Vacuum Insulated Medium Voltage Switchgear Market Analysis

Vacuum Insulated Medium Voltage Switchgear Market Analysis

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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.