Switchgear Market Forecasts to 2028 – Global Analysis By Insulation (Vacuum, Oil, Gas), Current (DC AC ), Voltage (Low (up to 1 kV), Medium (2–36 kV), High (Above 36 kV)), Installation (Outdoor, Indoor) and By Geography
According to Stratistics MRC, the Global Switchgear Market is accounted for $96.15 billion in 2022 and is expected to reach $150.06 billion by 2028 growing at a CAGR of 7.7% during the forecast period. Switchgear is a broad term that describes a wide variety of switching devices that all fulfill a common need: controlling, protecting, and isolating power systems. A switchgear controls the voltage fluctuations of a building and prevents sudden supply breakdown.
Increasing investments to develop renewable energy and favorable norms of the governments to support the new technology, are anticipated to foster the industry landscape. According to IEA’s World Energy Investment Report 2019, the global energy investment stabilized at over USD 1.8 trillion in 2018, with more spending in upstream oil and gas and coal supply, offset by lower spending fossil-fuel-based generation and renewable power.
Market Dynamics:
Driver:
Rising investments in the up gradation of old infrastructure
The old power infrastructure results in the frequent power outages. The power outages cost around billion to the American businesses each year. The continuous power supply can be ensured by deploying modern and efficient power infrastructure that can minimize the energy losses. Therefore, with the growing need for uninterrupted power supply, the investments in the up gradation of the power infrastructure are rising significantly, which is expected to drive the market growth.
Restraint:
High Cost
In protecting the electric equipment from the irregular ups and downs in the power supply, the switchgear plays a crucial role. Furthermore, the switchgear involves several components such as fuses, circuit breakers, switches, control panels, and protective relays which involve high costs. Hence, the high cost of it is a major restraining factor that may hinder the growth of the market.
Opportunity:
Government outlines to incentivize the distributors
The government has set certain standards that ensure the regular and efficient power supply to the end users. The distributors are incentivized to meet the established standards and targets. Therefore, the numerous government schemes to incentivize the distributors is expected to create ample opportunities for the growth of the market in the forthcoming years.
Threat:
Shortage of electrification
The lack of proper infrastructure and electrification in the rural areas of the developing and the underdeveloped nations results in the low demand for the switchgear. This is a major threat faced by the manufacturers and it restricts the market growth.
Medium (2–36 kV) segment is expected to be the largest during the forecast period
Medium voltage switchgear market segment dominates the global switchgear market, owing to rapid growth in industrialization of small and medium scales in developing countries like China, India and Japan is expected to propel demand for the segment in the market. For instance, Ever Source Energy declared an investment towards refurbishment of transmission networks across the U.S. Power is usually produced at a medium-voltage level and is then stepped up to higher voltage for transportation over longer distance. As the number of generation units increases, the number of medium-voltage switchgears used also rise in generation.
The Transmission & Distribution Utilities segment is expected to have the highest CAGR during the forecast period
The transmission & distribution utilities segment is projected to grow at the highest rate. This is owing to the growing investments in sub-station automation, modernization of electric grid, and smart utilities (smart grids and smart meters). For instances, Blackstone Group LP declared an investment towards the refurbishment of aging infrastructure across the U.S. The investment is backed by the Saudi Arabia Public Investment Fund under the Strategic and Policy Forum.
Region with highest share:
The Asia Pacific is projected to hold the highest market share, due to the presence of a large number of companies, has introduced competitive pricing pressure in the market. The, governments of India and China have announced several initiatives to improve grid connectivity in remote locations. Growth of the power distribution equipment industry in the developing provinces is being driven by the upgrades and expansion of the electrification infrastructure and the demand for industrial (electrical network in industrial plants) and residential (power supply system of buildings) electric utilities which in turn propel the growth of the market in this region.
Region with highest CAGR:
North America is projected to have the highest CAGR, owing to various factors like need for grid modernization, replacement of old installations and renewable power generation. Moreover, the increased proliferation of renewable energy projects in the region driving the market growth. Additionally, the stringent government regulation pertaining to the adoption of green and clean energy is boosting the market growth.
Key players in the market:
Some of the key players profiled in the Switchgear Market include Xian XD, Siemens , Schneider Electric, Powell Industries Inc., Mitsubishi Electric, Hyosung Power and Industrial Systems, GE, Eaton, Crompton Greaves, BHEL, Alstom Grid, ABB Ltd.
Key developments:
In January 2022: ABB partnered with Samsung Electronics to provide jointly developed technologies for energy savings, energy management, and smart Internet of Things (IoT) connections for both residential and commercial buildings.
In April 2020: ABB announced that it invested in the expansion of its switchgear portfolio comprising UniGear medium-voltage. Also in January 2020, Siemens AG completed the acquisition of New Delhi-based switchgear and power equipment manufacturer C&S Electric Limited for approximately EUR 267 million.
In July 2019: Eaton announced to acquire the U.S. based Innovative Switchgear Solutions, Inc. to introduce advanced medium voltage products in North America. This acquisition would help customers with compact, low maintenance, and highly configurable solutions.
Insulations Covered:
• Vacuum
• Oil
• Gas
• Air
• Other Insulations
Currents Covered:
• DC
• AC
Voltages Covered:
• Low (up to 1 kV)
• Medium (2–36 kV)
• High (Above 36 kV)
Installations Covered:
• Outdoor
• Indoor
Products Covered:
• Conventional Switchgear
• Modular/Integrated Switchgear
End Users Covered:
• Transmission & Distribution Utilities
• Manufacturing and Process Industries
• Commercial and Residential Infrastructure
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
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