Global Data report: global transmission network expansion drives high voltage switchgear


Switchgear industry responds to inclusion of renewable power sources

In new report by Global Data, High Voltage Switchgear for AC Transmission Systems: Global Market Size, Segmentation, and Average Pricing Analysis to 2020, the expansion and upgrades within the global transmission network will drive the high-voltage-switchgear market in the coming years, as rising populations and industrialization encourage growth of the global electricity demand. This necessitates growth in the installed power-generation capacity, and upgrade of the supporting transmission infrastructure. China and the US are the two leading high-voltage-switchgear markets in the world, respectively holding 20.5% and 6.3% share in 2011. During the 2012-2020 period, the high-voltage-switchgear market in China and the US is accordingly predicted to reach over $13,374 million and $5,421 million. Main driver for a growing high-voltage-switchgear market in China will be new build, as the Chinese Electricity Council's investment plan has allocated around $390 billion for grid construction by 2015. Several generation and transmission projects are already under construction. 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 EEI (Edison Electric Institute) states electric utilities will increasing their transmission investments from approximately $12.6 billion in 2011 to $13.5 billion in 2014. The market's third major player However, 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. 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 upgrade needs of the existing power transmission network and new power-transmission line construction. With big investment plans for the modernization of the existing transmission network, and under the revised investment plan for 2010-2014, the FGC (Federal Grid Company) plans to invest a total of $21.3 billion on grid infrastructure upgrades and new power transmission lines. In 2010, the total high-voltage-switchgear market stood at $5.1 billion. It is expected to reach $7.3 billion by 2015. It is expected that it will surpass $10 billion in 2020, growing at a CAGR of 7.8% between 2010 and 2020. Global Data