Switchgear Market - Global Industry Analysis

Switchgear Market By Insulation (AIS and GIS), By Voltage (<1 kV, 1-36 kV, and >36 kV), By End-user (T&D Utilities, Industries, Commercial & Residential, and Others). and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2028

Published Date: 09-May-2022 Category: Energy & Mining Report Format : PDF Pages: 180 Report Code: ZMR-2027 Status : Published

The 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.

Description

Industry Prospective:

The 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.

Global Switchgear Market

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:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

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 the 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:

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

Table Of Content

Methodology

Free Analysis

Gadgets that are utilized to control, exchange, and to protect the electronic devices and electrical circuits are known as switchgear. The fundamental functionality of any switchgear is to ensure the protection of electronic devices from external and internal circuitry damage as well as control the supply of electric power. In modern power system network, switchgear plays a crucial role in appropriate electricity distribution right from electricity generation, transmission, and distribution. The capability of carrying, making, and breaking the typical load current such as a switch is handled by the switchgear and it should have the ability of clearing issues. In addition, switchgear has an arrangement of metering and controlling different parameters of electrical power framework. This kind of hardware device is directly linked with the reliability of the power supply.

Modern day power generation and its transformation, escalating growth in sustainable and renewable electric power generation, and rising need and concerns for power storage in developing nations are the some of the factors fueling the growth of the market. Fierce competitive rivalry among the organizations in unstructured switchgear market can be a restraint that may affect the market growth and development. Upgradations in power framework, technological innovations in the smart grid, and rising demand for green and sustainable energy are expected to open new development opportunities for the switchgear market. The necessity of electricity has been an essential element in the development of the business divisions and organizations crosswise over developing economies.

The switchgear market is categorized on the basis of voltage, insulation, and end users. Based on voltage, the global switchgear market is segmented into a high voltage, medium voltage, and low voltage. Low voltage segment held the largest market share due to rapid industrialization and urbanization across the developing nations. In terms of insulation, the global switchgear market is segmented into air, gas, oil, and vacuum. The switchgear market for gas insulated switchgear accounted for the largest share in 2017. The gas insulated switchgear is typically used in high and very high voltage transmission lines. Based on end users, the global switchgear market is segmented into utilities, industrial, and residential & commercial. The utility segment accounted for the largest share in 2017. This is due to the growing industrial sector in developing countries, especially the mining and manufacturing sectors which has an energy consumption of more than 50%.

Based on regional segmentation, Asia Pacific was the most attractive market for switchgear in 2017. In the Asia Pacific region, the development in a number of distribution of power lines including the transmission of electric power in emerging countries such as China and India is the factor that is boosting the market growth. The Europe switchgear market is anticipated to have strong developments owing to the adoption of disperse energy system and its usage among the states in the region coupled with government intervention towards renewable and sustainable energy consumption. National Grid, in the UK, announced the expansion of the electric plants and grids and pipeline network in the region which is expected to boost the switchgear market. 

Some of the major players involved in the global switchgear market include Larsen and Turbo, Siemens, GE, Mitsubishi Electric Systems, Schneider Electric, Crompton Greaves, Hubbell Power System Inc., Meidensha Corporation, ABB, Schneider Electric, Eaton, Toshiba, Bharat Heavy Electrical Limited, Rittal, and Ormazabal.

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FrequentlyAsked Questions

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.

According to the Market Research report, 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 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. 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.

 

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

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