Vacuum Interrupter Market Size, Share, Growth and Industry Trends 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, 2021-2028

The global vacuum interrupter market size was valued at USD 1.94 billion in 2020 and is projected to grow from USD 2.02 billion in 2021 to USD 2.88 billion in 2028, growing at a CAGR of 5.2% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with vacuum interrupter witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -5.6% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

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.    

COVID-19 Pandemic: Slowdown of Industrial Activities and Decline in Power Demand Impact Market Growth

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.  

LATEST 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.     

DRIVING FACTORS

Rising Expansion of Transmission and Distribution Networks Propels Market Growth

The use of consumer electronics is increasing in the market. 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.    

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.   

SEGMENTATION

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

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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

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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.     

KEY INDUSTRY PLAYERS

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 (Japan)


• Wuhan Feite Electric Company Ltd (China)

KEY INDUSTRY DEVELOPMENTS:

• 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 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.

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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.

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