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

Switchgear Industry Analysis

Switchgear Market size was valued at USD 133.7 billion in 2022 and is projected to grow at 7.6% CAGR from 2023 to 2032. Driven by growing apprehensions related to fire hazards, electrical supply interruptions, health risks, and other operational safety concerns. The absence of robust electrical grid networks in developing economies, coupled with a tendency towards upgrading existing infrastructure in developed nations, has established a favorable business environment.
 

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Switchgear refers to a crucial component within an electrical system that is responsible for controlling, protecting, and isolating electrical circuits and equipment. It consists of various electrical devices such as circuit breakers, fuses, disconnect switches, and relays, all housed in a protective enclosure. The rapid commercialization and industrialization efforts aimed at driving switchgear market growth, coupled with Foreign Direct Investment (FDI) initiatives supporting the industrial and commercial sectors, will significantly influence the demand for both primary and secondary electric distribution networks. Additionally, the ongoing process of digitalization has had a substantial impact on fostering a competitive business environment, primarily due to the heightened energy requirements from communication base stations and data centers.
 

A significant number of both developing and developed regions worldwide rely on the import of components to meet the growing demand for expanding and upgrading their electric infrastructure. Manufacturers around the world have consistently prioritized reducing their overall production costs to ensure sustainable profitability and effective market penetration. However, the scarcity of raw material resources has compelled regional installers and component suppliers to depend on imports to address the increasing energy demand.
 

COVID-19 Impact

The power sector experienced a decline in overall switchgear installations and deployments globally due to the impact of the COVID-19 pandemic. Given that the power sector is not only essential but also the backbone of the economy, the industry has regained momentum post-COVID-19. This resurgence can be attributed to the ongoing expansion of renewable power generation and the refurbishment of energy equipment. Government initiatives aimed at providing sustainable power solutions and ambitious plans to enhance the integration of grid infrastructure with efficient power systems are expected to exert a significant influence on market dynamics.
 

Switchgear Market Trends

The world has undergone a significant transformation driven by the rapid digitization and the widespread adoption of smart Artificial Intelligence (AI) systems. While some industries have managed to avoid the digital revolution that has swept across the globe, the electricity sector has remained on the outskirts of this transformation. Investments in IT implementations within the power sector have traditionally been lower, with major players primarily focused on expanding their capacity in respective segments. There is a shifting paradigm towards integrating IT solutions throughout the electricity sector, which will significantly promote the deployment of smart grids, thereby positively impacting the switchgear market dynamics.
 

The rapid adoption of smart meters will support the evolution of smart transmission and distribution technologies in these regions. Additionally, nations that frequently experience electricity deficits are poised to witness a high demand for smart monitoring and control technologies in the coming years. Rising concerns related to managing the intermittency associated with increased solar power usage across regions will also play a positive role in driving smart grid deployment.
 

Switchgear Voltage Segmentation

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The MV segment accounted for over USD 42 billion in 2022. The medium voltage switchgear market is forecast to experience increased demand due to advancing product specifications and the growing need for safe and reliable distribution networks in various sectors, including residential, commercial, industrial, and utility establishments. The trend of suburban migration has led to the expansion of large and multi-story residential complexes and apartments, which in turn is driving the demand for medium voltage switchgear.
 

Switchgear Insulation Segmentation

The air segment held approximately 6% share of switchgear market in 2022. Air insulation represents one of the earliest technologies developed for transmission and distribution control systems, encompassing components like switchgears, circuit breakers, and ring main units. In terms of enhanced insulating properties, cost-competitiveness, and compact product specifications, auxiliary insulation technologies have outperformed air insulation in terms of market adoption. This trend is expected to continue with auxiliary insulation technologies experiencing moderate growth in the foreseeable future. This is primarily attributed to the fact that air insulation offers lower insulating and dielectric properties when compared to its competitive counterparts.
 

Switchgear Current Segmentation

Switchgear market size from the AC segment crossed USD 110 billion in 2022, primarily due to its key product features, which encompass cost-effectiveness, minimal heat generation, and the ability to operate at flexible high-end voltage levels. Factors such as competitive pricing, cost-effectiveness of machinery, ease of installation and manufacturing contribute to the demand for these products. Furthermore, the majority of nations worldwide have adopted AC distribution infrastructure, making these products widely applicable and feasible in line with standardized industry protocols. Consequently, the combination of geographical proximity, production capabilities, and application relevance provides a solid foundation for technological advancements, ultimately positively influencing the landscape of AC power distribution components.
 

Switchgear Application Segmentation

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The commercial & industrial segment of switchgear market is slated to observe 6.8% CAGR through 2032. In recent years, digitalization has emerged as an industrial phenomenon, driving the widespread adoption of smart and secure electric infrastructure. However, it's important to note that communication and data centers have played a pivotal role in the economic and regional development. Consequently, the establishment of effective energy infrastructure is crucial for sustaining the continuous operations of these centers.. Therefore, the rapid growth in the demand for energy to support the functionality of data centers will create a favorable business environment.
 

Switchgear Regional Analysis

Asia Pacific switchgear market is set to grow at a CAGR of over 6.2% through 203, driven by the increasing demand for efficient Transmission & Distribution (T&D) systems. The need to revamp existing electrical setups, coupled with growing investments in the energy infrastructure sector, is expected to boost business expansion. Ongoing research aimed at developing effective components, along with increased investments in the manufacturing of energy-efficient products, has been a strategic focus within the industrial landscape. Furthermore, the widespread deployment of renewable energy sources and the expansion of smart grid networks in countries including China and India will have a positive impact on the penetration of switchgear products in these regions.
 

Switchgear Industry Leaders

The key participants operating across the switchgear market include ABB, Siemens, GE, Mitsubishi Electric Corporation, Schneider Electric, Ormazabal, Bharat Heavy Electricals Limited, CG Power and Industrial Solutions Limited, Chint Group, Eaton, Hyosung Heavy Industries, HD HYUNDAI ELECTRIC CO., LTD., Toshiba Corporation, Powell Industries, Fuji Electric Co., Ltd., Hitachi Ltd, Lucy Group Ltd., Regal Rexnord Corporation, Skema S.p.A., E + I Engineering.
 

Switchgear Industry News:

• In January 2022, ABB supplied UK Power Networks with medium-voltage double busbar 36 kV AirPlus Gas-insulated Switchgear (GIS) owing to its almost zero global warming effects. In addition, the product is designed to reduce the unplanned downtime risks and provide greater power load sharing flexibility. GIS will act as an insulator between the electrical contacts with almost zero global warming impact.
   
• 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 switchgear market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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Market, By Voltage

• LV
• MV
• HV

Market, By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

Market, By Current

• AC
• DC

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information is provided for the following regions and countries:

• 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