High Voltage Equipment Market Is Estimated To Witness High Growth
The High Voltage Equipment Market is estimated to be valued at US$ 115.41 Bn 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 consists of products like cables and conductors, switchgear, transformers, and others. These products are designed for high voltage applications ranging from 110 kV to 800 kV and above. High voltage equipment plays a vital role in the generation, transmission, and distribution of electricity across medium and long distances. They offer benefits like safety, reliability, and efficiency during power transmission and distribution.
Market key trends:
The growing integration of renewable energy resources like solar and wind into transmission grids is a major trend driving the demand for high voltage equipment. As renewable energy sources are generally located far from load centers, their successful integration requires expanding transmission networks with high-capacity transmission lines and equipment capable of handling increasing long-distance power flows reliably and efficiently. This is promoting investment into high voltage transmission equipment. Additionally, the rise in electricity demand worldwide along with ageing of existing transmission infrastructure is also propelling the need for modernized high voltage equipment with advanced technologies and designs.
Porter's Analysis
Threat of new entrants: The high voltage equipment market requires huge capital investment and established distribution channels. Thus threat of new entrants is moderate.
Bargaining power of buyers: Large utilities and OEMs have significant bargaining power over equipment manufacturers due to the oligopolistic nature of the market.
Bargaining power of suppliers: Major components such as conductors, insulators etc. are sourced from few specialized manufacturers globally increasing their bargaining power.
Threat of new substitutes: There are no cost-effective substitutes for high voltage equipment currently. However, technologies like HVDC transmission poses potential threat.
Competitive rivalry: The market is highly consolidated with top 5 players accounting for over 50% share. Intense competition exists based on product quality, experience and pricing.
SWOT Analysis
Strength: Established global presence, technical expertise, ability to provide customized and integrated solutions.
Weakness: Heavy reliance on economic cycles, vulnerability to supply chain disruptions.
Opportunity: Investments in transmission infrastructure in developing nations, adoption of smart grid technologies, renewable energy integration.
Threats: Trade barriers, changing government regulations, evolving technology trends like HVDC.
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 modernization of aging power infrastructure and expansion of transmission and distribution networks globally. North America dominated the market in 2023 with over 30% revenue share owing to large replacement demand in the US and Canada. However, Asia Pacific is projected to witness fastest growth during the forecast period with China, India and Southeast Asian countries investing heavily in grid upgradation.
Regional analysis: Europe remains the second largest High Voltage Equipment market globally supported by EU’s goals to transition to renewable sources by 2030. Countries like Germany, UK and France are actively upgrading their T&D systems.
Key players: 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. ABB Ltd., Siemens AG and General Electric together control over 35% of the market owing to their integrated digital solutions and global After Market service networks.