Paralleling Switchgear Market Size & Outlook, 2026-2034

Paralleling Switchgear Market Overview

The global paralleling switchgear market size is valued at USD 2.14 billion in 2025 and is estimated to reach USD 4.52 billion by 2034, growing at a CAGR of 8.7% during the forecast period. The growing data-centre capacity, rising demand for resilient standby power in healthcare, and the need to integrate multiple generation sources like gensets, renewables, and battery storage drive the demand for paralleling switchgear.

Key Market Trends & Insights

• North America dominated the market with a revenue share of 38.7% in 2025.
• Asia Pacific is anticipated to grow at the fastest CAGR of 9.4% during the forecast period.
• Based on Equipment Type, the Factory-built paralleling switchgear skids segment held the highest market share of 36.62% in 2025.
• By Voltage Level, the Low-voltage paralleling switchgear segment is estimated to register the fastest CAGR growth of 8.5%.
• Based on End-User,the Industrial and manufacturing sites category dominated the market in 2025 with a revenue share of 22.6%.
• Based on Delivery Model, the Site-engineered, custom-built PSG panels segment is projected to register the fastest CAGR of 6.0% during the forecast period.
• U.S. dominates the market, valued at USD 521.05 million in 2024 and reaching USD 564.15 million in 2025.

Table: U.S. Paralleling Switchgear Market Size (USD Million)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 2.14 billion
• 2034 Projected Market Size: USD 4.52 billion
• CAGR (2026-2034): 8.7%
• Dominating Region: North America
• Fastest-Growing Region: Asia Pacific

The global market is growing steadily due to the rising demand for reliable and continuous power supply across industrial, commercial, and utility sectors. These systems enable multiple power sources, such as generators and renewables, to operate in parallel, ensuring load sharing and uninterrupted electricity during outages. Increasing investments in data centers, hospitals, and smart grids, along with the expansion of renewable energy integration, are key drivers of market growth. Additionally, modernization of aging power infrastructure and the adoption of automation and digital monitoring technologies are further accelerating the demand for advanced paralleling switchgear solutions worldwide.

Latest Market Trends

Data-center capacity and resilient on-site generation

Data centres require very reliable power systems, often N+1 or 2N generator setups plus UPS and battery back-up. As hyperscale and colocation facilities expand, more multi-generator plants are installed, and paralleling switchgear acts as the brain that synchronises generators, shares load, automatically switches sources, and stages start-up so nothing fails over.

• For instance, in April 2025, Cummins announced its “Centum Force” containerised generator set with an advanced paralleling control module for data centres and hospitals.

Overall, switchgear packages are preferred because owners want reliability, and modular paralleling skids reduce on-site risk and shorten schedules, making them a trend in the market.

Critical infrastructure resilience programmes and public spending

Public and enterprise investment in resilient infrastructure is surging, with governments funding large-scale upgrades for essential services like hospitals and water plants. For example, in the United States, the Department of Energy’s Grid Deployment Office invested over $36.9 billion across 1,120 projects to strengthen the power grid, prioritizing on-site backup generation and advanced switchgear for public safety and reliability. These capital projects typically mandate integrated generator and paralleling switchgear (PSG) systems with automated controls. Enterprise buyers prioritize documented, validated systems to satisfy regulators and insurers when assessing facility risk, driving demand.

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Market Driver

Digitalisation, modular factory-built systems, and controls convergence

Paralleling switchgear is evolving to factory-built smart modules with embedded digital technology. These modern systems include built-in protection, telemetry, and cloud connectivity for real-time monitoring. This digital shift allows buyers to easily integrate the power management system with broader building automation and microgrid controls.

• For example, in February 2025, Schneider Electric showcased its portfolio at ELECRAMA 2025, highlighting digital switchboards and connected low-voltage solutions with remote diagnostics.

This provides customers with standardized equipment, enables remote diagnostics, and unlocks the value of long-term service contracts based on predictive maintenance.

Market Restraint

Supply-chain pressure and long lead-times for customised systems

Supply chain pressures continue to be a major restraint for paralleling switchgear (PSG) adoption. Custom systems need specialized parts, like breakers and control units, but global supply chain disruptions cause long wait times and higher costs for these components. Many projects requiring custom engineering or factory testing face procurement delays, prompting buyers with tight schedules to choose simpler, interim solutions instead. Smaller integrators may not have the inventory or working capital to absorb delays, so opportunity tends to concentrate with larger vendors. These supply-chain bottlenecks and long procurement cycles can slow PSG adoption.

Market Opportunity

Microgrids, utilities, and large-scale hybrid projects

Large-scale hybrid projects such as microgrids, utility substations with backup generation and storage, and campus-level resilience schemes create significant opportunities for advanced paralleling switchgear (PSG). These systems need advanced sync, black-start, island-mode switching, and integration with microgrid controllers.

• For instance, in June 2025, the U.S. Army program (via federal budget guidance) planned a “Power Generation and Microgrid” project at Rock Island Arsenal, IL, to install NG-RICE generators, solar PV, and ESS plus control systems.

Such projects often include high-spec PSG equipment, making them high-value opportunities for PSG suppliers.

Regional Analysis

North America dominated the market in 2025, accounting for 38.70% market share. The region combines a large installed base of critical facilities, frequent new-build data-center activity, strong hospital and industrial capital budgets, and public funding for infrastructure resilience. Hyperscale data-center expansion in the U.S. is creating many high-value turnkey power systems that include multiple generators, UPS/BESS, and factory-paralleled switchgear. At the same time, public resilience and environmental programs accelerate large remediation and utility projects that require reliable backup and paralleling capabilities.

• The U.S. is the single biggest national market thanks to hyperscale and colocation data-center pipelines, hospital networks upgrading resilience, and federal capital for critical infrastructure. The EPA’s $1+ billion Superfund cleanup tranches and state PFAS remediation programs create parallel demand for utility-grade backup and distributed generation projects that require robust PSG.

Asia Pacific Market Insights

Asia Pacific is emerging as the fastest-growing region with a CAGR of 9.4% from 2026-2034, owing to rapid data-center expansion, industrialization, and electrification programs in China, India, and Southeast Asia. New commercial and industrial capacity, together with urbanization and infrastructure upgrades, drives PSG demand. The region’s growth is amplified by increasing adoption of modular solutions and microgrids, making APAC the fastest-growing regional market for PSG.

• India Market:India’s PSG demand is rising with rapid urban infrastructure upgrades, municipal landfill remediation, and growing data-center footprints. Municipal biomining and landfill reclamation programs are backed by state funding and accelerate procurement of on-site generation and modular power systems for processing facilities. Large industrial parks and hyperscale data-center investments favor modular, factory-tested PSG due to fast schedules and constrained local labour.

Regional Market share (%) in 2025

Source: Straits Research

Europe Paralleling Switchgear Market Insights

Europe is a large, regulation-driven PSG market with steady public and private procurement. EU policy initiatives and national resilience programs encourage upgrades to hospital and municipal power systems, and they support demonstration projects for microgrids and hybrid backup systems. European buyers emphasize interoperability, emissions efficiency, and lifecycle documentation, which favors suppliers offering validated hardware plus digital monitoring and compliance reporting.

• The UK market benefits from strong public procurement standards, hospital resilience programs, and a mature data-center sector. Owners favor standardized, tested PSG solutions that offer documented performance and predictable commissioning. National initiatives supporting living-lab remediation and infrastructure resilience also produce opportunities for packaged PSG systems in the municipal and healthcare sectors.

Latin America Market Insights

Latin America’s PSG market is expanding, where municipal upgrades, mining operations, and industrial modernization occur. High-visibility river and watershed cleanup projects, wastewater treatment upgrades, and mining-legacy site stabilization create pockets of demand for reliable backup power and generator farms with paralleling switchgear. The region’s growth is project-driven and concentrated in countries with active public works and mining investment, producing a steady CAGR compared with mature markets.

• Mexico shows growth in PSG demand through infrastructure and river remediation projects and industrial upgrades. Federal and state programs to remediate polluted waterways and upgrade water treatment plants create opportunities for packaged power systems at treatment facilities.

Middle East and Africa Paralleling Switchgear Market Insights

Middle East and Africa is growing in wealthy Gulf states with large, capital-intensive megaprojects and rapidly urbanizing African markets where donor or government projects fund select installations. Gulf mega-developments require integrated power solutions that include PV and storage, as well as resilient genset farms with sophisticated PSG for phased commissioning. In Africa, mining and donor-funded water waste projects create sporadic demand for containerized or modular PSG solutions in remote locations.

• The UAE invests in smart urban waste management and city cleanliness drives that include modern waste-processing facilities and desalination plants where resilient PSG is essential. Saudi Arabia’s NEOM and related energy infrastructure projects plan integrated, renewable-led energy systems that also require backup and grid-interface paralleling solutions during phased buildouts.

Equipment Type Insights

Factory-built paralleling switchgear skids dominated the market with a revenue share of 36.62% in 2025, as they bundle the complete electrical, protection, and control functions needed for multi-genset plants into a single deliverable. Owners and EPCs favor these skids because factory assembly and testing reduce on-site engineering, shorten commissioning time, and concentrate responsibility with one supplier. The skid model also simplifies acceptance testing and warranty coordination, which is attractive for high-value facilities such as data centers and hospitals.

Modular and containerized PSG systems are the fastest-growing because they combine rapid deployment with repeatability and lower field risk. Preassembled container solutions are appealing for remote sites, microgrids, and rapid data-hall expansions where installation time and local labour are constrained. As buyers value speed and predictable commissioning, modular PSG adoption is accelerating faster.

By Equipment Type Market Share (%), 2025

Source: Straits Research

Voltage Level Insights

Low-voltage paralleling switchgear leads the market at a CAGR of 8.5%, driven by demand from hospitals, data centers, and telecom installations operating on LV networks. Its standardization and straightforward design mean many suppliers compete, so LV projects make up most installations and routine upgrades. Lower design complexity allows frequent unit replacement or modernization, resulting in high volumes and strong revenue per installed base.

Medium-voltage systems are the fastest-growing. Large industrial parks, utility backup plants, and hyperscale data centers increasingly prefer MV systems for broader efficiency, handling larger loads, and direct utility integration. MV PSG supports higher generator capacities and reduced losses. As industrial campuses and infrastructure in emerging markets scale, the incidence of MV-based upgrades and new projects rises.

End-User Insights

Industrial and manufacturing sites hold the largest revenue share of 22.6% because factories, chemical plants, and process facilities require reliable power for safety, production continuity, and regulatory compliance. These facilities often have large, multi-unit generator plants, complex load-shedding priorities, and long operational lifecycles, which produce demand for heavy-duty paralleling switchgear, customization, and extended O&M contracts.

Data centers are the fastest-growing application due to the persistent expansion of hyperscale and edge capacity. Hyperscale and edge facilities need advanced PSG for reliability and tight integration with batteries and UPS. Hyperscalers and colocation operators prefer factory-validated, integrated PSG packages to reduce commissioning risk and accelerate time-to-service. Additionally, as data centers incorporate batteries and seek lower fuel consumption, PSG controllers must manage hybrid sources.

Delivery Model Insights

Site-engineered, custom-built PSG panels dominate the market, exhibiting a CAGR of 6.0% in 2025. This is because many industrial, utility, and complex campuses require tailored control logic, local code compliance, and bespoke integration with legacy systems. Custom solutions allow detailed engineering to meet unique load-sequencing, protection coordination, and landlord requirements. This flexibility makes custom-built PSG preferable for non-replicable large infrastructure projects where a one-size-fits-all module does not meet technical demands.

Factory-built modular PSGs are the fastest-growing segment as buyers shift toward repeatable, tested designs that cut commissioning risk and shorten schedules. The factory approach enables standardization of control logic, pre-testing, and rapid site acceptance. Buyers with multi-site rollouts particularly favor modular units to reduce the total cost of ownership and allow faster commissioning.

Competitive Landscape

The global paralleling switchgear market is moderately fragmented, with large original equipment manufacturers (OEMs) securing big, capital-intensive turnkey contracts. In contrast, many smaller specialists, generator OEMs, and system integrators focus on niche, modular, and retrofit projects. Buyers increasingly prefer integrated packages or factory-tested modular units to reduce commissioning risks, benefiting established OEMs with full system offerings.

Cummins: An Emerging Player

has adopted a containerized, modular approach combining generator sets, controls, and paralleling functions for rapid deployment. This strategy, focusing on product standardization, factory testing, and regional distribution enhanced by cloud monitoring (PowerCommand Cloud), streamlines installation for data centers, utilities, and remote industries.

Latest News

• In May 2025, Cummins launched the Centum Force containerized power solution, reinforcing its position with plug-and-play systems favored in the market for faster order cycles and larger project scales.

List of key players in Paralleling Switchgear Market

1. ABB
2. Eaton
3. Schneider Electric / ASCO
4. Cummins
5. Caterpillar
6. Kohler
7. Generac Industrial Energy
8. Siemens / Russelectric
9. Schneider
10. Regal Rexnord
11. Pioneer Power Solutions
12. General Electric (GE)
13. EMI (Industrial Electric Mfg)
14. Nixon Power Services
15. Cummins Power Systems
16. TRS Group
17. Zenith
18. Emerson (Sel)
19. Eaton’s power solutions
20. Black & Veatch
21. Stulz/Vertiv

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Strategic Initiatives

• July 2025 - Q-Tec Switchgear, in collaboration with Siemens, announced a strategic partnership for the local manufacturing and distribution of Simoprime World medium-voltage switchgear in Qatar.
• June 2025 - Veolia commissioned one of the largest PFAS treatment plants in Stanton, Delaware, serving over 100,000 residents.
• April 2025 – Eaton launched a Rear-Access Arc-Resistant Magnum PXR Low-Voltage Switchgear. This product targets enhanced safety and maintainability in power distribution systems.
• January 2025 - ASCO Power Technologies (Schneider Electric) accepted a high-profile industry partnership role with the Engine Generator Systems Association (EGSA), strengthening its outreach to generator and PSG customers and installers.