North America Switchgear Market - By Voltage (LV, MV, HV), By Insulation (Air, Gas, Oil, Vacuum), By Current (AC, DC), By Application (Residential, Commercial & Industrial, Utility), BY Region & Forecast, 2023 – 2032

North America Switchgear Industry Analysis 

North America Switchgear Market size valued at USD 23.4 billion in 2022 and is anticipated to expand at 6.4% CAGR from 2023 to 2032. The demand for refurbishing electrical infrastructure and investments in grid infrastructure will complement the business growth. Lack of efficient & reliable electric networks in line with the shifting inclination toward the development of existing infrastructure in the region have further integrated a favourable business scenario. Some of the key parameters stimulating the industry include cost-effectiveness, safety, and compact product design.

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Switchgear is an essential component of electrical power systems that is responsible for controlling, regulating, and managing the flow of electricity. It is directly connected to the power supply system and is installed on both the high and low voltage sides of power transformers. Switchgear plays a crucial role in de-energizing equipment for maintenance and testing purposes, as well as in isolating and clearing faults in the electrical system. The increasing adoption of distributed generation and smart grid networks has led to a greater need for efficient power supply units.
 

Furthermore, the growing use of heavy-duty industrial machinery, particularly for motor control operations, has led by demand for circuit protection equipment. The significant migration to suburban areas, driven by the increased reliance on manufactured products, has further emphasized the expansion of electricity networks in residential, commercial, and industrial sectors.

Geopolitical imbalances in developing regions have created doubts among industry players and investors, causing hesitation regarding investment or divestment in those regions. Consequently, uncertainties have hindered the adoption of technology and the integration of advanced transmission components. This slow technological evolution in developing regions will negatively impact the overall dynamics of the industry. In addition, the rapid commercial expansion coupled with cross-border interconnection measures across the region has instituted a favourable business scenario.
 

COVID-19 Impact

The North America switchgear market was adversely affected by factors such as supply chain delays and decreased demand from the commercial and industrial sectors. Shortages of raw materials and labour further hindered market expansion. Lockdown measures resulted in transportation limitations, delaying the acquisition of raw materials and the distribution of finished goods. The COVID-19 pandemic caused disruptions in the supply chain, logistics delays, and the suspension of manufacturing operations in several countries, constraining market growth. However, as the pandemic recedes, the switchgear market is expected to rebound due to economic recovery and increased adoption of automation technologies.
 

North America Switchgear Market Trends

The power structure management industry is primarily being driven by the modernization & revamping of the existing grid infrastructure across the region. The U.S. department of energy defines the electrical grid to comprise an ecosystem of manufacturers, asset owners, federal, state, and local government entities & service providers. The Office of Electricity Delivery & Energy Reliability (OE) has been working with private & public partners to strengthen, improve, and transform their energy infrastructure to ensure access to secure, clean, and reliable energy resources.
 

Ongoing programs related to modernizing the power grid including grid energy storage, smart grid development & research, and advanced technologies will provide a competitive industrial scenario. Power flow controllers, network management systems, and solid-state components that can optimize the power delivery and further enhance resilience; interactive capabilities, including adaptive networks; intelligent control and communication systems will positively influence the product demand.
 

North America Switchgear Voltage Segmentation

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Based on voltage, the switchgear market in North America is segmented as low, medium, and high. The low voltage segment accounted for more than USD 11.5 billion in 2022. Regulatory mandates and guidelines have played a significant role in shaping the industry, ensuring product standardization, and influencing manufacturing and deployment trends. Regulators and installers are particularly focused on grid-isolated zones, as they offer substantial opportunities for market expansion and business growth. Additionally, the increasing demand for energy and consumer preferences for sustainable electricity networks will spur the growth of the low voltage market. The market size of medium voltage switchgear in North America is set to hit USD 15.5 billion by 2032.
 

North America Switchgear Insulation Segmentation

Based on insulation, the market is segmented as air, gas, oil, vacuum, and others. Vacuum insulation is likely to observe significant pace owing to limited competition from other established insulation technologies and high consumer trust. The product has experienced increased demand due to its affordability, reliable and safe operations, and leak-free technologies. The versatility of vacuum-insulated distribution components and ongoing advancements in technology portfolios will further foster the North America switchgear market demand. This insulation technology has gained momentum over the years due to its regional availability and ease of manufacturing and installation.
 

North America Switchgear Current Segmentation

Based on current, the North America switchgear market is segmented as AC and DC. The increasing need for fast fault clearance and the growing demand for DC systems will increase the demand for DC power distribution components. The availability of support for interconnecting AC circuits, which results in lower operational losses, will also contribute to the adoption of these components. DC infrastructure is commonly integrated into long-distance electrification networks due to its lower operational losses and improved efficiency. However, the penetration of DC technology in the power distribution component industry is limited because of the industry's heavy reliance on AC infrastructure. DC units are more commonly used in high voltage transmission lines rather than low voltage distribution networks.
 

North America Switchgear Application Segmentation

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Based on application, the North America switchgear market is segmented as residential, commercial & industrial, and utility. The commercial & industrial application is set to grow at a 5% CAGR through 2032. The growing population in cities and efforts to ensure electrification in grid-isolated areas have contributed to a substantial rise in energy demand. This increase in peak load demand has necessitated utilities and installers to upgrade and expand versatile electric supply components to ensure grid reliability and security. Consequently, the rising energy demand, coupled with the need for efficient power distribution networks, will positively influence the distribution component industry as a whole.
 

North America Switchgear Country Analysis

The U.S. transmission and distribution refurbishment industry is experiencing increased demand. A recent study by the U.S. Department of Energy (DOE) indicates that energy-efficient power lines have the potential to save up to 16 TWh of energy annually by 2020. In Mexico, the switchgear industry is expected to witness substantial growth due to the focus on expanding transmission and distribution networks. Investments in high-capacity alternative energy sources in countries like Chile and Argentina will further support the industry's outlook. Additionally, the rising electricity demand will augment investments in regional transmission and distribution retrofitting, positively impacting the United States switchgear industry size.
 

North America Switchgear Industry Leaders

Some of the major market players operating across the North America switchgear market are Siemens, ABB, General Electric, Schneider Electric, Mitsubishi Electric Corporation, Ormazabal, CG Power & Industrial Solutions Ltd, CHINT Group, HYOSUNG HEAVY INDUSTRIES, Hyundai Electric & Energy Systems Co., Ltd., Powell Industries, Regal Rexnord Corporation, E+I Engineering, Fuji Electric Co., Ltd, Hitachi, Ltd, and Eaton. These players focus on new product launch & commercialization and strategic partnerships for market expansion. Furthermore, these players are increasingly investing in research & development activities, which enable them to introduce innovative products and garner maximum revenue in the market.

 

North America Switchgear Market News:

• In June 2021, Mitsubishi Electric and Siemens signed a Memorandum of Understanding (MoU) to conduct feasibility research on the development of HV switching solutions that are equipped with zero global warming capabilities that replace greenhouse gases with clean air for insulation. Both companies will focus on research techniques to increase their clean-air insulation technology applications to higher voltages. Both partners will also continue to manufacture, service, and sell switchgear solutions independently.
   
• In April 2021, Siemens launched its new 8DJH 24 switchgears along with RMU for up to 24 kV, which is completely free from the fluorinated gases. The MV switchgear uses clean air technology, which is a climate-neutral insulation medium consisting of exclusively natural components from ambient air. The new technological advancement eliminates Sulfur Hexafluoride (SF6) as an insulating medium, or any gas mixture built on fluorine gases.
   

This North America switchgear market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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By Voltage

• Low
• Medium
• High

By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others