North America Switchgear Market Analysis

North America Switchgear Market Analysis

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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.
 

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.
 

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.
 

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.
 

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.