Industrial Oil Insulated Switchgear Market Size - By Voltage, By Current Analysis, Share, & Forecast, 2024 - 2032

Industrial Oil Insulated Switchgear Market Size

The global industrial oil insulated switchgear market was valued at USD 1.1 billion in 2023 and is projected to grow at a CAGR of over 5.9% from 2024 to 2032, driven by increasing demand for reliable and efficient power distribution in industrial sectors. Oil-insulated switchgears, known for their excellent insulating properties and high voltage handling capabilities, are increasingly used in industries such as manufacturing, oil and gas, mining, and power generation.
 

Several factors are contributing to this growth. First, the expansion of industrial infrastructure and the need for reliable electrical networks are driving the adoption of OIS solutions. Second, advancements in technology are enhancing the performance and efficiency of OIS, making them suitable for both new installations and upgrades of existing systems. Additionally, growing investments in renewable energy projects and grid modernization are creating new opportunities for oil-insulated switchgears, especially in medium and high-voltage applications. Finally, the long operational life and low maintenance requirements of OIS are making them a preferred choice for cost-conscious industrial users.
 

Industrial Oil Insulated Switchgear Market Trends

One of the significant trends in the oil-insulated switchgear industry is the growing demand for eco-friendly and sustainable alternatives. Traditional OIS units use mineral oil as an insulating medium, but there is increasing pressure to transition towards alternative, more environmentally friendly oils, such as biodegradable ester oils. These eco-friendly solutions reduce the environmental impact in case of leaks or accidents, which is increasingly important as industries face stringent environmental regulations. The push for sustainability is aligning with broader global efforts to reduce carbon footprints and improve environmental compliance in power infrastructure.
 

Technological advancements are transforming oil-insulated switchgears. Modern OIS units are being equipped with enhanced protection and monitoring systems, including digital sensors, smart grid integration, and automated fault detection features. These innovations enable real-time monitoring of critical parameters, such as temperature and pressure, allowing operators to address potential issues before they escalate into more serious problems. With the increasing adoption of Industry 4.0, oil-insulated switchgear systems are becoming smarter, more efficient, and more integrated into advanced industrial control systems.
 

Industrial Oil Insulated Switchgear Market Analysis

The low voltage segment is projected to surpass USD 900 million by 2032, since the industries become more electrified, particularly in sectors like manufacturing, mining, and process industries, the demand for low-voltage switchgear has surged. Oil-insulated switchgear is ideal for low-voltage applications due to its compact design, high reliability, and ability to handle medium to high fault currents. This makes it essential in controlling and protecting electrical systems in industrial facilities where space and power quality are critical.
 

Based on current, AC segment is anticipated to witness more than 5.6% CAGR through 2032, owing to the alternating current (AC) systems are widely used in industrial and commercial applications for power distribution due to their efficiency in long-distance transmission and ease of transformation between voltage levels. The growing reliance on AC power in industrial processes, including manufacturing, mining, and oil and gas operations, is driving demand for AC switchgear systems, particularly oil-insulated variants that offer high voltage handling and durability.
 

The U.S. industrial oil insulated switchgear market is likely to exceed USD 165 million by 2032, due to the ongoing expansion and modernization of industrial infrastructure in the U.S., particularly in sectors such as manufacturing, oil and gas, mining, and energy, are driving the demand for reliable power distribution systems. Oil-insulated switchgear (OIS) is preferred in these industries due to its robust performance in medium- and high-voltage applications, ensuring safe and efficient operation in power-intensive industrial processes.
 

Asia Pacific, particularly countries like China, India, Japan, South Korea, and Australia, is home to some of the fastest-growing industrial sectors globally. Heavy industries such as manufacturing, mining, oil and gas, and power generation in these countries require robust power distribution systems to support their operations. Oil-insulated switchgear, known for its reliability and efficiency, is essential for ensuring smooth power distribution in these large-scale industrial setups.
 

Industrial Oil Insulated Switchgear Market Share

Companies like ABB and Siemens hold significant market shares in the industrial oil-insulated switchgear industry due to their strong global presence, advanced technological innovations, and reputation for reliability. They offer a wide range of high-quality, durable switchgear solutions that meet the stringent demands of various industries. Both companies invest heavily in R&D, continually enhancing their products with smart and digital features, ensuring optimal performance and safety. Their ability to provide cost-effective, efficient, and customized solutions across diverse industrial applications, coupled with strong customer support, solidifies their leadership in the market.
 

Industrial Oil Insulated Switchgear Market Companies

Major players operating in the industrial oil insulated switchgear industry are:

• ABB
• Eaton
• Fuji Electric
• Hitachi
• Hubbell
• Hyundai Electric and Energy Systems
• Lucy Group
• Meidensha
• Mitsubishi Electric
• Orecco Electric
• Powell Industries
• Schneider Electric
• Sensata Technologies
• Siemens
• Skema
• Switchgear Company
   

Industrial Oil Insulated Switchgear Industry News

• In June 2024, Schneider Electric announced its plan to invest over ?850 crore in the switchgear business acquired from Larsen & Toubro (L&T). This substantial investment aims to expand manufacturing capabilities, boost product innovation, and solidify Schneider Electric's position in the Indian market. The company will leverage the acquired assets to develop advanced, energy-efficient switchgear solutions for both domestic and international markets.
   

This industrial oil insulated switchgear market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” and “‘000 Units” from 2021 to 2032, for the following segments:

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Market, By Voltage

• Low
• Medium
• High

Market, By Current

• AC
• DC

The above information has been provided for the following countries across the region:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Oman
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Peru
  • Argentina