Global Low Voltage Vacuum Contactor Market Size By Application (Motors, Transformers, Capacitors, Reactors, Resistive Loads), End-Use (Utilities, Industrial, Commercial, Oil & Gas, Mining), Distribution Channel (Offline, Online), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Global Low Voltage Vacuum Contactor Market size was worth around USD 1.64 billion in 2022 and is anticipated to grow to around USD 2.98 billion by 2030 at a CAGR of around 7.77% between 2023 and 2030.
The global market for low voltage vacuum contactors is growing rapidly due to several factors such as a rise in demand for energy efficiency and infrastructure development. With an emphasis on energy efficiency and sustainability, businesses are shifting towards low voltage vacuum contactors. These contactors offer better switching and control functions, which reduce energy consumption and enhance system performance. Since organizations aim to optimize their energy usage, there is a growing demand for such contactors.
Moreover, the global proliferation of urbanization and infrastructure development projects is creating significant opportunities for the low voltage vacuum contactor market. These contactors have a wide range of applications in infrastructure projects like commercial buildings, residential complexes, hospitals, airports, and railway stations. The escalating demand for reliable electrical switching and control solutions by low voltage vacuum contactors is anticipated as the urban areas expand and infrastructure requirements increase.
- Based on the application, the glass segment held the dominating position with the highest market value
- Based on end-use, the industrial segment is expected to hold the largest market share over the forecast period
- Based on distribution channel, the offline segment dominated the market in 2022
- On the basis of region, North America accounted for the largest market share in 2022
Market Expansion to be Driven by Industrial Automation and Control Systems
The market for low voltage vacuum contactors is growing substantially due to the adoption of automation and control systems across various industries. To achieve better productivity and operational efficiency, industries are in need of low voltage vacuum contactors. These contactors are vital in motor control and power distribution in automated processes that make them essential components in industrial automation and control systems. They provide efficient switching and control mechanisms, which help reduce power usage and improve system performance. This has led to an increase in demand for these contactors across different sectors like manufacturing, oil & gas, and infrastructure, as they seek reliable and efficient electrical solutions for their automation and control requirements.
Price Sensitivity and Volatile Raw Material Prices Pose Challenges in the Market
The low voltage vacuum contactor market faces significant barriers due to price sensitivity and unstable raw material prices. In regions where cost-effectiveness is a prime concern, price-conscious customers may opt for lower-priced alternatives or find alternative solutions. This can have a significant impact on demand, as buyers prioritize affordability over specific features or brand loyalty.
Moreover, fluctuations in the prices of raw materials that go into manufacturing low voltage vacuum contactors, like metals and insulating materials, can influence the overall production cost. Rapid changes in raw material prices can pose a challenge to manufacturers, who must adjust their pricing strategies to maintain profitability. Price uncertainties can impact market growth through long-term planning and investment decisions.
April 2023: Schneider Electric commenced the construction of a new factory in India. The facility will manufacture low voltage vacuum contactors and other electrical products. With an investment of USD 147.0 billion, the factory aims to support the Indian government's "Make in India" initiative and cater to the growing demand for electrical equipment in the Asia-Pacific. The plant is expected to be operational by 2024 and will contribute to local employment and technology development.
November 2022: Siemens launched a highly customizable generator circuit breaker (GCB), catering to the needs of the low voltage vacuum contactor market. The GCB offers advanced features and flexibility, allowing it to be tailored to various customer requirements. With its customizable nature, Siemens aims to provide enhanced solutions for low voltage vacuum contactors, meeting the evolving demands of industries viz., manufacturing, infrastructure, and energy generation.
Based on application, the market is segmented into motors, transformers, capacitors, reactors, and resistive loads. The motors segment holds the largest market share in 2022. Motors are widely used across various industries, including manufacturing, oil & gas, and automotive, which is driving their demand. Motors are essential for powering machinery, equipment, and systems, making them a fundamental component in industrial processes. Additionally, the increasing focus on energy efficiency and the implementation of stringent regulations for motor-driven systems have led to the replacement and upgrading of older motors with more efficient and environment friendly options. This demand for energy-efficient motors has contributed to the growth of the motor segment in the low voltage vacuum contactor market.
Based on end-use, the market is divided into utilities, industrial, commercial, oil & gas, and mining. The industrial segment generated the highest revenue in 2022. Industries such as manufacturing, oil and gas, chemical, and automotive heavily rely on low voltage vacuum contactors for motor control, power distribution, and automation. The industrial sector has a high demand for efficient and reliable electrical solutions to ensure smooth operations and maximize productivity. Industrial projects often involve large-scale infrastructure and electrical systems, requiring a significant number of low voltage vacuum contactors. The robust growth of the industrial segment can be attributed to the continuous expansion and modernization of industrial facilities, which is increasing the need for low voltage vacuum contactors in this sector.
Based on distribution channel, the market is bifurcated into offline, and online. The online segment is set to grow with the highest CAGR in the forecast period. The increasing penetration of the internet and mobile devices has led to a significant shift towards online purchasing behavior across industries. Customers are increasingly turning to online platforms for convenience, accessibility, and a wider range of product options. Advancements in e-commerce technologies, secure payment gateways, and improved logistics have made online purchasing a seamless experience, fostering the growth of the online distribution channel segment in the low voltage vacuum contactor market.
North America is the Dominating Region Owing to a High Focus On Energy Efficiency and Sustainability
North America is the dominating region in the low voltage vacuum contactor market. The region has a strong industrial and commercial sector that drives the demand for low voltage vacuum contactors. Industries such as manufacturing, oil and gas, and infrastructure development contribute to the market growth. North America has a high focus on energy efficiency and sustainability, leading to the adoption of advanced electrical solutions like low voltage vacuum contactors. The region has a well-developed infrastructure, advanced technological capabilities, and a favorable regulatory environment, which supports the growth of the market. These factors collectively position North America as the dominant region in the low voltage vacuum contactor market.
Asia-Pacific is the Fastest Growing Region Owing to Rapid Industrialization and Urbanization
Asia-Pacific is the fastest-growing region in the low voltage vacuum contactor market. The region is experiencing rapid industrialization and urbanization, leading to increased demand for low voltage vacuum contactors in sectors such as manufacturing, construction, and infrastructure development. There is a growing emphasis on energy efficiency and sustainability in countries like China, India, and Japan, driving the adoption of advanced electrical solutions like low voltage vacuum contactors. The presence of a large consumer base, expanding economies, and government initiatives supporting infrastructure development contribute to the growth of the market in the Asia-Pacific region.
- ABB Ltd.
- Schneider Electric SE
- Siemens AG
- Eaton Corporation
- Mitsubishi Electric Corporation
- Fuji Electric Co., Ltd.
- Rockwell Automation, Inc.
- Crompton Greaves Ltd.
- Larsen & Toubro Limited
- General Electric Company
The global low voltage vacuum contactor market is segmented as follows:
- Resistive Loads
- Oil & Gas
By Distribution Channel
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America
Global Low Voltage Vacuum Contactor Market