HIGH VOLTAGE EQUIPMENT MARKET ANALYSIS

Global High Voltage Equipment market is estimated to be valued at US$ 188.46 Bn by 2030.

The growing need for energy in remote areas and the installation of solar and wind energy farms have resulted in the development of new transmission grids. These transmission grids require precise electricity measurement for efficient distribution and utilization. High-voltage measuring equipment plays a crucial role in accurately measuring electric currents within a wide range of applications, including power generation (substation), power transmission, industrial facilities, and laboratories. Additionally, the emergence of new electricity-consuming technologies like robots and electric cars further drives the demand for high-voltage measuring equipment, contributing to market growth.

Global High Voltage Equipment Market: Regional Insights

Asia Pacific held dominant position in the global High Voltage Equipment market in 2022, accounting for 37.1% share in terms of value, followed by Europe

Figure 1: Global High Voltage Equipment Market Share (%), By Region, 2022

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In terms of revenue, Asia Pacific high voltage equipment market accounted for the largest share of 37.1% in 2022, followed by Europe. As most of the European countries focus on high energy independence and a shift towards a less oil intensive sector, the region contributed 24.8% revenue share in the global high voltage equipment market in 2022. The electrical and electronics industry in Europe is focused on increasing investments in production automation and transition to new production processes thus increasing demand for robotics, integrated assembly solutions (IAS), which is fueling growth of the high voltage equipment market in Europe. European transmission and distribution companies design, manufacture, and install high- and medium-voltage products to transmit and distribute electricity from generation to the end user worldwide. Major companies in Europe are focused on acquiring contracts to enhance their market share.

Global High Voltage Equipment Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has significantly impacted the High Voltage Equipment Market. The outbreak has caused disruptions in the global supply chains, manufacturing operations, and overall economic activities, leading to a decline in demand for high voltage equipment. The lockdown measures implemented by governments worldwide to contain the spread of the virus have resulted in the suspension of construction projects and delays in infrastructure development, affecting the demand for high voltage equipment in sectors such as power generation, transmission, and distribution. Furthermore, the economic uncertainty caused by the pandemic has led to reduced investments in new projects and capital expenditures, impacting the market for high voltage equipment. Many industries, including oil and gas, manufacturing, and mining, have experienced a decline in production and investment, resulting in lower demand for high voltage equipment.

Global High Voltage Equipment Market- Drivers:

Increasing Demand for Electricity

The growing global population, urbanization, and industrialization have led to a significant rise in electricity consumption. High voltage equipment is essential for power generation, transmission, and distribution to meet the increasing demand for electricity. For Instance on May 10, 2023 report Published by Statista Research Department which is a consumer data provider Over the past 50 years, there has been a consistent upward trend in global electricity consumption, with the total reaching approximately 25,300 terawatt-hours in 2021. During the period from 1980 to 2021, electricity consumption witnessed growth three times, whereas the global population grew by approximately 75 percent. This growth can be attributed to the expansion of industrialization and the enhanced accessibility to electricity worldwide, which have both contributed to a significant surge in the demand for electrical power.

Expansion of Renewable Energy Sources

The shift towards cleaner and sustainable energy sources, such as solar, wind, and hydropower, has led to the installation of large-scale renewable energy projects. High voltage equipment is required to transmit electricity generated from these sources efficiently across all around the world. For Instance, In October, 2020 Article published by Balkan Green Energy News which is an online platform which covers environmental and energy related news, published that Huanghe Hydropower Development has successfully integrated its 2.2 GW photovoltaic park with the electrical grid. This photovoltaic park, situated in Qinghai, China, ranks as the second-largest solar power plant globally. Notably, the facility incorporates an energy storage system with a capacity of 202.9 MW, provided by the domestic company Sungrow. This solar power plant is a pivotal component of a vast renewable energy initiative that aims to achieve a total capacity of 16 GW.

Global High Voltage Equipment Market- Opportunities:           

Grid Modernization and Smart Grids

The modernization of aging power grids and the implementation of smart grid technologies provide opportunities for high voltage equipment. Smart grids rely on advanced high voltage equipment to enable real-time monitoring, control, and optimization of electricity flow, enhancing grid reliability and efficiency. For Instance in March 2022, a press release by Ministry of Power India stated that, Government of India has established National Smart Grid Mission (NSGM) The primary objective of implementing Smart Grids is to enhance the reliability of electricity networks and facilitate the integration of renewable energy from distributed generation sources. Additionally, the deployment of Smart Grids and Smart Meters enables consumers to effectively manage their electricity consumption, leading to reduced bills. Furthermore, the National Smart Grid Mission (NSGM) emphasizes the importance of capacity building initiatives for personnel working in the Distribution Sector, particularly in the domain of Smart Grids.

Electric Vehicle Infrastructure       

The rapid expansion of electric vehicle (EV) adoption requires the development of robust charging infrastructure. High voltage equipment plays a vital role in EV charging stations, providing opportunities for equipment manufacturers and service providers. For Instance in September 2021, ABB which is a electrical equipment manufacturer launched their world’s fastest charger which can charge up to four vehicles at once.

Global High Voltage Equipment market was valued at US$ 107.56 Bn in 2022 and is forecast to reach a value of US$ 188.46 Bn by 2030, exhibiting CAGR of 7.3% between 2023 and 2030.

Global High Voltage Equipment Market- Trends:

Integration of Energy Storage Systems

Energy storage systems, such as batteries and pumped hydro storage, are gaining prominence for grid stability and the effective management of intermittent renewable energy sources. High voltage equipment plays a vital role in connecting and managing energy storage systems, facilitating their integration into the grid. For Instance in October 2022, A new task force has been established under the Strategic Clean Energy Partnership (SCEP) between the United States and India, with a specific objective of expediting the deployment of energy storage technologies. The task force aims to enhance collaboration and knowledge exchange between the two countries in the realm of energy storage, facilitating the swift adoption and implementation of these technologies.

Electrification of Transportation

The growing shift towards electric vehicles (EVs) is driving the demand for high voltage equipment. EV charging infrastructure relies on high voltage equipment to provide efficient charging solutions and support the widespread adoption of electric mobility. For Instance, On January 10, 2023 SEG Automotive which is an e-mobility solutions provider introduced high voltage machines for Indian Market

Global High Voltage Equipment Market- Restraints:

High Capital Costs for manufacturing and maintenance

High voltage equipment, such as transformers, circuit breakers, and switchgears, involve significant upfront capital investments. The cost of manufacturing, installation, and maintenance of high voltage equipment can be substantial, posing a challenge for market adoption, particularly for small and medium-sized enterprises.

Infrastructure Limitations for the installation of High Voltage Equipment

The installation of high voltage equipment requires robust and reliable infrastructure, including transmission lines, substations, and grid interconnections. In some regions, limited or outdated infrastructure may hinder the implementation of high voltage equipment, resulting in operational limitations. For Instance On May 26, 2023 article published by EV Reporter a company which covers news regarding Electric Vehicle and related updates stated that The High Voltage system requires special training for the people who are working on it and need specialized equipment and gears for their safety. The risk associated while working in those kinds of environments requires precaution without the safety norms working area can be fetal.

Figure 2: Global High Voltage Equipment Market Share (%), By Segment, 2022

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Global High Voltage Equipment Market- Segmentation:

Global High Voltage Equipment market report is segmented into Equipment type and Voltage Level.

By Equipment Type: Circuit Breaker, Disconnector, Insulator, Switchgear, Surge Arrester, Battery Set, Capacitors and Filters, Control Equipment, Switches, and Others.

By Voltage Level: HV-Up to 200kV Voltage, EHV-200 to 800kV Voltage, HVDC-500kV Voltage, UHV-800kV & Above.

Global High Voltage Equipment Market: Key Developments

Major market players are focusing on product launches in order to enhance their product portfolio. For instance, On May 10, 2023, Nexperia, a renowned provider of critical semiconductors, has introduced its initial Power GaN FETs designed in an e-mode (enhancement mode) configuration, targeting both low (100/150 V) and high (650 V) voltage applications. With the addition of seven new e-mode devices to its cascode lineup, Nexperia expands its range of GaN FET options available to designers, complementing its extensive collection of power electronics components based on silicon technology.

On April 06, 2023, TDK has introduced a range of High-Voltage contactors specifically engineered to meet the requirements of DC contactor relay applications with high current demands. These High-Voltage contactors (HVCs) play a vital role in various fields such as electric vehicles, charging stations, commercial vehicles including buses, trucks, and heavy machinery, uninterrupted power supplies, as well as energy storage systems utilized in renewable energy applications.

In August 2021, Keysight Technologies, Inc. a prominent technology company focused on providing advanced design and validation solutions to foster innovation and enhance global connectivity and security, has unveiled the Scienlab SL1700A Series. This battery pack test system represents the next generation of testing solutions tailored for high voltage battery packs, catering to automotive and industrial applications with voltage capabilities of up to 1500 V.

In July 2021, Elektrik, a startup operating as an e-commerce platform for high voltage electrical supplies, has secured a seed funding round of $1 million from the accelerator, Album VC. The funding will support Elektrik's research-oriented endeavors in the field of high voltage electrical equipment and its online storefront.

Global High Voltage Equipment Market: Key Companies Insights

Global High Voltage Equipment market is highly competitive, owing to rising launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global High Voltage Equipment market are Major companies operating in the global 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.

*Definition: High voltage equipment refers to a category of electrical devices and components designed to operate and handle electrical power at high voltage levels. High voltage typically refers to voltage levels above 1,000 volts, although specific definitions may vary depending on the context and industry.