Vacuum Insulated Switchgear Market Size & Outlook, 2026-2034

Vacuum Insulated Switchgear Market Overview

According to the Straits Research, the global Vacuum Insulated Switchgear market size is valued at USD 3.43 billion in 2025 and is estimated to reach USD 6.60 billion by 2034, growing at a CAGR of 7.6% from 2026 to 2034. 
The market is poised to expand, supported by steady investments in distribution automation and the shift toward compact, SF6-free medium-voltage equipment. Grid infrastructure modernisation and the deployment of safe, arc-resistant systems in urban substations supported market growth in 2025, especially as utilities and industrial users prioritised low-maintenance gear with advanced protection and monitoring functions.

Vacuum-insulated switchgear market participants are focusing on modular switchgear lines featuring vacuum interrupters, which improve footprint efficiency and lifecycle costs for distribution substations, rail systems, and renewable energy interconnections. This market outlook highlights steady replacement demand and new installations across utilities, transportation corridors, and data centre campuses, alongside large capex programs in Asia and the Middle East.

Key Market Trends & Insights

• Asia Pacific dominated the market with a revenue share of 42% in 2025.
• Middle East & Africa is anticipated to grow at the fastest CAGR of 8.3% during the forecast period (2026-2034).
• By Voltage Class, Medium Voltage (1–36 kV) led with 64% share in 2025.
• By installation, the outdoor segment is estimated to register the fastest CAGR growth of 7.9%.
• Based on end use, utilities dominated the market in 2025 with a revenue share of 52%.
• By application, the renewable & storage interconnection segment is estimated to register the fastest CAGR growth of 9.4%.
• China dominates the market, valued at USD 806.40 million in 2024 and reaching USD 864.22 million in 2025.

Latest Market Trends

Digitalised Switchgear and Condition Monitoring

Utilities and industrial users have adopted sensor-rich, digitally enabled vacuum-insulated switchgear to enhance asset visibility and minimise unplanned downtime. Embedded temperature, partial discharge, and humidity sensors coupled with IEC 61850 communication enabled predictive maintenance, reduced field inspections, and enhanced safety. This trend will accelerate as operators seek real-time diagnostics for secondary substations, data center feeders, and rail traction systems. The result is a shift from time-based maintenance to condition-based strategies that will extend the lifecycle and control OPEX in the industry.

Compact, SF6-free Medium-Voltage Platforms

Urban space constraints and environmental policies encouraged the use of compact vacuum-insulated designs with alternative insulation and optimised busbar layouts. In 2025, utilities favoured metal-enclosed, arc-resistant panels that fit in tight substations and underground rooms while meeting safety codes. The market will also benefit from the broader adoption of dry-air, solid, and vacuum-based designs that avoid the emission of greenhouse gases. Manufacturers are integrating plug-and-play modules, withdrawable vacuum circuit breakers, and standardised protection relays to simplify commissioning. Stronger demand is expected for compact, modular systems across e-mobility infrastructure, commercial campuses, and brownfield retrofit projects.

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Vacuum Insulated Switchgear Market Drivers

Grid Modernisation and Reliability Investments

Distribution utilities expanded capital expenditure programs to replace ageing assets, enhance network reliability, and add automation functions at the feeder and substation levels. In 2025, replacement cycles for legacy air-insulated panels and oil-filled equipment favoured vacuum-insulated switchgear due to its safety, low maintenance, and arc-flash mitigation capabilities. In the future, national infrastructure packages and resilience initiatives will prioritise compact, digital-ready switchgear that integrates feeder automation and fault location, isolation, and service restoration functions. This driver will support steady procurement across primary and secondary distribution levels.

Renewable Interconnection and Distributed Energy

The growth in distributed solar, onshore wind, and battery storage requires medium-voltage interconnection and switching capabilities. In 2025, interconnection queues and feeder upgrades supported new orders for vacuum-insulated switchgear in collector stations and point-of-connection nodes. Over 2026-2034, the increasing penetration of renewable energy and the development of microgrids will heighten the demand for safe, modular equipment that can handle bidirectional flows, adhere to grid codes, and implement fast protection schemes. The market will benefit from standardised, compact solutions that streamline renewable energy tie-ins and reduce site installation time.

Market Restraints

Upfront Capital and Standards Complexity

Despite strong lifecycle value, the upfront cost of vacuum-insulated switchgear remained a barrier for some utilities and private operators in 2025, particularly in cost-sensitive projects and smaller substations. Procurement teams balanced capital budgets with the need for digital features, arc resistance, and compact footprints, creating longer approval cycles. In parallel, projects that span multiple jurisdictions faced differing standards, testing protocols, and grid codes, which added to engineering effort and factory acceptance testing time. Over the forecast period, buyers will continue to face complex specifications and harmonisation requirements for protection schemes, communication interfaces, and functional safety. Vendors that offer configurable platforms, clear total-cost-of-ownership models, and pre-certified digital modules will reduce friction; however, initial capital constraints and standards alignment will temper the pace of adoption.

Market Opportunities

Data Centre Power Distribution

Hyperscale and colocation expansions require reliable medium-voltage distribution, ring main units, and switching at campus edges. From 2025 onward, vacuum-insulated switchgear that integrates digital relays, bus temperature monitoring, and arc-resistant enclosures will be suitable for Tier III and Tier IV designs. Short build cycles favour factory-assembled, modular panels with quick interconnects and remote configuration capabilities. This opportunity will expand as AI workloads increase power density and drive the adoption of multi-MW campus designs, creating a sustained demand pool.

Rail, Metro, and E-Mobility Infrastructure

Urban rail extensions, depot electrification, and high-power charging corridors will require compact medium-voltage switchgear that fits constrained rooms and trackside cabinets. Over the outlook period, city transit authorities and freight operators are expected to prefer vacuum-insulated platforms due to their low maintenance and high safety performance. Standardised blocks for rectifier stations, traction substations, and charging hubs will cut engineering time and ensure consistent protection settings. As national plans roll out for e-bus and e-truck charging, vendors with ruggedised outdoor assemblies will capture incremental share.

Regional Analysis

Asia Pacific captured 42% of the market in 2025 and will advance at a 7.9% CAGR to 2034. Accelerated buildouts in distribution networks and urban rail systems underpinned shipments, with utilities prioritising compact, arc-resistant gear for densely populated areas. Massive renewable energy (solar and wind) buildouts across Southeast Asia require standardised, safe medium-voltage collector stations.

China dominated in 2025, supported by distribution automation, metro expansions, and industrial park substations, driven by rapid urbanisation and the world's largest rollout of EV charging infrastructure. Growth will be reinforced by continued city electrification, EV charging rollouts, and utility programs to reduce maintenance costs through digitalised VIS.

The Middle East & Africa Market Insights

Middle East & Africa will be the fastest-growing region with an 8.3% CAGR through 2034. Large mixed-use developments and grid expansion, associated with industrial diversification and renewable energy targets, supported adoption. Investment in petrochemical and desalination plants requires ruggedised, high-performance medium-voltage switchgear.

Saudi Arabia led the region in 2025, with procurement tied to new city projects (e.g., NEOM), desalination plants, and industrial clusters, which are often built on extremely compressed timelines. The pipeline of utility-scale solar and grid interconnections will drive incremental demand for modular, outdoor-rated, vacuum-insulated systems.

North America Market Insights

North America’s purchasing cycles reflected intense grid hardening and substation modernisation efforts, with a decisive focus on worker safety and advanced digital monitoring to improve system resilience. The push for localised power generation and microgrid deployment across university campuses and industrial parks further accelerated the adoption of modular, medium-voltage VIS.

The U.S. dominated the region due to its utility resilience programs and substation replacements, which were linked to extreme weather impacts, prioritising arc-resistant and low-maintenance solutions. Growth will be shaped by distribution automation projects under infrastructure funding and a rising pipeline of hyperscale data centre campuses that require highly reliable medium-voltage distribution.

Europe Market Insights

Europe holds a significant market share. Utilities emphasised compact, SF6-free medium-voltage solutions for urban substations and secondary distribution upgrades, strongly supported by EU decarbonization policies. The adoption of smart grid elements is nearly universal across major network operators, driving demand for VIS capable of integrating real-time sensor data.

Germany led in 2025, driven by industrial load additions and retrofits in densely built cities, particularly for automotive manufacturing and logistics hubs. Deployment will benefit from standardisation efforts and the retrofitting of brownfield secondary substations across municipal networks seeking space efficiency and reduced operational costs.

Latin America Market Insights

Latin America is showing significant development. Utilities replaced ageing medium-voltage panels and strengthened feeder reliability in urban centres to mitigate losses and improve service quality. The region experiences steady demand driven by the commodity extraction (mining) and agricultural processing industries, which require durable electrical infrastructure

Brazil led in 2025, as private and public utilities invested heavily in distribution upgrades and loss reduction programs, particularly in its large, distributed urban centres. New renewable projects (wind and solar) and substation refurbishments will support the continued procurement of compact, vacuum-insulated switchgear for interconnections and grid stability.

Voltage Class Insights

Medium Voltage (1–36 kV) dominated in 2025 with a 64% share. Utilities, commercial campuses, and rail traction systems relied on medium-voltage panels for secondary substations and feeder switching. The configuration flexibility, arc-resistant designs, and ease of maintenance positioned medium voltage as the preferred choice across urban and industrial settings.

High Voltage (>36 kV) will be the fastest-growing subsegment at an 8.2% CAGR. Growth will be fueled by collector stations for large renewable assets, higher-capacity interconnections, and compact primary substations. The ability to integrate digital relays, condition monitoring, and standardised protection schemes will support broader acceptance in transmission-adjacent nodes.

Installation  Insights

Indoor installations led in 2025 with a 59% share. Utilities and facility owners installed indoor, metal-enclosed vacuum switchgear in underground rooms and compact substation buildings to meet safety codes and reduce environmental exposure. Withdrawable vacuum circuit breakers and front-access layouts simplified maintenance in built-up areas.

Outdoor installations will expand at the fastest rate, with a 7.9% CAGR. Utilities will increasingly deploy ruggedised, weatherproof enclosures for pad-mounted or trackside sites where civil works space is limited. Modular outdoor assemblies are well-suited for renewable tie-ins, e-bus depots, and industrial yards that require quick commissioning and minimal upkeep.

End-use Insights

Utilities dominated in 2025 with a 52% share. Replacement of legacy gear, feeder automation, and urban substation upgrades supported sustained procurement. Distribution operators prioritised compact footprints, arc resistance, and digital monitoring to enhance reliability and minimise downtime across urban networks.

Transportation & Infrastructure will be the fastest-growing end-use at an 8.7% CAGR. Rail and metro extensions, airport power upgrades, and high-power charging hubs will demand compact, safe switchgear. Standardized modules for traction substations and charging depots will shorten project timelines and align with tightening safety standards.

Application Insights

Secondary Distribution led in 2025 with a 41% share. Vacuum-insulated switchgear served ring main units, feeder switching, and customer substations, particularly in dense urban grids and commercial sites. Operators favoured arc-resistant designs that fit constrained rooms and meet reliability criteria.

Renewable & Storage Interconnection will record the fastest growth at a 9.4% CAGR. The rising number of distributed solar, onshore wind, and BESS projects will require standardised, modular, medium-voltage interconnections. Switchgear with digital protection, monitoring, and simplified intertie configurations will streamline commissioning and support grid code compliance.

Competitive Landscape

The vacuum-insulated switchgear market featured a mix of diversified electrical OEMs and regional specialists. Key participants included ABB, Siemens Energy, Schneider Electric, Eaton, and Mitsubishi Electric, with broader portfolios that span protection relays, breakers, and digital monitoring. ABB held a notable share due to its modular, digital-ready medium-voltage platforms and strong relationships with utilities. Siemens Energy and Schneider Electric focused on SF6-free innovations and cyber-hardened automation. Eaton emphasised compact metal-enclosed designs for data centres and commercial campuses. Mitsubishi Electric expanded its traction and industrial solutions. Recent activity centred on digitalised, condition-based maintenance features and configurable platforms for fast project delivery.

List of key players in Vacuum Insulated Switchgear Market

1. ABB
2. Siemens Energy
3. Schneider Electric
4. Eaton; Mitsubishi Electric
5. Toshiba Energy Systems & Solutions
6. Hitachi Energy
7. GE Vernova (Grid Solutions)
8. LS ELECTRIC
9. Hyundai Electric
10. Fuji Electric
11. Meidensha Corporation
12. Ormazabal (Velatia)
13. CG Power & Industrial Solutions
14. TBEA
15. Nissin Electric
16. Chint Electric
17. Powell Industries
18. NOJA Power
19. Lucy Electric.

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Strategic Initiatives

• October 2025 – ABB renewed a long-standing framework agreement with Enedis, initiated in Q3 2025. The deal focuses on the mass deployment of ABB's proven SF6-free solutions, including air-insulated switchgear with vacuum circuit breakers, to accelerate France's transition to a decarbonised grid.
• October 2025 - Siemens Energy partnered with Elia Transmission on the LIFE Blue 420 kV GIS project to demonstrate a commercially viable, completely F-gas-free 420 kV Gas-Insulated Switchgear (GIS) combining Clean Air insulation and vacuum switching technology with digital low-power instrument transformers (LPIT).
• August 2025 - Siemens Energy successfully tested a prototype of the 420 kV SF6-free circuit breaker based on vacuum technology (3AV2FI 420 kV) for high-voltage applications.