Switchgear Market Size, Share & Trends Analysis Report By Component Type (Power Distributor Switch Breaker, Switch Disconnector, MCCB, HRC Fuse, Earth Switch, MCB), By Voltage Type (Low Voltage (less than 1kV), Medium Voltage (1kV to 75kV), High Voltage (75kV to 230kV), Extra High Voltage (230kV to 500kV), Ultra-High Voltage (above 500kV)), By Insulation Type (Air Insulated Switchgear, Gas Insulated Switchgear, Oil Insulated Switchgear, Vacuum Insulated Switchgear), By Installation (Outdoor Type, Indoor Type), By End Use (Industrial, Residential, Commercial, Utilities) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global switchgear market size was valued at USD 94.6 Billion in 2023 and is projected to reach a value of USD 153.2 Billion by 2032, registering a CAGR of 5.5% during the forecast period 2024-2032.

A switchgear is a mechanical device that switches on/off, controls, and protects electrical equipment. It is a combination of switches, circuit breakers, and fuses. Switchgears are placed in high and low-voltage sides in power transformers and used for cutting off electrical supply from the equipment for testing and maintenance and clearing faults in an electrical system. The conventional switchgear consisted of transformers, connectors, and circuit breakers. At the same time, the new switchgear employs magnetic actuation and uses the Internet of Things to make smart grids that are more reliable and efficient. Industrialization and investment in infrastructure and manufacturing sectors propel the switchgear market's growth. The current shift towards green and smart technologies also augments the market value.

Investments in energy infrastructure and renewable energy sources are fueling the switchgear market. Investments in rural infrastructure across developing Asia-Pacific countries are expected to augment market value. For instance, The Pradhan Mantri Sahaj Bijli Har Ghar Yojana or Saubhagya Scheme is an Indian government project that aims to provide electricity to all households. Such projects drive the demand for switchgear.

Switchgear is becoming more intelligent with the inclusion of the Internet of Things (IoT), which predicts any future faults and takes corrective actions beforehand. Other benefits include real-time information and better visibility, which improves the system's overall reliability and increases the system's efficiency. Residential and commercial buildings consume a lot of electricity, and the inclusion of smart switchgear will help save energy and bring down electricity bills significantly. For instance, Schneider Electric has launched a range of medium-voltage switchgear that is smart grid ready, more reliable, safe, and easy to use.

Market Dynamics

Market Drivers

Development of industrial Infrastructure

The switchgear market is anticipated to expand due to growing awareness of the new generation mix and rising energy demand to support rapid urbanization. These devices are generally utilized in complicated electrical substations and businesses to ensure voltage stability. They must be able to endure a wide range of operating voltages as well as harsh climatic conditions.

Because of infrastructure improvements, switching components are employed more frequently in commercial applications. Switchgear market growth may be further fueled by the construction and expansion of new industrial structures, including power plants, banks, offices of the government, and other commercial buildings.

Investment in Renewable Energy

The market environment is anticipated to improve due to increasing investments in developing renewable energy sources and favorable government laws and subsidies to support new technology.

The use of switching equipment would increase as efforts to minimize global carbon emissions and consumer knowledge of the advantages of renewable energy production grew. The construction of new T&D lines by bulk power generation facilities using onshore and offshore solar, wind, and hydro sources is anticipated to drive both the adoption of switchgear components and the demand for switchgear.

Global Switchgear Market Restraints

Environmental condition

The efficiency of electrical switchgear equipment typically installed outside can be significantly impacted by harsh environmental conditions, including temperature, pressure, and humidity, as well as water leakage from the ground. As a result, regulatory organizations created strict regulations and specifications to address atmospheric conditions to increase reliability and feasibility.

The price of this equipment has increased due to its sophisticated features and IoT-based control system. It offers a thorough, detailed, and pricey answer. As a result, the global market may experience slow growth in the years to come due to expensive capital expenditure and challenging environmental factors.

Global Switchgear Market Opportunity

Deployment of the Internet of Things (IoT)

the switchgear market includes focusing on digital technologies, developing novel products to meet the evolving needs of the power generation industry, investing in environmentally friendly solutions to reduce environmental impact, deploying Internet of Things (IoT) enabled switchgear for automated operations and energy management and encouraging automated switchgear within the power generation and transmission industries to adopt smart grid operations. In the global market, players have employed strategies such as bolstering their presence through contracts and partnerships, modernizing manufacturing facilities to increase production, and growing businesses.

Regional Analysis

Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

North America is expected to significantly contribute to the global market during the forecast period. According to the North American Renewable Integration Study (NARIS), the region is diversifying its energy source portfolio by investing significantly in the wind, solar, and hydropower segments. Also, grid modernization and capacity improvement of the installed grids will lead to an increase in demand. The global market has remained caught up with the Internet of Things getting deeply entrenched in all walks of life. New technologies are being integrated into switchgear to make them innovative, more reliable, and controllable from anywhere.

The European switchgear Market is anticipated to expand at a CAGR throughout the projected period. Switchgear equipment must endure changeable operating voltage in volatile environmental conditions in electrical substations. Demand for such power sector equipment is increased by limiting power outages and fortifying power distribution networks. The market in Europe is expanding due to increased capacity expansions based on renewable energy sources in the area. The European Union's emphasis on energy efficiency is helping the European Switchgear market continue its upward trend.

The Asia-Pacific switchgear market accounted for the highest share globally in 2018 and is expected to remain dominant throughout the forecast period. Countries such as China and India are witnessing heavy investments in infrastructure, rural development, and industrial sectors. This has led to the laying of transmission lines and distribution networks rapidly. The growing demand for renewable energy from countries such as India will also drive the growth of the switchgear market.

LAMEA occupies a minor share in the switchgear market.

Segmental Analysis

The global switchgear market is segmented by voltage level, Installation, end-use, and region.

Based on voltage level, It is sub-segmented into Low Voltage, Medium Voltage, and High Voltage, where Medium Voltage switch gear dominates the market.

The Medium Voltage segment dominates the global market. Due to low usage and consistent medium-level energy transmission, many household power grids in urban regions chose medium voltage switchgear systems. Medium voltage switch gears are primarily employed in power distribution to various electrical networks and have ratings ranging from 3.3 kV to 33 kV. Their primary job is to stop the electricity when something goes wrong. Among other things, they include gas-insulated switchgear and bulk oil circuit breakers.

Systems for high-voltage switchgear deal with voltages of more than 36 kV. In the urban grid, high-voltage equipment is irrelevant and not required. Global urbanization at a rapid clip necessitated an energy distribution network, which led to expansion in developing nations. In industrial applications, extensive grid infrastructure and high-tension transmission lines typically use high-voltage switchgear.

Low voltage switchgear is rated from 1000V AC and 1500V DC and includes air circuit breakers, earth leakage circuit breakers, and miniature circuit breakers, among others.

Based on installation type, the segment is further bifurcated into Outdoor and Indoor types.

Outdoor switchgear is used where the voltage is above 66 kV. High voltage can increase installation costs during building work, owing to the considerably large spacing between the conductor and insulator. Due to its capacity to operate reliably and efficiently in harsh climatic conditions, the outdoor installation market is expected to have a significant market share.

Indoor switch gears are used for voltages below 66 kV due to economic considerations and their compact and completely enclosed metal casing. Due to its compact form, high durability, simple maintenance, safe and secure working, and other operational advantages, the interior segment is expected to expand significantly.

Based on end-use, it is sub-segmented into Industrial, Residential, Commercial, and Utilities.

The largest end-user segment, transmission and distribution utilities, is anticipated to grow at the highest CAGR during the forecast period. To meet the demand for electricity, transmission and distribution utilities use both non-renewable and renewable energy sources. The need to upgrade the current infrastructure to facilitate the simple integration of electricity generated from renewable sources is driven by the growing adoption of renewable energy sources for power generation.

Impact of covid-19

The Covid-19 pandemic has significantly affected the total tile market, with demand remaining subdued for 6 months in 2020. End-use industries such as construction, manufacturing, and chemical, among others, have seen substantial expansion in the market. For example, the United States has a well-established building industry. Until 2019, the construction industry contributed over USD 2 trillion to the American economy. Due to the pandemic, the figure fell to USD 1.3 trillion in 2020. As a result, the expansion of all related industries has been impeded. Several ongoing projects have been canceled or postponed.

The usage of fluorosilicic acid for aluminum production in the automotive sector had dropped by more than 20%. The demand for aluminum in this industry is directly related to the entire vehicle output. As a result, the acid market experienced the same influence on demand. This was caused by, among other things, the entire and partial suspension of manufacturing facilities, limited transportation of commodities, a prohibition on import and export activities, and the closure of showrooms.

Key Impacts of COVID-19

• Large oil, gas, and chemical firms are reducing capital and operational expenditures.
• Companies with high debt and insufficient cash flow are more prone to encounter liquidity difficulties, and some may be forced to close their doors permanently.

Market Recovery Timeline and Challenges

The global fluorosilicic acid market research study emphasizes possible recovery scenarios during the forecast period. Fluorosilicic acid is created as a byproduct of the production of phosphate fertilizers and from phosphate rock that includes fluoride and silica and is processed with sulfuric acid. It is a dry salt additive that must be dissolved in a solution before it can be added to water. Rising ground and surface water contamination raise the need for water treatment, which raises the demand for fluorosilicic acid.

Recent Developments

• In July 2022, Schneider Electric (SE) Retail Pavilion will be the first step in the company's omnichannel retail outreach.
• In June 2022, Schneider Electric introduced New Research and Innovations to Prepare IT Infrastructure for Net Zero Operations.
• In November 2022, For Hamburg's U2 and U4 lines, Hamburger Hochbahn and Siemens Mobility are developing the train control system of the future.
• In November 2022, Siemens Xcelerator, a digital business platform, accelerates digital transformation.
• In November 2022, Siemens' Simcenter Cloud HPC program broadened access to sophisticated simulation.
• In October 2022, ABB released a new edition of ABB Review with the connectivity theme as its primary focus.
• In October 2022, ABB completed its spinoff from Acceleron.