The high voltage equipment market comprises a variety of products including cables & connectors, switchgear, transformers, and more which help in transmission and distribution of electricity across high voltages ranging from 1,100kV to 800kV. High voltage equipment find widespread adoption in utilities managing power transmission and distribution networks. They aid smooth flow of bulk electricity from remote power plants to towns and cities located at a distance while minimizing power losses during transmission. Growing investments in building electricity transmission infrastructure to support new renewable power projects along with expansion of existing power grids is a key factor driving demand for high voltage equipment globally.
The Global high voltage equipment market is estimated to be valued at US$ 132.96 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in The High Voltage Equipment Market are Polymedco Inc., Eiken Chemical Co. Ltd., Sysmex Corporation, Siemens Healthineers AG, Quidel Corporation, Novigenix SA, Hemosure Inc., Exact Sciences Corp., Epigenomics Inc., Olympus Corporation, and Clinical Genomics Technologies Pty Ltd., among others. These players are focusing on developing advanced products with improved specifications to gain more customers and bolster their position in the market.
The growing demand for electricity across both residential and industrial sectors along with rising infrastructural activities are major factors elevating the need for new power plants along with expansion of existing transmission and distribution networks. This is augmenting demand for high voltage equipment significantly.
The increasing focus of governments worldwide on integrating more renewable power generation capacity is encouraging development of offshore wind and solar PV projects located far from load centers. This is necessitating investment in new long-distance transmission lines requiring high voltage equipment, thereby propelling the market’s growth on a global scale.
Market key trends
One of the key trends gaining traction in the high voltage equipment market is rising investments in ultra-high voltage (UHV) transmission networks. UHV networks featuring transmission voltages over 1,100kV help transmit bulk power over long distances with reduced losses compared to traditional networks. China has emerged as a frontrunner in developing UHV networks to address inter-regional power imbalances. Growing adoption of UHV networks worldwide will augment demand for advanced high voltage equipment rated for voltages over 1,100kV in the coming years.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale make it difficult for new players to enter the market.
Bargaining power of buyers: The market has large buyers like utilities and substation designers with significant bargaining power.
Bargaining power of suppliers: Established suppliers of specialized components and materials have some bargaining power.
Threat of new substitutes: Substitution threat is low as high voltage equipment has no close substitute.
Competitive rivalry: The market is consolidated with a few large global players and regional small players compete on quality, innovation and customer service.
Geographical Regions: North America currently holds the largest share of the high voltage equipment market in terms of value owing to established grid infrastructure and rising investments in grid modernization in the US and Canada. Asia Pacific is witnessing the fastest growth due to ongoing investments in transmission and distribution infrastructure to meet the growing power demand in major countries like China and India. Countries are undertaking large scale projects to develop and upgrade existing transmission networks to support renewable energy integration.