Low Voltage Oil Insulated Switchgear Market size is estimated at USD 5.2 billion in 2024 and is predicted to reach USD 12.9 billion by the end of 2037, growing at a CAGR of 7.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of low voltage oil insulated switchgear is assessed at USD 5.6 billion.
The rising infrastructure development programs and increasing demand for durable electrical distribution systems are augmenting the adoption of low-voltage oil-insulated switchgear systems.
The global infrastructure industry was evaluated at USD 2.7 trillion in 2024 which is a testament to the massive investments made in the sector. For instance, the U.S. high-speed rail line, Sweden's Skagerrk railway line, and the Tokyo to Nagoya Maglev rail line are some of the top investments in infrastructure development programs across the world. This is further expected to drive the sales of low voltage oil insulated switchgear technologies in the coming years.
Also, many developed countries grappling with aging electrical grids are anticipated to fuel the sales of low voltage oil insulated switchgear solutions in the foreseeable future. To address the issues posed by aging switchgear, companies are focused on upgrading existing systems. This includes replacing outdated low-voltage switchgear with modern versions that offer enhanced performance and safety features.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.2% |
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Base Year Market Size (2024) |
USD 5.2 billion |
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Forecast Year Market Size (2037) |
USD 12.9 billion |
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Regional Scope |
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Current (AC, DC)
The AC low voltage oil insulated switchgear segment in the low voltage oil insulated switchgear market is expected to account for 81.3% of the revenue share by 2037 owing to its reliability, high performance, and operational efficiency. The ongoing infrastructure development activities and rising urbanization lead to high energy demands and renewable energy and smart grid system installations, boosting the need for reliable AC switchgear systems. Furthermore, the development of smart cities focusing on intelligent power management systems is increasing the sales of advanced AC switchgear solutions. The AC low voltage oil insulated switchgear system sales are forecasted to reach USD 10.5 billion by 2037.
Application (Residential, Commercial & Industrial, Utility)
The commercial and industrial segment is foreseen to hold 57.5% of the global low voltage oil insulated switchgear market share by 2037. The low voltage oil insulated switchgear systems offer excellent dielectric strength, reducing the risk of electrical failures, and can handle high load currents and short circuit conditions effectively, ensuring stable operations in demanding environments such as industrial and commercial. The rising research and development activities focused on reducing the costs of switchgear and the increasing adoption of smart technologies to enhance operational efficiency are fuelling the demand for low voltage oil insulated switchgear systems in industrial and commercial applications.
Our in-depth analysis of the low voltage oil insulated switchgear market includes the following segments
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Current |
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Application |
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Asia Pacific Market Forecast
Asia Pacific is set to capture 48.1% of the global low voltage oil insulated switchgear market share by 2037. Asia Pacific is one of the dominant markets for low voltage oil insulated switchgear owing to its robust industrial hub and the presence of several manufacturing organizations. The ongoing infrastructure and rural developments coupled with rapid urbanization and industrial activities are fuelling the adoption of advanced switchgear technologies in the region. China and India are high-growth marketplaces in the Asia Pacific, while Japan and South Korea are leading the development of innovative switchgear.
India is witnessing rapid infrastructure development programs owing to the increasing population and economic growth. The rising demand for improved transport infrastructure including rails, roads, aviation, shipping, and inland waterways is positively influencing the sales of low-voltage switchgear systems. Past 4 years until 2024, the Infrastructure Investment Trusts and Real Estate Investment Trusts have amassed around USD15.6 billion according to the Reserve Bank of India. Furthermore, 15 airport projects worth USD 12.1 billion are estimated to be inaugurated by 2028 in the country. This directly generates lucrative opportunities for low-voltage oil-insulated switchgear producers in the country.
In China, key sectors such as construction, manufacturing, and transportation are expanding at a rapid pace leading to a high demand for low-voltage switchgear systems for efficient power distribution and control. The national initiatives aimed at upgrading power distribution networks and facilities are further pushing the adoption of low-voltage oil-insulated switchgear systems.
North America Market Statistics
The North America low voltage oil insulated switchgear market is expected to increase at a fast pace owing to the strong presence of key market players and rising digital shift among several industries. The high adoption of digital technologies is generating lucrative opportunities for innovative low voltage oil insulated switchgear producers. The aging infrastructure in the U.S. and Canada is necessitating the adoption of advanced switchgear systems.
In the U.S. the growing emphasis on renewable energy sources such as solar and wind are fuelling the adoption of advanced low-voltage oil-insulated switchgear systems. The supportive government policies on infrastructure development are also augmenting the sales of low voltage oil insulated switchgear technologies. For instance, in July 2022, the U.S. government announced USD 2.3 billion for States and Tribes to strengthen and modernize the power grid.
In Canada, the increasing adoption of sustainable manufacturing practices and implementation of strict environmental regulations and initiatives are anticipated to push the sales of low-voltage oil-insulated switchgear technologies. For instance, the country focuses on reducing carbon emissions by 40% to 45% by 2030, following the net zero emissions by 2050 plan.
Key players in the low voltage oil insulated switchgear market are adopting several organic and inorganic tactics to earn more. Leading companies are partnering with technology providers and other players to develop innovative low voltage oil insulated switchgear technologies. They are also collaborating with local firms in emerging markets to facilitate easy entry and attract a wider audience base. Industry giants are also employing mergers and acquisitions strategies to expand their product offerings.
Some of the key players include:
Author Credits: Dhruv Bhatia
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