Vacuum Insulated Medium Voltage Switchgear Market Size - By Component (Circuit Breakers, Contactors, Switches & Disconnector, Fuses), By End Use (Power Stations, Transformer Substations, Local Electricity Supply), Application & Forecast, 2024 – 2032

Vacuum Insulated Medium Voltage Switchgear Market Size

Vacuum Insulated Medium Voltage Switchgear Market was valued at over USD 26.8 billion in 2023 and is set to register over 6.3% CAGR between 2024 and 2032.  As the energy sector continues to evolve, transitioning to vacuum insulation is seen as a critical step will drive the market growth. For instance, in 2021, India witnessed a rise of 7.5% in energy consumption compared to the previous year, owing to the ongoing economic growth across the nation. Burgeoning energy consumption across the globe will boost the deployment of reliable protection devices across industries and commercial spaces, which in turn will boost the demand for the technology.
 

Vacuum-insulated switchgear is environmentally friendly as it eliminates the use of SF6 gas, which has a high global warming potential. This aligns with the increasing emphasis on sustainable and eco-friendly solutions, further fueling market growth. Vacuum switchgear is compact and requires less maintenance, reducing operational costs. Its ability to interrupt electrical faults safely, its long lifespan, and reliability contribute to its growing adoption in diverse applications, including power stations, substations, and utilities. The transition to vacuum insulation technology is significantly influenced by these advantages, promoting market expansion.
 

COVID-19 Impact

The COVID-19 pandemic had a moderate impact on the vacuum insulated medium voltage switchgear market. While the demand for energy infrastructure remained steady, disruptions in the supply chain and construction delays in some regions affected the market. However, the pandemic also accelerated the need for reliable and efficient electrical distribution, as remote working and telecommuting became widespread. This, in turn, drove investment in power distribution and grid enhancements, including MV switchgear. The long-term market outlook remains positive as the world increasingly relies on electricity for various applications, offsetting the pandemic's temporary setbacks.
 

Vacuum Insulated Medium Voltage Switchgear Market Trends

The vacuum insulated medium voltage (MV) switchgear market is witnessing several prominent trends that shape the future of electrical distribution systems. The integration of digital technologies into MV switchgear acts as another notable trend impacting the market growth. The rise of the Industrial Internet of Things (IIoT) has brought a wave of innovation, enabling MV switchgear to be equipped with sensors and monitoring systems. These advancements enhance predictive maintenance capabilities and real-time monitoring, ensuring the reliability and efficiency of power distribution networks.
 

There is a growing demand for modular and compact designs in switchgear. These designs provide flexibility and ease of installation in space-constrained areas, reducing the overall footprint. Their modularity allows for scalability and simplified maintenance. Cybersecurity is emerging as a critical concern as digitalization advances. Protecting MV switchgear from cyber threats becomes a top priority as these systems become more interconnected. Lastly, as renewable energy generation expands, MV switchgear is evolving to accommodate the integration of renewable sources into the grid. This involves developing grid-compatible designs and technologies to manage distributed energy resources effectively.
 

Vacuum Insulated Medium Voltage Switchgear Market Analysis

Based on voltage rating, the switchgears rated at ≥ 21 kV to < 27 kV held around 23% of the market share in 2022 and is poised to register gains at nearly 6.5% up to 2032. The surge in demand for secure and dependable distribution networks across residential, commercial, industrial, and utility sectors is a prime factor fueling the need for switchgear products falling within the 21 kV to 27 kV range. The continued expansion of large residential complexes and apartment complexes, driven by suburban migration, is set to be a contributing factor in this demand.
 

Based on component, the contactors segment exceeding USD 5.5 billion in 2022 and is projected to surpass USD 11 billion by 2032, propelled by effective resistance to corrosion, cost-effectiveness, and the ease of installation. Developed economies, in particular, have prioritized the implementation of underground electrical networks to mitigate the environmental impact of overhead lines. Overhead power lines emit electromagnetic waves that pose health risks to the ecosystems along their paths, and they can also detract from the aesthetic quality of the environment. Consequently, utility companies have demonstrated a notable preference for underground networks due to their associated ecological advantages, which is expected to positively influence the vacuum insulated medium voltage switchgear market growth.
 

The utilization of vacuum insulated medium voltage switchgear technology spans various sectors, including power stations, transformer substations, local electricity supply, and more. The global surge in electricity demand has accelerated the deployment of distribution infrastructure, consequently fueling the need for medium voltage switchgear systems in local electricity supply networks. Factors driving this growth include rapid urbanization, the demand for dependable power distribution in residential, commercial, and industrial settings, and the increasing integration of renewable energy sources into local grids.

The utility sector is expected to witness 6% growth rate from 2023 to 2032. Utilities are intensifying their investments in grid modernization endeavors to enhance power distribution network efficiency, reliability, and resilience. Medium voltage switchgears are pivotal in this modernization process, facilitating advanced functionalities like smart metering, automation, and remote monitoring. With the rising integration of renewable energy sources, such as solar and wind power, into utility grids, medium voltage switchgears play a pivotal role in safely and effectively managing power flow, voltage levels, and grid protection.

Asia Pacific vacuum insulated medium voltage switchgear market is anticipated to grow at a CAGR of over 5.5% through 2032, owing to the rapid urbanization, industrialization, and increasing energy demand in the region, which in turn are fueling the growth of power distribution networks, creating a substantial need for reliable medium voltage switchgear. The region's commitment to expanding renewable energy sources, particularly solar and wind power, necessitates the integration of these sources into the electrical grid. Vacuum insulated switchgear's efficiency, reliability, and environmental benefits make it a preferred choice in this transition. Additionally, the need for infrastructure development in emerging economies is boosting the demand for medium voltage switchgear.
 

Vacuum Insulated Medium Voltage Switchgear Market Share

Eaton's dominated vacuum insulated medium voltage switchgear industry share, attributed to their unwavering commitment to innovation and sustainable solutions. With a comprehensive range of switchgear products utilizing vacuum insulation technology, Eaton meets the demands of customers seeking reliability and environmental responsibility. Their continuous focus on research and development keeps them at the cutting edge of technology, introducing advanced solutions for the evolving medium voltage switchgear market. Eaton's global presence and exceptional customer support make them a trusted choice for utilities, industries, and other applications. These factors collectively establish Eaton as a prominent and trusted leader in the vacuum insulated medium voltage switchgear sector.
 

Some of the key market players operating across the vacuum insulated medium voltage switchgear industry are:

• Eaton
• Zhejiang Volcano Electrical Technology Co.,Ltd
• Electro-Mechanical, LLC
• DOHO Electric
• Hitachi, Ltd.
• Siemens
• Mitsubishi Electric Power Products, Inc.
• Rotary Switchgear & Testing Pte. Ltd
• S&C Electric Company
• Bharat Heavy Electricals Limited
   

Vacuum Insulated Medium Voltage Switchgear Market News:

• In April 2021, Siemens unveiled its cutting-edge switchgear solution, the 8DJH 24, coupled with a Ring Main Unit (RMU) tailored for voltage levels up to 24 kV. What distinguishes this product is its implementation of clean air technology, rendering it entirely free from the use of fluorinated gases. The switchgear incorporates an insulating medium derived entirely from natural elements sourced from the surrounding environment, ensuring a climate-neutral operation. This remarkable innovation eliminates the necessity for employing Sulfur Hexafluoride (SF6) or any gas compound containing fluorine gases as an insulation medium.
   

This Vacuum insulated medium voltage switchgear market research report includes an in-depth coverage of the industry with estimates & forecast in terms of units and revenue in ‘000 Units and USD Million from 2019 to 2032, for the following segments:

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By Voltage

• ≥ 3 kV to < 9 kV
• ≥ 9 kV to < 15 kV
• ≥ 15 kV to < 21 kV
• ≥ 21 kV to < 27 kV
• ≥ 27 kV to < 33 kV
• ≥ 33 kV

By Component

• Circuit Breakers
• Contactors
• Switches & Disconnector
• Fuses
• Others

By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

By End Use

• Power Stations
• Transformer Substations
• Local Electricity Supply
• Others

By Application

• Residential
• Commercial
• Industrial
• Utility

The above information has been provided for the following regions and countries:

• 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