Transmission Industry Switches Gear

Wednesday 18 July 2012, Amsterdam

Demands to incorporate renewable power sources into the transmission network will drive the switchgear industry, while efforts to reduce power transmission losses and connect the increasingly electrified world continue, says the new High Voltage Switchgear for AC Transmission Systems - Global Market Size, Segmentation and Average Pricing Analysis to 2020 report.

The new report states that expansion and upgrades within the global transmission network will drive the high voltage switchgear market in the coming years, as rising population levels and industrialization encourage the global electricity demand to grow. This necessitates growth in the installed power generation capacity, and the upgrade of supporting transmission infrastructure.

China and the US are the two leading high voltage switchgear markets in the world, holding respective shares of 20.5% and 6.3% in 2011. During the 2012-2020 period, the high voltage switchgear market in China and the US is predicted to reach over $13,374m and $5,421m accordingly.

The main driver for the growing high voltage switchgear market in China will be the new build market, as the Chinese Electricity Council’s investment plan has allocated around $390 bn to be spent on grid construction by 2015. Several generation and transmission projects are already under construction, and many more will enter the pipeline in the immediate future.

In the US, growth is expected to be driven by increased investment in transmission and distribution infrastructure and replacements, and the Edison Electric Institute (EEI) states that electric utilities will continue increasing their transmission investments from approximately $12.6 bn in 2011 to $13.5 bn in 2014.

However, both China and the US will have to make way for a third switchgear superpower, as Russia is also expected to boast a booming market in the next few years. The cumulative market value contribution of these three countries is expected to amount to more than 35% by 2020. The high voltage switchgear market in Russia is expected to be driven by a need to upgrade the existing power transmission network and lay new power transmission lines. The country has big investment plans for the modernization of the existing transmission network, and under the revised investment plan for 2010-2014, the Federal Grid Company (FGC) plans to invest a total of $21.3 bn on grid infrastructure upgrades and new power transmission lines.

In 2010, the total high voltage switchgear market stood at $5,095m, and it is expected to reach $7,332m in 2015. It is expected that it will surpass $10,000m in 2020, growing at a compound annual growth rate (CAGR) of 7.8% between 2010 and 2020.

This report lists drivers and restraints for the global high voltage switchgear market. It studies sales volumes, market value and average prices, covering eight key countries. Various products have been analysed in the high voltage switchgear market, including circuit breaker isolators, current transformers, potential transformers, lightening arrestors, and protection panels.

This report is built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by a team of industry experts.