- China and India lead the Asia-Pacific medium voltage switchgear market, accounting for nearly 80% of the region’s demand, driven by rapid industrialization, urbanization, and renewable energy initiatives.
- China’s MV switchgear market is projected to grow twofold by 2030, fueled by aggressive investments in renewable energy, electric vehicles, and data centers.
- India is experiencing fast-paced growth in its switchgear market, with increasing manufacturing capacity and renewable energy targets set to make it a key regional player by 2030.
The medium voltage (MV) switchgear market in the Asia-Pacific (APAC) region is rapidly evolving, with China and India playing pivotal roles. These countries, collectively accounting for nearly 80% of the region’s demand, are at the forefront of market growth, driven by ambitious renewable energy initiatives, massive infrastructure development, and industrial expansions. As the demand for reliable electricity distribution rises, the importance of MV switchgear (ranging from 1-42 kV) becomes increasingly clear. These systems are essential for ensuring seamless electricity distribution in power generation plants, including solar photovoltaic (PV) and wind farms, as well as in industrial facilities.
This article explores the current state and future trajectory of the medium voltage switchgear markets in China and India, examining the driving forces behind their growth and the potential impact on the broader APAC region.
MV Switchgear Market Trends: China and India Leading the Charge:
Both China and India are witnessing significant shifts in their energy landscapes, positioning themselves as key players in the global MV switchgear market. With its massive industrial base and urbanization efforts, China is already a dominant force in the market. However, it is poised for even greater growth as the country seeks to meet its ambitious renewable energy targets. India, while smaller in scale compared to China, is on a similar path of rapid expansion. Its evolving industrial sector, combined with government initiatives to boost renewable energy capacity, positions India as a future manufacturing hub for switchgear equipment.
China: The Dominant Force in the MV Switchgear Market of the Asia-Pacific Region:
Generation Capacity Forecast and Switchgear Growth:
China’s vast MV switchgear installed base is projected to increase by 75% between 2023 and 2030, as seen in Figure 1. This substantial growth will be driven by the country’s focus on installing RE plants and pursuing urbanization and industrial development, particularly in high-energy-demand sectors like data centers and electric vehicles (EVs). In 2020, China set a goal of reaching 1,200 GW of solar PV and Wind capacity by 2030, a target it will likely achieve five years ahead of schedule. Furthermore, the country has set a new goal to reach 3,000 GW by 2030. This aggressive expansion in renewable energy, particularly in utility-scale solar PV and wind power, is expected to fuel demand for medium voltage switchgear, which is critical in transmitting and distributing electricity from these renewable sources.
Electricity Demand Projection and EV Charging Growth:
PTR forecasts that China’s electricity demand will grow 1.3 times between 2023 and 2030, driven by urbanization, the expansion of data centers, and the rapid growth of the EV market. Additionally, PTR research indicates that by 2030, China’s active EV fleet will be more than five times its 2023 size, leading to an 11-fold increase in energy demand for charging. This reflects the country’s extensive rollout of EV charging infrastructure. Furthermore, the rising power requirements from data centers, another high-demand sector, are expected to intensify by 2030, further boosting the need for MV switchgear systems.
Shift in Switchgear Types:
China’s market is also seeing a shift in the types of switchgear being deployed. Air-insulated switchgear (AIS) is expected to retain its dominance, but there is growing interest in gas-insulated switchgear (GIS), particularly for use in renewable energy projects and urban applications, where space is at a premium. GIS, known for its compact design and enhanced reliability, is becoming increasingly popular in China’s renewable energy sector and underground power distribution networks.
India: An Emerging Leader in MV Switchgear:
Installed Capacity and Renewable Energy Goals:
India’s MV switchgear market is expected to grow by 1.5 times in terms of installed electricity capacity by 2030. Like China, India is rapidly scaling up its renewable energy capacity, with a target of 500 GW by 2030. This includes an ambitious plan to boost offshore wind capacity to 30 GW, highlighting the country’s focus on sustainable energy solutions. The utility-scale solar PV and wind sectors are anticipated to lead this growth, driving demand for MV switchgear.
Electricity Demand and EV Growth:
India’s electricity demand is projected to increase by 1.4 times between 2023 and 2030. While this growth is slightly lower than China’s, it still represents a significant uptick, fueled by urbanization, industrial expansion, and the push for electric vehicle adoption. By 2030, India’s energy demand for EV charging is expected to increase 40-fold compared to 2023 levels, a testament to the country’s burgeoning EV market and government initiatives such as the FAME-II scheme, which supports hybrid and electric vehicle development.
Manufacturing Hub for MV Switchgear:
India is also positioning itself as a key manufacturing hub for medium-voltage switchgear. Major companies invest in the country to leverage its growing expertise in semiconductor manufacturing, railways expansion, and other infrastructure projects. The development of the medium voltage switchgear market is closely tied to India’s industrial growth, particularly in sectors like railways, where switchgear plays a vital role in electricity distribution. India’s rise as a regional export hub for MV switchgear is further solidified by its growing role in global supply chains.
Market Snapshot and Growth Trends:
China and India are expected to see steady growth in their medium voltage switchgear annual revenue markets, particularly in the AIS and GIS segments.
China’s Annual Revenue Market:
China’s annual switchgear market for revenue is projected to grow at a compound annual growth rate (CAGR) of approximately 14% between 2023 and 2030. The growth in GIS is faster than AIS and indicates a shift towards more advanced, compact systems for use in renewable and urban infrastructure. As China continues investing heavily in renewable energy, GIS usage is expected to capture a growing market share, particularly in projects where space and efficiency are critical.
India’s Annual Units Market:
India’s MV switchgear market is also set for significant growth, with a CAGR of 10% for both AIS and GIS. Like China, India’s shift towards renewables drives demand for GIS systems, which are well-suited for use in offshore wind farms and other renewable energy projects. With major investments in manufacturing, India is poised to become a key player in the global switchgear market, particularly in importing GIS systems.
Conclusion: A Bright Future for MV Switchgear in APAC
China and India are leading the charge in the APAC region’s MV switchgear market, driven by their ambitious renewable energy targets, industrial expansion, and growing demand for reliable electricity distribution. As both countries continue to invest in infrastructure and embrace new technologies like electric vehicles and data centers, the demand for MV switchgear is set to grow exponentially. With China focusing on urbanization and renewable energy and India emerging as a key manufacturing hub, the future of the MV switchgear market in the APAC region looks bright and promising.
About the Author:
Muhammad Usman is an Analyst at Power Grid at PTR, specializing in MV and HV switchgear market analysis.
He is passionate about an SF6-free future and digitalization in the energy sector and works closely with clients to provide effective solutions. He has a Master’s degree in Energy Systems Engineering and has contributed to market reforms in Pakistan’s electricity sector through a USAID project.
