Switchgear Market Size, Share, Growth Report 2032

Global Switchgear Market Industry Prospective:

The Global Switchgear Market was worth around USD 67.5 billion in 2021 and is estimated to grow to about USD 92.01825643 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.3 percent over the forecast period. The report analyzes the digital remittance market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the digital remittance market.

Switchgear Market: Overview

Switchgear is an electric device that plays a vital role in regulating, protecting, and isolating the electrical equipment in a complete electric system. It is an electrical component used in a circuit to control effectively, monitor, and regulate the circuit as required. Switchgears are mostly used for different applications including transmission and distribution utilities, residential, commercial, and industrial spaces for ensuring continuous and quality power. As the world is starting to realize the importance of today’s smart grid capabilities, manufacturers are likely to invest in the design and development of smart and connected switchgear. The rapidly growing need for electrification in remote areas has led to the growth of various electrical equipment which has positively affected the global switchgear market.

Bulk power generation plants using wind, solar, and hydro sources are set to increase the need for new broadcast and distribution lines, which would affect the switchgear market in a positive manner. The upgradation of the aging infrastructure is further anticipated to power the growth of the market.

COVID-19 Impact:

The switchgear market is impacted significantly by the COVID-19 pandemic globally. As the major providers of raw materials and finished products have been hugely impacted in the Asia-Pacific region, the industry is facing a reduction in production, disruption in the supply chain, and price fluctuations. The sector is also affected by the impact of coronavirus on the power sector of the region. Demand for goods and services and the cash flow of vendors have significantly reduced. Various establishments in the power sector across regions had to shut down their manufacturing units and services as countries practiced partial or full lockdown strategies to deal with the pandemic. The companies across the region have also suspended or delayed the major power projects which have eventually led to an impact on the switchgear market directly. It has also impacted the ongoing projects and the entire supply chain of the power industry.

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Switchgear Market: Growth Drivers

Upgrading the Aging power infrastructure

The main reasons behind the increasing number of blackouts are aging infrastructure, lack of investments, and lack of clear policy to modernize the grid. Blackouts cost American businesses about USD 150 billion per year, therefore, there is a sudden need to upgrade the aging power infrastructure which ultimately leads to an increase in demand for switchgear and acts as a driver in the global switchgear market. Other than this, the recent urbanization in developing countries, especially in the APAC region, has led to electrification in rural and remote areas which also contributes to the growth of the switchgear market.

Switchgear Market: Restraints

Severe environmental conditions

The environmental parameters such as temperature and humidity, as well as water seepage out of the ground, are some factors that can affect the efficiency of switchgear networks, especially that are installed outdoor. To ensure the consistent and proper functioning of switchgear within the substation environment, the equipment must meet or exceed the demanding specifications. Hence, the environmental condition is a vital factor that has to be considered before installing electrical devices, which include switchgear.

Switchgear Market: Segmentation

The Switchgear Market is segregated based on insulation, voltage, and end-user.

By Voltage, the global market is distinguished into <1 kV, 1-36 kV, and >36 kV. The low voltage segment (<1 kV) is estimated to grow at a significant rate across the world due to wide deployment in distribution networks along with high fault enduring capacity. The medium and high voltage segments are projected to grow largest in the forecast period. It includes 1-36 kV and >36 kV. Growing industrialization has a direct impact on medium voltage and boosts its growth in the switchgear market. High voltage is used by utility industries in power plants, substations, and transmission purposes.

By End-user, the global market is segregated into T&D Utilities, Industries, Commercial & Residential, and Others. Switchgears are widely used in T&D Utility sector. Its applications within this sector include transmission and distribution of the required voltage of energy to consumers. T&D utilities include non-renewable and renewable sources of energy to accomplish the demand for electricity. Physical security used in switchgear encompasses a wide range of applications, which require a reliable, high-performance communications network to deliver centralized visibility and reporting.

Report Scope:

Recent Developments

• March 2020 - ABB was awarded a contract by El Sewedy Electric T&D to deliver high-voltage gas-insulated switchgear along with shunt reactors to ensure a reliable power supply.
• January 2020 - Siemens acquired C&S Electric, which is one of India’s largest switchgear and power equipment companies, with its major operations in switchgear, busbar, and metering devices to become one of the leading players in terms of switchgear production in India.
• November 2019 - Siemens was awarded a contract by TransnetBW for the retrofit of a large substation as part of grid upgrades. Under the contract, Siemens is required to supply gas-insulated switchgear for the 380 kV Daxlanden substation in Karlsruhe.

Regional Landscape

The Asia Pacific is expected to be the largest market during the forecast period. It is estimated to be the largest market from 2021 to 2028, driven by the growth in urbanization, especially in China and India. China is the largest country by market value in this region. The demand for upgrading the electrical infrastructure for enhancing electricity efficiency and initiatives taken by the government is expected to drive the market in the APAC region. Followed by this, Europe and North American switchgear markets are estimated to witness significant growth in the medium-voltage switchgear segment due to the growing demand for renewable power generation.

Competitive Landscape

Some of the main competitors dominating the global switchgear market include - ABB (Switzerland), Siemens (Germany), Schneider Electric (France), GE (US), and Eaton (Ireland).

Global switchgear market is segmented as follows:

Global Switchgear Market By Insulation

• AIS
• GIS

By Voltage

• <1 kV
• 1-36 kV
• >36 kV

By End-user

• T&D Utilities
• Industries
• Commercial & Residential
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa