Commercial Switchgear Market Size - By Voltage (Low, Medium, High), Current (AC, DC), Insulation (Air, Gas, Vacuum), Global Outlook & Forecast, 2024 – 2032

Commercial Switchgear Market Size

Commercial Switchgear Market was valued at USD 17.4 billion in 2023 and is set to grow at a CAGR of 7.1% between 2024 and 2032, due to the increasing urbanization and industrialization, driving demand for reliable and efficient electrical infrastructure. As businesses expand, there's a growing need for advanced power distribution systems to ensure operational continuity and safety. Additionally, the shift towards renewable energy sources and the modernization of existing electrical grids are boosting investments in smart switchgear solutions.
 

Technological advancements, such as digital switchgear and integration with IoT systems, are enhancing monitoring and control capabilities, further fuelling market expansion. Moreover, stringent government regulations regarding energy efficiency and safety standards are encouraging the adoption of modern switchgear. These factors collectively contribute to the market's growth, with a focus on enhancing energy management and reducing downtime in commercial applications.
 

Commercial Switchgear Market Trends

The commercial switchgear industry is evolving rapidly, driven by technological advancements, regulatory changes, and the growing demand for efficient and reliable power distribution systems. One of the most significant trends is the transition from traditional switchgear to digital and smart solutions. Digital switchgear integrates advanced communication protocols and sensors, enabling real-time monitoring and control. This facilitates predictive maintenance, reduces downtime, and enhances the overall efficiency of power distribution systems. The integration of IoT (Internet of Things) allows for better data analytics and remote management, providing operators with valuable insights into system performance.
 

The concept of digital twins—virtual replicas of physical systems—is gaining traction in the switchgear market. Digital twins enable detailed simulations and analyses, helping operators predict potential issues and optimize system performance. This technology also supports the design and testing of switchgear systems in a virtual environment before physical implementation, reducing the risk of errors and ensuring compatibility with existing infrastructure.
 

Commercial Switchgear Market Analysis

Based-on voltage, the low voltage segment is anticipated to cross USD 18.3 billion by 2032, owing to the increasing demand for reliable and efficient electrical infrastructure in commercial buildings and facilities. The growth in urbanization and industrialization is driving the construction of new commercial spaces, which require robust low voltage switchgear systems for safe and efficient power distribution. Additionally, the rising focus on energy efficiency and the adoption of renewable energy sources in commercial settings are further boosting the demand for advanced low voltage switchgear.
 

Based on Current, the AC segment is anticipated to witness about 7.1% CAGR through 2032, on account of the widespread adoption of AC power systems in commercial applications, which are preferred due to their efficiency in transmitting power over long distances and their compatibility with a wide range of electrical devices and systems. The AC infrastructure is well-established, making it the standard choice for most commercial buildings and facilities. Additionally, the ongoing modernization and expansion of electrical grids, along with the integration of renewable energy sources, are contributing to the demand for AC switchgear.
 

Asia Pacific commercial switchgear market is expected to cross USD 16.7 billion by 2032, due to the rapid industrialization and urbanization in the region, which is leading to an increased demand for reliable and efficient electrical infrastructure. Countries such as China, India, Japan, and South Korea are experiencing significant growth in their manufacturing and commercial sectors, necessitating advanced switchgear solutions to ensure safe and efficient power distribution. Additionally, the expansion of the power sector in the Asia Pacific, including the development of new power generation facilities and the upgrading of existing power grids, is contributing to the demand for commercial switchgear.
 

The U.S. has a substantial commercial sector with diverse applications for switchgear, including manufacturing, utilities, data centers, and commercial buildings. The size of the market creates significant demand for both standard and advanced switchgear solutions, contributing to the overall growth of the global market.
 

Commercial Switchgear Market Share

Top companies like Schneider Electric, ABB, and Siemens lead the switchgear market due to their extensive product portfolios, innovative technological developments, and global reach. These industry giants deliver reliable, high-quality solutions for diverse commercial needs, covering both low and high voltage applications. Their significant investment in research and development fosters continuous improvements and the integration of smart grid technologies.
 

Commercial Switchgear Market Companies

Eminent players operating in the commercial switchgear industry include:

• ABB
• Chint Group
• E + I Engineering
• Eaton Corporation
• Fuji Electric Co., Ltd.
• Hitachi Ltd.
• Hyosung Corporation
• Hyundai Electric & Energy Systems Co., Ltd.
• Lucy Group Ltd.
• Mitsubishi Electric Corporation
• Powell Industries
• Regal Rexnord Corporation
• Siemens
• Skema S.p.A.
   

Commercial Switchgear Industry News

• In May 2024, Indian renewable energy firm SAEL Ltd announced plans to launch its inaugural dollar-denominated bonds, targeting a substantial raise of USD 500 million. The funds will be directed towards sustainable energy initiatives, particularly the construction of solar plants. SAEL aims to issue these bonds by the end of June, underscoring the significant market potential in the region for renewable energy projects.
   
• In April 2024, Schneider Electric and Digital Realty teamed up to launch a circular economy initiative at the Paris 5 (PAR5) data center. This collaboration is designed to increase the durability of key systems at PAR5, including Schneider Electric’s low-voltage (LV) and medium-voltage (MV) electrical equipment, switchgear, and UPS systems. The project highlights Digital Realty’s commitment to advancing its Environmental, Social, and Governance (ESG) goals.
   

This commercial switchgear market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million, ‘000 Units” from 2021 to 2032, for the following segments:

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Market, By Voltage

• Low
• Medium
• High

Market, By Current

• AC
• DC

Market, By Insulation

• Air
• Gas
• Vacuum
• Others

The above information has been provided for the following countries across the regions:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Oman
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Peru
  • Argentina