High-voltage switchgear demand to reach $30.3 billionhttps://energymanagementsummit.co.uk/wp-content/uploads/2023/09/switchgear-coil-4320892_1280.jpg 960 640 Stuart O'Brien Stuart O'Brien https://secure.gravatar.com/avatar/81af0597d5c9bfe2231f1397b411745a?s=96&d=mm&r=g
The global high-voltage (HV) switchgear market is forecast to reach $30.34 billion in 2027 from $25.02 billion in 2022, growing at a compound annual growth rate (CAGR) of 3.54% between 2023 and 2027.
GlobalData’s latest report, “Switchgears for Power Transmission, Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast, 2022–2027,” reveals that in 2022, the Europe, Middle East, and Africa (EMEA) region held the largest share of the market for HV switchgears globally, with a share of 44.60%. The region’s market share is expected to increase to 48.24%, in 2027, higher than the growth expected in all other regions.
Bhavana Sri Pullagura, Senior Power Analyst at GlobalData, said: “The growing demand for electricity is giving rise to the need for new power plants, particularly those modes of generation that have minimal impact on the environment. Several countries have begun to address deployment barriers to create a conducive market for increasing the use of renewable energy technologies and gas-based generation. The falling capital cost and low gas prices also resulted in increased development of renewables and gas power plants. This contributed to the growth of the switchgear market, which is expected to continue as countries seek to increase the share of renewables and gas in their generation mix.”
According to GlobalData’s 2023 Switchgears Market Report, the HV switchgear market in the EMEA region was estimated to be $11.16 billion in 2022 and is projected to reach $14.63 billion, registering a CAGR of 5.03% over 2023-27. The economic boom in countries in the Middle East led to an increase in demand for power, contributing to the growth of the market.
In 2022, Asia-Pacific’s market value stood at $10.77 billion, accounting for a share of 43.05% in the global HV switchgear market. The HV switchgear market in the Americas is expected to reach $3.11 billion by 2027, as the grid requires upgrades to replace aging assets and to accommodate the increasing sources of renewable energy.
China, one of the fastest-growing economies with the largest fleet of transmission substations, topped the global HV switchgear market in 2022 with a value of $7.73 billion, accounting for a 30.90% share. The country is expected to continue its leadership during the forecast period, reaching $9.19 billion in 2027.
Bhavana Sri added: “The need to build transmission infrastructure to deliver power from renewable sources in remote regions, the increasing domestic demand for electricity, large-scale renewable energy deployment, the projected growth in the gross domestic product, and rural electrification initiatives are some of the major factors aiding the growth of its HV switchgear market in China. The country is the world leader in ultra-high-voltage transmission, having made considerable investments in the development of transmission systems of voltage level of 765 kilovolts (kV) and above.”
The other major countries in the Asia-Pacific gas-insulated switchgear market include India and Japan. India ranks third after China and the US in the global HV switchgear market, with a value of $1.15 billion in 2022 and a share of 4.60%.
Bhavana Sri concluded: “GlobalData believes that policies established to address environmental challenges and capitalize on market opportunities offered by technologies would notably impact the switchgear market by the end of the forecast period.”