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

Medium Voltage Switchgear Market Size

Medium Voltage Switchgear Market size was valued at USD 49 billion in 2023 and is estimated to grow at over 7.1% CAGR from 2024 to 2032, due to the increasing need for effective control systems in transmission and distribution (T&D) networks. This surge in demand is fueled by factors such as the refurbishment of existing electrical infrastructure and substantial investments in grid infrastructure development. Developing countries with inadequate and unreliable electric networks, as well as developed nations focusing on upgrading their existing infrastructure, contribute to a favorable business environment for medium voltage switchgear manufacturers.
 

For instance, the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) launched by the Indian Government, which aims to extend electricity services to rural areas and provides funding for related projects. The industry landscape is expected to be positively influenced by factors such as cost-effectiveness, safe operations, and compact product designs. These essential parameters drive the adoption of medium voltage switchgears and contribute to the overall growth and development of the industry.

COVID-19 Impact

The commercial and industrial sectors in countries like China, the U.S., and India experienced a decline in electricity demand due to the implementation of strict containment measures during the COVID-19 pandemic. As a result, utility investments in grid projects decreased significantly. Additionally, manufacturers worldwide had to temporarily close their production facilities and processing sites due to widespread lockdowns aimed at preventing the spread of the virus.
 

However, the market is expected to observe significant growth in the near future as companies reorganize their operations and adapt to the changing circumstances. Furthermore, the increasing electricity demand in remote areas and the government's focus on providing power to rural regions will positively impact the industry's outlook.
 

The medium voltage switchgear market is poised for rapid growth, driven by government initiatives to promote sustainable power solutions and ambitious plans to enhance grid infrastructure with efficient power systems. Despite a slight decline in the power sector during 2020, which was impacted by the COVID-19 pandemic, there were ongoing efforts to install and deploy power solutions, with some restrictions imposed by governments on construction sites.
 

Furthermore, the medium voltage switchgear market has faced increased raw material prices, which have influenced the overall market conditions. There is a growing demand for refurbishing and replacing aging electrical components, supported by robust investments in grid network modernization. The power sector remains a crucial and fundamental aspect of the economy, and efforts to strengthen and upgrade power systems will drive the demand for medium voltage switchgear. Government support, increasing infrastructure investments, and the need to modernize grid networks create promising opportunities for companies operating in the industry.
 

Medium Voltage Switchgear Market Trends

The increasing adoption of distributed generation and smart grid networks has led to a growing need for effective power supply units. Moreover, the demand for circuit protection equipment is rising due to the prominence of heavy-duty industrial machinery and large-scale motor control operations. The expansion of residential, commercial, and industrial electricity networks driven by suburban migration and the dependency on manufactured products has further fueled the demand for medium voltage switchgears. Additionally, the development of electric transportation networks, process units, and special economic zones (SEZs) in developing economies has contributed to the increased demand for these switchgears.
 

The industry has gained momentum with the support of government schemes aimed at expanding power grid infrastructure and deploying stand-alone micro-grid projects in areas with limited access to electricity. The rising concerns related to fire hazards, electrical supply faults, health risks, and operational hazards have also increased the significance of the industry. Developing economies with inadequate electric grid networks and developed economies focusing on infrastructure advancement provide favorable business conditions. Product portfolio enhancements and strategic acquisitions and mergers by major companies are expected to drive medium voltage switchgear market growth.
 

The demand for primary and secondary electric distribution networks is influenced by rapid commercialization, industrialization, and Foreign Direct Investment (FDI) schemes supporting the industrial and commercial sectors. The ongoing digitalization has created a competitive business environment, driven by the increasing energy demand from communication base stations and data centers. Customer’s preference for advanced, energy-efficient, reliable, and fire-resistant electric components to ensure a safe living environment and mitigate risks associated with abrupt current flow in electric circuits has further contributed to the industry's advantage.
 

Medium Voltage Switchgear Market Analysis

The Switchgears with ≥ 21 kV to < 27 kV rating held the majority medium voltage switchgear market share of over 23% in 2022 and is set to expand at a CAGR of 7.5% through 2032, led by the increasing need for safe and reliable distribution networks in residential, commercial, industrial, and utility sectors. The expansion of large and multi-story residential complexes and apartments due to suburban migration will further contribute to the demand for these products. In recent years, there has been significant growth in the demand for components in the 27 kV to 33 kV range. This can be attributed to the extensive expansion of commercial establishments and the refurbishment and upgrading of small-scale industrial platforms in developing nations.
 

The medium voltage switchgear market from contactors segment dominated around USD 9.5 billion revenue in 2022 and will reach USD 21 billion by 2032. The adoption of contactor units has been driven by key factors such as effective corrosion resistance, lower costs, and ease of installation. Developed economies have prioritized the deployment of underground electrical networks to mitigate ecological damage caused by overhead lines. Overhead electricity lines emit waves that pose health risks to habitats along the network and also affect the aesthetic quality of the environment. As a result, utility companies have shown favorable inclinations towards underground networks due to their associated ecological advantages.
 

The medium voltage switchgear market from vacuum insulated switchgears segment is slated to register 6% CAGR till 2032, due to its advantages over other established insulation technologies and its high reliability among consumers. The product has experienced an increase in demand due to its economical pricing, reliable and safe operations, and leakage-free technologies. The versatile applications of vacuum-insulated distribution components and the continuous improvement of technological portfolios are expected to drive the demand for this technology.
 

Over the years, vacuum insulation has gained traction due to its regional availability and ease of manufacturing and installation. Despite having higher initial costs compared to other insulation technologies, utility companies and consumers prefer vacuum-insulated components due to their longer lifecycles and lower maintenance costs.
 

The medium voltage switchgear technology is used across several end uses including transformer substations, power stations, local electricity supply and others. Growing electricity demand across the globe has boosted the deployment of distribution infrastructure, thus driving the demand for medium voltage switchgear market for local electricity supply. Rapid urbanization, the need for reliable power distribution in residential, commercial, and industrial areas, and the integration of renewable energy sources into the local grid are few of the major drivers for market growth.
 

As urban areas expand, there is a growing requirement for efficient and stable electricity supply to meet the rising energy demands of households, businesses, and public infrastructure. Medium voltage switchgears play a crucial role in ensuring safe and reliable power distribution within these local electricity networks. Moreover, the transition towards cleaner and more sustainable energy sources has led to the integration of distributed generation systems, such as solar and wind power, into the local grid. Medium voltage switchgears facilitate the efficient integration and management of these distributed energy resources, contributing to the growth of the market.
 

The medium voltage switchgear market from utility sector is estimated to observe around 6% CAGR between 2023 to 2032. Utilities are increasingly investing in grid modernization initiatives to improve the efficiency, reliability, and resilience of their power distribution networks. Medium voltage switchgears play a crucial role in modernizing the grid infrastructure and enabling advanced functionalities such as smart metering, automation, and remote monitoring. The growing deployment of renewable energy sources, such as solar and wind power, requires efficient integration into the existing utility grids.
 

Medium voltage switchgears enable the safe and effective integration of renewable energy generation by managing power flow, voltage levels, and protection within the grid. In addition, With the increasing frequency and severity of natural disasters and other disruptions, utilities are prioritizing grid resilience and reliability. Medium voltage switchgears with advanced fault detection, isolation, and restoration capabilities play a critical role in ensuring the robustness and reliability of the grid infrastructure, therefore complementing its penetration across the globe.
 

Asia Pacific medium voltage switchgear market is predicted to exceed USD 28.5 billion by 2032, primarily owing to the increasing demand for effective Transmission & Distribution (T&D) systems. There is a growing need to upgrade and restore existing electrical setups, leading to increased funding in the energy infrastructure sector and contributing to the overall growth of the switchgear market. Key factors such as cost-effectiveness, reliability, longevity, and operational flexibility are expected to play a crucial role in shaping the industry landscape.
 

Continuous research and development efforts aimed at developing effective switchgear components, along with investments in manufacturing energy-efficient products, are strategic initiatives undertaken by industry players to drive growth. The deployment of renewable energy sources on a large scale and the expansion of smart grid networks in various nations are expected to have a positive impact on the penetration of switchgear products in the region. These factors, coupled with the increasing focus on sustainability and efficient energy management, create favorable market conditions for the switchgear industry.
 

Over the years, industries in China, India, and the rest of Asian region have emerged as significant energy consumers. The expansion of high and extra-high tension lines to meet the growing demands of these industrial establishments will be a key driver for the medium voltage switchgear market revenue. There is also a strong focus on refurbishing and retrofitting existing Transmission and Distribution (T&D) networks to ensure reliable and uninterrupted electric supply to industries, further boosting the demand for switchgear products. The market size for medium voltage switchgear in the North America is set to cross USD 15.5 billion by 2032.
 

The industry is poised to experience substantial growth in the region due to increasing investments in the development of new grid infrastructure. Various private and governmental financial institutions, such as the World Bank, International Finance Corporation (IFC), and the Asian Development Bank (ADB), are providing funding support for electrification projects, which will contribute to the growth of the switchgear market.
 

Medium Voltage Switchgear Market Share

Notable companies operating in the medium voltage switchgear market include

• HD Hyundai Electric Co., Ltd
• Eaton
• ABB
• Mitsubishi Electric Corporation
• CG Power & Industrial Solutions Ltd.
• Siemens
• Ormazabal
• General Electric
• Schneider Electric
• Toshiba Infrastructure Systems & Solutions Corporation
• CHINT Group
• Powell Industries
• Lucy Group Ltd.
• HYOSUNG HEAVY INDUSTRIES
• Bharat Heavy Electricals Limited
   

Key companies in the market have implemented strategic implications, such as forming alliances and strategic partnerships, along with increasing investments in R&D activities. Key companies are focused on establishing high volume and high-speed manufacturing skills to develop switchgears of competitive pricing and improved qualities. Ensuring timely delivery of products is a key priority for these companies.
 

Medium Voltage Switchgear Industry News:

• In January 2022, ABB supplied UK Power Networks with medium-voltage double busbar 36 kV AirPlus Gas-insulated Switchgear (GIS) owing to its almost zero global warming effects. In addition, the product is designed to reduce the unplanned downtime risks and provide greater power load sharing flexibility. GIS will act as an insulator between the electrical contacts with almost zero global warming impact.
   
• In April 2021, Siemens launched its new 8DJH 24 switchgear along with RMU for up to 24 kV, which is completely free from the fluorinated gases. The MV switchgear uses clean air technology, which is a climate-neutral insulation medium consisting of exclusively natural components from ambient air. The new technological advancement eliminates Sulfur Hexafluoride (SF6) as an insulating medium or any gas mixture built on fluorine gases.
   

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

Market, 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

Market, By Component

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

Market, By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

Market, By End Use

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

Market, 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