Switch Gear Market Overview, 2023-28

Switchgear is a collective term for electrical equipment that controls the flow of electrical current, protecting circuits from overloads and short circuits. It includes a variety of components such as circuit breakers, fuses, disconnect switches, relays, and more. These components work together to regulate electrical power distribution, ensuring that it reaches its intended destination safely. Switchgear systems are crucial for ensuring electrical safety by isolating faulty circuits and preventing electrical accidents, including fires and electrocution. The reliability of electrical power supply is dependent on the quality and performance of switchgear. Uninterrupted power is essential for homes, businesses, hospitals, data centers, and industries. In the context of the electrical grid, switchgear is essential for the distribution, control, and protection of electricity from power plants to consumers. The switchgear industry plays a crucial role in ensuring the safe and efficient distribution of electricity. From homes and businesses to industries and infrastructure, switchgear systems are at the heart of electrical power distribution, safeguarding against electrical faults and ensuring the seamless flow of energy. As the global demand for electricity continues to rise, the switchgear industry is evolving rapidly to meet the challenges of the 21st century. With the addition of the Internet of Things (IoT), switchgear is becoming more intelligent, predicting potential faults and taking corrective actions in advance. Other advantages include real-time information and improved visibility, which enhances overall system reliability and efficiency. Residential and commercial buildings use a lot of electricity, and the addition of smart switchgear will help save energy and drastically reduce electricity expenses. Schneider Electric, for example, has introduced a line of medium-voltage switchgear that is smart grid ready, more dependable, safe, and simple to use. With increased energy demand, a dependable and stable transmission and distribution network is essential. New policies aiming at decreasing power outages and restoring ageing power system infrastructure around the world are presenting the market with a potential growth opportunity. Extreme external conditions, such as temperature, pressure, and humidity, as well as groundwater leaking, are some of the key elements that may affect the performance of electrical Switchgear equipment deployed outside. As a result, regulatory agencies developed tight norms and requirements to address the atmospheric conditions, resulting in increased reliability and feasibility.

According to the research report, “Global Switchgear Market Overview, 2023-28” the market is anticipated to cross USD 175 Billion by 2028, increasing from USD 126.44 Billion in 2022. The market is expected to grow with 6.02% CAGR by 2023-28. In complicated electrical substations, switchgear equipment is fundamentally employed to endure variable operating voltage in highly volatile ambient conditions. It is also expected that developing new industrial structures, such as powerplants for safe and reliable operation, will promote market growth. Increased investments in renewable energy development, as well as favorable government policies to support new technology, are expected to boost the industry landscape. Switchgear uses monitoring technology to alert maintenance people when ageing and over-used equipment is about to fail, allowing them to make better decisions by providing real-time data on problems and improvement opportunities. Aside from the limits listed above, there are others, such as environmental variables such as temperature and humidity, as well as groundwater seepage, which can have an impact on the operation of switchgear electrical networks, particularly those placed outside. Switchgear is utilised to ensure operational safety, cost-effectiveness, and continuity in a variety of residential, commercial, industrial, and utility applications. They are commonly used in low, medium, and high voltage systems to accommodate the erratic operating voltage network between load centres and generating stations. Current and voltage transformers, isolators, switches, relays, circuit breakers, fuses, and other devices are examples of switching equipment. As transmission and distribution networks have grown in size, so has the need of switching equipment. The rapid development of electricity in rural areas, combined with increased energy generation, has increased the demand for a wide range of electrical equipment. Increased regional government goals for delivering energy to remote areas, as well as rising investment in this industry, are the primary Switchgear Market trends that are projected to cater to market expansion.

The switchgear industry is being fueled by investments in energy infrastructure and renewable energy sources. Rural infrastructure investments in developing Asia-Pacific countries are expected to boost market value. For example, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, also known as the Saubhagya Scheme, is an Indian government effort aimed at providing electricity to all families. Such developments drive switchgear demand. Based on the region, the Middle East and Africa (MEA) region is experiencing significant growth in the global switchgear market. The MEA region is witnessing substantial infrastructure development, driven by increasing urbanization, industrialization, and population growth. As new buildings, commercial centers, industrial facilities, and power plants are constructed, there is a growing demand for reliable and efficient electrical distribution systems, including switchgear. The MEA region has a growing demand for electricity due to its expanding population and industrial base. As the need for electricity increases, so does the requirement for robust switchgear systems to ensure the reliable distribution of power. Many countries in the MEA region are investing in renewable energy sources, such as solar and wind power. Switchgear plays a crucial role in integrating these intermittent energy sources into the grid and ensuring a stable and efficient distribution of clean energy. Governments in the MEA region are implementing policies and initiatives to improve their energy infrastructure and increase electrification rates. This includes investments in reliable and modern switchgear solutions to meet energy efficiency and safety standards. The MEA region is experiencing a growth in various industries, including oil and gas, manufacturing, and construction. These industries require advanced electrical infrastructure, making high-quality switchgear essential for their operations. In rural and remote areas of the MEA region, electrification efforts are underway, bringing power to areas that were previously off the grid. Switchgear systems are integral to these electrification projects, ensuring safe and reliable electrical distribution. Political stability in certain parts of the MEA region is attracting foreign investments and international companies. This, in turn, drives the demand for reliable electrical infrastructure and switchgear. Increasing awareness of environmental sustainability and the need to reduce greenhouse gas emissions is driving the adoption of eco-friendly switchgear technologies, such as gas-insulated switchgear (GIS), in compliance with international environmental regulations.

Air-insulated switchgear (AIS) is experiencing growth in the global switchgear market due to several compelling advantages. Firstly, AIS is renowned for its cost-effectiveness, making it an attractive choice for utilities and industries looking for economical solutions for their electrical distribution needs. Additionally, AIS is environmentally friendly, as it does not use greenhouse gases as insulating mediums, unlike some other alternatives. This aligns with the global shift towards sustainable and eco-friendly practices, making AIS a preferred choice for those concerned about reducing their carbon footprint. AIS is also known for its reliability, with a long track record of dependable performance in various applications, further contributing to its growth. Its ease of installation and maintenance, along with the absence of complex components, make it a user-friendly and accessible option. Moreover, AIS can withstand a wide range of environmental conditions, from extreme temperatures to harsh outdoor environments, making it versatile and suitable for diverse applications. All these factors combined are driving the increasing adoption of air-insulated switchgear in the global market as a reliable, cost-effective, and environmentally friendly solution for electrical distribution.

Medium voltage switchgear is experiencing significant growth in the global switchgear market for several reasons. As the demand for electricity continues to rise worldwide, there is a corresponding need for reliable and efficient electrical distribution systems. Medium voltage switchgear, typically operating in the voltage range of 1 kV to 40 kV, plays a critical role in ensuring the safe and stable distribution of power to various industries, commercial buildings, and infrastructure. With the increasing adoption of renewable energy sources and the development of smart grids, medium voltage switchgear has become essential for integrating and managing the fluctuating power supply from sources like solar and wind. Additionally, the emphasis on energy efficiency and environmental concerns is driving the development of more eco-friendly medium voltage switchgear solutions. Their ability to enhance grid reliability, protect against electrical faults, and reduce energy losses makes them a preferred choice for utilities and industries seeking sustainable, robust, and intelligent power distribution solutions, hence contributing to the growth of the medium voltage switchgear market on a global scale.

On the basis of application, indoor installation switchgear is gaining prominence in the global switchgear market due to several compelling factors. One key reason is the need for space optimization, particularly in densely populated urban areas where real estate is at a premium. Indoor switchgear installations are space-efficient and do not require dedicated outdoor structures, making them an attractive choice for utilities and industries with limited space. Furthermore, indoor switchgear offers superior protection against environmental factors like weather, pollution, and vandalism, ensuring the reliability and longevity of the equipment. It is also easier to maintain and operate as it is shielded from external elements. Moreover, the global emphasis on safety and security is fueling the growth of indoor switchgear, as it minimizes exposure to potentially hazardous conditions, such as extreme weather or unauthorized access. The flexibility and adaptability of indoor switchgear systems, combined with their superior protection and reliability, position them as a preferred choice for various applications, driving their growth in the global switchgear market.

The growth of industry application switchgear in the global switchgear market can be attributed to the increasing industrialization and automation across diverse sectors. Industries are becoming progressively reliant on electrical power for their operations, making reliable and efficient electrical distribution systems crucial. Industry application switchgear is designed to meet the unique demands of industrial environments, offering features like robust construction, high fault tolerance, and advanced protection mechanisms. As industries evolve and expand, the demand for switchgear that can handle heavy loads and ensure minimal downtime has surged. Additionally, with the integration of smart technologies and the adoption of Industry 4.0 concepts, industry application switchgear is evolving to offer enhanced monitoring, diagnostics, and predictive maintenance capabilities, aligning with the growing need for efficient and connected industrial processes. Furthermore, industry regulations and safety standards are becoming more stringent, driving the adoption of modern and compliant switchgear solutions. Overall, the increasing reliance on electricity in industry, coupled with the demand for reliability and safety, is propelling the growth of industry application switchgear in the global market.

Market Drivers

• Urbanization and Infrastructure Development: Rapid urbanization, especially in emerging economies, is driving the need for new infrastructure, including electrical distribution networks. The expansion of cities and the development of smart cities require reliable and efficient electrical systems. This, in turn, fuels the demand for modern switchgear technology to support critical infrastructure.
• Electrification of Transport: The electrification of transportation, including electric vehicles (EVs) and charging infrastructure, is a significant driver for the switchgear industry. The growing adoption of EVs and the need for electric charging infrastructure necessitate upgrades to the electrical grid and the integration of advanced switchgear to manage the increased load and demand on the grid.

Market Restraints

• Supply Chain Disruptions: Global supply chain disruptions, such as those caused by events like the COVID-19 pandemic or natural disasters, can pose restraints on the switchgear industry. Disruptions in the availability of raw materials, components, and manufacturing facilities can lead to delays in production and increased costs.
• Aging Infrastructure and Retrofit Challenges: In many regions, existing electrical infrastructure is aging and in need of replacement or retrofitting. Upgrading or replacing switchgear in existing facilities can be costly and complex, often requiring extended downtime and careful planning to minimize disruptions to service.

Market Trends

• Environmental Sustainability: Sustainability is a prominent trend in the switchgear industry. This includes efforts to reduce the environmental impact of switchgear through the development of more eco-friendly insulation gases and materials. There is also a focus on energy efficiency and reducing losses in switchgear systems to minimize greenhouse gas emissions.
• Cybersecurity and Resilience: With the increasing digitalization and connectivity of switchgear systems, the industry is witnessing a trend towards enhanced cybersecurity measures. Protecting switchgear from cyber threats and ensuring the resilience of critical infrastructure against cyberattacks is a growing concern. The integration of robust cybersecurity features and practices is becoming standard in modern switchgear design.

Covid-19 Impacts

The COVID-19 pandemic had several significant impacts on the switchgear industry. In the early stages of the pandemic, the industry faced disruptions in the supply chain, with lockdowns and restrictions leading to delays in the production and delivery of components and materials. These disruptions, coupled with reduced workforce availability due to health and safety measures, resulted in challenges for switchgear manufacturers. Additionally, project delays and cancellations in various sectors, including construction and infrastructure, led to a decline in new installations and investments, affecting the demand for switchgear products. However, as the pandemic highlighted the critical importance of reliable and resilient electrical infrastructure, there was an increased focus on ensuring the continuity of power supply, driving the adoption of digital and smart grid technologies in the industry. Switchgear manufacturers also faced growing interest in remote monitoring and maintenance solutions to address the limitations of physical site visits during lockdowns.

Competitive landscape

The key players in the market are actively engaged in a range of strategic initiatives to maintain and enhance their market positions. They are investing significantly in research and development to innovate and improve their products driven by the need to meet the evolving demands of the market, including the need for energy-efficient, compact, and environmentally-friendly products. Companies are also expanding their product portfolios to cater to a broader range of applications across various sectors, such as utilities, industrial, commercial, and residential. Some players are developing advanced systems to support the growing adoption of smart grids and renewable energy. Strategic collaborations and partnerships are also common, allowing companies to leverage each other's strengths, expand their geographical reach, and penetrate new markets. Mergers and acquisitions are another strategy being used to increase market share, acquire new technologies, and enhance competitive positioning. Some of the major market players include Siemens AG, ABB, Schneider Electric SE, Eaton Corporation plc, Mitsubishi Electric Corporation, Toshiba Corporation, General Electric Company, Hitachi, Ltd., Hyundai Electric, Hyosung Corporation, CG Power and Industrial Solutions Limited, Hubbell Incorporated, Powell Industries, Legrand SA, Larsen & Toubro Limited, Havells India Ltd, Fuji Electric, WEG SA, Panasonic Holdings Corporation and Bharat Heavy Electrical Limited.

Key Developments

• In April 2023, Havells India Ltd. announced a strategic partnership with Swedish tech startup Blixt Tech AB to bring the solid state circuit breaker (SSCB) technology to the domestic market.
• In April 2023, Siemens expanded its sustainable blue GIS portfolio with the 8DAB 40. The switchgear for primary distribution networks up to 40,5 kV uses clean air as an insulating medium with GWP< 1, making it climate-friendly and completely free of fluorinated gasses.
• In February 2023, Toshiba Transmission & Distribution Systems Private Limited (TTDI) announced that it received orders for 23 units of 400 kV and nine units of 220 kV gas-insulated switchgear for the development and enhancement of power transmission and distribution networks to the latest 2X500 MVA substation at Xeldem in Goa and pooling substations of solar and wind renewable projects at Alamuru and Kodamuru at 400 kV voltage levels.
• In February 2023, ABB India announced the commissioning of a factory in Nashik to manufacture gas-insulated switchgear. The company aims to serve customers across various industries, including power distribution, smart cities, data centers, transport (metro, railways), tunnels, ports, highways, and other infrastructural developments. The new facility is expected to manufacture primary and secondary GIS.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Switchgear market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

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

By Insulation:

• Gas Insulated Switchgears
• Air Insulated Switchgears
• Other Insulated Switchgears

By Voltage Level:

• Low-voltage Switchgears
• Medium-voltage Switchgears
• High-voltage Switchgears

By Installation:

• Indoor Installation
• Outdoor Installation

By End-User:

• Transmission & Distribution Utilities
• Industries
• Commercial & Residential
• Other End Users

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Switchgear industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.