The high-voltage equipment market shows strong growth potential through 2030, driven by renewable integration, AI data center demand, and grid modernization. EHV segments lead amid supply crunches, with circuit breakers gaining via SF6-free tech and digital substations boosting efficiency
Chicago, Jan. 12, 2026 (GLOBE NEWSWIRE) — The global high-voltage equipment market size was valued at US$ 131.78 billion in 2025 and is expected to reach USD 281.88 billion by 2035, growing at a CAGR of 7.9% during the forecast period 2026–2035.
The high-voltage equipment market is currently entering an unprecedented “super-cycle,” valued at USD 28.76 billion in 2025 and poised to reach USD 40.37 billion by 2035. This trajectory represents a structural recalibration of global energy infrastructure rather than simple organic growth. The convergence of AI-driven data center loads—projected to add 11.3 GW in the US alone this year—and Europe’s aggressive 19.6 GW offshore wind pipeline has created a definitive seller’s market. North America’s commanding 39% market share underscores the immediate urgency to modernize grids against these hyper-localized demand shocks.
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Consequently, the high-voltage equipment market is shifting from cost-based procurement to strategic “slot reservation.” With lead times for critical assets extending to 210 weeks, tier-one manufacturers are securing record backlogs that guarantee revenue visibility well through 2028. The industry’s rapid standardization on 525 kV HVDC technology further creates a high-barrier, high-margin environment. For stakeholders, the outlook is robust: severely limited manufacturing capacity coupled with an USD 600 billion annual global grid investment requirement ensures that high-voltage assets will remain the most valuable and contested industrial commodities of the coming decade.
Key Findings
- North America with nearly 39% market share remains the largest high-voltage equipment market.
- By Type: Circuit breakers lead the market, supported by extensive use in grid reliability and safety applications.
- By Voltage Level: The extra-high-voltage segment holds the largest share of the market, driven by rising demand for long-distance power transmission.
- By End-User Industry: Utilities remain the primary consumers, owing to rapid grid modernization initiatives.
- By Application: The transmission segment dominates due to expanding cross-border electricity networks.
- By Installation Type: The market is mainly indoor-based, favored for compact design and ease of maintenance.
Circuit Breakers Retain Market Share Through Digital Substation Intelligence
The circuit breaker segment continues to lead the high-voltage equipment market, driven by a fundamental shift in utility procurement strategies toward “Digital Substations.” Market analysis reveals that the dominance of this segment is no longer solely defined by the need for fault interruption but by the demand for intelligent grid assets. Utilities are increasingly prioritizing high-voltage circuit breakers (HVCBs) integrated with non-conventional instrument transformers (NCIT) and IoT sensors. This technological evolution allows operators to transition from expensive time-based maintenance schedules to condition-based maintenance, significantly reducing operational expenditures (OpEx) over the asset’s lifecycle.
Current high-voltage equipment market trends indicate a surge in specifications for breakers that are fully compliant with the IEC 61850 standard. This interoperability has become a critical requirement for major tenders in North America and Europe, effectively locking in market share for advanced, smart breakers over legacy mechanical units. Furthermore, the segment is witnessing a robust replacement cycle driven by environmental regulations. As operators move to phase out Sulfur Hexafluoride (SF6) due to its high global warming potential, there is a distinct uptick in orders for vacuum-technology and clean-air insulated breakers in the 72.5 kV to 145 kV range. This regulatory pressure ensures that circuit breakers remain the highest-volume category, serving as the primary interface for Advanced Distribution Management Systems (ADMS) to manage increasingly complex power flows.
Extra High-voltage Commands Market Share Amidst Historic Supply Crunch
The Extra-High-Voltage (EHV) segment, comprising equipment rated 345 kV and above, currently holds the most critical value share of the high-voltage equipment market, underpinned by a severe supply-demand imbalance. Analysis suggests that the dominance of this segment is being reinforced by a historic manufacturing bottleneck, particularly for Large Power Transformers (LPTs). Lead times for these essential EHV assets have extended drastically, ranging between 120 and 210 weeks, creating a “seller’s market” where pricing power lies firmly with manufacturers.
This scarcity has driven unit prices up significantly compared to pre-2020 levels, artificially inflating the revenue share of the EHV segment. The demand is structurally rigid; developers cannot substitute lower-voltage equipment for the massive power density required to transport renewable energy from remote generation zones to urban load centers.
Utilities Secure Dominant Market Share in the High-Voltage Equipment Market Driven by Wildfire Resilience Spending
Utilities maintain the largest end-user market share, driven by a strategic pivot from general capacity expansion to urgent “grid hardening” and climate adaptation. The primary catalyst fueling this dominance is the mitigation of wildfire liabilities and extreme weather risks. Market observations indicate that capital expenditure (CapEx) in this sector is becoming non-negotiable, mandated by state regulators and insurance requirements to prevent catastrophic infrastructure failures.
Significant capital is flowing directly into high-voltage equipment markets for specific resilience measures, such as the undergrounding of transmission lines and the installation of covered conductors. Furthermore, utilities are deploying rapid-response reclosers and advanced protection systems capable of de-energizing falling lines before impact. This spending is compounded by the “aging infrastructure” crisis; with a significant portion of transmission assets in mature economies exceeding their design life, utilities are engaged in a forced refurbishment cycle. The sheer scale of replacement units required to maintain basic reliability standards ensures that utilities continue to dwarf industrial and commercial consumers in total market spend. The focus has decisively moved toward safety and survival, securing consistent, high-volume orders regardless of broader economic fluctuations.
Transmission Segment Captures Market Share Powering Hyperscale AI Data Centers
The transmission application segment has solidified its market leadership in the high-voltage equipment market by emerging as the critical enabler for the rapid expansion of artificial intelligence infrastructure. The exponential rise in power demand from hyperscale data centers is forcing a structural change in grid connection strategies. These facilities require such massive energy loads that they are increasingly bypassing local distribution grids to connect directly to the high-voltage transmission network (115 kV to 230 kV). This shift is funneling substantial investment specifically into transmission-level substations and line equipment.
Market projections suggest that the power demand from data centers will grow aggressively through 2030, creating a “load shock” visible in recent capacity auctions where prices have spiked dramatically. This demand is concentrated in specific digital hubs, necessitating dedicated high-voltage transmission spurs that distribution networks are ill-equipped to support. Consequently, Transmission System Operators (TSOs) are prioritizing heavy-duty transmission upgrades to accommodate this new class of industrial load. This trend justifies the transmission segment’s dominance, as the scale of infrastructure required to power a single AI training campus rivals that of a small city, directing the majority of high-voltage equipment investment toward resolving transmission-level bottlenecks.
Massive Cross Border Interconnectors Drive Record European Transmission Spending
European nations are aggressively deploying capital into cross-border infrastructure to secure energy stability. The high-voltage equipment market is witnessing a historic surge in project valuations and technical scale. Eastern Green Link 2 (EGL2), connecting Scotland and England, awarded a massive cable contract worth EUR 1.9 billion in 2024. Developers will install 436 km of subsea HVDC cable for this critical link. Engineers designed the EGL2 system to operate at 525 kV, which establishes a new benchmark for capacity. The link will provide a transmission capacity of 2 GW, securing power for millions. Furthermore, the 2025 selection of a 19.9 km onshore route for the LionLink interconnector further highlights this trend. LionLink will utilize hybrid technology to deliver 1.8 GW of clean electricity between the UK and Netherlands.
Continental projects are matching this unprecedented scale. The SuedLink project in Germany confirmed a total investment of EUR 10 billion in 2025 reports. Construction teams are building a 700 km underground cable route to move wind energy southward. NKT secured two turnkey contracts in early 2025 for LanWin7 and NordOstLink valued at approximately EUR 1 billion. These commitments signal that the high-voltage equipment market is moving from planning phases into capital-intensive execution. Such massive interconnectors serve as the financial backbone for the sector, driving procurement for specialized cabling and converter stations.
Offshore Wind Expansion Triggers Unprecedented Demand for Subsea Cabling
The physical integration of remote offshore wind farms is creating immediate hardware deficits. Global developers installed 8 GW of new offshore wind capacity in 2024. China accounted for 4 GW of this total, cementing its role as a regional demand driver. An impressive pipeline of 19.6 GW is expected to come online by late 2025, creating urgent needs for export cables. Prysmian finalized three contracts worth EUR 5 billion with Amprion in 2024 to address these needs. These specific agreements cover the supply of 4,400 km of high-voltage cables. Of that immense volume, manufacturers will dedicate 1,000 km specifically to submarine HVDC cables.
TenneT has also accelerated its procurement strategies to meet renewable targets. Their 2024 framework agreements cover the connection of 4 GW of offshore wind energy in the German North Sea. Stakeholders in the high-voltage equipment market must note that these projects utilize advanced 525 kV systems. Consequently, the reliance on high-capacity subsea infrastructure is reshaping manufacturing priorities. The sheer volume of copper and insulation materials required for these subsea links is tightening global supply chains. Offshore wind is no longer a niche segment but a primary engine for equipment sales.
Artificial Intelligence and Data Center Booms Create Acute Power Infrastructure Deficits in the High-Voltage Equipment Market
Hyper-scale computing is imposing shock loads on grid infrastructure unlike anything seen previously. Utility power demand for data centers is projected to skyrocket by 11.3 GW in 2025 alone. Total utility power provided to these facilities is forecast to reach 61.8 GW by the end of 2025. Bloom Energy predicts that 35 GW of new data center capacity will be announced over the next five years. However, a massive infrastructure gap exists. The high-voltage equipment market is struggling to keep pace, as US data centers currently have 55 GW of capacity requests in the connection queue.
Localized demand is particularly intense in technology hubs. Operational data centers in Northern Virginia were drawing 3 GW from the grid in 2024. Projections indicate US data center electricity consumption will reach 4,179 billion kWh in 2025. These immense loads require robust high-voltage substations to step down transmission power. Consequently, utility connection timelines for large data center loads have extended to 3-5 years in top markets. Technology firms are now directly investing in grid assets to bypass these bottlenecks. The convergence of AI and electrification is a definitive catalyst for equipment growth.
Supply Chain Bottlenecks Persist As Manufacturing Capacity Struggles To Adapt
Manufacturers are racing to expand facilities as lead times for critical components lengthen. Lead times for large power transformers (LPTs) remain between 80 and 120 weeks in 2025. Specialized high-voltage units face even severe delays, with production timelines extending to 210 weeks in extreme cases. Hitachi Energy announced an incremental investment of USD 4.5 billion by 2027 to combat these constraints. The company is investing USD 330 million specifically to modernize its Swedish factory. These expansions in the high-voltage equipment market include hiring 2,000 additional employees in Sweden to boost output.
Cable procurement is facing similar logistical hurdles. Lead times for procuring high-voltage export cables reached 3 years in 2024. Utilities hoping to secure large power transformers must now plan up to 4 years in advance. NKT extended its framework with TenneT through 2028, effectively locking up factory utilization for years. These constraints indicate a seller’s market where production slots are as valuable as the hardware itself. Stakeholders must anticipate prolonged procurement cycles and price hardening across the supply chain. Capacity expansion is the single most critical supply-side trend.
Global Utilities Aggressively Increase Capital Expenditure To Harden Grid Assets
National grid operators are deploying record levels of capital to upgrade aging backbones. National Grid plc announced a capital investment plan of GBP 60 billion over the five years ending 2029. Such spending targets a group asset growth of 10% annually. In the United States, National Grid plans to invest USD 4 billion specifically in the “Upstate Upgrade” transmission project. Funding these massive initiatives requires significant liquidity. National Grid executed a GBP 7 billion equity raise in 2024 to finance this growth.
Spending records are being shattered consistently across the sector. National Grid’s capital investment reached a record GBP 10 billion in the fiscal year ending March 2025. German TSOs committed EUR 10 billion solely for the SuedLink infrastructure. Onshore expansion is equally critical. TenneT’s 2024 framework covers the installation of 900 km of high-voltage cabling within Germany and 4,000 km in the Netherlands. The IEA estimates that 80 million km of grids must be added or refurbished globally by 2040. The high-voltage equipment market is the direct beneficiary of this generational capital deployment.
Siemens Energy Record Financials Validate Strong Sector Growth Trajectory
Financial results from key players confirm the robust health of the transmission sector. Siemens Energy Grid Technologies received orders exceeding EUR 21 billion in Fiscal Year 2025. The group reported total revenue of EUR 39.1 billion, driven largely by grid expansion. An unprecedented order backlog reached EUR 123 billion by the start of 2025. These figures demonstrate that the high-voltage equipment market is experiencing sustained commercial momentum. Profit before special items for the group rose to EUR 2.355 billion in FY 2025.
Cash generation has also improved significantly alongside order intake. Free cash flow pre-tax surged to EUR 4.663 billion in FY 2025. Management explicitly cited high demand in the US product business as a primary growth driver. Confidence in future earnings is high. Siemens Energy proposed a dividend of EUR 0.70 per share for FY 2025. These financial indicators suggest that grid technology divisions are becoming the most profitable segments for diversified industrial giants. Investors are rewarding companies that successfully capture this transmission spending.
Transformer and Switchgear Orders Surge Toward Historical Highs Globally, Pushing the High-Voltage Equipment Market to New Highs
Procurement activity for physical grid assets is accelerating in major growth economies. Hitachi Energy India received a pivotal order for 30 units of transformers in June 2025. These units are rated at 765 kV, representing the highest commercial AC voltage level in the region. Each transformer has a capacity of 500 MVA, ensuring massive throughput. The capacity from this single order is sufficient to transmit power for 30 million households. Hitachi Energy India reported a record order backlog of approx USD 1 billion (INR 8,910 crore) as of October 2024.
Strategic HVDC projects are also driving equipment sales in Asia. Hitachi Energy was selected in 2025 to deliver a 950 km HVDC connection in India. This link will transmit 6 GW of renewable power from Rajasthan to Uttar Pradesh. European manufacturers are seeing similar density in their books. NKT reported a record high-voltage order backlog of EUR 10.8 billion entering 2024. Interconnector projects accounted for 50% of NKT’s backlog. The high-voltage equipment market is defined by these mega-orders that secure factory output for multiple years.
Future Pipelines and Strategic Projects Confirm Long Term Market Robustness
Forward-looking indicators suggest demand will outstrip supply for the remainder of the decade. The UK government has set a target to realize 18 GW of interconnector capacity by 2030. Massive individual projects underpin these national goals. The Xlinks Morocco-UK power project has a projected cost of GBP 24 billion. Planners for Xlinks estimate the project will require the manufacturing of 4,000 km of HVDC subsea cable. Once operational, it will provide 3.6 GW of reliable baseload power.
Global investment metrics highlight the immense scale of the required build-out. The IEA warns that grid investment must double to over USD 600 billion per year globally. Currently, over 3,000 GW of renewable power projects are waiting in grid connection queues. The high-voltage equipment market must scale rapidly to unlock this trapped generation capacity. The combination of ambitious government targets and massive renewable queues guarantees a bullish outlook. Stakeholders should expect the current cycle of high demand and tight supply to persist well beyond 2025.
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High-voltage Equipment Market Major Players:
- Fuji Electric
- Siemens
- ABB
- Tebian Electric Apparatus
- Crompton Greaves
- General Electric
- Larsen and Toubro
- Hitachi
- Mitsubishi Electric
- Toshiba
- Other Prominent Players
Key Market Segmentation:
By Installation Type
- Indoor
- Outdoor
By Voltage Level
- Low Voltage (LV)
- Medium Voltage (MV)
- Medium Voltage (MV)
- Medium Voltage (MV)
By Type
- Voltage Transformers
- Disconnectors
- Circuit Breakers
- Current Transformers
- Insulators
- Surge Arresters
By Application
- Transmission
- Distribution
- Power Generation
By End User
- Renewable Energy
- Utilities
- Industrial
- Commercial
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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