Vacuum Interrupter Market Size, Share, Growth & Industry Analysis By Application (Circuit Breaker, Recloser, Contactor, Load Break Switch, and Others), and By End-user (Utilities, Oil & Gas, Mining, Transport, and Others), and Regional Forecast, 2024-2032

The global vacuum interrupter market size was USD 2.23 billion in 2023 and is projected to grow from USD 2.34 billion in 2024 to USD 3.62 billion by 2032 at a CAGR of 5.5% over the forecast period (2024-2032). The Asia Pacific dominated the Vacuum Interrupter Market Share with a share of 34.52% in 2023.

A vacuum interrupter can be defined as a switch that uses electrical contacts in a vacuum. This interrupter is the core component of medium-voltage circuit breakers, high-voltage circuit breakers, and generator circuit breakers. When the separation of the electrical contacts happens it results in a vapor arc, which can be quickly extinguished by this type of interrupter. This can be defined as an electrical switch that is widely used to interrupt the current flow after the detection of the fault. This equipment is widely used in various applications like tap changers, circuit breakers, and reclosers.

The COVID-19 pandemic has impacted several business sectors, such as manufacturing, power generations, oil & gas, aviation, hospitality, and others, has been explicit and unprecedented. The governments across many countries have imposed the lockdown across the country and also the government has announced travel bans across the nations. This has immensely disrupted the supply chains and impacted the interrupter manufacturers. Some countries are facing economic crises which have affected the power industry immensely. Various industries are closed during the lockdown and this has resulted in a decrease in power demand. The decreasing power demand further decreases the investment which ultimately impacted the vacuum interrupter market growth.  

Vacuum Interrupter Market Trends

Rising Demand for Uninterrupted Power Supply 

The demand for uninterrupted power supply is highly increasing across the majority of countries. The demand is high from the utility segments as the consumption of power is increasing due to the increasing penetration of electronic goods. Various utilities are increasing the installation of renewable energy sources and increasing their capacities of power generation plants. The investment in the utility segment is also increasing which increases the generation which ultimately boosts the adoption of this type of interrupters. The electricity demand is high from industrial, commercial, and residential segments, which also boosts the market.     

Vacuum Interrupter Market Growth Factors

Rising Expansion of Transmission and Distribution Networks Propels Market Growth

The use of consumer electronics is increasing in the market. Vacuum switches find application in longstanding equipment such as transformers and switches. Tap changers located inside transformers use tap changer power and distribution transformers VI. A switch, whether high or low voltage, has vacuum switches as part of its components. VI also includes separate components such as switches, load switches, reclosers, and contactors.

Governments in various countries have set targets to reduce exhaust gas emissions by a certain period. This has increased the focus of the government toward the electric vehicle segment to achieve the targets. This is likely to increase the electricity demand immensely and to fulfill the rising electricity demand, its generation will increase. The rising generation of electricity increases the investment in the segment. The investment in transmission is also increasing in several developing countries. The rising generation of electricity increases the expansion of transmission and distribution networks. The installation of renewable energy sources is also increasing which increases the demand for T&D networks. These are the major factors driving growth in the market.

Increasing Modernization and Upgrading of Existing Infrastructure to Augment Market Growth

As the electricity demand is increasing across the world, the investment in the power generation sector is also increasing. Investment in the utility segment is also increasing widely across the world. This increases maintenance activities within the power sector. The existing infrastructure is aging and this increases the upgrading works. The modernization work is also increasing in existing infrastructure because of the advancement of technology. The developed and developing countries are widely investing in the up-gradation and modernization of existing infrastructure as the demand for electricity is highly increasing across the world.    

The substation and switchgear industry has seen technological advances on all voltage levels. Industry players are constantly trying to develop different substations and switchgear that would be smarter, more compact, reliable, and environmentally friendly, and would require as little installation and commissioning time as possible. To this end, digital substations are becoming increasingly popular among utilities.

Power plants can detect, prevent, and correct faults with the help of digitization and ensure a reliable flow of electricity to the grid and to consumers. For instance, Power Grid Corporation of India Limited (Powergrid) successfully validated the operation of fully digital substation technology in pilot projects at Bhiwadi and Neemrana. The technology helped improve total system availability by testing control and protection systems online from a centralized access point. In 2020-2021, it commissioned a fully digital 400/220 kV substation (including busbar protection) with IEC 61850 process busbar-based protection automation and control system at 400/220kV Malerkotla substation in Punjab.

RESTRAINING FACTORS

High Cost of Product for High Voltage Applications Hampers Market Development

The cost of vacuum interrupter operating at high voltage is very high and this restrains the market as the cost is the biggest factor to consider while installation of electrical equipment in developing countries like India, Bangladesh, etc. This equipment plays a vital role in electrical components but it’s a niche part of the electrical components, so the companies don’t prefer to pay a high amount for such niche components. This hinders the growth of the market.   

Vacuum Interrupter Market Segmentation Analysis

By Application Analysis

Circuit Breaker Segment is Likely to Dominate the Market during the Forecast Period

Based on application, the market is segmented into circuit breaker, recloser, contactor, load break switch, and others. The circuit breaker segment is likely to dominate the market during the forecast period. The manufacturing industry is growing immensely in developing and developed countries. Several regions are undergoing urbanization, industrialization, and infrastructure development. This increases the demand and installation of a circuit breaker in the market. The transmission and distribution network is upgrading and expanding which further boosts the growth of the market.

The recloser segment is estimated to grow at a significant pace during the forecast period. The installation of recloser is increasing across the transmission and distribution sectors. The reclosers are used to protect the distribution networks. The rising installation of reclosers increases the demand for such interrupters in the market.

By End-user Analysis

Utilities Segment to Dominate the Market during 2021-2028

Based on end-user, the market is segmented into utilities, mining, oil & gas, transportation, and others. The utilities segment is likely to dominate the market during the forecast period. The utilities segment covers all the industries set toward power generation and transmission and distribution. The demand for uninterrupted power is widely increasing due to which the utilities segment is expanding significantly and this drives growth in the market.  

The oil & gas segment is estimated to grow significantly during the forecast period. The investment in the oil and gas segment is rising and oil & gas exploration and production activities are increasing rapidly across the world. The demand for oil & gas production is increasing with the rise in power consumption. The growing electrification in transportation systems also increases the electricity demand which drives growth in the oil & gas segment during the forecast period.

REGIONAL INSIGHTS

Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. The Asia Pacific region has dominated the market during the forecast period. The investment in utilities and transmission & distribution networks is rapidly increasing and expanding across these regions. Industrialization and urbanization are also increasing in this region. The government is also focusing on reducing emissions by encouraging renewable energy sources. The installation of new electric generation plants drives growth in Asia Pacific.

North America is estimated to register growth at a significant pace during the forecast period. This region is experiencing high demand for uninterrupted power supply due to the increasing penetration of electronic gadgets in this region. The power generation and transmission sector is witnessing immense growth in this region. This region even has the presence of several big market players.

Europe is likely to witness growth during the forecast period. The region is currently highly working on upgrades and maintenance work of existing infrastructure. The region is also spending on modernization works which increases sales of the this type of interrupters. The region has a high demand for uninterrupted power supply and the government in this region is expanding the renewable sector significantly.

Latin America is likely to foresee growth during the forecast period. The demand and adoption of such interrupters are high in this region due to rising energy demand within the region and also the adoption of such interrupters is widely increasing in the utility segment. The Middle East and Africa is expected to witness growth during the forecast period. The demand for such interrupters is increasing in this region as the government is encouraging renewable energy sources.     

List of Key Companies in Vacuum Interrupter Market

Key Players Focus on Increasing Their Products Range by Introducing Highly Efficient Products

The global market is fragmented owing to the presence of a large number of companies in developed and developing countries. Currently, ABB, Eaton, Siemens AG, and Toshiba Corporation are leading the market. These companies are expanding their presence and vacuum interrupter products. Also, focusing on the new contract is one of the preferred strategies by companies. For instance,

• In December 2020, ABB has announced to celebrate the delivery of its seventh millionth vacuum interrupter.


• In March 2019 Eaton has announced the partnership with Electric Power Research Institute to provide new smart and secure circuit breakers for energy grid generation.  

LIST OF KEY COMPANIES PROFILED:

• ABB (Switzerland)


• Siemens AG (Germany)


• Crompton Greaves Limited (India)


• LS Industrial System (South Korea)


• Mitsubishi Electric Corporation (Japan)


• Toshiba Corporation (Japan)


• Chengdu Xuguang Electronics Co. Ltd. (China)


• Eaton (U.S.)


• Shaanxi Baoguang Vacuum Electric Device Company Ltd (China)


• Meidensha Corporation (China)


• Wuhan Feite Electric Company Ltd (China)

KEY INDUSTRY DEVELOPMENTS:

• In July 2023, Siemens has expanded the GM-SG and GM-SG-AR family of metal-clad medium voltage switchgear to cover applications operating at 27 kV, up to 3000 A and 40 kiloamperes. With this addition, the range of innovative air-insulated power distribution solutions now covers all voltages found in the modern distribution network. Siemens type GM-SG and GM-SG-AR circuit breakers use industry-leading vacuum switch technology to meet the ever-evolving needs of modern indoor and outdoor substations in industry, construction, data centers, petrochemicals, utilities and water supply, mining and chemical processing applications.


• In June 2021, Siemens Energy and Mitsubishi Electric have signed a Memorandum of Understanding (MoU) to conduct a feasibility study on the joint development of zero Global Warming Potential (GWP) high voltage switching solutions that replace greenhouse gases with clean air as insulation. Both companies have research methods to extend the application of pure air insulation technology to higher voltages. They started with a 245 kV switchgear, accelerating the availability of climate-neutral high-voltage switching solutions to customers worldwide. Both partners continued to manufacture and sell independently and service switching solutions independently.


• In January 2021, ABB India has announced to launch Formula DIN-Rail, a range of Miniature Circuit Breakers, Isolators, and Residual Current Circuit Breakers for the electrical retail market which is expected to be worth USD 250 million in India.


• In December 2020, ABB has launched a Ring Head Unit (RMU) with an innovative Load Break Switch (LBS) that uses sustainable alternative gases to SF6 to improve performance and reduce environmental impact. SF6 gas has many advantages over an air-insulated circuit breaker - it significantly reduces the size of the circuit breaker ensuring high safety standards.


• In September 2020, Siemens AG has announced to update its portfolio of air circuit breakers. The company has added features to update this circuit breaker from the web. The company has even introduced new 3WA series with numerous software-based features.

REPORT COVERAGE

The global vacuum interrupter market report includes a detailed industry analysis and focuses on key aspects such as leading companies, and leading end-users of the product. Besides this, the report offers insights into the key market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION