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Increasing Electrification Worldwide Spurs the Hybrid Switchgear Market Growth

Published Date: 25th Nov 2023

With numerous government initiatives for smart grid development, the world is witnessing a mounting demand for more compact, reliable, & environment-friendly switchgear that can support smart grid operations and involve minimum installation & commissioning time. It is where hybrid switchgear, i.e., a blend of AIS (Air-Insulated Switchgear) & GIS (Gas-Insulated Switchgear), comes to aid. This technology holds immense potential to meet vital requirements like easy operation, simplified layout, superior reliability, minimum maintenance, & environmental efficiency, among others.

In view of the burgeoning electricity requirements & consumption, mounting adoption of PASS (Plug and Switch System), and the growing emphasis on utilizing renewable energy sources, a recent research study has projected around 11.5% CAGR for the Global Hybrid Switchgear Market during 2023-28. As countries like Australia, India, China, & Thailand are privatizing their power sectors and actively working on upgrading the aging substations & power plants, the need for hybrid switchgear is subsequently rising at a notable pace.

A large number of manufacturing plants are opting for the onshore installation of hybrid switchgear as an integral part of their power network, which owes to benefits like lower operational costs, reduced risk of electrocution, easy maintenance, excellent durability, and less space required than offshore variants. In addition, the rapid rise in smart home developments has instigated the need for hybrid switchgear integrated with IoT to allow for real-time monitoring, predictive diagnostics, & superior protection against electrical faults. Consequently, manufacturers are actively working on introducing innovative switchgear with improved efficiency to cater to burgeoning end-user demands, thereby creating new avenues for the market to expand notably in the coming years.

Recent Developments Shaping the Industry

  • Hitachi Energy, in July 2022, announced supplying its WindSTAR™ transformers & high-voltage hybrid switchgear PASS to China's Tuci offshore wind power project in order to optimize the local energy structure by enabling steady & reliable wind farm operations at a 66-kilovolt (kV) voltage level and promoting efficient utilization of offshore wind power.
  • Indore (Madhya Pradesh, India), in October 2021, got its first hybrid switchgear module in a transformer of 50 MVA capacity at the 220kV substation of the Bicholi Mardana area in the city.
  • ABB successfully tested its 350KV-Rated Hybrid HVDC Circuit Breaker in the independent laboratory of KEMA in Arnhem, Netherlands, in April 2020, as a part of its collaboration with an EU-funded project, 'PROMOTioN.'

Industrial Sector as a Backbone of Switchgear Manufacturers

The industrial sector is amongst the largest energy consumers worldwide and heavily utilizes switchgear for flawless power transmission & distribution. With mounting energy requirements, more & more transmission & distribution utilities are being established to ensure improved energy efficiency with minimum losses & incidents. Consequently, there's a notably increasing demand for effective switchgear in these utilities, i.e., bolstering the popularity of hybrid switchgear across the industrial sector.

Moreover, there are burgeoning requirements for renewable power generation, which have compelled the upgradation of the existing infrastructure for easy integration of electricity generated. These aspects are projected to create endless opportunities for hybrid switchgear manufacturers across the industrial sector and propel the overall market growth.

With Significant Industrial Expansions, Asia-Pacific Promises Exponential Market Growth

Across Asia-Pacific, China has the highest installed generation & distribution capacity. It is undergoing rising industrialization & increasing number of infrastructure development projects, owing to which electricity requirements in the country are at an all-time high. As a result, it is investing substantially in expanding its power distribution network and upgrading aging hydropower plants, i.e., accelerating the hybrid switchgear demand in the country.

On the other hand, countries like India, Japan, & Australia are witnessing ever-growing electricity demand and the rising participation of private companies in the power sector. Hence, they are massively investing in revamping their transmission & distribution infrastructure to cater to end-user requirements. Moreover, various government initiatives for expanding transmission networks to improve existing infrastructures are also likely to bode well for the hybrid switchgear industry in Asia-Pacific through 2028.

Summing Up

With advantages like easy installation, high reliability, space-saving, improved performance, & substation modularization, among others, several end-users are increasingly adopting hybrid switchgear technology to safeguard their different electrical equipment from irregular surges. More & more collaborations among manufacturers and governments of emerging economies are being carried out in order to enhance the efficiency & reliability of power transmission & distribution networks.

Various government mandates on energy efficiency and the rising requirements for installing compact devices in substations and replacing old switchgear are instigating manufacturers to expand their production capacities to cater to the burgeoning end-user demands. Hence, these aspects clearly indicate a tremendous expansion of the hybrid switchgear industry in the years to come.

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