by The High Voltage Equipment Market is estimated to be valued at US$ 115.41 Bn or Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
High voltage equipment refers to devices that are used for power transmission and distribution at high voltages, typically between 115 kV and 800 kV. These devices include generators, transformers, circuit breakers, load break switches, capacitors, insulators and other switchgear components. Power transmission at high voltages helps reduce technical line losses during power transmission over long distances as power transmission losses are proportional to the square of line current. The availability of renewable sources of energy such as solar and wind farms located far from load centres have increased investment in long distance power transmission infrastructure which is driving demand for high voltage equipment.
Market Dynamics:
Growing investments in transmission infrastructure for integrating renewable energy sources into the grid is a key driver for the high voltage equipment market. Many countries are witnessing significant capacity additions in renewable energy like solar and wind power to reduce dependence on fossil fuels. However, renewable energy sources are often located far from load centres necessitating large investments in transmission infrastructure to efficiently transport this power over long distances. This is positively impacting the demand for high voltage equipment like transmission lines, switchgear, transformers etc. Moreover, the need to modernize aging power infrastructure in many developed markets is also supporting market growth. According to a report by International Energy Agency, global investment in electricity networks is estimated to reach $338 billion annually by 2030 to meet demand from rising electricity access and clean energy integration.
Segment Analysis
The high voltage equipment market is dominated by the power transmission segment. This segment accounts for over 60% of the total market share owing to widespread investments in upgrading aging transmission grids and increasing rural electrification projects across developing nations. Increasing investments in clean and renewable energy generation will further drive demand for high voltage equipment in the power transmission segment.
PEST Analysis
Political: Favorable government policies towards grid modernization, expansion of transmission and distribution networks, and boosting rural electrification across major countries will positively influence the market.
Economic: Growing investments in renewable energy integration, implementation of smart grid technologies, and demand from emergent economies will accelerate the market growth.
Social: Increasing access to electricity, rising energy demand from industrial and commercial sectors, and focus on clean energy will augment the market.
Technological: Advancements in superconductor materials, insulation technology, and digitization of grids present new opportunities for manufacturers.
Key Takeaways
The Global High Voltage Equipment Market Growth is expected to witness high, exhibiting CAGR of 7.3% over the forecast period, due to increasing investments in grid infrastructure modernization and expansion of transmission networks. The market size for 2023 is estimated at US$ 115.41 Bn.
The Asia Pacific region is expected to dominate the global market throughout the forecast period. Presence of emerging economies like China and India experiencing rapid industrialization and urbanization coupled with growing energy demand are driving heavy investments in modernizing existing transmission grids and building new transmission lines in the region.
North America is anticipated to exhibit significant growth, supported by grid infrastructure upgradation programs underway to eliminate network congestion issues and integrate renewable energy. Major grid operators in the US and Canada are actively investing in smart grid technologies.
Key players operating in the high voltage equipment market are ABB Ltd., Siemens AG, Larsen & Toubro Limited, General Electric Company, Honeywell International, Inc., Rockwell Automation, Inc., Emerson Electric Co., Mitsubishi Electric Corporation, Toshiba Corporation, Hitachi Ltd., Schneider Electric SE, Alstom SA, and Fuji Electric. Innovation through research & development and strategic partnerships are some of the key strategies adopted by market players to gain a competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
