Medium Voltage Switchgear Market Size & Share, by Component (Circuit Breakers, Contractors, Switches & Disconnectors, Fuses); Insulation (Air, Gas, Oil, Vacuum), Application (Residential, Commercial, Industrial, Utility); End-user (Power Stations, Local Electric Supply, Transformer Substations) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4899
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Medium Voltage Switchgear Market size is estimated to surpass USD 60 Billion by the end of 2035, witnessing around 7% CAGR during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of medium voltage switchgear was USD 37 Billion. The growth of the market can be attributed to the rising demand for electrical machinery. This equipment typically operates at voltages between 1kV to 73 kV, therefore they require reliable switching equipment to ensure safe and effective operation. The trade of electrical machinery accounts for around 0.32% of global trade. Other Electrical Machinery ranked 60th in world commerce in 2020, with USD 53 billion in global trade. Other Electrical Machinery exports were estimated to be around USD 53 billion in 2020.

In addition to these, factors that are believed to fuel the medium voltage switchgear market growth of medium voltage switchgear include the surging demand for electricity. As the economies are developing and the population is soaring, the demand for electricity to power businesses, homes, and industries is also increasing. Many industries require large amounts of electricity to power their day-to-day operations. Besides this, many electrical systems around the world are getting old. Therefore, the need to replace the old grids with new ones is also expected to drive market growth. Moreover, the government is also implementing regulations to replace the old infrastructure for sale and efficient transmission of power.


Medium Voltage Switchgear Market
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Medium Voltage Switchgear Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Electricity – Medium voltage switchgear are utilized not just for long-distance transmission of electrical energy, and also for regional distribution to load centers. Global electricity demand is expected to rise in 2021. According to the International Energy Agency's semi-annual Electricity Market Report for January 2022, the growth of about 1500 terawatt-hours was the biggest ever.
  • Rising Initiatives for the Electrification of the Rural Region – Medium voltage switchgear is primarily used to distribute electrical energy to various electrical networks. Therefore, the electrification of rural areas is likely to drive market growth. In India, rural electrification projects began in the 1960s and have seen some success in recent years.  As of the conclusion of fiscal year 2020, over 598 thousand villages in India had been electrified, the same number as the previous year.
  • Higher Expenditure in Modernizing Existing Grid–Higher implementation of new grids significantly increases the demand for medium voltage switchgear. The most important investment driver is aging infrastructure, as one-third of the EU's distribution grids are over 40 years old. By 2030, half of all networks may have crossed that level.
  • Expansion of Smart Grid Networks – In numerous ways, medium voltage switchgear contributes to the peak network performance of smart grid, including feeder automation with built-in communication and local intelligence. According to the International Energy Agency investment in smart grids, worldwide is likely to be double by 2030. To achieve the Net Zero Scenario, annual investment in power systems must average roughly USD 600 billion by 2030. This is nearly quadruple current investment levels, which are roughly USD 300 billion per year.
  • Loss of Electricity During Electrical Distribution – Medium voltage switchgear minimizes the voltage drop across the distribution network and thus reduces the power loss.  From the time electricity is generated to the time it is transmitted, 1-2% of its energy is lost in the step-up transformer. Furthermore, approximately 2-4% of energy is lost in transmission lines.

Challenges

  • Concerns associated with cyber security – With the rise in digitization, the switchgear is becoming more interconnected. The risk of vulnerability to cybersecurity is increasing. This is likely to pose a threat to the safety and reliability of the electrical grid. Therefore, it is expected to hamper the market growth.
  • Production of switchgear imposes threat to environment
  • Lack of knowledge to design, install, and maintain the medium voltage switchgears

Medium Voltage Switchgear Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~7%

Base Year Market Size (2022)

~ USD 37 Billion

Forecast Year Market Size (2035)

~ USD 60 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

 

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Medium Voltage Switchgear Segmentation

End-user (Power Stations, Local Electric Supply, Transformer Substations)

The global medium voltage switchgear market is segmented and analyzed for demand and supply by end use into power stations, local electric supply, and transformer substations. Out of the three end uses of medium voltage switchgear, the power stations segment is estimated to gain the largest market share of about ~60% in the year 2035. The growth of the segment can be attributed to the rise in the number of power stations. There are over 35,000 power plants in 167 countries, with thermal plants, such as coal, gas, oil, nuclear, biomass, waste, geothermal, and renewables plants, including hydro, wind, and solar accounting for the majority of them. Moreover higher generation of electricity from the power plants is also expected to drive the growth of the segment. The Three Gorges Dam in China is the world's largest power plant. It generated around 100,000 billion kWh in 2021. The Itaipu Dam in Brazil comes next.

Application (Residential, Commercial, Industrial, Utility)

The global medium voltage switchgear market is also segmented and analyzed for demand and supply by application into residential, commercial, industrial, and utility. Amongst these four segments, the residential segment is expected to garner a significant share of around ~46% in the year 2035. Space heating and cooling (air conditioning), lights, water heating, space heating, and appliances and gadgets are the most common single uses of electricity in the residential sector. Residential electricity demand is highest during hot summer afternoons due to increased air conditioner use, followed by evenings when lights are turned on. The rising demand for electricity from the residential sector is likely to drive the growth of the segment. Moreover, the rising population has led to an increase in the number of households, resulting in a higher demand for energy. Moreover, the demand is further increased with the rise in income and growing usage of energy-intensive appliances, such as air conditioners, refrigerators, washing machines, and others. 

Our in-depth analysis of the global market includes the following segments:

     By Component

  • Circuit Breakers

  • Contractors

  • Switches & Disconnectors

  • Fuses

     By Insulation

  • Air

  • Gas

  • Oil

  • Vacuum

     By Application

  • Residential

  • Commercial

  • Industrial

  • Utility

     By End Use

  • Power Stations

  • Local Electric Supply

  • Transformer Substations

 


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Medium Voltage Switchgear Industry - Regional Synopsis

APAC Market Statistics

The market share of medium voltage switchgear in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~34% by the end of 2035. The growth of the market can be attributed majorly to the growing consumption of electricity. In 2021, per capita energy usage was around 3 toe. Per capita, electricity consumption was around 7600 kWh. Total energy usage fell steadily between 2010 and 2020 by nearly -2% per year, then grew by roughly 5% in 2021, reaching 404 Mtoe. Furthermore, higher expansion of the transmission grid is also expected to augment the medium voltage switchgear market growth in the region. In terms of megavolt ampere (MVA), India effectively extended its transmission network capacity at a compound average growth rate (CAGR) of nearly 12% from March 2013 to March 2018. In terms of circuit kilometers (ckm), gearbox lines expanded at around 7% CAGR from around 274,600 ckm to 390,970 ckm at the end of March 2018.

North American Market Forecast

The North America medium voltage switchgear market is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The growth of the market can be attributed majorly to the aging of power grids in the region. The installed foundation is forty years old on average, with more than a quarter of the grid being fifty years old or more. The majority of the electric grid in the United States was developed in the 1960s and 1970s. More than 70 percent of the U.S. electricity grid is now more than 25 years old, making it prone to increasingly powerful storms. Moreover, the web of transmission lines that transmit power across the United States is aging and is not designed to handle the anticipated demand for clean energy sources such as wind and solar. Therefore, the rising use of renewable energy is likely to propel the demand for medium-voltage switchgear in the region.

Europe Market Forecast

Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the medium voltage switchgear market can be attributed majorly to the rising implementation of rules for improving energy efficiency. The European Union has implemented regulations to improve energy efficiency by reducing energy loss during transmission. As a result, many European countries are investing in energy-efficient technologies including medium-voltage switchgear.

Research Nester
Medium Voltage Switchgear Market Size
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Companies Dominating the Medium Voltage Switchgear Landscape

top-features-companies
    • Chint Group Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Siemens AG
    • Schneider Electric SE
    • General Electric Company
    • Bharat Heavy Electricals Limited
    •  Eaton Corporation Plc
    • Mitsubishi Electric Corporation
    • Powell Industries, Inc.
    • ABB
    • Elatec Power Distribution GmbH

In-the-news

In The News

  • General Electric Company announced winning the three-year framework contract by SP Energy Network to supply g3 circuit breaker. Over the UK's RIIO-T2 regulatory period, the "High Voltage (HV) Main Plant" agreement covers the majority of SP Energy Networks' requirements for 145 kV SF6-free live tank circuit-breakers.
  • Eaton Corporation Plc announced the acquisition of 82.275 percent controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S., a leading manufacturer of switchgear based in Ankara, Turkey, with its main emphasis is on medium voltage solutions for industrial and utility customers.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 4899
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for electricity, an aging network of grids, and the adoption of smart grids are the major factors driving the market growth.

The market size of medium voltage switchgear is anticipated to attain a CAGR of 7% over the forecast period, i.e., 2023-2035.

Lack of awareness about its proper maintenance and negative impact on the environment are estimated to be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are Siemens AG, Schneider Electric SE, General Electric Company, Bharat Heavy Electricals Limited, Eaton Corporation Plc, Mitsubishi Electric Corporation, Powell Industries, Inc., ABB, Elatec Power Distribution GmbH, and Chint Group Corporation.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component, insulation, application, end use, and by region.

The power station segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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