Medium-voltage Switchgear Market – By Type , By Insulation Medium , By Voltage , By Component , By End User , By Geography - Opportunity Analysis & Industry Forecast, 2024-2030

Medium-voltage Switchgear Market Overview:

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. As an important part of electrical power distribution systems medium voltage switchgear is used to handle voltage levels from 3kV up to 36kV. It provides reliable power supply, system protection and operational efficiency in all industrial, commercial and utility applications. Factors driving the medium voltage switchgear market include growing integration of renewable energy, aging electrical grids modernization and increasing application of smart grid technology. Further drivers of growth are stringent safety regulations, digital and IoT enabled solutions and electrification of transportation as well as renewed investments in infrastructure projects. Additionally, the emphasis on energy efficiency is still driving up market demand as industries seek renewable power distribution solutions. Adoption of eco-friendly and digital switchgear technologies are the two major trends in the medium voltage switchgear market. Hitachi Energy's EconiQ retrofill, as an example of eco-efficient solutions, is replacing SF6 gas in gas insulated lines to reduce greenhouse gas emissions. For example, collaborations such as Hitachi Energy’s work with CHN Energy in China show how these solutions help a seamless transition to sustainable operations with no loss in performance offset by only minor infrastructure adjustments. Concurrently, digital switchgear, such as ABB's cutting-edge solutions is also equipped with real time advanced sensors and software to improve safety, increase operational efficiency and guess maintenance requirements. These systems are key to modern energy systems because they allow for faster engineering, commissioning, and installation, reducing operational expenditure by up to 30% and minimising physical footprint and unplanned downtime.

Market Snapshot: 

Medium-voltage Switchgear Market - Report Coverage:

The “Medium-voltage Switchgear Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Medium-voltage Switchgear Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The medium voltage switchgear market was disrupted by the COVID-19 pandemic, with the halt of manufacturing activities and the delay of supply chains globally. Infrastructure projects were slowed down by restrictions and lockdowns resulting in hugely reduced demand for switchgear in main sectors of utilities, construction and industrial applications. 
• The Russia-Ukraine war further affected the medium voltage switchgear market by aggravating energy supply disruptions and rising raw material costs. The investments in renewable energy and grid expansion that Europe’s efforts to reduce its reliance on Russian gas have spurred have increased demand for switchgear. But pricing and availability were hit by supply chain challenges and rising costs of metals such as copper and aluminum used to manufacture switchgear. 

Key Takeaways:

APAC is the Leading Region

Asia-Pacific is projected as the leading region in the Medium-Voltage Switchgear Market. The medium-voltage switchgear market is dominated by the Asia-Pacific region owing to the large energy demand in the region and increasing investments in power infrastructure. As per the Climate Group, energy needs are set to rise by up to 80% in some areas of the world with more than half the population. For instance, China is the world leader in installed renewable energy capacity. However, it still heavily relies on fossil fuels for its energy grid, with over 50% of power coming from coal in 2022. In fact, the country's ongoing renewable energy expansion drives demand for modernized switchgear. In addition, Japan’s current dependence on coal and gas, however, marks its commitment to net zero emissions by 2050 as a key driver. Combined with industrial growth, these factors have propelled Asia-Pacific to be the largest market for medium-voltage switchgear to meet the complex energy transitions and the rise in infrastructure needs of the region.

Industrial and Utility Sector Dominated the Market

The Industrial and Utility sector is the dominant segment in the Medium-Voltage Switchgear Market because to its important role in achieving energy efficiency, grid modernization, and renewable energy integration. As countries set ambitious climate goals, demand for reliable electrical infrastructure in energy intensive industries and utilities has skyrocketed. As an example, the European Union (EU) has introduced more than 3,000 climate related policies, including renewable energy targets, energy efficiency measures and low carbon fuel adoption. They have made huge strides in lowering greenhouse gas emissions, down 37% from 1990 levels in 2023. Robust utility infrastructure has been key to the most dramatic emission reductions in the energy supply sector over the past three decades. United Kingdom, due to its integration with renewable energy sources and grid modernization to meet climate targets, has further boosted the demand for medium voltage switchgear in this sector. These systems are favored by utilities and industries to help increase efficiency and reduce environmental impacts.

Metal-clad Switchgear Leads the Market

Metal-clad switchgear is the largest segment in the Medium-voltage Switchgear Market due to its superior customization, maintenance efficiency, and advanced safety features, as highlighted by Schneider Electric. The tailorable capability to various operational requirements makes it an advantageous option across all the industries. Schneider Electric says customization options provide intricate relay and wiring configurations that allow the switchgear to serve basic and complex applications. The ability to withdraw the circuit breaker for routine checks or repairs also makes it easy to maintain, and therefore adds to its reliability in frequent switching situations. For example, Schneider Electric’s Masterclad switchgear goes through testing to IEEE C37.20.2 standards and provides consistent performance in the most demanding conditions. Another critical factor to its adoption is safety. According to Schneider Electric, the operator safety is greatly improved with features such as full compartmentalization, remote racking, grounded barriers and arc extinguishing systems. Due to these attributes, metal clad switchgear is a favourite choice for medium voltage applications across the globe.

Rising Need for Renewable Energy

Rising need for renewable energy is a major driver in the medium voltage switchgear market as nations worldwide are aiming to make the shift towards the sustainable energy systems. For instance, the Hungarian government launched the Gyármentő Guarantee and Loan Programme to support medium and large enterprises in carrying out energy efficiency and renewable energy projects. In this context, the Eximbank Zrt. pledged to offer state backed, low interest loans at fixed rates up to 5% for loans, with the aim to increase businesses’ energy independence and to cut operational costs. The program also aims to maintain full employment, reduce energy dependence and enhance industrial resilience. These efforts also mirror global efforts, such as the UK's financing of Taiwan's Greater Changhua 1 Offshore Wind Farm, which can power 650,000 homes with its 605 MW. It helps Taiwan achieve its ambitious goal of obtaining 20% of its power from renewable sources by 2025. The need for modern switchgear systems to support the integration of renewables, grid efficiency, and complex energy transitions propels market growth globally, as these investments require them. 

Overheating Risks

A major challenge in the medium-voltage switchgear market is the risk of overheating, a critical factor in equipment failure. According to Extertherm, overheating occurs when the internal temperature of switchgear components surpasses their standard operating limits. This can result from excessive current loads, often caused by improper circuit design or unexpected power surges. Additionally, insulation failure exacerbates the problem by allowing electrical currents to stray, leading to increased resistance and heat buildup. Prolonged overheating not only damages components but also compromises operational reliability, leading to costly downtime and potential safety hazards such as electrical fires. This challenge is particularly significant in regions with older power infrastructure or where grid demands are increasing rapidly due to urbanization and renewable energy integration. Addressing this issue requires advanced monitoring systems, improved thermal management designs, and regular maintenance to ensure switchgear operates within safe temperature thresholds.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Medium-voltage Switchgear Market. The top 10 companies in this industry are listed below:

1. ABB Ltd.
2.  Eaton Corporation plc
3. Schneider Electric SE
4. Siemens AG
5. Mitsubishi Electric Corporation
6. CHINT Group Corporation
7. Fuji Electric Co., Ltd.
8. Powell Industries, Inc.
9. Hyundai Electric & Energy Systems Co., Ltd.
10. CG Power and Industrial Solutions Limited

Scope of the Report: 

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