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

Market Definition

Switchgear is a critical component of electrical power systems, responsible for controlling, protecting, and isolating electrical equipment.

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

The Global Switchgear Market size was valued at USD 88.44 billion in 2023 and is estimated to grow at a CAGR of around 6.3% during the forecast period, i.e., 2024-30. The market is anticipated to witness a growing trend in the upcoming years on account of several favorable factors such as surging construction activities in emerging economies, rising demand for efficient & cost-effective power distribution systems, and modernization of power grids, thus increasing investments in the renewable sectors in both developed & the developing economies and other.

Moreover, the leading companies in the Global Switchgear Market, are undertaking mergers, acquisitions, contractual agreements, and partnerships with the aligned industries and the business firms in the Switchgear Market, aiming to boost their revenue share and maintain their market share in the long run.

Furthermore, developing economies such as Africa, South America & Asia-Pacific have seen a spike in electrification rates recently. Also, there is a marked shift towards cleaner energy sources globally driven by increasingly stringent environmental regulations on utilities.  In addition, the adoption of high-voltage direct current (HVDC) transmission systems for efficient electricity transportation over long distances is also contributing significantly to increasing global utilization rates of switchgear in the coming years.

Global Switchgear Market Driver:

Modernization of Power Distribution Infrastructure to Fuel Global Market Growth – The power industry is seeing a surge in market demand for advanced switchgear and monitoring solutions due to the emergence of new regulations aimed at reducing blackouts and improving power distribution networks. These innovative technologies empower maintenance crews by providing real-time data that enables them to identify aging or overused equipment, proactively reduce failures, and maximize grid efficiency. Moreover, investing in these solutions is essential for ensuring a dependable and strong electricity supply amidst rising demand, as well as changing climate conditions. This will ultimately lead to the growth of the switchgear market worldwide.

Global Switchgear Market Opportunity:

Advancements in Smart Technologies & Digital Transformation to Offer Lucrative Opportunities – The Switchgear Industry is witnessing the emergence of environmentally friendly and energy-efficient technologies, such as vacuum, hybrid, and smart switchgear. These advancements are worth noting. With a focus on environmentally responsible solutions, there has been an increasing interest in using vacuum switching for high-voltage applications. This is due to its eco-friendliness when compared to SF6 switchgear which emits greenhouse gases, despite it being typically utilized only in medium-voltage applications. A new opportunity development in the marketplace is known as hybrid switchgear which combines air-insulated and gas-insulated components at high voltages. These involve the complete digital transformation in the switchgear industry in the coming years.

Furthermore, this advancement demonstrates a need for environmentally conscious and productive alternatives. The hybrid method is especially significant with the rise in funding for intelligent power grid systems that can assimilate inconsistent renewable energy sources into the network, thus enhancing the scope of lucrative opportunities in the Global Switchgear Market.

Global Switchgear Market Challenge:

Intense Competition from the Unorganized Sector to Hinder the Market Growth – The unorganized sector, comprising local and gray market entities that provide cheap and low-quality products, poses a daunting challenge for major switchgear manufacturers. Local participants manufacture their goods in-house and sell them under their brand names, whereas gray market players import products through unauthorized dealerships. With competitive pricing strategies and localized distribution networks that global firms find hard to imitate, these competitors outshine larger companies.

Additionally, the boost in sales generated by local and gray market competitors could potentially harm the credibility of top-tier brands if substandard items are marketed under their labels. Hence, the growth of these entities' sales would impede global players from expanding their earnings and foothold within the Switchgear Industry.

Global Switchgear Market Trend:

Upgradation of Aging Power Infrastructure by Integrating Intelligent Monitoring & Control Units Across Power Grid Infrastructure – The need for a secure and consistent T&D network has risen with the surge in energy demand. The lack of investments, outdated infrastructure, and inadequate regulations to modernize the grid are major contributors to increased blackouts. However, new regulations, aimed at reducing power outages & upgrading older system infrastructures around the world offer potential trends for market growth.

Moreover, the integration of smart monitoring & control units, digital solutions, and other cutting-edge features into switching equipment is intended for their incorporation within the infrastructure of power grids. The escalating investments in sustainable power generation technologies will bolster demand for this type of machinery. Thus, there's a novel trend emerging wherein more advanced-equipped switching devices are being adopted, thereby expediting Switchgear Market growth in the forecast period.

Global Switchgear Market (2024-30): Segmentation Analysis

The Global Switchgear Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024-2030 at the global level. In accordance to the analysis, the market has been further classified as:

Based on Insulation:

• Air-Insulated Switchgear (AIS)
• Gas-Insulated Switchgear (GIS)
• Others (Oil Insulated Switchgear, Vacuum Insulated Switchgear)

The Air-Insulated Switchgear (AIS) segment held around 70% share of the Global Switchgear Market. The surge in demand for expanded distribution networks, commercial establishments, and residential sectors drives the growth of AIS as a prominent low to medium-voltage switchgear. A typical AIS includes crucial electrical components such as circuit breakers, earth switches, and disconnectors that facilitate effective control over isolation & protection of various types of electric equipment by using air insulation technology, which is pollution-free, making it an affordable option compared to others, while having simple construction methods.

Based on Current:

• AC Switchgear
• DC Switchgear

DC Power grabbed a significant share of the Switchgear Market in 2023. The advantages of DC power, in contrast to AC power, are its direction of flows is in a single direction and reduces the sinusoidal waveform characteristic of AC. Renewable sources like photovoltaic solar cells, wind turbines, and batteries primarily contribute to its generation. Previously hindered by the unavailability of voltage adjustment mechanisms without AC conversion, DC transmission over extended distances has been made feasible with high-voltage direct current (HVDC) systems. These systems currently allow efficient long-range delivery of electrical power solely through DC mode.

Moreover, the rapid global expansion of renewable energy sources is increasing the demand for DC switchgear. Additionally, as railway systems electrify, DC switchgear is crucial for railway traction substations, hence his trend presents significant growth opportunities in the DC switchgear market.

Global Switchgear Market (2024-30): Regional Projection

Geographically, the Global Switchgear Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

The Asia-Pacific Switchgear Market is poised to gain the highest share in the global market throughout the forecast period, with China taking the lead, succeeded by India & Japan. The dynamic region consists of major economies such as China, India, Japan, Australia, and other Southeast Asian countries like South Korea and the Association of Southeast Asian Nations (ASEAN). The breakneck development in larger markets within this region is a catalyst for progress across various industries ranging from power distribution transmission to commercial or residential applications along with transportation.

Due to cost benefits, the manufacturing sector plays a crucial role in driving up demand for switchgear. This trend is further fueled by an increased need for power generation, demonstrated through lofty goals relating to natural gas and renewable energy production seen in countries such as China, Japan, and India. Furthermore, the flourishing marine industry of Japan, South Korea, and China has significantly elevated the necessity for switchgear in securing electrical equipment onboard sea vessels, particularly within the maritime trade sector.

Global Switchgear Industry Recent Development:

• 2023: Havells India Ltd. partnered with Swedish tech startup Blixt Tech AB to introduce the solid-state circuit breaker (SSCB) technology in the national market, demonstrating its dedication to providing advanced and adaptable solutions while establishing a strong foothold in the switchgear segment.
• 2022: Fuji Electric launched the VC-V20A-1 switchgear, featuring a smaller size, to meet the standards of the International Electrotechnical Commission (IEC). The product received widespread promotion across Southeast Asia and other parts of the world.
• 2022: Schneider Electric and ARDECO collaborated to produce power and energy technology solutions within the United Arab Emirates. As per the agreement, Schneider Electric had a responsibility to create an assortment of sophisticated energy automation and integrated power systems such as switchgear and control panel integrations in addition to creating designs for engineering automated energies.

Gain a Competitive Edge with Our Global Switchgear Market Report

• Global 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 the market dynamics & make informed decisions.
• 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.
• Global 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.