Europe Oil Insulated Switchgear Market Size & Share 2025 - 2034

Europe Oil Insulated Switchgear Market Size

The Europe oil insulated switchgear market was valued at USD 1.7 billion in 2024 and is estimated to reach the value of USD 3.6 billion by 2034, growing at a CAGR of 7.4% from 2025 to 2034. The market growth is steady because of the increased need for dependable electricity distribution systems, the continual updating of obsolete grid systems and frameworks, and strong policies aimed at energy conservation and environmentally friendly practices.

Particularly in Germany, the UK, France, and Italy, other European countries have outdated electric infrastructure that requires modernizing. In a bid to improve stability and decrease operational costs, governments and utility companies are adopting modern switchgear technologies. The National Grid declared a scheme to improve the electricity grid for USD 45 billion over 5 years. The project encompasses the construction of new transmission lines and refurbishment of the existing lines.
 

There is growing demand for dependable energy infrastructure in the industrial area of Europe including in manufacturing, mining, and petrochemicals. The European Union’s mining production rose by 4.10% in December 2024 compared to the previous year’s. There is growing adoption of oil-insulated switchgear in industries with high demands for fault tolerance and strong insulation characteristics.
 

Furthermore, the shift towards renewable energy sources including offshore wind and solar farms necessitate advanced transmission and distribution networks. The oil insulated switchgear is being adopted in regions where grid expansion is supporting large-scale renewable integration. In 2024, the European Union (EU) installed 65.5 gigawatts (GW) of solar photovoltaic (PV) capacity, which was a record high.
 

Despite gas-insulated switchgear (GIS) gaining popularity due to its smaller size and reduced maintenance services, oil-insulated switchgear is still the being preferred- for applications that require better arc-quenching, insulation performance, and overall superior strength. Advancement in synthetic and biodegradable insulating oils are further enhancing efficiency while lowering the environmental impact of OIS, making these devices much more appealing to European utilities.
 

Europe Oil Insulated Switchgear Market Trends

• The oil insulated switchgear (OIS) industry in Europe is evolving due to advancements in grid modernization, environmental regulations, renewable energy integration, and emerging insulation technologies. The market is witnessing significant transformations driven by sustainability initiatives, digitalization, and industrial expansion.
   
• One of the most notable trends is the growing adoption of both biodegradable and synthetic insulating oils in place of traditional mineral oils. The report indicates that EU olive oil output for the 2023-24 year hit 1.5 million tonnes, which is an increase of 8% relative to the preceding year. The stringent policies of the European Union are forcing upward migration of manufacturers and utilities to more environmentally friendly options that sustain low carbon emissions. This results in increased dielectric strength and cooling properties as well as enhanced operational life of switchgear.
   
• European governments are investing heavily in grid modernization programs which increases the need for dependable and efficient switchgear solutions. France’s state grid operator, RTE, is projected to spend about USD 100 billion from 2024-2040 towards the modernization of the power transmission network. This will also enhance the high voltage network and renew the infrastructure.
   
• Substations and power distribution systems all over Europe, specifically in Germany, the UK, and France are being updated to improve grid stability and power loss mitigation. OIS still remains a top-level selection in high voltage uses because of its good insulation strength and low expenses.
   

Europe Oil Insulated Switchgear Market Analysis

• The Europe oil insulated switchgear industry was valued at USD 1.5 billion, USD 1.6 billion and USD 1.7 billion in 2022, 2023 and 2024 respectively. This growth is primarily driven by expanding urbanization and rising industrial activities, which necessitate reliable power distribution networks, thereby increasing the demand for Europe oil insulated switchgear.
   
• In the Europe oil insulated switchgear market, based on voltage, low voltage segment is projected to reach more than USD 1.8 billion by 2034. The industrial and commercial sectors in Europe are undergoing rapid electrification and digitalization, increasing the need for reliable low-voltage power distribution solutions. Expanding manufacturing units, data centers, and commercial buildings require efficient low-voltage switchgear to manage power loads safely and efficiently.
   
• The growing focus on clean energy as main energy source for multiple benefits, are considerably raising the demand for Europe oil insulated switchgear. For instance, in 2024, Italy saw a significant increase in renewable energy production, with renewable sources covering a record high of around 41% of the country's total power demand, marking a major milestone in the nation's transition to cleaner energy sources. Similarly other European countries are also focusing on use of clean energy, thereby increasing the demand for the Europe oil insulated switchgear worldwide.
   
• In the Europe oil insulated switchgear market, based on voltage, the medium voltage segment is also expected to hold the market share of 33.9% in 2024. This growth is mainly due to its widespread applications in utilities, industrial facilities, and renewable energy projects. The segment’s growth is driven by grid modernization initiatives, expansion of renewable energy infrastructure, and the need for reliable power distribution systems across various industries.
   
• Medium voltage segment is the most important one in the Europe oil insulated switchgear market as it provides safe, efficient and reliable power distribution for upstream, midstream and downstream operations. The oil & gas industry functions in a highly dangerous and adverse environment which demands sturdy and rugged switchgear solutions that can withstand severe electrical stresses, mitigate power interruptions, and improve safety during operations.
   

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• The AC segment of Europe oil insulated switchgear market is anticipated to grow at more than 7.4% CAGR through 2034 and is expected to continue since the number of projects in this sector are increasing on a large scale. There are currently 26 projects that are using some framework to reduce the time of transmission infrastructure. These projects will also find the requirement of oil insulated switchgear.
   
• Countries including the UK, Germany and France are focusing on the renewable energy, which will further create a massive need for the switchgears across the Europe. Germany's government approved a USD 63.3 billion green investment plan to help renewable energy expansion and reduce carbon emissions. Similarly, solar capacity increased by 16.2 GW, with two-thirds of that coming from rooftop installations. These numbers also indicate that the demand for the oil insulated switchgear will be higher in coming years.
   
• The Europe oil insulated switchgear market from DC segment is prijected to surpass USD 527 million by 2034, fueled by the acceptance of DC power systems, the development of renewable energy infrastructure, industrial electrification, and improvements in areas including energy storage. Furthermore, the European Commission has chosen 134 transport projects to be funded with over USD 7 billion in EU. Users of the oil-insulated switchgear have vital importance in the functioning of transmission of DC power, as they provide dependably insulated operation in high-voltage systems.
   
• The rising deployment of battery energy storage systems (BESS) across Europe is another key factor driving demand for DC switchgear. As energy storage becomes a crucial component of grid modernization, many countries, including Germany, the UK, and Spain, are investing in large-scale BESS installations. These systems require DC switchgear for managing the safe transfer of stored energy back into the grid.
   
• Industries including railways, metro systems, electric vehicle (EV) charging stations, and data centers heavily depend on DC power networks. The growth of metro rail systems, high speed rail networks, and electric bus fleets across the Europe has increased the demand for robust DC switchgear. Oil insulated DC switchgear is favored for its efficient power distribution, short circuit prevention, and electrical component life extension which makes it ideal for use in electrified industrial applications.
   

• The UK oil insulated switchgear market in 2022, 2023 and 2024 was valued at USD 243.2 million, USD 263.4 million and USD 286.1 million respectively. A significant portion of the country’s electrical grid, including substations and distribution networks, requires upgrades or replacement to enhance reliability and efficiency. The UK government, along with utility providers including National Grid and UK Power Networks, has been investing in smart grid technologies and infrastructure enhancements, driving demand for high-performance switchgear solutions like OIS.
   
• France plays a significant role in the Europe oil insulated switchgear market, driven by its expanding energy infrastructure, strong industrial base, renewable energy transition, and regulatory initiatives. The country’s focus on grid modernization, nuclear and renewable energy integration, and industrial expansion has made it a key contributor to market growth.
   
• Italy has been actively upgrading its power transmission and distribution network to enhance efficiency and reliability. The country's aging electrical infrastructure has led to a significant push for modernization projects, particularly by Terna S.p.A., Italy’s national transmission system operator. The expansion of smart grids, digital substations, and grid automation technologies has driven the demand for high-performance oil insulated switchgear, especially in high-voltage and medium-voltage applications.
   
• Germany has one of the most technologically advanced power grids in Europe and continues to invest heavily in modernization projects. The expansion of smart grids, digital substations, and automated power distribution networks is increasing the need for high-performance switchgear solutions, including oil insulated switchgear. The government’s focus on reliability, efficiency, and reducing transmission losses further supports the deployment of OIS in medium and high-voltage applications.
   
• Spain is a leader in renewable energy, particularly in solar and wind power, with one of the largest installed renewable energy capacities in Europe. The country's National Integrated Energy and Climate Plan (PNIEC) aims to generate 74% of electricity from renewable sources by 2030, requiring extensive grid reinforcement and energy storage solutions. The integration of large-scale solar and wind farms into the grid has driven demand for oil insulated switchgear to ensure stable and efficient power distribution.
   

Europe Oil Insulated Switchgear Market Share

Top 4 companies including General Electric, Siemens, ABB, Schneider Electric hold more than 40% market around the world. The major companies consistently work on new products and solutions which makes them a crucial part of the industry globally. These companies place a low focus on investment, especially on research and development. Besides, these companies apply different methods of market development in order to obtain considerable shares in the industry.
 

Europe Oil Insulated Switchgear Market Companies

• In December 2024, Hitachi Energy is investing approximately USD 47 million to expand its Europe Oil Insulated Products factory in Brno, Czech Republic, marking a significant step in its global strategy to support the clean energy transition. Set to be completed by the end of 2025, the expansion will increase the factory’s production capacity by over 40% and create up to 200 new jobs.
   
• In November 2024, Schneider Electric, the leader in digital transformation of energy management and automation, has significantly scaled the manufacturing and production capacity of its Barcelona prefabricated data center factory – increasing it from 7000m2 to 12,000m2 in response to accelerated customer demand for prefabricated, high-compute workload data center solutions.
   
• In May 2024, Schneider Electric, the leader in the digital transformation of energy management and automation, today announced the opening of its smart factory in Dunavecse, Hungary. The site spans 28,000 m2 and will be the workplace of up to 500 employees. The Dunavecse plant will increase production capacity for engineering-to-order (ETO) solutions made according to customers’ specifications across European markets, with 90% of the site’s manufactured products to be exported across Europe.
   

Major players operating in the Europe oil insulated switchgear market are:

• ABB
• Bharat Heavy Electricals
• CG Power and Industrial Solutions
• CHINT Group
• Eaton
• Fuji Electric
• General Electric
• HD Hyundai Electric
• Hitachi
• Hyosung Heavy Industries
• Lucy Group
• Mitsubishi Electric
• Ormazabal
• Schneider Electric
• Siemens
• Skema
• Toshiba
   

Europe Oil Insulated Switchgear Industry News

• In June 2024, Siemens announced that it will be investing USD 100 million to expand its switchgear manufacturing plant in Frankfurt, Germany. The company inaugurated a new high-speed warehouse and expanded production area, which is expected to begin operations early in 2025. Approximately 13,000 square meters of the total 15,000 square meter building area will be used for production halls, with the remaining space to be used for offices. The site has both rail and port access.
   
• In April 2024, Digital Realty and Schneider Electric partnered with an organization to launch a circular economy initiative at the Paris 5 data center. The goal of this initiative is to extend the lifespan of critical systems at PAR5, including Schneider Electric's LV and MV electrical equipment, UPS units, and switchgear.
   
• In October 2023, Siemens Smart Infrastructure has expanded its range of sustainable and digital medium-voltage switchgear to support the decarbonization of today's power grids. The new F-gas-free blue GIS primary switchgear enables an early transition to sustainable grids ahead of regulation. With a focus on industrialized and high-end ratings up to 24kV and 2500A, Siemens has launched the 8DAB 24 and upgraded the NXPLUS C 24.
   

This Europe 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 2034, for the following segments:

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Market, By Voltage

• Low
• Medium
• High

Market, By Current

• AC
• DC

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following countries:

• UK
• Germany
• France
• Russia
• Italy
• Spain