Vacuum Insulated Switchgear Market Size - By Voltage (Low, Medium, High), By Current (AC, DC), By Application (Residential, Commercial & Industrial, Utility) & Global Forecast, 2023 - 2032
Vacuum Insulated Switchgear Market Size - By Voltage (Low, Medium, High), By Current (AC, DC), By Application (Residential, Commercial & Industrial, Utility) & Global Forecast, 2023 - 2032
Vacuum Insulated Switchgear Market size is poised to grow at over 7% CAGR from 2023 to 2032, propelled by the evolution of smart grids and the increasing demand for grid automation. With the transformation of the energy landscape, smart grids have emerged as critical components in modernizing electrical distribution systems. Vacuum insulated switchgear (VIS) technology contributes to grid resilience by reducing the risk of electrical faults and system downtime with critical features for ensuring the reliability of smart grids.
Moreover, the ongoing investments in the development of smart grid projects is expected to support the market growth. To cite an instance, in September 2023, the Minister of Energy and Natural Resources of Canada announced more than $175 million in government funding for 12 Alberta-based renewable energy projects to lower emissions equivalent to removing nearly 325,000 gas-powered automobiles from the road each year.
The vacuum insulated switchgear market is segmented based on voltage, current, application, and region.
With respect to voltage, the market size from the medium segment is poised to depict over 6.5% CAGR during 2023-2032. Medium voltage VIS systems typically operating within the voltage range of 2.4 kV to 36 kV have gained prominence in various applications, including utilities, industrial facilities, and commercial complexes. These systems offer enhanced safety features and robust insulation capabilities for significantly reducing the risk of arc flash incidents.
Vacuum insulated switchgear industry from the commercial & industrial application segment is estimated to expand at more than 6.5% CAGR from 2023 to 2032. This can be attributed to the increasing demand for highly reliable and efficient electrical distribution systems. Commercial and industrial environments make use of high-performance electrical distribution solutions to minimize downtime and ensure worker safety. The widespread deployment of VIS for the safe and efficient operation of manufacturing plants and petrochemical facilities is likely to support the segment growth.
Europe vacuum insulated switchgear industry is expected to expand at over 8% growth rate from 2023-2032. The strong emphasis on energy efficiency, reliability, and environmental sustainability is fueling the adoption of advanced electrical distribution technologies in the region. For instance, the European Commission is planning to phase in a restriction on the potent greenhouse gas SF6 coming from electrical equipment from 2026. Hence, the rising environmental concerns and regulations for promoting the adoption of VIS will outline the market growth.