Global oil-insulated switchgear (OIS) market to grow with CAGR of 6.5% 

The global oil-insulated switchgear (OIS) market, valued at USD 8.8 billion in 2023, is projected to experience considerable growth, with an anticipated compound annual growth rate (CAGR) of 6.5% from 2024 to 2032.

The oil-insulated switchgear market is expanding robustly due to increasing investments in infrastructure development, particularly in emerging economies. The global oil-insulated switchgear (OIS) market, valued at USD 8.8 billion in 2023, is projected to experience considerable growth, with an anticipated compound annual growth rate (CAGR) of 6.5% from 2024 to 2032. The emerging economies are prioritising the modernisation and expansion of their electrical grids to accommodate growing urbanisation and industrialisation. In parallel, developed regions are focusing on upgrading their ageing electrical infrastructure, further propelling the demand for advanced switchgear solutions.

Oil-insulated switchgear is favoured for its high dielectric strength and reliability, making it ideal for high-voltage applications. Its significance is growing as the renewable energy sector expands, requiring sophisticated switchgear solutions to effectively integrate green energy sources into the power grid. Technological advancements and the development of compact, efficient switchgear designs are also contributing to market growth.

Environmental considerations and stringent regulatory standards are encouraging the adoption of oil-insulated switchgear. This type of switchgear offers enhanced safety and performance compared to traditional air-insulated systems, aligning with global efforts to reduce environmental impacts and improve system efficiency.

Market Insights and Projections

Trends and Innovations

Manufacturers are increasingly investing in research and development to enhance the efficiency, reliability, and compactness of switchgear solutions. The rise of digital switchgear, which integrates monitoring and diagnostic tools, is a notable trend. These advancements improve operational efficiency, reduce maintenance costs, and enhance the reliability of power distribution networks. As nations pursue renewable energy targets, the demand for advanced switchgear capable of managing renewable energy sources is increasing.

In developed regions, the urgency to modernise ageing electrical infrastructure is driving new switchgear installations. The need for advanced switchgear is particularly evident in areas with significant investments in wind, solar, and hydroelectric power projects.

Segment Analysis

Voltage Segmentation: The low voltage segment is expected to exceed USD 8.6 billion by 2032. This growth is driven by the increasing demand for reliable low-voltage power distribution solutions across residential, commercial, and industrial sectors. The expansion of renewable energy projects also requires advanced low-voltage switchgear to manage the integration of these energy sources into the grid.

Current Segmentation: The alternating current (AC) segment is projected to grow at a CAGR of 6.2% through 2032. This growth is driven by the need for reliable power distribution systems across various sectors and the modernisation of ageing infrastructure. Technological advancements that enhance efficiency and safety are also contributing to this trend.

Regional Insights

Asia Pacific is anticipated to surpass USD 8.1 billion by 2032, driven by the growing demand for efficient power distribution systems due to urban expansion and large-scale infrastructure projects. Countries such as China, India, and various Southeast Asian nations are investing heavily in infrastructure, boosting the demand for oil-insulated switchgear.

In the United States, substantial investments in the modernisation and expansion of the power grid position it as one of the largest markets for electrical infrastructure. The US is a leader in technological innovation, particularly in the development of advanced switchgear technologies such as digital and smart systems.

Market Share and Competitive Landscape

Leading companies in the oil-insulated switchgear market include ABB, Schneider Electric, and Siemens. These firms hold significant market share due to their technological expertise, extensive experience, and global presence. Their ongoing investment in research and development ensures the provision of advanced and reliable switchgear solutions.

Recent Industry Developments

Indian renewable energy company SAEL Ltd announced plans to issue its first dollar-denominated bonds worth USD 500 million by the end of June. The funds are intended to support sustainable energy projects, particularly solar plant construction, highlighting the market’s potential.

Digital Realty and Schneider Electric collaborated on a circular economy initiative at the Paris 5 data centre. This project aims to enhance the longevity of essential systems, including Schneider Electric’s low and medium-voltage electrical equipment and switchgear.

The oil-insulated switchgear market is set for significant growth, driven by infrastructure investments, technological advancements, and the increasing integration of renewable energy sources.