Switchgear Market by Insulation (Gas-insulated, Air-insulated), Installation (Indoor, Outdoor), Current (AC, DC), Voltage (Low (up to 1 kV), Medium (2-36 kV), High (Above 36 kV), End User and Region - Global Forecast to 2028

Switchgear Market by Insulation (Gas-insulated, Air-insulated), Installation (Indoor, Outdoor), Current (AC, DC), Voltage (Low (up to 1 kV), Medium (2-36 kV), High (Above 36 kV), End User and Region - Global Forecast to 2028

The global market for switchgear is on a trajectory to reach USD 119.9 billion by 2028, a notable increase from the estimated USD 93.1 billion in 2023, with a steady CAGR of 5.2% spanning the period from 2023 to 2028. The global renewable energy sector is experiencing a substantial surge, with annual additions to renewable power capacity expected to average around 305 GW per year between 2021 and 2026, marking a nearly 60% increase compared to the previous five years. This growth is propelled by continuous governmental support in more than 130 countries, aggressive net-zero goals declared by nations representing nearly 90% of global GDP, and enhanced competitiveness of wind and solar PV technologies.

Renewable capacity is anticipated to expand by over 1,800 GW, constituting approximately 95% of the global increase in total power capacity. China, leading the pack, contributes to 43% of global growth, followed closely by Europe, the US, and India, collectively accounting for 80% of renewable capacity expansion globally. In 2021, solar PV installation led the charge, accounting for over half of the global renewable energy expansion, followed by wind and hydropower.

“Outdoor segment, by installation, to be fastest growing market from 2023 to 2028.”

The demand for outdoor switchgears is driven by their critical role in enhancing the transfer of electricity over long distances and larger loads (more than 66kV), ensuring reliable switching operations. These switchgears are vital components of medium and high-voltage distribution grids, primarily installed outdoors. The transmission and sub-transmission sector, with its requirement for high-load, long-distance transmission, stands as a significant consumer of outdoor switchgears. As electrification increases and the need for efficient long-distance power transmission grows, the outdoor switchgear market continues to expand.

“Low voltage segment, by voltage, to be the second-largest market from 2023 to 2028.”

Switchgears rated up to 1 kV, known as low-voltage switchgears, are extensively employed in commercial and residential settings. Major components of these switchgears include MCBs (Miniature Circuit Breakers), MCCBs (Molded Case Circuit Breakers), load break switches, safety switches, disconnectors, fuses, and low-voltage air circuit breakers. Positioned on the secondary side of a distribution transformer, this arrangement is often referred to as a substation. These switchgears are typically metal-enclosed and serve as three-phase power distribution products designed to supply electric power safely and efficiently at voltages up to 1,000 volts and currents up to 6,000 amperes.

“Europe to be second-largest region in switchgear market.”

In 2022, Europe secured the second-largest position in the switchgear market, holding a share of 22.6% with a market valuation of USD 20.39 billion. The European switchgear market is dissected by country, including the UK, Germany, France, Italy, and the Rest of Europe.

On July 14, 2021, the European Commission (EU) unveiled the initial segment of its ""Fit for 55"" initiative, targeting a 55% reduction in the EU's carbon emissions by 2030 compared to 1990 levels. This ambitious plan, aligned with achieving climate neutrality by 2050, emphasizes increased energy consumption from renewable sources. Given the maturity of European power generation, transmission, and distribution systems, the EU is directing efforts toward modernizing aging infrastructure, integrating solar and wind power, and establishing interconnections to facilitate more efficient power and energy trading. This transition necessitates a shift from electromechanical to digital switchgear, potentially driving up demand for switchgears.

Breakdown of Primaries:

In-depth interviews with key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, were conducted to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The primary interviews were distributed as follows:

By Company Type: Tier 1-30%, Tier 2-55%, and Tier 3-15%

By Designation: C-Level-30%, D-Level-20%, and Others-50%

By Region: North America–18%, Europe–8%, Asia Pacific–10%, South America–4% and

Middle East & Africa–60%.

Note: “Others” include sales managers, engineers, and regional managers

The tiers of the companies are defined based on their total revenue as of 2021: Tier 1: >USD 1 billion, Tier 2: USD 500 million–1 billion, and Tier 3:

The switchgear market is predominantly governed by well-established global leaders. Notable players in the switchgear market include ABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Eaton (Ireland), Mitsubishi Electric (Japan), Hitachi (Japan), CG Power and Industrial Solutions (India), Fuji Electric (Japan), Powell Industries (US), Hyundai Electric & Energy Systems (South Korea), Toshiba (Japan), and several others.

Research Coverage:

The report provides a comprehensive definition, description, and forecast of the switchgear market based on various parameters, including Insulation (Air Insulated, Gas Insulated, Others), Installation (Indoor, Outdoor), Voltage Rating (Low, Medium, High), Current (AC,DC), End-User (Transmission & Distribution Utilities, Industries, Commercial & Residential, Others), and region (Asia Pacific, North America, Europe, Middle East and Africa, South America). The report also offers a thorough qualitative and quantitative analysis of the switchgear market, encompassing a comprehensive examination of the key market drivers, limitations, opportunities, and challenges. Additionally, it covers critical facets of the market, such as an assessment of the competitive landscape, an analysis of market dynamics, value-based market estimates, and future trends in the switchgear market.

Key Benefits of Buying the Report

The report is thoughtfully designed to benefit both established industry leaders and newcomers in the switchgear market. It provides reliable revenue forecasts for the entire market as well as its individual sub-segments. This data is a valuable resource for stakeholders, enabling them to gain a comprehensive understanding of the competitive landscape and formulate effective market strategies for their businesses. Furthermore, the report serves as a channel for stakeholders to grasp the current state of the market, providing essential insights into market drivers, limitations, challenges, and growth opportunities. By incorporating these insights, stakeholders can make well-informed decisions and stay informed about the constantly evolving dynamics of the switchgear industry.

Analysis of key drivers: (Development of power distribution infrastructure to drive the switchgear market, Rapid growth in renewable energy-based capacity expansion to boost the switchgear market, Rising investment in industrial production is likely to propel the switchgear market), restraints (Regulatory restrictions on SF6 gas emissions, Downturn in the residential property market), opportunities (Advancements in smart technologies and digital transformation, Increasing adoption of high-voltage direct current systems), and challenges (Operational challenges such as high temperature, arc flashing and over pressure, Intense competition from the unorganized sector) influencing the growth of the switchgear market.

Product Development/ Innovation: The switchgear market is in a constant state of evolution, with a primary focus on product development and innovation. Leading industry players like ABB, Siemens, Schneider Electric, and General Electric are at the forefront of advancing their product offerings to address shifting demands and environmental considerations. There is a notable shift towards enhancing the intelligence of switchgear.

Market Development: The switchgear market is experiencing significant growth and development driven by various factors. SF6 is an incredibly potent greenhouse gas, with a global warming effect 23,500 times more powerful than CO2. Its annual CO2 emissions are equivalent to those produced by about 100 million cars in a year. Moreover, as a synthetic gas with no natural degradation process, its accumulation in the atmosphere is likely irreversible. SF6 is extensively used in the energy industry due to its excellent electrical properties, with 80% of its production employed as an insulating medium in gas-insulated switchgear (GIS) within the electrical sector.

Regulatory bodies are intensifying their scrutiny of SF6 due to its severe environmental impact. In this context, the European Union introduced strict F-gas regulations in 2006 and 2014, further tightening restrictions on SF6 usage in switchgear. In 2022, the legislation will undergo a second revision to assess new technologies and explore further means to limit SF6 usage. In November 2021, nine major T&D (Transmission and Distribution) switchgear manufacturers issued a joint statement, committing to deliver SF6 and PFAS-gas (Per-and Polyfluoroalkyl Substances)-free T&D equipment, aimed at achieving genuinely sustainable power grids.

Market Diversification: The switchgear market is experiencing significant diversification, driven by a multitude of factors. Rising investment in industrial production is likely to propel the switchgear market. The COVID-19 pandemic caused disruptions in industrial production, with many projects and expansions postponed. As pandemic restrictions ease globally, industrial production is gradually recovering. The International Monetary Fund reported a 3.1% global GDP decline in 2022. According to the United Nations Industrial Development Organization (UNIDO), global industrial production grew by 3.3% in 2022, driven by emerging APAC industries like India and China. For example, Madhya Pradesh, India, approved plans for five new industrial areas in April 2022 to boost industrial production. In the same month, Malaysia and China signed 100 memorandums of understanding to enhance collaboration and expand industrial parks, indicating numerous industrial projects are underway. This situation bodes well for switchgear, essential for power safety and regulation in industrial settings.

Competitive Assessment: A comprehensive evaluation has been conducted to scrutinize the market presence, growth strategies, and service offerings of key players in the switchgear market. These prominent companies include Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Siemens (Germany), Mitsubishi Electric (Japan), and others. This analysis provides in-depth insights into the competitive positions of these major players, their approaches to driving market growth, and the range of services they offer within the switchgear segment.