Ring Main Unit Market Size, Share & Industry Analysis, By Type (Gas Insulated, Oil Insulated, Air Insulated, Solid Di-electric, Others), By Voltage (Low Voltage, Medium Voltage, High Voltage), By Application (Distribution Utility, Industrial, Commercial & Residential), By Installation (Indoor, Outdoor), and Regional Forecast, 2024-2032

The global ring main unit market size was valued at USD 1.93 billion in 2023 and is projected to be worth USD 2.06 billion in 2024 and reach USD 3.60 billion in 2032, exhibiting a CAGR of 7.2% during the forecast period

A notable development in urbanization and multiple smart city initiatives worldwide have led to the demand for RMUs worldwide. Revolution in the electrical and electronic sector has led to urbanization and industrialization, making it necessary to increase the reliability of electric supply. RMU is a type of metal-enclosed switchgear used in safe power distribution. The units are used for circuit control, isolation, and protection. It enhances service quality and reduces operational costs in the long term.

The global impact of COVID-19 has been unmatched and staggering, with the ring main unit witnessing a negative demand across all regions amid the pandemic. As the electrical industry affects the market, the weakening faced by the power supply industry due to the reduced power demand from the industrial and commercial sectors impacted the investment in the units. The shutdown of businesses and trades due to lockdowns reduced power consumption and further reduced power distribution activities. Companies and governments postponed their power infrastructure projects. These factors have directly impacted the utilization of the units.  Based on our analysis, the global market exhibited a decline of -11.2% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR of this market during the forecast period is attributable to this market's demand and growth, returning to pre-pandemic levels once the epidemic is over.

Ring Main Unit Market Trends

Increasing Adoption of Smart Grids to Augment Market Growth

Notable technological developments have been made in the electrical and electronics sector in the past decade. The increasing reliance on electric power for various appliances and consumer electronics has driven the need for remotely controllable grids. The rise in the demand for smart monitoring and control and digital controlling of power grids has increased the adoption of smart grids. The need for RMUs to assist in these newly set up smart grids is observable. This factor is expected to enhance market opportunities in the forecasted period.

Improvement of Aging Power Infrastructure to Enhance Market Size

According to the International Energy Agency's World Energy Investment Report 2020, global spending on transmission reached USD 90 billion in 2019. China saw a high focus on upgrading rural power grids and constructing distribution networks. The U.S. saw growth in investments for the fifth consecutive year due to regulations on improving grid resilience and reliability. Distribution investment in Europe and China remained stable due to lower growth rates for electricity demand. The increasing investment in improving old power infrastructure is anticipated to give rise to smart power systems using switching capabilities like the ring main units.

Ring Main Unit Market Growth Factors

Rising Industrial Infrastructure to Aid Market Development

Increasing investments in industrial infrastructure are anticipated to hasten the power supply and distribution lines across industries and regions. The increasing industrialization has furthered the setup of new industrial facilities. Industries require complex electrical substations to facilitate their power requirements and avoid accidents due to overloading. Switching equipment like the RMU is necessary to maintain voltage fluctuations. Due to its low load capacity, the high-voltage circuit is frequently regulated by a load switch or a vacuum contactor. RMU is small and can easily fit many different structures. Therefore, it is used for long-term, reliable power supply and high-voltage switching operations. The main purpose of RMU in the industrial sector is to increase the power supply’s reliability, mainly in the mining and construction industries. Moreover, it has become vital to warrant the safe operation of electric supplies due to increased industry dependence on electrical machinery. Hence, growing investments in industrial infrastructure will propel market growth during the forecast period.

Growing Renewable Energy Demand to Drive Market Growth

The growing conscience for the environment amongst consumers and increased focus on reducing carbon emissions will drive renewable energy generation. The development of the renewable energy industry has directed governments to establish power plants to produce power from various renewable resources. The rising dependence on renewable energy resources for power generation can also be accredited to the lower capital requirement than oil and gas.

According to the IRENA’s (International Renewable Energy Agency) Projected Costs of Generating Electricity in 2020, the Levelized Cost of Electricity Generation (LCOE) using various energy sources from different world regions was studied. It was found that wind energy costs the least, whereas electricity generation from coal costs the most. The increased investment in renewable energy sources is expected to increase distribution utility, which will require smart switching equipment. This market is expected to grow as a result of these factors.

Moreover, the International Energy Agency (IEA) estimates that the electricity demand will grow by 3-4% a year over the next few years compared to 2022, with more than 70% coming from China, Southeast Asia, and India. The renewable energy share of the power generation mix is set to rise from 29% to 35% by 2025 and it will meet over 35% of the global power generation by 2025.

RESTRAINING FACTORS

High Investment Cost Could Hamper Market Growth to Some Extent

RMUs are metal-enclosed switchgear. It includes a protection and metering device. They control circuits, isolate faulty equipment, and protect the circuit from earth faults. Due to their advantages, like compact design, smart capabilities, safety and performance, and cost savings, RMUs have high capital costs. The high initial prices of RMUs could also be accredited to the lower economies of scale. The high initial investment adversely affects the market growth rate.

Ring Main Unit Market Segmentation Analysis

By Type Analysis

Better Functionality of Gas-Insulated Units Drives their Demand 

The global ring main unit market by type is segmented into gas-insulated, oil-insulated, air-insulated, solid di-electric, and others. Due to its maximum utilization, the gas-insulated segment holds a significant market share. The gas-insulated units are compact, functional, and climatically resistant. They use the SF6 gas as an insulation medium. They are widely used in wind power plants, railway systems, underground installations, and mining applications.

By Voltage Analysis

Low Voltage Segment to Maintain Lion’s Share Due to Growing Demand in Distribution Networks

The market, by voltage, is segmented into low voltage (up to 15kV), medium voltage (16-25 kV), and high voltage (above 25 kV). The growing requirement for low voltage RMUs in distribution networks is due to their high fault enduring capacity. The medium and high voltage segments are projected to attain the maximum CAGR in the forecast period due to their increasing utilization in industrial infrastructures. The high requirement in the utility industry for transmission and substation applications is expected to boost the high-voltage segment of the market.

By Installation Analysis

High Utilization to Drive Indoor Segment Growth

Based on the installation, the global market can be fragmented into indoor and outdoor. Most of the units manufactured are indoor due to their massive deployment in electricity generation and industrial applications, owing to their compact design, easy maintenance, and high durability. Indoor installations account for over 50% of distribution utility applications. Outdoor installations are deployed in harsh atmospheric conditions in power supply applications. With the growing electrification efforts, the indoor segment is expected to grow.

By Application Analysis

Utility Applications to Dominate Market Share Owing to Maximum Utilization

Based on the requirements and usage in various applications, the global market is divided into distribution utility, industrial, commercial & residential. Due to the varying usage in the different applications, the distribution utility segment controls the market. The increasing energy demand due to urbanization and industrialization has led to the development of power distribution facilities. With increasing energy efficiency to minimize losses, smart grids are being adopted at a high rate, making the requirement for RMUs pronounced. The growing transmission and distribution networks, coupled with technological innovations in the RMU, are anticipated to bolster the distribution utility segment of the market.

REGIONAL INSIGHTS

The market has been studied across major regions, including North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Asia Pacific is the largest market due to the high urbanization and industrialization in the region. The growing energy demand has led China and India to excessively invest in distribution network projects, which augmented the market. As per the National Infrastructure Pipeline, 2019-2025, energy sector projects accounted for the highest share (24%) of the total USD 1.4 trillion budgeted expenditure.

North America holds a significant ring main unit market share owing to the growing transmission and distribution network setup and rising renewable energy investments. The increase in industrial infrastructure investments further propels the market in North America.

The growing emphasis on renewable energy installations and utilizations, coupled with government goals, propels the European market and is anticipated to grow exceptionally. Germany, France, Spain, the U.K., and Italy are among the most prominent markets in the region.

The growing industrialization in the GCC countries is a major driver for the market in the Middle East & Africa region. The ever-increasing urbanization and rise in electrification in Latin American countries propel the demand for RMUs.

List of Key Companies in Ring Main Unit Market

Major Players Expected to Lead the Way with Funding Research Activities

It is evident from examining the market's competitive landscape that very few market players have invested in new research studies & development. The market has witnessed noteworthy technological developments to keep pace with the industry experts. ABB Ltd., Schneider Electric, and Eaton Corporation are the major manufacturers that have invested in developing the technology. They are expected to maintain their position in the coming years.

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd. (Switzerland)


• Schneider Electric SE (France)


• Eaton Corporation plc (Ireland)


• Larsen & Toubro Ltd (India)


• Siemens AG (Germany)


• C&S Electric Ltd. (India)


• LS Electric Co., Ltd. (South Korea)


• Entec Electric & Electronic Co., Ltd (South Korea)


• General Electric Company (U.S.)


• EPE Switchgear (M) Sdn. Bhd. (Malaysia)


• Lucy Electric (U.K.)


• Ormazabal (Spain)


• TIEPCO (Saudi Arabia)


• Crompton Greaves (India)

KEY INDUSTRY DEVELOPMENTS:

• April 2022- Siemens launched 8DJH 24 switchgear, an RMU for line voltages up to 24 kV and completely free of fluorinated gases. The main application of this new development is in public and industrial power grids at the secondary distribution level.


• August 2021 - Tanweer, a company of Nama Group, installed an 11 kV underground cable to the current RMU and added a 6MVA transformer to the Dowa primary sub-station in Muscat, Oman. The project for the enhancement of grid reliability is worth OMR 186,340.


• July 2021 – An RMU was installed at the Riba substation of South Africa on July 29, 2021. The substation controls power to areas like Thushanang, Capstand, Lynnville, and Ackerville. This development will enhance circuit control and isolation, providing an uninterrupted, reliable supply.


• October 2020- Siemens and Netze BW collaborated to make sustainable and smarter distribution grids. It co-developed an environmentally friendly and intelligent distribution substation. This new station combines the F-gas-free 24 kV RMU from the Siemens blue GIS portfolio with a 630 kVA distribution grid transformer.

REPORT COVERAGE

The global ring main unit market research highlights leading regions worldwide to understand the user better. Furthermore, the market research report provides insights into industry trends and analyzes technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

Report Scope & Segmentation