Switchgear Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)
The Switchgear Market is expected to witness a CAGR of about 5.9% during the forecast period. Electrical switchgear is a collection of circuit breakers, switches, and fuses (circuit protection devices) intended to control, protect, and isolate electrical equipment. The switchgear line-up is a metal-enclosed structure with electrically operated switching elements. Switchgear can be further classified as Medium Voltage and Low Voltage. The demand for electricity generation is projected to drive the switchgear market.
The advancement of industrial structures for safe and reliable operations is driving the Switchgear Market. Increasing awareness toward green energy will lead to switchgear usage. Gas-insulated switchgear (GIS) is expected to contribute the maximum share of the global switchgear market.
The use of digital switchgear significantly improves the operating efficiency of the substation room with low energy consumption required for switchgear operation.
Electricity demand is increasing as a result of urbanization and industrialization, which will immediately fuel a significant need for switchgear. Switch gears are becoming increasingly necessary as smart grid and smart meter implementation proceeds.
According to Bloomberg NEF, the worldwide electricity demand is likely to reach around 38,700 terawatt-hours by 2050 from 25,000 terawatt-hours in 2017. This will add to expansion and investment in the power sector, increasing the need for electrical devices like switch gears.
COVID-19 affected the supply chain across all sectors. The electronics and semiconductors industry was affected the most by prevailing supply chain issues.
The government is taking measures to reduce carbon emissions. India has already set the target to become Net-Zero by 2070. The per capita emission of CO2 in India is much less than in other developed countries.
By 2030, the Siemens Energy Switchgear Factory in Berlin hopes to be carbon neutral. It is already developing solutions to make the facility and its machinery safer, greener, and more energy-efficient in production and operation.
Schneider Electric is planning to open a 185,000-sq-ft manufacturing plant in Mexico that will build and ship customized switchgear products used to transmit power, most often in commercial buildings.
Switchgear Market TrendsSwitchgear Market Segment by Type VoltageSchniender Electric, Havells India Pvt. Ltd, Hyundai Electric and Energy Systems, Fuji Electric, Powell Industries, and many other companies are the major switchgear market players. The increased electrical demand from urbanization and industrialization would fuel a strong need for switchgear.
In February 2023, LMR Technologies, which creates novel solutions for electrical switchgear, inked a contract with R&B Switchgear Services. LMR will look for necessary safety and operational aspects when inspecting and servicing switchgear and live electrical equipment.
In January 2023, to investigate the potential for regional localization of battery and battery swapping station production, Tenaga Switchgear partnered with EP Manufacturing. Tenaga Switchgear manufactures medium and high-voltage switchgear for electrical transmission and is currently attempting to expand into the energy transition market with items like AC and DC EV chargers and infrastructure for battery swapping.
In November 2022, Siemens’ Electrical Products business unit and Eplan partnered to offer optimized solutions for switchgear manufacturers and electrical planners. The duo plans to create a plug-and-play structure for electrical planners.
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