The global high-voltage switchgear market is expected to reach $30.34 in 2027, according to the latest forecasts from GlobalData.
With the transition to cleaner and more intermittent sources of electricity generation, electrical grids around the world are needing to undergo major upgrades. That is leading to a growth in the demand for high-voltage switchgear, with the market expected to see a compound annual growth rate of 3.54% between 2023 and 2027.
Bhavana Sri Pullagura, Senior Power Analyst at GlobalData, commented, “The growing demand for electricity is giving rise to the need for new power plants, particularly those modes of generation that have minimal impact on the environment.
“Several countries have begun to address deployment barriers to create a conducive market for increasing the use of renewable energy technologies and gas-based generation. The falling capital cost and low gas prices also resulted in increased development of renewables and gas power plants. This contributed to the growth of the switchgear market, which is expected to continue as countries seek to increase the share of renewables and gas in their generation mix.”
Grid upgrades are occurring all around the world, although Europe, the Middle East and Africa are leading the way. Currently the EMEA region holds the largest share of the market for high-voltage switchgear, with a share of 44.6% in 2022, although that is only set to grow further to 48.24% by 2027 as countries within the region upgrade their electrical grids.
The UK is seeing significant upgrades to its electrical grid, with National Grid deploying new substations throughout the country as part of its quest to build a net zero electricity system by 2025. This includes a commitment to installing SF6-free gas insulated switchgear technology, such as those from ABB, as it looks to phase out SF6 from the UK’s electrical grid by 2050.