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The high voltage equipment market size is forecast to increase by USD 50.38 billion at a CAGR of 7.45% between 2023 and 2028. The market's growth trajectory is influenced by various factors, notably the increasing demand for electricity across residential, industrial, and commercial domains. This surge necessitates significant enhancements in energy transmission and distribution infrastructure. Additionally, the modernization of grids in emerging economies is a pivotal driver. These initiatives aim to bolster energy delivery efficiency and reliability. By addressing infrastructure shortcomings and leveraging technological advancements, the energy sector can meet evolving consumer needs and support economic growth. The integration of renewable energy sources, adoption of smart grid solutions, and focus on energy efficiency are also contributing to the market's expansion, ensuring a sustainable and resilient energy ecosystem for the future. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
Moreover, the APAC market experiences growth driven by urbanization's acceleration and regional government initiatives for rural electrification. ABB Ltd provides high-voltage equipment like switchgear and breaker solutions reaching up to 1200 kilovolts AC and 1100 kilovolts DC. Similarly, ALSTOM SA offers high-voltage equipment such as lightning arresters, including 500kV insulator-type transformers.
Market Forecast 2024-2028
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The market is driven by the increasing demand for energy in remote areas, leading to the growth of solar energy farms and wind energy farms. Advancements in high-voltage measuring equipment and smart grid integration are notable trends, enhancing electricity measurement accuracy and energy efficiency. However, challenges such as grid modernization projects and carbon emissions reduction pose significant hurdles. Overcoming these challenges requires innovative solutions in monitoring systems, sensor technology, and renewable energy systems to meet the rising global demand for electricity while reducing environmental impact. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The increasing demand for power, coupled with an increasing global population, has fuelled the need for high-voltage equipment such as transformers and switchgear. In addition, rapid industrial growth in emerging economies such as China, India, Indonesia, Malaysia, Vietnam, Brazil, Argentina, Nigeria, and Ethiopia has spiked demand for energy from the industrial and commercial sectors. Furthermore, high-voltage equipment such as transformers are likely to find high adoption in these countries.
Moreover, the growth in per capita income has resulted in the extensive use of electrical and electronic equipment in these emerging economies, thereby enhancing the demand for power. In addition, developing countries, particularly in Asia and Africa, have poor distribution networks that are susceptible to frequent electricity outages and losses. Thus, these countries are expanding and upgrading their power distribution infrastructure in rural and remote areas to address the rising demand for energy. Hence, such factors are driving the market during the forecast period.
Smart grids represent a modernized electrical grid system that utilizes advanced technologies for more efficient, dependable, and sustainable power management. In addition, high-voltage equipment plays a pivotal role in enabling the functionalities of smart grids. Furthermore, smart grids integrate various sensors, communication technologies, and automation to enhance the monitoring, control, and optimization of power distribution.
Moreover, high-voltage transformers, circuit breakers, and other equipment are essential components within this advanced grid infrastructure. In addition, they facilitate the transmission and distribution of electricity at elevated voltage levels, contributing to the overall efficiency of smart grid operations. Furthermore, one key aspect of the smart grid evolution is the emphasis on real-time data monitoring and analytics. In addition, high-voltage equipment equipped with sensors and communication capabilities enables grid operators to gather valuable insights into power flow, voltage levels, and equipment health. Hence, such factors are driving the market during the forecast period.
Governments and international bodies are increasingly enforcing stringent standards to address environmental concerns, focusing on reducing emissions, enhancing energy efficiency, and promoting sustainable practices. In addition, these regulations impact various aspects of the global market. Furthermore, environmental regulations often target the reduction of greenhouse gas emissions, prompting the global market to develop and adopt technologies that minimize the environmental impact.
Moreover, regulations may mandate lower emissions during the production and operation of high-voltage equipment. In addition, sulfur hexafluoride (SF6) is a potent greenhouse gas commonly used in high-voltage equipment as an insulating medium. However, owing to its high global warming potential, many countries are implementing regulations to phase out or limit the use of SF6 in electrical equipment. Hence, such factors are hindering the market during the forecast period.
The market is experiencing a surge in demand, especially in remote areas where traditional power infrastructure is limited. This demand is driven by the rapid expansion of solar energy farms and wind energy farms, necessitating robust transmission grids and accurate electricity measurement tools. Key players in the market are focusing on developing advanced high-voltage measuring equipment to ensure the safe and efficient flow of electric currents in power generation, substations, and power transmission systems. These advancements are crucial for maintaining the reliability of transmission and distribution networks and the overall electric power system. Technological innovations such as monitoring systems, sensor technology, and smart grid integration are at the forefront of the market's growth. These advancements not only enhance energy efficiency but also contribute to grid modernization projects and renewable energy systems, leading to carbon emissions reduction.
The power transmission segment is estimated to witness significant growth during the forecast period. The power transmission segment in the global market is witnessing significant growth driven by several key factors. Firstly, the increasing demand for electricity, fuelled by urbanization, industrialization, and the growing population, necessitates efficient power transmission systems. In addition, high-voltage equipment, including transformers, circuit breakers, and switchgear, plays a crucial role in ensuring the reliable and efficient transfer of electrical energy over long distances.
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The power transmission segment was the largest segment and was valued at USD 52.95 billion in 2018. Moreover, the integration of renewable energy sources, including wind and solar power, into the grid requires robust high-voltage equipment to manage the intermittent nature of these sources. In addition, as countries worldwide focus on transitioning toward cleaner energy solutions, the demand for high-voltage equipment to support renewable energy integration is escalating. Furthermore, the need for grid modernization and smart grid initiatives is contributing to the growth of the power transmission segment. In addition, high-voltage equipment with advanced technologies, such as digital monitoring and control systems, enhances grid reliability, minimizes losses, and enables more effective energy management. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on the type, the market has been segmented into transformer, switchgear, reactive power equipment, relay panels, and others. The transformer segment will account for the largest share of this segment. Transformers are key components in electrical systems, serving the fundamental purpose of voltage regulation and transmission efficiency. In addition, the ongoing global focus on infrastructure development, especially in emerging economies, has significantly increased the demand for electrical power. Moreover, transformers play a vital role in transmitting electricity over long distances, ensuring efficient power delivery to meet the growing needs of infrastructure projects, including industrialization and smart city initiatives. Furthermore, the rise of renewable energy sources, such as wind and solar, has led to an increased need for transformers. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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APAC is estimated to contribute 49% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC region is witnessing massive demand for electricity, owing to the considerable growth in electricity-consuming sectors. In addition, the rising urban population and an increase in the standard of living have made electricity a valuable commodity in many major countries in the region. Moreover, this has compelled many of these countries to open up the power sector for investments by private players. In addition, with the growing population in the region, the need for power has been steadily increasing. Furthermore, the growing rate of urbanization and the government's rural electrification plans have also raised electricity demand. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bharat Heavy Electricals Ltd: The company offers high voltage equipment such as Gas Insulated Switchgear with high reliability, safety, and small space requirements.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Emerson Electric Co., ETEL TRANSFORMERS PTY LTD., Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Hubbell Inc., Hyundai Electric and Energy Systems Co. Ltd., Mitsubishi Electric Corp., Schneider Electric SE, Siemens AG, Sumitomo Electric Industries Ltd., TBEA Co. Ltd., and Toshiba Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is undergoing significant transformations driven by various factors such as the growing demand for renewable energy sources like solar energy farms and wind energy farms. These energy farms require robust transmission grids and precise electricity measurement tools. High-voltage measuring equipment plays a crucial role in ensuring the safety and efficiency of electric currents in power generation, substations, and laboratories. As industries embrace electricity-consuming technologies such as robots, electric cars, and energy independence, the need for advanced high-voltage equipment becomes paramount. Companies like ABB Ltd and ALSTOM SA are pivotal in providing solutions for this transition, offering high-quality equipment for power generation and power transmission.
Moreover, the market is also influenced by factors like the transition to new production processes, smart grid technologies, and the rising global demand for electricity. However, challenges such as limited infrastructure, operational limitations, and volatility in raw material prices pose hurdles to the industry's growth. Innovations in energy storage systems, smart meters, and electric vehicle charging infrastructure are reshaping the high-voltage equipment landscape, driving advancements in grid modernization and carbon emissions reduction initiatives. The future of the market hinges on its ability to integrate renewable energy sources efficiently while ensuring the reliability and safety of power distribution networks.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.45% |
Market Growth 2024-2028 |
USD 50.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.25 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., ALSTOM SA, Bharat Heavy Electricals Ltd., CG Power and Industrial Solutions Ltd., DuPont de Nemours Inc., Eaton Corp. Plc, Emerson Electric Co., ETEL TRANSFORMERS PTY LTD., Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Hubbell Inc., Hyundai Electric and Energy Systems Co. Ltd., Mitsubishi Electric Corp., Schneider Electric SE, Siemens AG, Sumitomo Electric Industries Ltd., TBEA Co. Ltd., and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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