India Electric Switchgear Market Outlook to 2028

India Electric Switchgear Market Overview

The India Electric Switchgear Market has experienced notable growth, this is reflected by Global Switchgear Market reaching a valuation of USD 93 billion in 2023. This growth is fueled by the rising demand for efficient and safe power distribution systems, along with government efforts to upgrade infrastructure and boost investments in renewable energy projects.

The key players in the India electric switchgear market include companies such as ABB India Ltd., Siemens Ltd., Larsen & Toubro Limited, Schneider Electric India Pvt. Ltd., and Havells India Limited. These companies dominate the market due to their extensive product portfolios, strong distribution networks, and continuous technological innovations.

Siemens' board approved an investment of around Rs 519 crore towards capacity addition at the Gas Insulated Switchgear Factory in Goa in May 2024. his investment is part of a broader capital expenditure plan that also includes a metro train manufacturing facility in Aurangabad.

Cities like Mumbai, Delhi, Bengaluru, and Hyderabad dominate the India electric switchgear market. These cities have a high concentration of industrial and commercial activities, leading to increased demand for reliable and efficient power distribution systems. Moreover, the ongoing infrastructure development projects in these cities contribute to the market's dominance.

India Electric Switchgear Market Segmentation

By Voltage Type: The India electric switchgear market is segmented by voltage type into low voltage switchgear, medium voltage switchgear, and high voltage switchgear. In 2023, the low voltage switchgear segment held a dominant market share due to its widespread application in residential, commercial, and industrial settings.

By Installation: The market is also segmented by installation type into indoor and outdoor switchgear. In 2023, the indoor switchgear segment had a significant market share, driven by its extensive use in commercial buildings, data centers, and industrial facilities. The need for safe and compact electrical installations in urban areas has propelled the demand for indoor switchgear.

By Region: The regional segmentation includes North, South, East, and West India. In 2023, North India dominated the market share due to its robust industrial base and significant government investments in power infrastructure development. The presence of major industrial hubs and the high demand for efficient power distribution systems have further strengthened North India's market position.

India Electric Switchgear Market Competitive Landscape

Company

Establishment Year

Headquarters

ABB India Ltd.

1949

Bengaluru, India

Siemens Ltd.

1927

Mumbai, India

Larsen & Toubro Limited

1938

Mumbai, India

Schneider Electric India Pvt. Ltd.

1836

Gurgaon, India

Havells India Limited

1958

Noida, India

ABB India Ltd.: ABB India has collaborated with Witt India in 2023 to enhance safety in road tunnels by installing smoke extraction motors. This partnership aims to improve infrastructure safety, particularly in projects like the Rewa-Sidhi Tunnel and Kuthiran Tunnel Highway, focusing on effective smoke management during emergencies.

Siemens Ltd.: In February 2024, Siemens secured an order worth Rs 766 crore from the Bangalore Metro Rail Corporation for the electrification of Bengaluru Metro Phase 2. This project aims to enhance sustainable public transport in the city, with Siemens' share of the contract being approximately Rs 558 crore.

India Electric Switchgear Industry Analysis

India Electric Switchgear Market Growth Drivers

Expansion of the Renewable Energy Sector: As of May 2024, India's renewable energy sector boasts an installed capacity of about 195.01 GW, including 85.47 GW from solar and 46.65 GW from wind. This positions India as the third-largest producer of renewable energy globally, with a target of reaching 500 GW by 2030.

Demand for Specialized Switchgear: The shift to renewable energy is driving demand for specialized switchgear, crucial for managing electricity distribution efficiently. The requirement for evacuation infrastructure to support an additional 450 GW of renewable energy by 2030 highlights the essential role of modern switchgear in the evolving energy landscape.

Infrastructure Development Initiatives: Government initiatives aimed at infrastructure development, such as the Gati Shakti plan and various smart city projects, are enhancing the electrical distribution networks across the country. These initiatives are expected to increase the demand for switchgear as part of the broader electrical infrastructure improvements.

India Electric Switchgear Market Challenges

Overcapacity and Underutilization: The medium and high voltage (MV & HV) segments are currently experiencing overcapacity due to insufficient demand. Delays in project approvals and tender finalizations lead to a backlog of orders, which can strain resources and affect operational efficiency.

Quality Assurance and Procurement Practices: The reliance on the lowest bid procurement system (L1) can compromise quality, as it often prioritizes cost over reliability. This practice can hinder the introduction of high-quality materials into the market and affect overall system performance.

India Electric Switchgear Market Government Initiatives

Power for All Initiative: The Power for All initiative aims to provide 24x7 electricity access to all households, industries, and commercial establishments in India. Initially set for completion by 2019, the target has been extended to 2024 due to implementation challenges. This joint effort involves collaboration between the Government of India and state governments across 36 states and Union Territories.

Integrated Power Development Scheme (IPDS): The Integrated Power Development Scheme (IPDS) aims to strengthen the power distribution network, improve power supply quality, and reduce losses, driving demand for modern switchgear products. As of 2024, projects worth ₹51,925 crore have been sanctioned under IPDS, with ₹43,800 crore awarded and ₹27,800 crore completed.

India Electric Switchgear Market Future Outlook

The India electric switchgear market is set for substantial growth, driven by government initiatives, increasing investments in renewable energy, and technological advancements in smart and digital switchgear solutions. This growth presents significant opportunities for manufacturers and stakeholders in the industry.

Future Market Trends

Renewable Energy Integration: The increasing integration of renewable energy sources into the national grid will continue to drive the demand for advanced switchgear systems. By 2028, the renewable energy capacity in India will be necessitating the deployment of sophisticated switchgear solutions to manage the variability and ensure grid stability.

Expansion of Smart Grids: By 2028, the development of smart grids will gain momentum, with significant investments from both government and private sectors. The smart grid market in India will grow at a rapid pace. This will drive the adoption of intelligent switchgear systems that offer real-time monitoring, predictive maintenance, and enhanced operational efficiency, ensuring reliable power distribution.
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