another advantage. Compared to main lug only (MLO) panels, main breaker load centers generally offer superior circuit capacity and expandability. A 100A main breaker load center can accommodate anywhere from 20 to 42 branch circuits. This allows for future additions of new circuits as electrical demands increase, eliminating the need for expensive panel upgrades. Reliability in demanding environments is unmatched. In critical facilities like data centers, main breaker load centers play a vital role. Industrial-grade main breakers are specifically designed to handle the unique demands of data center equipment.
Commercial Application Leads the Load Centers Market, more than US$ 694 Million Came From this Segment
Commercial buildings account for a significant portion of global electricity demand, and this consumption is projected to rise rapidly in the coming years. In the U.S., commercial sector electricity use is expected to increase by 1.3% per year on average through 2050, reaching 1,842 billion kWh. This growth is driven by factors such as expanding commercial floor space, rising plug loads from office equipment, and the proliferation of data-intensive businesses. Load centers play a critical role in safely and efficiently distributing this increasing electrical load.
Many commercial buildings across the global load centers market are transitioning from fossil fuel-based heating and cooling systems to electric heat pumps and other high-efficiency HVAC technologies. The share of electricity in U.S. commercial space heating is projected to rise from 14% in 2020 to 23% by 2050. Similarly, the electrification of commercial vehicle fleets, such as delivery trucks and buses, is expected to accelerate in the coming decades. These trends will place additional demands on commercial load centers to accommodate the higher electrical loads.
Rapid Growth of Data Centers and IT Infrastructure
The explosive growth of data centers is a major driver of load centers market demand in the commercial sector. In the U.S. alone, data center electricity consumption is expected to reach 35 gigawatts (GW) by 2030, up from 17 GW in 2022 - a 106% increase. Data centers require robust and reliable load centers to distribute massive amounts of power to servers, cooling systems, and other critical infrastructure. The global data center market is projected to grow at a CAGR of over 2% from 2019 to 2025.
Increasing Power Density and Rack Loads in Commercial Facilities
As businesses deploy more powerful computing equipment and automate processes, the power density of commercial buildings is on the rise. Data centers, in particular, are seeing a rapid increase in rack power densities. By 2027, the average rack density in hyperscale data centers is expected to reach 50 kW per rack, up from 36 kW currently - a 7.8% CAGR. This trend necessitates the use of high-capacity load centers that can safely distribute these concentrated electrical loads.
Expansion of Renewable Energy and Microgrid Deployments
Many commercial facilities in the load centers market are adopting on-site renewable energy systems, such as rooftop solar panels and small-scale wind turbines, to reduce their carbon footprint and improve energy resilience. These distributed energy resources often require specialized load centers with advanced power electronics and control systems to integrate them with the building's electrical infrastructure. The global microgrid market, which relies heavily on load centers for power distribution, is expected to reach $47.4 billion by 2025, up from $28.6 billion in 2020.
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Asia Pacific is Supercharged to Keep Dominating Global Load Centers Makrut
Rapid Economic Growth and Urbanization
The Asia Pacific region has experienced impressive economic growth in recent decades across the load centers market, leading to rising incomes and accelerated urbanization. This has driven a significant increase in electricity consumption, particularly in emerging economies like China and India. The region's share of global GDP has risen from around 27% in 2000 to 37% by 2023, and this trend is expected to continue over the next two decades. In line with this, the region is witnessing a massive surge in demand for data centers and cloud services, fueled by the rapid adoption of digital technologies, e-commerce, and social media. The region's data center market size is estimated at 14.27 thousand MW in 2024 and is projected to reach 23.20 thousand MW by 2029, growing at a CAGR of 10.21%. Top cloud providers like Amazon, Microsoft, and Google have seen up to 700% increases in demand for their services in the region.
Asia Pacific is home to some of the world's largest and fastest-growing digital economies, with countries like China, India, and Indonesia leading the way in terms of monthly active social media users. The region's digital economy is expected to reach $300 billion by 2025, driven by factors such as rising smartphone penetration, affordable mobile data, and innovative digital payment solutions. This digital boom is placing immense pressure on the region's electrical infrastructure, necessitating the deployment of high-capacity load centers.
Increasing Power Density and Cooling Requirements
As data centers in Asia Pacific load centers market deploy more powerful computing equipment and handle ever-increasing data volumes, the power density and cooling requirements of these facilities are on the rise. The average rack density in the region's hyperscale data centers is expected to reach 50 kW per rack by 2027, up from 36 kW currently. This is driving demand for advanced load centers with liquid cooling capabilities, which can reduce power consumption by 20-30% compared to traditional air cooling.
Government Initiatives and Digital Transformation Policies
Many governments in the Asia Pacific region have launched ambitious digital transformation initiatives and policies to promote economic growth, innovation, and social development. For example, China's "Internet Plus" strategy aims to integrate digital technologies with traditional industries, while Singapore's "Smart Nation" initiative seeks to harness technology to improve urban living . These government-led efforts are accelerating the adoption of data-intensive technologies like AI, IoT, and 5G, which in turn is driving demand for load centers to support the necessary digital infrastructure.
Expansion of Renewable Energy and Green Data Centers
As concerns about climate change and sustainability grow, many countries in the Asia Pacific load centers market are setting ambitious renewable energy targets and promoting the development of green data centers. For instance, the APAC Green Data Center Market is expected to register a CAGR of 20.87% during the forecast period, driven by factors such as government regulations, corporate sustainability goals, and the falling costs of renewable energy. This shift towards cleaner power sources is influencing the design and deployment of load centers, with a focus on energy efficiency and compatibility with renewable energy systems.
Global Load Centers Market Leaders
ABB Ltd. GE Square D Leviton Manufacturing Company Siemens Corporation Eaton Corporation Legrand SA Schneider Electric SE Hager Group Penbro Kelnick Paneltronics, Inc Altinsoy Energy Other Prominent Players
Market Segmentation:
By Type
Main Breaker Type Main Lugs Type Others (Convertable, etc.)
By Application
Residential Sector Commercial Sector Others (Industrial, Utility, etc,)
By Region
North America Europe Asia Pacific Middle East & Africa (MEA) South America
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