Medium Voltage Switchgear Market Analysis by Component (Circuit Breakers, Contractors, Switches & Disconnectors, Fuses); Insulation (Air, Gas, Oil, Vacuum), Application (Residential, Commercial, Industrial, Utility); End Use (Power Stations, Local Electric Supply, Transformer Substations) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4899 | Published Date: May 02, 2023
Medium Voltage Switchgear Market size is estimated to reach ~USD 60 Billion by the end of 2035 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market 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.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 37 Billion |
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Forecast Year Market Size (2035) |
~ USD 60 Billion |
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Regional Scope |
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Growth Drivers
Challenges
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.
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 medium voltage switchgear market includes the following segments:
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By Component |
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By Insulation |
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By Application |
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By End Use |
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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.
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.
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.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand for electricity, an aging network of grids, and the adoption of smart grids are the major factors driving the market growth.
Ans: The market size of medium voltage switchgear is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2035.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: The market is segmented by component, insulation, application, end use, and by region.
Ans: 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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