High Voltage Switchgear Global Market Report 2024

The high voltage switchgear market size has grown strongly in recent years. It will grow from $10.87 billion in 2023 to $11.49 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The growth observed in the historical period can be attributed to several factors, including the expansion of electrical grids, the pace of industrialization, advancements in technology, and ongoing infrastructure development.

The high voltage switchgear market size is expected to see strong growth in the next few years. It will grow to $14.65 billion in 2028 at a compound annual growth rate (CAGR) of 6.3%. Anticipated growth in the forecast period can be attributed to various factors, including the integration of renewable energy sources, grid modernization initiatives, the increasing trend toward electrification, a focus on enhancing grid resilience, and the adoption of digital twin technologies. Furthermore, key trends expected in the forecast period encompass continued efforts in grid modernization, the integration of renewable energy sources, the development of smart grid systems, the implementation of digital substations, and the utilization of gas-insulated switchgear (GIS) technology.

The high-voltage switchgear market is anticipated to experience growth driven by the rising demand for electricity generation. The availability of electricity is now a critical factor in promoting economic development and alleviating poverty. As industrialization and urbanization continue to expand, there is a growing need for a constant and reliable electricity supply, and the performance of switchgear plays a pivotal role in ensuring this reliability. Hence, the surge in electricity demand is expected to fuel the market for high-voltage switchgear in the forecast period. For instance, the International Energy Agency (IEA), a Paris-based intergovernmental organization, projects that global electricity generation demand will increase at a rate of 2.1% annually until 2040, which is twice the rate of primary energy demand growth.

The primary insulation types in high voltage switchgear encompass gas-insulated, oil-insulated, and air-insulated variants. Gas-insulated high-voltage switchgear (GIS) is a compact, metal-encased switchgear configuration, featuring high-voltage components like circuit-breakers and disconnectors, engineered for safe operation even within confined spaces. It incorporates diverse components such as circuit breakers and relays. High voltage switchgear adheres to established standards like the IEC and ANSI standards, which are widely employed in applications related to transmission and distribution networks, manufacturing and processing, infrastructure, and transportation.

The high voltage switchgear market research report is one of a series of new reports that provides high voltage switchgear market statistics, including high voltage switchgear industry global market size, regional shares, competitors with a high voltage switchgear market share, detailed high voltage switchgear market segments, market trends and opportunities, and any further data you may need to thrive in the high voltage switchgear industry. This high voltage switchgear market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The rapid adoption of renewable energy sources is also set to drive the growth of the high-voltage switchgear market in the coming years. This pertains to the use of clean energy sources like solar, wind, hydropower, and geothermal energy to generate power and meet various energy requirements. The integration of renewable energy, particularly wind and solar power, into the electrical grid necessitates the use of high-voltage switchgear to manage variable power generation and maintain grid stability. For instance, a report from the National Renewable Energy Laboratory (NREL) noted that global photovoltaic (PV) installations reached 231 gigawatts of direct current (GWdc) in April 2023, with a cumulative total of 1.2 terawatts of direct current (TWdc) in 2022. This growth is driven by factors such as China's significant annual PV installations, which are expected to surpass 300 GW by 2023 and exceed 400 GW by 2025. Hence, the rapid expansion of renewable energy sources will propel the high-voltage switchgear market.

The market faces constraints due to the instability of raw material prices. Price fluctuations occur because of the availability of subpar materials at lower costs for manufacturing high-voltage switchgear. This poses a risk of insulation layer breakdown, short circuits, and other failures. Consequently, the inconsistent pricing of raw materials for high-voltage switchgear is anticipated to hinder market growth. For example, according to the World Bank, the spot price for copper averaged $8,500 per metric ton at the end of 2021 but was expected to decline to $7,500 in 2022 before rising to an estimated $8,250 by 2035.

Electronics and telecommunications companies are increasingly incorporating mobile substations into their infrastructure. These mobile substations are designed for rapid deployment in outdoor or unforeseen scenarios, ensuring the swift restoration of electricity supply. They are equipped with generators, transformers, metal-clad switchgear, outdoor load break switches, and breakers, serving purposes such as network extensions and temporary switching stations. A notable example is the ABB Group, a Swiss multinational corporation, which designed a mobile substation for the Italian railway network. The adoption of mobile substations to meet on-demand energy generation requirements is emerging as a prominent trend in the market.

Prominent companies in the high-voltage switchgear market are embracing innovative space-saving switchgear solutions like the VC-V20A-1 to achieve benefits such as optimized floor space utilization, reduced installation and maintenance costs, and enhanced operational efficiency. The VC-V20A-1 is a space-efficient switchgear system featuring a smaller physical footprint and an innovative cooling mechanism for increased installation flexibility. In December 2022, Fuji Electric Co., Ltd., a Japan-based electrical equipment company, introduced the VC-V20A-1 Switchgear, notable for its significantly reduced size. Leveraging advanced analysis techniques, Fuji Electric has refined the design of key components, particularly insulators, and introduced a shielding structure to minimize insulation distances. This results in a 20% size reduction compared to previous models, setting a new industry benchmark for space efficiency. Additionally, the VC-V20A-1 incorporates an internal cooling system within the exhaust component, effectively cooling hot gases within the panel, eliminating the need for external gas release.

In a significant development in November 2021, Vertiv Holdings Co., a US-based electrotechnology company, completed the acquisition of E&I Engineering Ireland Limited for $1.8 billion. This strategic acquisition is aimed at strengthening Vertiv's growth prospects and financial performance while offering comprehensive solutions for managing a customer's entire power infrastructure as an integrated and unified system. E&I Engineering Ireland Limited, an Ireland-based electrical switchgear manufacturer, adds value to Vertiv's capabilities in the electrical infrastructure domain.

Major companies operating in the high voltage switchgear market include ABB Ltd., General Electric Company, Crompton Greaves Limited, Fuji Electric Co. Ltd., Hitachi Ltd., Hyosung Corporation, Mitsubishi Electric Corporation, Toshiba Corporation, Siemens Aktiengesellschaft, Eaton Corporation PLC, Schneider Electric SE, China XD Electric Co. Ltd., Henan Pinggao Electric Co. Ltd., Hyundai Heavy Industries Co. Ltd., Nissin Electric Co. Ltd., Shanghai Siyuan Electric Co. Ltd., Bharat Heavy Electricals Limited, LSIS Co. Ltd., Shenyang High-Voltage Switchgear Co. Ltd., Energomash, New Northeast Electric Group High Voltage Switchgear Co. Ltd., Shandong Taikai High-volt Switchgear Co. Ltd., Larsen & Toubro Limited, Hubbell Incorporated, Powell Industries Inc., Rittal GmbH & Co. KG, Meidensha Corporation, Iljin Electric Co. Ltd., Ormazabal Velatia S.L., Alstom SA, OJSC Power Machines, Howard Industries Inc., Koncar Distribution and Special Transformers Inc., Ormazabal, Raychem RPG Private Limited, SPX Transformer Solutions Inc., Tianan Electric Group Co. Ltd., Transformers and Rectifiers (India) Limited, Triad Magnetics, Voltamp Transformers Limited

Asia-Pacific was the largest region in the high voltage switchgear market in 2023. Western Europe was the second-largest region in the high voltage switchgear market analysis. The regions covered in the high voltage switchgear market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the high voltage switchgear market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The high voltage switchgear market consists of sales of gas-insulated switchgear, air-insulated switchgear, and other high voltage switchgear. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.