The high voltage equipment market comprises products such as switchgear, switchboard, power transformers, substation, and cables that are used in transmission and distribution of bulk electricity. These equipment are used in utility sectors, oil & gas industries, and mining sectors for effective transmission of electricity over long distances. The demand for high voltage equipment has risen significantly over the years owing to rapid industrialization and infrastructure development globally. Governments across countries are focusing on investments in transmission and distribution networks to achieve higher power transfer capacity and ensure reliable electricity supply to consumers.
The Global high voltage equipment market is estimated to be valued at US$ 132.96 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the high voltage equipment market are Polymedco Inc., Eiken Chemical Co. Ltd., Sysmex Corporation, Siemens Healthineers AG, Quidel Corporation, Novigenix SA, Hemosure Inc., Exact Sciences Corp., Epigenomics Inc., Olympus Corporation, and Clinical Genomics Technologies Pty Ltd., among others. The high voltage equipment market is primarily being driven by the growing investments in transmission and distribution projects globally. Utilities and grid operators are extensively spending on upgrading aging T&D infrastructure and establishing new networks to meet the increasing electricity demand. The governments across emerging economies are allocating large funds for development of national power grids to achieve electrification targets and boost industrialization. At regional level, the Asia Pacific high voltage equipment market is expected to witness significant gains over the coming years on account of robust investments in China, India and ASEAN power sectors.
Market drivers
One of the key drivers for The High Voltage Equipment Market is the increasing investments in global electricity transmission and distribution projects. As per estimates, around US$ 3.5 trillion investments are required globally between 2016-2030 to upgrade existing T&D infrastructure and build new transmission assets to deliver sustainable electricity to more users reliably and efficiently. Utilities across regions are spending heavily on asset maintenance and replacement programs as nearly half of the global T&D network is aged 25 years or above. Continuous expansion of power grids supported by favorable government policies will augment the demand for efficient and reliable high voltage equipment in the coming years.
Impact of geopolitical situation on High Voltage Equipment market growth
The global High Voltage Equipment market is facing challenges due to the ongoing geopolitical conflicts and economic uncertainty across several regions. Supply chain disruptions caused by lockdowns and sanctions have significantly reduced manufacturing capacities. Rising raw material prices as a result of supply constraints have increased production costs for market players. This is negatively impacting the investments toward grid modernization and expansion projects.
However, governments around the world are now focusing more on developing resilient and sustainable power infrastructure to deal with future crises. This provides new opportunities for High Voltage Equipment manufacturers. They need to diversify their supplier bases and establish local manufacturing facilities in key growth markets. Partnerships with global engineering and construction firms involved in grid modernization projects can help gain new orders. Developing innovative and digitally enabled products with lower lifetime costs per unit can boost their competitiveness. Establishing service and maintenance centers near project sites can aid long term business growth.
Geographical regions concentrated in High Voltage Equipment market
Currently, Asia Pacific accounts for the largest value share in the global High Voltage Equipment market. Countries like China, India, and Japan are undergoing rapid electrification which is leading to large investments in transmission and distribution infrastructure development. This is driving the regional demand for equipment used in substations, switchgears, circuit breakers and power transformers. North America is another major regional market boosted by ongoing grid modernization projects in the United States.
Europe is also among the top regions concentrated in terms of High Voltage Equipment market value led by developed markets of Germany, U.K, and France. However, Middle East and Africa region is anticipated to witness the fastest growth through 2030. This can be attributed to the increasing power generation capacities based on both conventional and renewable sources across GCC countries and Africa to meet rising electricity needs.
Fastest growing region for High Voltage Equipment market
The Middle East and Africa region is projected to emerge as the fastest growing region in the global High Voltage Equipment market between 2024 to 2030. This is due to substantial ongoing investments toward developing electricity transmission and distribution infrastructure across many countries. Factors driving the market growth include rising power demand from industrial, manufacturing, and building sectors, increasing electrification rates, reinforcement of existing grids, and new projects focusing on grid resilience. Additionally, government initiatives aimed at diversifying energy sources are promoting greater integration of renewable power assets which necessitate additional High Voltage Equipment. All these trends signal enormous opportunities for market players in the Middle East and Africa region in the coming years.
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