"Actionable Insights to Fuel Your Growth"
The global switchgear market size stood at USD 98.08 Billion in 2018 is projected to reach USD 168.17 Billion by 2026, exhibiting a CAGR of 6.84% during the forecast period.
Rapidly growing electrification need for remote areas along with rising electricity generation has positively affected the demand for various electrical equipment. Progressive targets by regional governments to deliver electricity to rural zones is set to cater to the switchgear market growth.
Switchgear is an electrical apparatus used in a circuit to effectively regulate, control, and switch on or off the circuit as required. It is readily installed in different residential, commercial, industrial, and utility applications to ensure operational safety, cost-effective, and uninterrupted operations.
The current path in an electrical network is at times hindered due to break down of insulation layers leading to problematic fault or short circuit conditions. These erratic situations may lead to harmful consequences like equipment damage, fire and explosions, islanding, and other failures. Switchgears are widely installed in low, medium, and high voltage systems to deal with the abnormal operating levels in a variable voltage network between load centers and generating stations.
Request a Free sample to learn more about this report.
Switchgears generally consist of two components, power control components to control conduction in the equipment and power switching components, to break the connection in fault incidents. It is also installed to de-energize the equipment and thereby effectively maintain and test the system to rectify fault levels. Switchgear is a combination of numerous devices like current & voltage transformers, relays, circuit breakers, fuses, isolators, switches, and other equipment for enhancing operations.
Expanding transmission & distribution (T&D) network has influenced the usage of switchgear across different regions. Asia Pacific region holds the lion’s share owing to the presence of large industrial establishments like bulk manufacturing units.
Furthermore, Europe occupies a substantial market position due to long-standing distribution network along with increasing adoption of renewable technologies. North America switchgear market is set to grow at a considerable rate owing to the expansion of existing commercial and industrial infrastructure along with the construction of new grids for renewable power.
“Exponentially growing industrial infrastructure is set to boost the global switchgear market”
Increasing energy demand to support rapid urbanization and new generation mix is anticipated to propel the industry size. Switchgear equipment is primarily used in the complex electrical substations to withstand fluctuating operating voltage along with high environmental conditions. Construction of new industrial structures, including power plants for safe and reliable operations will further stimulate the market outlook.
“Positive outlook for renewable generation is projected to fuel the market growth”
Increasing investments to develop renewable energy along with favorable norms by the governments to support the new technology is anticipated to foster the industry landscape. Growing measures to curb the overall carbon emissions coupled with rising awareness among consumers to adopt renewable energy generation like solar will accelerate switchgear usage. Bulk power generation plants using onshore & offshore wind, solar, and hydro sources is set to increase the need for new T&D lines which in turn will affect the switchgear demand.
“Gas-insulated switchgear (GIS) is projected to witness the highest growth during the forecast period.”
Based on the insulation, this industry is classified into gas, air, oil, and vacuum. Vacuum insulated switchgear is subjected to hold substantial share over the forecast timeline. It uses a mixture of solid, vacuum, and air instead of Sulfur hexafluoride (SF6) as an isolation layer to minimize the overall carbon footprint and easily maintain the power supply systems.
To know how our report can help streamline your business, Speak to Analyst
The devices with gas as a protection agent are set to observe the highest growth rate owing to increasing setup of variable voltage substations. GIS is equipped with SF6 gas as a tight metal enclosure consisting high voltage equipment for a diverse range of applications. Air-insulated switchgear (AIS) are widely used for industrial & utility purposes and contains air to sustain the dielectric performance of the system.
“Outdoor installation segment is anticipated to hold a dominating share over the forecast timeframe.”
By installation, this market is bifurcated into indoor and outdoor locations. Ability to withstand harsh climatic conditions along with delivering reliable and economical operations is expected to fuel the outdoor installation segment growth. Indoor installation devices are set to perceive substantial growth owing to the compact design, safe & secure working, high durability, easy maintenance, and many other operational advantages. The location criteria are predominantly decided by the functional characteristics along with weather and ventilation conditions.
“Medium voltage switchgear is likely to hold substantial CAGR growth during the forecast period.”
Based on the voltage, this market is broadly segmented into low, medium, and high. Low voltage switchgear is set to have a significant position across the world owing to its extensive incorporation in distribution networks along with high fault enduring capacity. These devices are generally categorized up to the rating of 1 kV and have widespread applications in residential and commercial sites. Medium voltage equipment is projected to observe largest growth in the industry dynamics. It offers a wide working range and is usually rated between 3 kV and 36 kV capacities to support building and industrial infrastructures. High voltage or HV switchgear handles electrical supplies with voltage above 36 kV and therefore are largely connected over heavy transmission lines.
“In the global switchgear market, the T&D utility sector is expected to dominate the end-user segment.”
Based on end-user, the global switchgear market can be divided into T&D utility, industrial, and commercial & residential. Rapidly developing power distribution facilities to suffice rising energy demand and enhance efficient conveying lines to minimize losses and hazardous incidents will favor the transmission & distribution (T&D) utility segment size. These electrical devices are an integral part of various industrial plants for safe and reliable functioning of the units. The major population shift from rural to urban areas along with construction of new housing buildings as well as public spaces is set to positively affect the residential & commercial end-user growth.
Geographically, the global switchgear market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America is expected to observe considerable growth owing to expanding commercial & industrial establishments. The regional government has introduced favorable directives and targets to develop a sustainable energy mix and suffice the high energy requirements. U.S. and Canada are the key countries operating in the section.
The Asia Pacific region is projected to hold a substantial portion over the forecast timeframe. Presence of huge potential to establish large industrial plants along with rapidly developing residential & commercial sectors is set to contribute to the regional growth. Emerging economies like China and India are witnessing excessive energy demand and new transmission needs owing to the electrification of distant geographical locations. Other prominent nations present in the Asia Pacific are Japan, Australia, and Southeast Asian countries.
Asia Pacific Switchgear Market Size, 2018
To get more information on the regional analysis of this market, Request a Free sample
Europe region is projected to observe a significant growth in the global industry size. Stringent regulations by the European Union to incorporate clean energy generation along with long-standing transmission & distribution network will favor the regional outlook. European Union has implemented energy and climate framework to achieve targets from 2021 to 2030. The objective aims to generate about 32% of the overall energy generation by clean sources by 2030. Germany, Italy, Spain, United Kingdom, France, and other union countries are set to abide by the announced objective.
Rising need for electrification along with increasing energy requirement in the gulf countries to cater widely expanding commercial & industrial infrastructure will positively favor the Middle East and Africa industry size. Inaccessibility to electricity in distant and remote locations in the region infers huge untouched aspects for the deployment of energy-efficient systems. The territory can be broadly divided in South Africa, Gulf Cooperation Countries (GCC) and other regional nations.
“Market Players like ABB, Eaton, Schneider Electric, Hitachi, Mitsubishi Electric, would continue to shape the international industry trends”
Various regional and international participants are operating in the switchgear market. Major companies are focused on undergoing different mergers & acquisitions to strengthen their position. Recently, ABB acquired GE Industrial Solutions to expand its reach and leverage new growth opportunities in different regions.
Switchgear components include a range of devices used to control and protect the power systems operating in fluctuating voltage conditions. The electrical apparatus is readily used at different stages, starting from generating stations to transmission and distribution lines. The equipment is installed to interrupt the abnormal current & voltages and thereby helps in rectifying fault situations. Switchgear itself contains a large number of devices consisting of control panels, measuring instrument, indicating instrument, surge arresters, miniature circuit breakers, and many more.
To gain extensive insights into the market, Request for Customization
Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the recent industry developments such as mergers & acquisitions, the regulatory scenario in crucial countries, investment scenario, technological advancement, and key strategies adopted by market leaders, competitive landscape, and company profiles.
Value (USD Billion)
Fortune Business Insights says that the switchgear market was valued at USD 98.08 Bn in 2018 and is projected to reach USD 168.17 Bn by 2026.
In 2018, the switchgear market was valued at USD 98.08 Bn.
Growing at a CAGR of 6.84%, the switchgear market will exhibit steady growth in the forecast period (2019-2026)
Low Voltage switchgear segment is expected to be the leading segment in the switchgear market during the forecast period.
Rapidly developing industrial infrastructure and the growing adoption of renewable power will be the key factors driving the growth of the switchgear market.
ABB, Eaton, Schneider Electric, Siemens, Mitsubishi are the top players in the switchgear market
The Asia Pacific is expected to hold the highest market share in the switchgear market.
A rising inclination for clean energy generation will result in setup of new transmission, distribution, grids, substations, and other units, which in turn will positively drive the growth of the switchgear market.
Increasing construction activities, along with the refurbishment of old structures, can create enormous opportunities for the growth of the switchgear market
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry