Global Switch Gear Market Outlook, 2028

Global Switch Gear Market Outlook, 2028

Switchgear is a switching device designed for power system management. To protect equipment from electrical overload, they can control, safeguard, and isolate circuits. It controls current flow to prevent defective currents and short circuits. In the event of an electrical surge, switchgear blocks power flow to protect the electrical system and prevent damage. Switchgear is used for testing and fault clearance. Fuse, relays, switches, isolators, and circuit breakers are examples of switchgear. Switchgear demand has increased as electrical distribution networks have evolved. Switchgears provide for safe operations while also assisting with service continuity and greater convenience in commercial and residential applications. In the utility and industrial sectors, switchgears are also commonly employed to manage electrical issues and de-energize equipment for repair. When an electrical failure occurs, a circuit breaker detects the problem and suspends power flow, increasing safety and efficiency. In addition to that, power-efficient energy solutions are being adopted by countries all around the world. The adoption of upgraded and robust energy systems, as well as the implementation of tight energy-use rules, contributes to the market's growth. Switchgear's superior efficiency and safety, as well as a surge in the adoption of automation solutions for greater performance, have raised demand for the product. Electricity is a critical component of today's world. When it comes to electricity distribution, however, it must be done properly and securely, since it involves various handling dangers that, if not done correctly, can soon turn into lethal traps. As a result, implementing safety measures and procedures at all distribution units and substations has become crucial to maintaining security levels. While many mechanisms aid in the protection of electrical connections in residential areas, switchgear systems have proven to be one of the most popular due to their functions and characteristics. The rapid expansion of electricity in rural regions, as well as the expansion of energy output, has boosted the demand for a wide range of electrical equipment. The primary Switchgear Market trends projected to fuel market expansion are higher regional government aims for supplying power to remote areas and greater investment in this industry. It is an electrical component that controls, monitors, and regulates a circuit. It guarantees operating safety, cost-effectiveness, and availability in a wide range of residential, commercial, industrial, and utility applications.

According to the research report, “Global Switchgear Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 175 Billion by 2028, increasing from USD 126.44 Billion in 2022. The market is expected to grow with 6.02% CAGR by 2023-28. The increased emphasis on energy efficiency and the reduction of power loss in transmission and distribution networks is driving the industry. Switchgears are in high demand because they serve a critical role in reducing such losses and guaranteeing efficient power utilisation. The development and growth of smart grids is another important issue. As these modern power networks incorporate capabilities such as predictive maintenance and self-healing, the demand for advanced systems capable of supporting such functions grows. Also, the growing popularity of electric vehicles (EVs) needs more durable and dependable power distribution networks, of which switchgear is an essential component. Furthermore, the rising building industry, notably commercial and industrial, needs the installation of efficient electrical distribution systems, which increases product demand. Furthermore, the legislative push for safer and more environmentally friendly devices, particularly those free of Sulphur Hexafluoride (SF6), a strong greenhouse gas, is opening up new business prospects. Government rules that encourage the use of distributed power systems, as well as a growing desire to decrease the carbon impact, have spurred market expansion. Rising demand from developing countries, technical developments, and more investment are projected to drive market growth in the future years. New rules aimed at reducing/limiting power outages and strengthening power distribution networks are generating demand for power sector equipment. The primary driver driving the Switchgears market is the equipment to make wiser decisions by delivering real-time data to show problems and improvement opportunities. The rapidly expanding electrification demand in remote locations, combined with rising energy generation, has boosted the expansion of electrical equipment.

The key switchgear market trends that are expected to cater to market expansion include increasing regional government aims for delivering power in rural areas and rising investments in this industry. Switchgear is used in a variety of residential, commercial, industrial, and utility applications to assure operational safety, cost-effectiveness, and uptime. They are mostly utilised in low, medium, and high voltage systems to handle aberrant operating voltage networks between load centres and generating stations. Switching equipment is made up of many components such as current and voltage transformers, isolators, switches, relays, circuit breakers, fuses, and other equipment used to improve operations. The growing use of switching equipment has resulted from the expansion of transmission and distribution networks. Governments in both developed and emerging economies are working to improve the current electric grid infrastructure in order to assure an efficient electricity supply and prevent electric component failure during power transmission. By halting the power flow, switchgear helps to reduce damage to components connected to the power supply during a power surge. The increasing demand for power from emerging nations has resulted in a strong emphasis on constructing efficient power transmission and distribution networks, ultimately increasing demand for switches, fuses, and circuit breakers. This increased demand for power sector products is likely to boost the expansion of the global switchgear market. The increased use of renewable energy generation, such as solar and wind power, has prompted outdoor deployment to efficiently connect these decentralized energy sources to the grid. Furthermore, the increased emphasis in emerging nations on electrification and the modernization of existing infrastructure has resulted in the development of outdoor switchgear solutions for distribution networks in urban and rural regions.

Asia Pacific is anticipated to hold a larger switchgear market share of the global market due to the presence of a huge potential for building large industrial plants coupled with the rapidly developing residential & commercial sectors.

Developing countries such as China, India, and South Korea are experiencing excessive energy demand due to the growing need for the transmission & distribution of electric power and electrification projects. Rapid industrialization and urbanization across the region are boosting the demand for electricity, thereby fueling the need for efficient and reliable switchgear solutions. The growing focus on renewable energy sources and the integration of smart grid technologies are leading to the adoption of advanced switchgear systems capable of handling complex power distribution networks. Moreover, the expansion of industries such as oil and gas, manufacturing, and construction, coupled with investments in infrastructure development projects, are further propelling the demand for switchgear products in the Asia Pacific region. The rising awareness about the importance of electrical safety and the need for uninterrupted power supply are creating opportunities for market growth, as end-users are prioritizing the installation of reliable switchgear systems to safeguard their operations and ensure uninterrupted power flow. Countries such as China and India are witnessing heavy investments in infrastructure, rural development, and industrial sectors. This has led to the laying of transmission lines and distribution networks rapidly. The growing demand for renewable energy from countries such as India will also drive the growth of the switchgear market. Heavy investments are being made in China and India's industrial, rural, and infrastructure sectors. As a result, transmission lines and distribution networks have been quickly installed. The switchgear industry will expand due to the rising demand for renewable energy from nations like India.

Based on the insulation, the gas-insulated switchgears is estimated to be the fastest-growing market from 2023 to 2028 as they are deployed in various industries, serving different needs at varying voltage levels.

The growing demand for reliable and efficient power distribution infrastructure, particularly in developing economies, is fueling the expansion of the gas segment. These advanced switchgear systems offer numerous advantages, including enhanced safety features, compact size, and superior environmental performance. Additionally, the increasing focus on renewable energy sources and the integration of smart grid technologies are driving the adoption of gas insulation, as they provide seamless integration with renewable power generation and enable efficient monitoring and control of electricity networks. Gas-insulated switchgears (GIS) equipment is more compact and space-efficient compared to traditional air-insulated switchgear (AIS). This compact design allows for the installation of GIS in locations with limited space, making it especially useful in densely populated urban areas or inside buildings. The use of insulating gas (such as sulfur hexafluoride, SF6) in GIS provides superior insulation properties. It reduces the risk of electric arcing, which can cause fires and explosions in conventional switchgear. This makes GIS safer for both personnel and the surrounding environment. Gas-insulated switchgears are highly reliable and require minimal maintenance. The sealed enclosures prevent environmental factors like dust, humidity, and pollution from affecting the internal components, resulting in a longer service life and reduced downtime. While SF6, the most commonly used insulating gas in GIS, has a high global warming potential (GWP), modern GIS designs aim to minimize SF6 leakage, and efforts are ongoing to develop alternative, more environmentally friendly insulating gases. Despite the environmental concerns, the overall reduction in greenhouse gas emissions due to the improved performance and reliability of GIS can be significant. Gas-insulated switchgears have fewer components compared to AIS, and many of these components are sealed, which results in lower maintenance requirements, reduced outage times, and increased system reliability.

The low voltage segment is estimated to have a significant growth across the world owing to the wide deployment in distribution networks along with the high fault enduring capacity.

Low-voltage switchgear is used in a wide range of applications, from residential and commercial buildings to industrial facilities and infrastructure. It is essential for controlling and distributing electrical power in most settings, making it highly versatile and in high demand. Safety is a paramount concern in electrical power distribution. Low-voltage switchgear is designed with safety in mind and incorporates features such as circuit protection, overcurrent and short-circuit protection, and ground fault protection, which help prevent electrical accidents and fires. Low-voltage switchgear is generally more cost-effective than medium-voltage or high-voltage switchgear. This affordability makes it an attractive choice for various applications, especially in residential and commercial settings where cost considerations are significant. Low-voltage switchgear is relatively easy to install, and maintenance requirements are generally lower compared to medium or high-voltage equipment. This simplicity and ease of maintenance contribute to its popularity. Many standardization bodies and regulations worldwide have established guidelines and standards for low-voltage switchgear, which ensures that these products meet specific safety and performance requirements. This standardization makes it easier for manufacturers to produce reliable and compliant equipment. Components for low-voltage switchgear, such as circuit breakers, contactors, relays, and protection devices, are widely available, which simplifies repairs, upgrades, and replacements. Low-voltage switchgear can be easily integrated into renewable energy systems, making it a crucial component for solar, wind, and micro-grid installations, as well as for energy storage systems. n many applications, space is limited, and low-voltage switchgear is designed to be compact and space-efficient. This is particularly important in residential and commercial installations where available space is at a premium.

The outdoor installation segment is set to generate a high market share owing to its ability to sustain in harsh climatic conditions along with delivering reliable and economical operations.

The outdoor installation segment of the electrical switchgear market is set to generate a high market share by the upcoming timeframe. Many countries and regions are experiencing rapid infrastructure development, including the construction of new substations, power distribution networks, and renewable energy installations. These projects often require outdoor switchgear to control and protect electrical systems in exposed environments. The growing adoption of renewable energy sources like wind and solar power necessitates the use of outdoor switchgear in remote and outdoor locations. Outdoor switchgear is crucial for collecting, distributing, and controlling the electricity generated by renewable energy installations. Grid modernization efforts, such as the development of smart grids, often involve outdoor installations. Outdoor switchgear is used to enhance grid reliability, improve power quality, and support the integration of distributed energy resources. Outdoor switchgear is commonly used in electrical substations, which are essential components of power transmission and distribution networks. The expansion and maintenance of these substations drive the demand for outdoor switchgear. Outdoor installations are more common for high-voltage applications, such as transmission and substation equipment. These high-voltage systems require robust outdoor switchgear to withstand environmental conditions and ensure reliability. Outdoor switchgear is designed to withstand various environmental factors, including extreme temperatures, humidity, saltwater exposure, and pollution. These features make it suitable for demanding outdoor environments, which indoor switchgear may not handle as effectively. In many outdoor applications, space constraints or the need for open-air installations make outdoor switchgear the preferred choice. This is common in urban areas where land availability is limited. Also, many outdoor switchgear installations are equipped with remote monitoring and control capabilities, which are crucial for efficient operation and maintenance, especially in hard-to-reach or isolated locations.

By end user, transmission & distribution utilities form the largest end user segment and are expected to be at the leading position during the forecast period as well.

Transmission & distribution utilities include non-renewable and renewable sources of energy to fulfill the demand for electricity. The increasing adoption of renewal energy sources for power generation makes it necessary to upgrade the current infrastructure to allow easy integration of the electricity generated from renewable sources. Developing countries, especially in the Asia Pacific and South America, are aiming towards achieving 100% electrification and, as a result, are working extensively towards expanding the current infrastructure. These factors are expected to drive the growth of the transmission & distribution utilities. A significant introduction of power distribution facilities to cater to the increasing energy demand and enhancing energy efficiency to minimize losses and hazardous incidents will increase the share of the transmission & distribution (T&D) utility segment. An increasing focus on building substations and grid strengthening projects would bring the utility to invest in T&D infrastructure. The growing population shift from rural to urban areas along with investments in the construction of new housing buildings, as well as commercial projects is set to positively affect the residential & commercial segment during the projected period. The increasing demand for reliable and uninterrupted power supply drives the need for efficient switchgear to manage and control electrical power distribution. Additionally, expanding renewable energy sources and integrating smart grid technologies require advanced switchgear systems to accommodate complex power flows and ensure grid stability. Moreover, the need to upgrade aging infrastructure and replace outdated switchgear with more efficient and environmentally friendly alternatives is a significant driver in the market.

Market Drivers
• Increasing Demand for Electricity: The growing global population, urbanization, and industrialization are driving an increasing demand for electricity. This is a major driver for the switchgear industry, as switchgear is essential for the generation, transmission, and distribution of electrical power. The need to upgrade and expand electrical grids and substations to meet this demand is a significant driver for the industry.
• Renewable Energy Integration: The transition to cleaner and more sustainable energy sources, such as wind, solar, and hydropower, is a significant driver for the switchgear industry. As more renewable energy sources are integrated into the grid, there is a need for advanced switchgear to manage the variability and distribution of power. Smart grid technologies and grid modernization efforts are also driven by the integration of renewable energy sources, further boosting the demand for switchgear.

Market Restraints
• Environmental Regulations and Sustainability Concerns: Environmental regulations and concerns about the environmental impact of certain switchgear technologies, such as those using sulfur hexafluoride (SF6) as an insulating gas, pose a restraint on the industry. SF6 is a potent greenhouse gas with a high global warming potential (GWP), and there is increasing pressure to develop more environmentally friendly alternatives. Compliance with stricter environmental regulations can add complexity and cost to the manufacturing and use of switchgear.
• Economic Uncertainty: Economic factors, including fluctuations in commodity prices, currency exchange rates, and global economic uncertainty, can impact investment in infrastructure and electrical projects. Economic downturns can lead to reduced capital spending on new switchgear installations, affecting the growth of the industry.

Market Trends
• Digitalization and Smart Grids: The switchgear industry is witnessing a trend toward digitalization and the development of smart grids. Advanced sensors, communication technologies, and control systems are being integrated into switchgear to enhance monitoring, automation, and grid management. Smart grid technologies enable better load management, reduced downtime, and improved fault detection and response.
• Energy Storage Integration: The rise of energy storage solutions, such as batteries, is a significant trend in the switchgear industry. Energy storage systems require switchgear to control the flow of electricity and ensure grid stability. These systems are increasingly used for peak shaving, grid support, and renewable energy integration, contributing to the demand for specialized switchgear.

Covid-19 Impacts

The COVID-19 pandemic had several significant impacts on the switchgear industry. In the early stages of the pandemic, the industry faced disruptions in the supply chain, with lockdowns and restrictions leading to delays in the production and delivery of components and materials. These disruptions, coupled with reduced workforce availability due to health and safety measures, resulted in challenges for switchgear manufacturers. Additionally, project delays and cancellations in various sectors, including construction and infrastructure, led to a decline in new installations and investments, affecting the demand for switchgear products. However, as the pandemic highlighted the critical importance of reliable and resilient electrical infrastructure, there was an increased focus on ensuring the continuity of power supply, driving the adoption of digital and smart grid technologies in the industry. Switchgear manufacturers also faced growing interest in remote monitoring and maintenance solutions to address the limitations of physical site visits during lockdowns.

Competitive landscape

The key players in the market are actively engaged in a range of strategic initiatives to maintain and enhance their market positions. They are investing significantly in research and development to innovate and improve their products driven by the need to meet the evolving demands of the market, including the need for energy-efficient, compact, and environmentally-friendly products. Companies are also expanding their product portfolios to cater to a broader range of applications across various sectors, such as utilities, industrial, commercial, and residential. Some players are developing advanced systems to support the growing adoption of smart grids and renewable energy. Strategic collaborations and partnerships are also common, allowing companies to leverage each other's strengths, expand their geographical reach, and penetrate new markets. Mergers and acquisitions are another strategy being used to increase market share, acquire new technologies, and enhance competitive positioning. Some of the major market players include Siemens AG, ABB, Schneider Electric SE, Eaton Corporation plc, Mitsubishi Electric Corporation, Toshiba Corporation, General Electric Company, Hitachi, Ltd., Hyundai Electric, Hyosung Corporation, CG Power and Industrial Solutions Limited, Hubbell Incorporated, Powell Industries, Legrand SA, Larsen & Toubro Limited, Havells India Ltd, Fuji Electric, WEG SA, Panasonic Holdings Corporation and Bharat Heavy Electrical Limited

Key Developments

• In April 2023, Havells India Ltd. announced a strategic partnership with Swedish tech startup Blixt Tech AB to bring the solid state circuit breaker (SSCB) technology to the domestic market.

• In April 2023, Siemens expanded its sustainable blue GIS portfolio with the 8DAB 40. The switchgear for primary distribution networks up to 40,5 kV uses clean air as an insulating medium with GWP<1, making it climate-friendly and completely free of fluorinated gasses.

• In February 2023, Toshiba Transmission & Distribution Systems Private Limited (TTDI) announced that it received orders for 23 units of 400 kV and nine units of 220 kV gas-insulated switchgear for the development and enhancement of power transmission and distribution networks to the latest 2X500 MVA substation at Xeldem in Goa and pooling substations of solar and wind renewable projects at Alamuru and Kodamuru at 400 kV voltage levels.

• In February 2023, ABB India announced the commissioning of a factory in Nashik to manufacture gas-insulated switchgear. The company aims to serve customers across various industries, including power distribution, smart cities, data centers, transport (metro, railways), tunnels, ports, highways, and other infrastructural developments. The new facility is expected to manufacture primary and secondary GIS.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Switchgear market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Insulation:

• Gas Insulated Switchgears
• Air Insulated Switchgears
• Other Insulated Switchgears

By Voltage Level:

• Low-voltage Switchgears
• Medium-voltage Switchgears
• High-voltage Switchgears

By Installation:

• Indoor Installation
• Outdoor Installation

By End-User:

• Transmission & Distribution Utilities
• Industries
• Commercial & Residential
• Other End Users

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Switchgear industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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