HIGH VOLTAGE EQUIPMENT MARKET ANALYSIS

Market Challenges And Opportunities

Global High Voltage Equipment Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has significantly impacted the High Voltage Equipment Market. The outbreak has caused disruptions in the global supply chains, manufacturing operations, and overall economic activities, leading to a decline in demand for high voltage equipment. The lockdown measures implemented by governments worldwide to contain the spread of the virus have resulted in the suspension of construction projects and delays in infrastructure development, affecting the demand for high voltage equipment in sectors such as power generation, transmission, and distribution. Furthermore, the economic uncertainty caused by the pandemic has led to reduced investments in new projects and capital expenditures, impacting the market for high voltage equipment. Many industries, including oil and gas, manufacturing, and mining, have experienced a decline in production and investment, resulting in lower demand for high voltage equipment.

Global High Voltage Equipment Market- Drivers:

Increasing Demand for Electricity

The growing global population, urbanization, and industrialization have led to a significant rise in electricity consumption. High voltage equipment is essential for power generation, transmission, and distribution to meet the increasing demand for electricity. For Instance on May 10, 2023 report Published by Statista Research Department which is a consumer data provider Over the past 50 years, there has been a consistent upward trend in global electricity consumption, with the total reaching approximately 25,300 terawatt-hours in 2021. During the period from 1980 to 2021, electricity consumption witnessed growth three times, whereas the global population grew by approximately 75 percent. This growth can be attributed to the expansion of industrialization and the enhanced accessibility to electricity worldwide, which have both contributed to a significant surge in the demand for electrical power.

Expansion of Renewable Energy Sources

The shift towards cleaner and sustainable energy sources, such as solar, wind, and hydropower, has led to the installation of large-scale renewable energy projects. High voltage equipment is required to transmit electricity generated from these sources efficiently across all around the world. For Instance, In October, 2020 Article published by Balkan Green Energy News which is an online platform which covers environmental and energy related news, published that Huanghe Hydropower Development has successfully integrated its 2.2 GW photovoltaic park with the electrical grid. This photovoltaic park, situated in Qinghai, China, ranks as the second-largest solar power plant globally. Notably, the facility incorporates an energy storage system with a capacity of 202.9 MW, provided by the domestic company Sungrow. This solar power plant is a pivotal component of a vast renewable energy initiative that aims to achieve a total capacity of 16 GW.

Global High Voltage Equipment Market- Opportunities:           

Grid Modernization and Smart Grids

The modernization of aging power grids and the implementation of smart grid technologies provide opportunities for high voltage equipment. Smart grids rely on advanced high voltage equipment to enable real-time monitoring, control, and optimization of electricity flow, enhancing grid reliability and efficiency. For Instance in March 2022, a press release by Ministry of Power India stated that, Government of India has established National Smart Grid Mission (NSGM) The primary objective of implementing Smart Grids is to enhance the reliability of electricity networks and facilitate the integration of renewable energy from distributed generation sources. Additionally, the deployment of Smart Grids and Smart Meters enables consumers to effectively manage their electricity consumption, leading to reduced bills. Furthermore, the National Smart Grid Mission (NSGM) emphasizes the importance of capacity building initiatives for personnel working in the Distribution Sector, particularly in the domain of Smart Grids.

Electric Vehicle Infrastructure       

The rapid expansion of electric vehicle (EV) adoption requires the development of robust charging infrastructure. High voltage equipment plays a vital role in EV charging stations, providing opportunities for equipment manufacturers and service providers. For Instance in September 2021, ABB which is a electrical equipment manufacturer launched their world’s fastest charger which can charge up to four vehicles at once.

Global High Voltage Equipment Market- Restraints:

High Capital Costs for manufacturing and maintenance

High voltage equipment, such as transformers, circuit breakers, and switchgears, involve significant upfront capital investments. The cost of manufacturing, installation, and maintenance of high voltage equipment can be substantial, posing a challenge for market adoption, particularly for small and medium-sized enterprises.

Infrastructure Limitations for the installation of High Voltage Equipment

The installation of high voltage equipment requires robust and reliable infrastructure, including transmission lines, substations, and grid interconnections. In some regions, limited or outdated infrastructure may hinder the implementation of high voltage equipment, resulting in operational limitations. For Instance On May 26, 2023 article published by EV Reporter a company which covers news regarding Electric Vehicle and related updates stated that The High Voltage system requires special training for the people who are working on it and need specialized equipment and gears for their safety. The risk associated while working in those kinds of environments requires precaution without the safety norms working area can be fetal.