Switchgear refers to the various electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate electrical equipment. Switchgear is used in distribution systems that conduct electricity efficiently and safely in commercial buildings, industrial facilities, utility substations and renewable energy plants. Switchgears allow the safe isolation of electrical equipment for maintenance or repair purposes and protect equipment and power lines from damage caused by overload or short circuit. They come in many designs and sizes for low, medium, and high voltage applications.
The global Switchgear Market is estimated to be valued at US$ 127.13 in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing Microgrid Deployments
As highlighted in the heading, the growth of distributed generation through increased focus on microgrids across industries as well as rural electrification programs is expected to drive the demand for switchgear. Microgrids allow for localized energy generation, distribution and storage using renewable and conventional energy sources along with storage technologies like batteries. They improve power resilience and quality for off-grid locations as well as support larger grids during peak demand periods or outages. Deployments of microgrids require associated switchgear for interconnection to main power systems, enabling or disabling generation sources as well as isolating loads for maintenance or repair work. This growing focus on microgrid based distributed energy resources is thus expected to boost demand for switchgears over the forecast period.
Increasing Investments in Transmission and Distribution Infrastructure
Ageing T&D infrastructure along with rising power demand are prompting investments in grid upgrades across regions. As per estimates, over US$ 300 Bn is required annually till 2030 for expanding and strengthening global power networks. This includes automation initiatives to enable two-way power flows from distributed energy resources and improve resilience. Such network extensions and modernization require robust switchgear suitable for medium and high voltage applications to safely and reliably distribute, control and protect electricity flows. Growing investments in modernizing grids are thus likely to augment the sales of switchgear.
Segment Analysis
The switchgear market is segmented into voltage, insulation, installation and end-use. Based on voltage, the market is divided into low voltage (< 1 kV) and medium voltage (1 kV – 52 kV). The low voltage segment dominates the market and accounts for over 60% share due to growing demand from residential and commercial applications.
PEST Analysis
Political: Standards regarding safety and quality set by government organizations influence the switchgear market.
Economic: Growth of T&D sector and investments in power infrastructure drive the market.
Social: Rising electricity access rate and increasing power consumption per capita boost demand.
Technological: Adoption of smart grid technologies and digitalization of power systems present opportunities.
Key Takeaways
The Global Switchgear Market Share is expected to witness high growth. The global Switchgear Market is estimated to be valued at US$ 127.13 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
The Asia Pacific region dominates the market and is expected to maintain its lead position over the forecast period due to rapid industrialization and infrastructure development in major economies like China and India. China holds the largest market owing to rapid industrialization and investments in smart grids. India is expected to witness highest growth on account of government initiatives to achieve ‘Power for all’ by 2022 and modernize the T&D network.
Key players related content comprises
Key players operating in the switchgear market are Nanjing Huaneng, Siemens, ABB, Hyosung, Schneider Electric and General Electric. Nanjing Huaneng captured over 15% share of the low voltage switchgear market in China in 2020. ABB leads the global medium voltage switchgear market.
