The vacuum interrupter market is projected to grow at a CAGR of 5.54% to reach US$2,132.436 million by 2025, from US$1,543.027 million in 2019. Vacuum interrupter is essentially used in utility power transmission systems, power generation units, and power distribution systems across several industries such as railways, industrial plants. It is a vacuum sealed-off device incorporated in a vacuum circuit breaker to cause interruption of fault currents.
A major reason for the growth of this market is the need for vacuum interrupters in the most demanding electrical circuit protection devices to mitigate the possibility of the loss that can be caused by electrical overloads.
They are also used widely in load break switches to connect and disconnect load currents to provide limited load switch capacity. As for the reclosers, they are used to automatically open or close circuits depending upon the overload or fault conditions. These benefits provided by vacuum interrupters are the biggest reason for the growth of this market.
Their application in railway circuit breakers is expected to drive the demand for this market in the forecast period.
In an attempt to increase the connectivity, the number of railway projects is increasing all over the world, especially in Asian countries like India. Some of the examples of railway projects announced or started in 2019 are:
As a consequence of the development of these projects, the demand for a circuit breaker is also anticipated to escalate.
The growth of utility, oil & gas, construction, and transportation industries is anticipated to fuel the growth of this market. The use of vacuum circuit breakers is also prevalent in industries such as oil and gas, construction and transportation. As the count of projects undertaken in these sectors is expected to rise over the forecast period, the use of vacuum interrupters will also rise in tandem with these growing industries. Furthermore, the development of transmission and distribution networks is also fuelling the growth of this market. Apart from this, the reduction in wastage of energy and cost during transmission can be avoided. The damage done to human lives and industrial places can be circumvented with this vacuum interrupter. This is the most important reason why people switch to circuit breakers.
The rising need for electricity and power-plants with rapid industrialization is also projected to positively impact the sales of vacuum interrupters.
The demand for electricity is rising at an exponential rate since industrialization and urbanization. According to World Bank, the electric power consumption was 2,732.12 kWh per capita in the year 2006 which has risen to 3,132.15 kWh by the year 2014 and is expected to follow the same trend in the upcoming years. This will boost the use of vacuum interrupter which are used as protective devices to prevent short circuits. Applications of this technology are majorly found in the medium voltage current, though they are also being used in high voltage applications.
Some of the macro-economic factors are also expected to indirectly affect this market.
For instance, population rise is increasing the demand for electricity and oil. There is a need for more infrastructure development to serve the growing population who does not want to settle for less. Another trend that is happening simultaneously is urbanization and migration of people from low-income countries to developed countries in search of better opportunities for living. Rising incomes are supporting this transformation. As a result, the demand for vacuum interrupter is also projected to grow.
The eco-friendly nature of vacuum interrupter is also bolstering the demand for this market. Increasing concern towards protecting nature has shifted the market towards gas-free insulators from gas insulation interrupters. Environment-friendly and easily recyclable technology of vacuum interrupter helps in cost-cutting. The concerns over carbon emissions have led the manufacturers to seek such equipment and materials that are energy-efficient for use in circuit breakers.
However, high cost coupled with a malfunctioning risk associated with this product is a restraining factor for this market. The high cost of a vacuum interrupter as compared to the available alternatives is expected to be a major roadblock in the growth of this market. Also, the device is also prone to suffer from malfunction while working which may also resist people to employ them in their circuit breakers. Nevertheless, with technological improvements put in place, this restraint is also expected to fade away.
Additionally, lack of awareness and improper government policies is also anticipated to challenge the market players for this product. There is a lack of awareness about the availability of this product in the market which might hamper its sales in the forecast period.
Geographically, the Asia Pacific region is expected to witness a high CAGR in the Vacuum Interrupter market due to rising incomes and electricity consumption by the people in this region, specifically India and China where a large proportion of the GDP comes from the manufacturing sector. The American region is also expected to hold a substantial share of this market owing to the high developmental projects undertaken by the government in this region. Construction and transportation projects are on a rising spree in this region.