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The switchgear with a rating of ≥ 21 kV to < 27 kV claimed the largest market share, surpassing 23% in 2022, and is projected to experience substantial market growth, with a compound annual growth rate (CAGR) exceeding 7.5% through 2032. This surge in demand is driven by the increasing need for reliable and secure distribution networks across residential, commercial, industrial, and utility sectors. The expansion of extensive residential complexes and urban migration further contributes to the rising demand for these products.
The contactors segment exceeded a USD 2.8 billion in 2022 and is expected to surpass USD 6.4 billion by 2032. The increasing adoption of contactor units can be attributed to their effectiveness in corrosion resistance, cost-efficiency, and ease of installation. Developed economies in the region have placed significant emphasis on transitioning to underground electrical networks to mitigate the environmental impact associated with overhead power lines, which emit electromagnetic waves that can pose health risks to local ecosystems and negatively impact the visual aesthetics of the environment.
Vacuum-insulated switchgear market technology set to register around 3.5% CAGR through 2032, due to its distinct advantages over traditional insulation technologies and its well-established reputation for reliability. The growing demand for vacuum insulation can be attributed to its cost-effectiveness, dependable and safe performance, and its leak-free design. The versatility of vacuum-insulated distribution components and continuous technological advancements are expected to drive the adoption of this technology. In the European context, vacuum insulation has gained prominence owing to its local availability, ease of manufacturing and installation. Despite higher initial costs compared to other insulation methods, utility companies and consumers prefer vacuum-insulated components due to their extended operational lifespan and reduced maintenance expenses.
As power generation facilities expand to meet the region's escalating energy requirements, there's a heightened emphasis on improving electrical distribution and grid reliability. Medium voltage switchgear assumes a pivotal role in ensuring the safe and efficient distribution of power within power stations. Moreover, the transition towards renewable energy sources like solar and wind in the Asia-Pacific region further stimulates the need for medium voltage switchgear, as these technologies necessitate advanced electrical infrastructure. This market is expected to sustain its upward trajectory as power stations invest in modernization and grid optimization initiatives.
Medium voltage switchgear applications span across the utility, commercial, residential, and industrial sectors in Europe. In 2022, the utility sector emerged as the dominant force in the market and is projected to maintain a robust CAGR exceeding 6% up to 2032, further solidifying its leading market position. Factors such as increasing urbanization, industrialization, and infrastructure development in the region have generated a heightened need for dependable electrical distribution systems. To bolster grid reliability, reduce downtime, and ensure a sustainable power supply, utilities are actively replacing their aging infrastructure with modern and efficient medium voltage switchgear solutions.
Germany medium voltage switchgear market valuation crossed USD 1.6 billion in 2022 and is anticipated to register USD 2.8 billion by 2032, owing to the rapid urbanization and industrial development are increasing the demand for reliable electrical distribution systems, spurring investments in modern medium voltage switchgear solutions. The ongoing expansion and upgrade of the country's electrical infrastructure, coupled with efforts to enhance grid reliability and reduce downtime, are significant growth drivers. Moreover, the growing adoption of renewable energy sources and the need to integrate them into the grid are fueling demand for advanced medium voltage switchgear to manage distributed energy resources efficiently.