Medium-voltage Switchgear Market to reach $64.7 Billion by 2030; Increasing Demand for Renewable Energy, Modernization of Electrical Grids, Expansion of Smart Grid Technology, Stringent Safety and Regulatory Standards, Adoption of Digital and IoT-ena

The Medium-voltage Switchgear Market size is estimated to reach $64.7 Billion by 2030, growing at a CAGR of 6.3% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Medium-voltage Switchgear Market – By Type (Compact Switchgear, Metal Clad Switchgear, Metal Enclosed Switchgear, Pad Mounted Switchgear, Vault or Sub Surface Switchgear, Others), By Insulation Medium (Air, Gas, Fluid Others), By Voltage (Below 3kV, 3-9kV, 9-15kV, 15-21kV, 21-33kV, Above 33kV), By Component (Circuit Breakers, Disconnector Switches, Voltage Transformer, Fuse, Others), By Application (Residential, Commercial, Industrial & Utility), By End User (Power Station, Substation, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

The rising demand for renewable energy is boosting medium-voltage switchgear adoption. Grid modernization initiatives require upgraded switchgear solutions. Expanding smart grid technologies drive demand for efficient and reliable systems. Strict safety regulations ensure compliance with advanced switchgear. Digital and IoT-enabled solutions enhance operational efficiency. Transportation electrification increases the need for robust electrical infrastructure. Infrastructure investments support the growth of medium-voltage switchgear. A focus on energy efficiency promotes advanced switchgear integration. These factors combined are fueling the growth of the Medium-voltage Switchgear industry during the forecast period.

Asia-Pacific accounted for the largest share of 35% of the Medium-voltage Switchgear Market in 2023. Rapid industrialization and large investments in energy infrastructure have led to the domination of the medium-voltage switchgear market by the Asia-Pacific region. For example, the government of China states, China's energy supply has grown by nearly 20% since the launch of the country's 14th Five Year Plan, and non-fossil energy consumption has risen by 0.7 % points every year. In particular, the installed capacity of renewable energy sources, such as, wind and solar has increased by 38% year on year to exceed 1.1 billion kilowatts in April 2023. China’s national power generation capacity soared to more than 3 billion kilowatts, supported by the country’s cutting-edge technologies including smart grids and virtual power plants. The adoption of medium voltage switchgear is further enabled by advances in these technologies, policy driven modernization and focus on green energy. It is a region in which the evolving energy systems reflect its central role in the development of the region's energy systems in a way that meets global energy demands efficiently and sustainably.

The modernization of electrical grids is a critical driver for the medium-voltage switchgear market, particularly as regions strive to meet ambitious clean energy and sustainability goals. To reach Europe’s Fit for 55 targets of incorporating 42.5% renewable energy into the grid by 2030, over €584 billion in investments are needed this decade, according to the World Economic Forum. This large-scale grid transformation is critical to improve energy security, economic competitiveness and innovation across the continent. As Mario Draghi’s The Future of European Competitiveness report points out, major increases in investment are critical to satisfy Europe’s decarbonization and digitalization needs. Modernising grids is also highlighted by initiatives such as ENTSO-E’s coordination of cross border infrastructure investments. For instance, a $6.35 billion annual investment in grid infrastructure is predicted to save $9.52 billion in generation costs and avert the curtailment of 42 TWh of renewable energy. All of these efforts optimise renewable integration, reduce CO2 emissions by 31 million tonnes per year, and highlight the importance of advanced switchgear in sustainable power systems. 

The medium voltage switchgear market is driven by stringent regulations and global frameworks such as the Paris Agreement that force nations and industries to go green. The Paris Agreement, adopted in 2015 and legally binding, brings together 196 countries to take action to combat climate change and to keep global temperature rise below 1.5°C above pre-industrial levels. This is possible, but it demands a 43% reduction in greenhouse gas emissions by 2030, a transformational achievement that will require new economic and technological breakthroughs. Nationally Determined Contributions (NDCs) are country action plans that outline how countries intend to meet these ambitious targets. The Agreement also provides for financial, technological and capacity building support, and encourages innovation in low carbon solutions. The regulatory push has spurred demand for renewable energy, energy efficient technologies and sustainable infrastructure, and has set strict climate mandates as a cornerstone of market growth and environmental accountability. 

Key companies profiled in the Medium-voltage Switchgear Market are ABB Ltd., Eaton Corporation plc, Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation, CHINT Group Corporation, Fuji Electric Co., Ltd., Powell Industries, Inc., Hyundai Electric & Energy Systems Co., Ltd., CG Power and Industrial Solutions Limited and others.

Power Substation Automation Market - The global Power Substation Automation Market is estimated to grow at a CAGR of 6.68% during the forecast period 2022-2027 and reach $28.61 billion by 2027, from around $19.61 billion in 2021. The growth of this market is driven by factors such as increasing adoption of renewable energy sources, modernization of aging infrastructure, and advancements in grid automation technologies.

Smart Grid Market - The Smart Grid market size is set to grow at a CAGR of 10.2% and to reach $128.16 billion during the period 2024-2030. The market growth is fueled by rising investments in smart grid technologies, increasing deployment of renewable energy systems, and government initiatives for energy efficiency and grid modernization.

Switchgear Market - Switchgear Market Size is forecast to reach $168535.5 Million by 2030, at a 5.50% during forecast period 2024-2030. The growth is driven by rising investments in electrical infrastructure, increasing demand for reliable power supply, and growing focus on renewable energy integration.