Market Research Report

GCC Switchgear Market Research Report: Forecast (2024-2030)

GCC Switchgear Market Report - By Insulation (Gas Insulated Switchgear, Air Insulated Switchgear, Oil Insulated Switchgear, Vacuum Insulated Switchgear), By Installation (Indoor, O...utdoor), By Voltage (Low, Medium, High), By End User (T&D Utility, Industrial, Commercial, Residential) and Others Read more

  • Energy
  • Mar 2022
  • 167
  • EN77017

Market Definition

Switchgear is a centralized collection of fuses, circuit breakers, & switches that protect, manage, & isolate electrical equipment from triggering energy flow. During an electrical surge, the switchgear automatically interrupts the power flow & protects the entire electrical system from damage. In addition, these systems are also widely used for de-energizing equipment to ensure fuel clearance, safer testing, and maintenance.

Market Insights & Analysis: GCC Switchgear Market (2024-30):

The GCC Switchgear Market is estimated to grow at a CAGR of around 5.05% during the forecast period, i.e., 2024-30. The growth of the market is driven primarily by the rapidly increasing electricity consumption across different countries in the GCC, owing to the rapidly expanding industrial sector. The increasing power demand from a growing population is expected to fuel the GCC Switchgear Industry. These devices are vital in reducing electric failures and mitigating the impact of faulty circuits passing through them. The rise in renewable energy sources, along with ongoing smart grid developments, has also contributed to expanding this market regionally as outdated infrastructure gets replaced. Moreover, international events like the FIFA World Cup 2022 in Qatar and World Expo Dubai have escalated electricity demand further, increasing the requirement for switchgear in GCC countries. Hence, executing such events is expected to further boost market growth & expansion in the forthcoming period as well.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 5.05%
Country Covered UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kuwait
Key Companies Profiled General Electric, Hitachi, ABB, Siemens, Fuji Electric, Mitsubishi, Schneider Electric SE, Eaton, Alfanar, Al Ahelia Switchgear Co., and others
Unit Denominations USD Million/Billion

 

Additionally, another factor propelling the size & volume of the market is a new high-voltage, long-distance transmission system. High-voltage, long-distance transmission systems require advanced switchgear solutions to ensure efficient and reliable power transmission over extended distances. With the upgradation or deployment of these systems, the demand for switchgear is expected to arise in the years to come.

Besides, the growing focus of GCC governments on infrastructural developments under their strategic plan for economic diversification is leading to the construction of airports, metros & railways, shopping complexes, and corporate spaces, among others. As a result, the demand for switchgear for adequate management & protection of the facility from high energy flow is swiftly escalating.


GCC Switchgear Market Research Report: Forecast (2024-2030)

Moreover, with the growing influx of tourists & pilgrims across the GCC, governments are actively investing in expanding the tourism & hospitality sectors by developing multiple hotels, resorts, & commercial complexes, while renovating aging structures. It, in turn, further plays a crucial role in propelling the demand for switchgear and driving the market through 2030. Furthermore, the set-up of nuclear & renewable energy power plants and refinery & petrochemical processing infrastructure is also spurring demand for switchgear across the entire region & augmenting the growth & development of the market.

GCC Switchgear Market Driver:

Growing demand for Renewable Energy Integration – One of the key factors driving the GCC Switchgear Market is the escalating demand for the integration of renewable energy. GCC countries are actively pursuing the diversification of their energy sources to reduce dependence on fossil fuels. This transition towards renewable energy, particularly solar and wind power, necessitates advanced switchgear solutions to effectively manage power generation fluctuations. Switchgear plays a vital role in ensuring grid stability and reliability by safely connecting and disconnecting power sources, monitoring voltage levels, and safeguarding against faults. As GCC countries continue to invest in renewable energy projects, the demand for high-quality switchgear equipment is expected to increase significantly.

Moreover, numerous governments in the GCC region have implemented policies and incentives to encourage renewable energy adoption. These initiatives, including feed-in tariffs, tax incentives, and regulations mandating renewable integration, are to drive investments in renewable energy infrastructure and subsequently boost the demand for advanced switchgear solutions. As these nations transition towards a more sustainable energy future, the need for reliable and efficient switchgear systems will remain high, presenting opportunities for manufacturers and suppliers in the region.

GCC Switchgear Market Challenge:

Regulatory & Compliance Hurdles to Impede Market Growth – One of the key challenges faced by the GCC Switchgear Market is the intricate regulatory landscape and compliance requirements. Each GCC country has its own unique set of regulations and standards governing the electrical industry, encompassing aspects of safety, performance, and environmental considerations. Navigating this complex regulatory framework can be a daunting task for manufacturers and suppliers operating across multiple jurisdictions within the region. Compliance with international standards, such as those established by the International Electrotechnical Commission (IEC), is often imperative to ensure the quality and safety of switchgear products. However, achieving compliance can be a time-consuming and costly process, involving extensive testing and certification procedures.

Moreover, businesses face challenges posed by regulatory changes and updates. Keeping up with evolving regulations and adapting products and processes accordingly can be resource-intensive. Non-compliance with regulations may lead to penalties, product recalls, damage to reputation, and barriers to market entry or expansion. While efforts have been made to standardize certain aspects of the electrical industry, harmonizing regulations across the GCC countries remains a complex task. Challenges persist in terms of implementation and enforcement.

To overcome this challenge, businesses in the GCC Switchgear Market must invest in robust compliance programs and quality assurance processes. Collaboration with regulatory authorities and industry associations can facilitate streamlined compliance efforts and influence the development of harmonized regional standards.

GCC Switchgear Market Trend:

Adoption of Smart Grid Technologies Gaining Momentum – One notable trend in the GCC Switchgear Market is the increasingly rapid adoption of smart grid technologies. Smart grids represent a fundamental shift in the way electrical power is generated, transmitted, and distributed. They leverage advanced digital communication and automation to enhance grid reliability, improve energy efficiency, and enable real-time monitoring and control of the electrical network. The adoption of smart grid technologies in the GCC region is driven by several factors. The escalating demand for electricity due to rapid urbanization and infrastructure development necessitates more efficient grid management. Smart grids can assist in optimizing energy distribution, reducing losses, and improving load balancing, thereby effectively meeting the growing electricity needs.

Moreover, the integration of renewable energy sources such as solar and wind power is on the rise in the GCC countries. Smart grids are indispensable for efficiently integrating and managing intermittent renewable energy generation, ensuring grid stability during fluctuations in power output. Furthermore, smart grids facilitate demand-side management by empowering consumers to actively participate in electricity consumption decisions. Advanced metering infrastructure (AMI) and smart meters enable consumers to monitor their energy usage in real time, make informed choices about energy consumption, and even participate in demand response programs.

As the GCC region embraces the advantages of smart grids, the demand for innovative and technologically advanced switchgear solutions will continue to grow. Switchgear systems designed for smart grids must possess the capability to handle digital communication protocols, support grid automation, and provide real-time data for monitoring and control.

GCC Switchgear Market (2024-30): Segmentation Analysis

The GCC Switchgear Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Insulation:

  • Gas Insulated Switchgear
  • Air Insulated Switchgear
  • Oil Insulated Switchgear
  • Vacuum Insulated Switchgear

Amongst them all, air-insulated switchgear dominates the GCC Switchgear Market with the largest share. It owes principally to the easy storage of these systems, which require less space and offer greater operational efficiency & protection to the facility when the electrical flow is high. Besides, air-insulated switchgear is gaining swift traction across compact load centers, power distribution stations, residential areas, high-rise buildings, & corporate spaces due to its capabilities to control & protect the power system. Furthermore, other advantages like affordability, lower carbon emissions, easy construction & application, & low-cost maintenance are also contributing to the overall market growth for air-insulated switchgear across the GCC.

Based on End User:

  • Transmission & Distribution Utility (T&D Utility)
  • Industrial
  • Commercial
  • Residential

The Transmission & Distribution Utility segment is expected to experience rapid market growth during the forecast period. The T&D Utility segment in the GCC Switchgear Market holds substantial importance as it forms an integral part of the region's energy infrastructure. This segment encompasses utilities responsible for transmitting and distributing electricity to various sectors, including residential, commercial, industrial, and infrastructure. The growth of this segment can be attributed to the ongoing urbanization, industrialization, and increasing energy demand in the GCC countries.

Modernizing electrical grids is a key driver in the T&D utility sector, aiming to boost efficiency, reliability, and resilience. Upgrading aging infrastructure across GCC countries becomes necessary as electricity demands rise and new technologies emerge for effective grid management. As renewable energy sources such as solar and wind power are introduced into the system, switchgear solutions that can manage their intermittent nature have become increasingly vital for utilities striving to ensure stable networks. The surge in demand for modernized electrical grids presents numerous opportunities for manufacturers of advanced switchgear.

GCC Switchgear Market (2024-30): Regional Projections

Geographically, the GCC Switchgear Market expands across:

  • The UAE
  • Saudi Arabia
  • Oman
  • Qatar
  • Bahrain
  • Kuwait

Saudi Arabia is anticipated to hold the largest share of the Switchgear Market during the forecast period. It will owe principally to the growing government focus on infrastructural developments in the coming years, i.e., leading to the increasing construction of facilities like airports, railway stations, residential complexes, commercial buildings, & corporate spaces, and, in turn, surging the demand for switchgear to manage & protect the energy flow. Besides, with a growing number of aging properties, the country is also undergoing renovations, which, in turn, is propelling the need to remodel the entire electrical structure and soaring the demand for switchgear.

Moreover, the various plans for economic diversification, like Saudi Vision 2030, Neom City, and the Red Sea project, are projecting peak electricity demand in the future. It is generating lucrative opportunities for the leading players to expand their product offerings and meet the burgeoning end-user requirements across the country in the coming years.

GCC Switchgear Industry Recent Development:

  • In October 2023: Siemens' introduction of the '8DAB 24' medium-voltage switchgear series aligns well with the GCC's commitment to reducing CO2 emissions and promoting decarbonization efforts across power grids. By integrating intelligent sensors for enhanced asset visibility and leveraging cloud-based analytics for proactive maintenance, Siemens aims to support the GCC's objectives of minimizing downtime and reducing upkeep costs. Through such innovations, Siemens seeks to strengthen its market position in collaboration with the GCC countries, fostering sustainable development in the region's power sector.
  • In September 2023: ABB revealed that it invested over USD 500 million to complete the technology transfer necessary for UniGear ZS1 medium-voltage switchgear production within the Gulf Cooperation Council (GCC) countries. This key decision aims at enhancing domestic manufacturing capabilities, providing customers with enhanced design flexibility, and accelerating product availability. By reducing import costs and delivery times, the GCC nations stand to benefit economically while also fostering technological self-reliance within the region.

Gain a Competitive Edge with Our GCC Switchgear Market Report

  1. GCC Switchgear Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. GCC Switchgear Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The GCC Switchgear Market is expected to grow at a compound annual growth rate (CAGR) of around 5.05% over the forecast period.

   A. Growing demand for renewable energy integration is a prominent factor expected to drive the GCC Switchgear Market during 2024-30.

   A. General Electric, Hitachi, ABB, Siemens, Fuji Electric, Mitsubishi, Schneider Electric SE, Eaton, Alfanar, Al Ahelia Switchgear Co., and others are the top companies in the GCC Switchgear Market.

   A. Air-insulated switchgear held the largest share of the GCC Switchgear Market.

   A. Air-insulated switchgear held the largest share of the GCC Switchgear Market.

   A. What are the key trends shaping the growth of the GCC Switchgear Market?

  1. Market Segmentation
  2. Introduction
    1. Research Process
    2. Assumption
    3. Market Definition
  3. Executive Summary
  4. Global Switchgear Market Policies, Regulations, Product Standards
  5. Global Switchgear Market Trends & Development
  6. Global Switchgear Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. Global Switchgear Market Hotspot and Opportunities
  8. GCC Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation
        1. Gas Insulated Switchgear- Market Size & Forecast 2019-2030F, USD Million
        2. Air Insulated Switchgear- Market Size & Forecast 2019-2030F, USD Million
        3. Oil Insulated Switchgear- Market Size & Forecast 2019-2030F, USD Million
        4. Vacuum Insulated Switchgear- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation
        1. Indoor- Market Size & Forecast 2019-2030F, USD Million
        2. Outdoor- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage
        1. Low- Market Size & Forecast 2019-2030F, USD Million
        2. Medium- Market Size & Forecast 2019-2030F, USD Million
        3. High- Market Size & Forecast 2019-2030F, USD Million
      4. By End User
        1. T&D Utility- Market Size & Forecast 2019-2030F, USD Million
        2. Industrial- Market Size & Forecast 2019-2030F, USD Million
        3. Commercial- Market Size & Forecast 2019-2030F, USD Million
        4. Residential- Market Size & Forecast 2019-2030F, USD Million
      5. By Country
        1. The UAE
        2. Saudi Arabia
        3. Qatar
        4. Oman
        5. Bahrain
        6. Kuwait
      6. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
  9. UAE Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  10. Saudi Arabia Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  11. Qatar Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  12. Oman Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  13. Bahrain Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  14. Kuwait Switchgear Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Insulation- Market Size & Forecast 2019-2030F, USD Million
      2. By Installation- Market Size & Forecast 2019-2030F, USD Million
      3. By Voltage- Market Size & Forecast 2019-2030F, USD Million
      4. By End User- Market Size & Forecast 2019-2030F, USD Million
  15. Global Switchgear Market Key Strategic Imperatives for Success and Growth
  16. Competitive Outlook
    1. Company Profiles
      1. General Electric
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Hitachi
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. ABB
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Siemens
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Fuji Electric
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Mitsubishi
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Schneider Electric SE
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Eaton
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Alfanar
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Al Ahelia Switchgear Co.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Others
  17. Disclaimer


GCC Switchgear Market Segmentation