by Switchgear refers to the combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate electrical equipment. It is an important part of transmission and distribution systems and are used extensively in electric power systems, large industrial facilities and commercial buildings. Switchgears allow the safe flow of electricity and also protect the electrical infrastructure and personnel. Rapid industrialization and urbanization across developing regions of Asia Pacific and Latin America have resulted in increased demand for electricity. Furthermore, aging transmission and distribution infrastructure in developed markets like North America and Europe is also driving the replacement demand for switchgear equipment. Governments across various countries are also undertaking initiatives to modernize and expand their power grids to improve transmission efficiency and ensure reliable power supply, thereby boosting switchgear installations.
The global switchgear market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Switchgear Market is primarily driven by the increasing demand for transmission and distribution technologies. Rapid urbanization and industrialization across developing economies has increased the demand for electricity. This has necessitated investments in expansion and modernization of aging transmission and distribution infrastructure. According to the World Bank, globally over US$ 50 trillion will need to be invested in power infrastructure by 2050 to meet the growing demand. Governments across countries are undertaking various power grid modernization projects involving installation of new transmission lines, substations and switchgear technologies to ensure reliable electricity supply. For instance, the Government of India has laid out plans to install 175 GW of renewable energy capacity by 2022 which will require massive investments in associated transmission infrastructure including switchgears. Additionally, replacing aging equipment in developed markets is also fueling growth of the market.
The emergence of smart grid technologies also offer significant growth opportunities. Switchgears with advanced capabilities such as remote operation, fault passage indication, high speed protection and communication protocols are increasingly being adopted to enable effective monitoring and management of grids. Adoption of Internet of Things (IoT) and cloud computing in switchgears allows for integration with Supervisory Control and Data Acquisition (SCADA) systems, facilitating data analysis to improve grid reliability and efficiency.
Segment Analysis
The switchgear market is segmented into voltage, installation, insulation, and end use. The voltage segment is further divided into low voltage, medium voltage, and high voltage. The medium voltage segment currently dominates the market and accounts for over 40% share due to widespread industrial and infrastructure applications. When compared to low and high voltage, medium voltage equipment offers optimum protection, control, and isolation for most commercial and industrial power requirements in the range of 3,000-72,000 volts.
PEST Analysis
Political: Growth of transmission and distribution infrastructure in developing nations is being driven by government initiatives for upgrading the electricity grid and expanding rural electrification programs. Economic: Rising industrialization and urbanization is increasing the demand for electricity which is augmenting investments in power generation and distribution networks. This in turn is boosting the switchgear market. Social: Rapid growth of renewable energy installations is creating the requirement for flexible switchgear that can integrate intermittent power sources into the grid. Technological: Advancements in switchgear technology include sulfur hexafluoride (SF6) free switches, intelligent electronic devices, and modular switchgear design for smart grid compatibility and remote operation.
Key Takeaways
Global Switchgear Market Demand is expected to witness high growth over the forecast period supported by increasing investments in grid modernization worldwide.
Regionally, Asia Pacific dominates currently holding over 40% share led by China, India, and other Southeast Asian markets where energy demand is rising sharply.
Key players operating in the switchgear market include Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Lenze SE, Flender Ltd, Nord Drivesystems Pvt Ltd., Bosch Rexroth AG, Zollern GmbH & Co. KG, INGECO GEARS Pvt. Ltd, Kngear, Essential Power Transmission Pvt. Ltd., Bonfiglioli Drives Co. Ltd., and Elecon Engineering Company Limited.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
