A switchgear is a mechanical device used to switch on/off, control, and protect 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 while new switchgears employ magnetic actuation and make use of Internet of Things to make smart grids that are more reliable and efficient. Industrialization and investment in infrastructure and manufacturing sectors are propelling the growth of the switchgear market. The current shift towards green and smart technologies is also augmenting the market value.
The global switchgear market is expected to register a CAGR of 7% during the forecast period.
Investments in energy infrastructure and renewable energy sources are fueling the switchgear market. Investments in rural infrastructure across developing countries of Asia-Pacific are particularly 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 switchgears.
Developed countries in North America and Europe have increased investments to phase out old electrical infrastructures and replace them with the latest electrical infrastructure, which leaves a lower carbon footprint, is highly efficient, and has low transmission losses. Developed countries have also increased their investments into green technologies to help mitigate the adverse effects of climate change due to the rise in average annual temperatures, and this has indirectly improved the demand for switchgears. Fluctuating raw material prices for steel and copper could retrain the demand. The U.S.-China trade war may also have a considerable impact on this market.
Switchgears are becoming more intelligent with the inclusion of Internet of Things (IoT), which predicts any future faults and takes corrective actions beforehand. Other benefits include real-time information, and better visibility, which improve the overall reliability of the systems and increase the efficiency of systems. 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 switchgears that is smart grid ready, more reliable, safe, and easy to use.
Low voltage switchgears are rated from 1000V AC and 1500V DC and include air circuit breakers, earth leakage circuit breakers, and miniature circuit breakers, among others. Medium voltage switch gears are rated from the 3.3 kV to 33kV class and are primarily used in the distribution of electricity to various electrical networks. Their main function is to interrupt electricity during faulty conditions. They consist of bulk oil circuit breakers, and gas-insulated switchgear, among others. High voltage switchgear systems deal with voltages above 36kV.
Outdoor switchgears are used where the voltage above 66 kV. High voltage can result in an increase in installation cost during building work, owing to the considerably large spacing between the conductor and insulator. For voltages below 66 kV, indoor switch gears are used due to economic considerations and their compact and completely enclosed metal casing.
North America and Europe markets are expected to contribute to the global switchgear market significantly during the forecast period. According to the North American Renewable Integration Study (NARIS), the region is diversifying its energy source portfolio by making large investments in wind, solar, and hydropower segments. Also, grid modernization and capacity improvement of the installed grids will lead to an increase in demand. With the Internet of Things getting deeply entrenched in all walks of life, the switchgear market has not remained behind. New technologies are being integrated into switchgears to make them smart, more reliable, and controllable from anywhere.
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 at a rapid pace. The growing demand for renewable energy from countries such as India will also drive the growth of the switchgear market, where the government has set a target of installing 175 GW of clean energy capacity by 2022.
India is the world’s sixth-largest energy consumer and accounts for 3.4% of the global energy consumption. According to the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), Indian manufacturers of electrical and electronic equipment have contributed to more than 95% of the equipment installed. The manufacturers have a combined turnover of USD 42 billion, and the market is anticipated to witness empowering demand in the coming years. Government directives to change old electrical equipment with new and energy-efficient systems are also set to drive the growth for the switchgear market. Also, initiatives by the Government of India, such as Make in India, Smart Cities, and rail electrification by renewable power, are also expected to influence the market positively.
Prominent players in the market include Schneider Electric, Siemens, ABB, Hyosung, Hyundai, CG Power, Hitachi, Eaton, General Electric, Toshiba, Mitsubishi, Powell, Larsen and Toubro, Elektrobudowa, Hubbell, Lucy Electric (UK), SEL, and Fuji Electric.
By Voltage Level
By Basis of Installation
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Voltage Level (Low Voltage, Medium Voltage, High Voltage), Installation (Outdoor Type, Indoor Type), and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Schneider Electric, Siemens, ABB, Hyosung, Hyundai, CG Power, Hitachi, Eaton, General Electric, Toshiba, Mitsubishi, Powell, Larsen and Toubro, Elektrobudowa, Hubbell, Lucy Electric (UK), SEL, and Fuji Electric.|
|Key Market Opportunities||Rapid Growth In Mining Minerals & Metals Industry Enhances Switchgear Market|