by The global High Voltage Equipment Market is estimated to be valued at US$ 115.41 Bn or Billion 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:
The high voltage equipment market involves products that are used for transmission and distribution of high voltages ranging from 100kV to 800kV. Key products in this market include transformers, switchgears, transmission lines, and cables. These products enable bulk transmission of electricity from generation centres to towns and cities located far away and ensure reliable distribution through the grid network.
Market key trends:
One of the key trends in the high voltage equipment market is growing investments in renewal of aging power infrastructure. Many countries around the world still rely on aging power grids that were built decades ago. There is a need to replace old equipment with more efficient and smart grid-enabled technologies. This is driving demand for high voltage equipment like transmission lines, transformers and switchgears. Another major trend is increasing penetration of renewable energy. Integration of large renewable power plants requires strengthening of transmission networks to handle variability in power supply. This is positively impacting the high voltage equipment market.
SWOT Analysis
Strength: The high voltage equipment market has a large customer base due to increasing industrialization and urbanization which fuels the demand for electricity. Strong focus on grid modernization and renewable energy integration also boosts the market.
Weakness: High initial investment requirements for setting up new infrastructure projects for high voltage equipment act as a barrier, especially for developing nations. Stringent government regulations regarding safety also increase compliance costs.
Opportunity: Growing focus on smart grid technologies to modernize aging infrastructure and better management of power distribution opens new opportunities. Rising demand for renewable energy also drives the need for efficient power transmission solutions.
Threats: Volatility in raw material prices such as steel and copper poses threat to stable profits. Changing environmental policies and subsidy cuts also impact demand forecasts in some countries. Grid congestion challenges due to intermittent renewable sources require innovative solutions.
Key Takeaways
The Global High Voltage Equipment Market Size is expected to witness high growth, exhibiting CAGR of 7.3% over the forecast period, due to increasing investments in T&D infrastructure development across regions. Utility-scale projects for grid integration of renewable energy further propels the demand.
Regional analysis: Asia Pacific dominates currently with a market share of over 35% in 2023 owing to rapid industrialization in China and India. North America and Europe are also major markets driven by smart grid investments. Countries such as India, Brazil and Middle East nations are expected to offer high growth opportunities during the forecast period supported by government initiatives for power sector expansion.
Key players operating in the High Voltage Equipment 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. Major players are focusing on development of advanced technologies for supercritical voltage transmission and modular substation solutions. Partnerships for joint projects especially in emerging markets also gain significance.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
