The switchgear market is projected to expand at a 5.3% CAGR from an estimated USD 4,828.4 million in 2023 to USD 7,685.3 million by 2033. Over the last few years, the switchgear market has grown slowly. Switchgear market expansion is expected to continue as energy demand rises.
New regulations to reduce/limit power outages and strengthen power distribution networks are creating a switchgear market for power sector machinery. The equipment to make wiser decisions by offering real-time information that reveals problems and potential improvements is the primary driver of the switchgear market.
| Attributes | Details |
|---|---|
| Switchgear Market CAGR (2023 to 2033) | 5.3% |
| Switchgear Market Size (2023) | USD 4,828.4 million |
| Switchgear Market Size (2033) | USD 7,685.3 million |
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The switchgear market is expected to grow due to rising energy demand to support rapid urbanization and increased awareness of the new generation mix.
These devices are typically used in complex electrical substations and industries to withstand varying operating voltages and harsh environmental conditions to maintain voltage stability.
Switching components are increasingly being used in commercial applications due to advancements in infrastructure.
Developing and expanding new industrial structures such as power plants, banks, government offices, and other commercial buildings may fuel switchgear market growth even further.
Growing investments in renewable energy development, as well as favorable government regulations and subsidies to endorse new technology, are expected to improve the market landscape.
Growing measures to reduce the overall carbon footprint, combined with rising consumer awareness of the benefits of renewable energy generation, may ramp up the use of switching equipment.
Bulk power generation plants using onshore and offshore solar, wind, and hydro sources are expected to construct new T&D lines, propelling the adoption of switchgear components and demand for switchgear.
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The harsh environmental conditions, such as temperature, pressure, humidity, and water leakage from the ground, are some key factors that can affect the efficiency of electrical switchgear equipment typically installed outside.
As a result, to cater to atmospheric conditions, regulatory organizations developed stringent regulations and specifications to achieve greater reliability and feasibility.
This equipment has advanced features and an IoT-based control system, which raises the price. It provides a comprehensive, complex, and costly solution. As a result, high capital investment in the market and harsh environmental conditions may stymie switchgear market growth in the coming years.
Switchgear is primarily used for various applications, such as transmission and distribution utilities, residential, commercial, and industrial spaces, and to ensure continuous and high-quality power.
The results of research and development activities include competitive price offerings, increased end-user satisfaction with performance, and integration of smart and intelligent technologies within switchgear.
Increasing research and development activities through project collaboration or partnerships assist manufacturers in launching new and innovative products into the switchgear market.
Furthermore, establishing sales and service facilities in emerging switchgear markets, as well as long-term partnerships with regional distributors, paves the way for expanding channel reach.
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T&D utilities have shown an increase in demand for switchgear. As a result, they are expected to account for a larger share of the switchgear market than other end-user sectors.
T&D Utilities accounts for more than 46.3% of the total market share. This is followed by the commercial and industrial end-use sectors, which account for around 43.9% of the total, and finally by residential.
The most preferred components are the power disconnector, switch breaker, and switch disconnector. Their combined share of the global market is nearly 84.6%. MCCB and MCB are preferred components that have a lower share but are used in conjunction with the switch breaker and switch disconnector.
Medium and high-voltage switchgear accounts for 47.8% of the total market. Due to sales of medium and high-voltage segment switchgear, outdoor construction switchgear is expected to have a higher market share.
The market is divided into four segments based on insulation: gas, air, oil, and vacuum. During the forecast period, the vacuum segment is expected to account for the majority of the switchgear market. It combines vacuum, solid, and air as an isolation layer instead of sulfur hexafluoride (SF6) to reduce overall carbon emissions and easily maintain power supply systems.
Due to the increasing setup of variable voltage substations, the equipment with gas as an insulating medium is expected to experience a swift market growth rate.
Air-insulated switchgear (AIS) is protective equipment that uses air as the insulating medium. Oil-insulated equipment uses toxic oil as an insulating medium, which can cause a variety of health problems. As a result, the flammability of oil-insulated switchgear limits its applications.
The market is segmented into indoor and outdoor locations based on construction types. The outdoor installation segment is expected to have a large switchgear market share due to its ability to withstand harsh climatic conditions while providing reliable and cost-effective operations.
The indoor segment of the switchgear market is expected to grow significantly due to its compact design, high durability, ease of maintenance, safe and secure working conditions, and other operational benefits. The weather and ventilation conditions, as well as functional characteristics, dominate the location criteria.
France has the second largest electricity generation capacity in the European Union and, after Sweden, the second largest low carbon footprint electricity generation mix. In mainland France, renewable energy accounted for nearly one-fifth of total power consumption.
Manufacturers in France are collaborating on various renewable projects that include designing and developing customized switchgear products. Manufacturers are concentrating on the production of medium and high-voltage switchgear to meet rising residential demand while also strengthening the transmission grid and improving efficiency, power quality, and reliability.
| Country | Germany |
|---|---|
| Market Share % (2023) | 3.7% |
German manufacturers are creating switchgear to increase substation transmission capacities. As it transitions to a new energy mix, Germany's transmission grid faces enormous challenges.
Renewable energy farms, mostly concentrated in northern Germany, require smooth T&D equipment, such as switchgear, to transport power to the country's southern regions. These companies are also designing and modifying switchgear to make it more environmentally friendly.
| Country | India |
|---|---|
| Value CAGR % (2023 to 2033) | 6.3% |
In India, factors such as urbanization, rapid economic growth, and population growth are driving up demand for switchgear and infrastructure development. India has been attracting increasing interest from international investors in the infrastructure sector.
India continues to have the most households without electricity due to its large population. The Indian government is focusing on improving State Electricity Boards, which has resulted in a significant increase in infrastructure for rural electrification, resulting in increased demand for switchgear.
Top Indian manufacturers are concentrating on developing low-cost switchgear to broaden their channel footprint in rural areas. Another factor contributing to the switchgear market expansion in India is the paradigm shift toward energy conservation and bringing down the carbon footprint of various industrial and other power consumption activities.
| Country | The United States |
|---|---|
| Market Share % (2023) | 18.6% |
The medium voltage switchgear is dominated by equipment replacements, as a large percentage of the equipment has reached the end of its useful life or by increasing grid reliance.
Future demand for switchgear may be driven by a shift in power generation toward renewables and unconventional energy sources. Many industries and commercial buildings in the United States are also driving significant demand for the region's switchgear market.
| Country | China |
|---|---|
| Market CAGR (2023 to 2033) | 5.9% |
China is a global leader in the implementation and development of smart grids. The country has established several smart grids to reduce transmission and distribution losses.
China's state grid announced a USD 65 billion investment in ultra-high voltage projects, which is expected to increase demand for high voltage and ultra-high voltage switchgear. Grid modernization and the country's power requirements are expected to drive growth in China's market.
The Chinese switchgear market is expected to expand due to rapid commercialization and increased investments in utility-based electrification and industrial developments.
A paradigm shift toward converting above-ground electric lines to underground networks may also help product acceptance in the country. An exponential increase in power demand with increased investments in existing infrastructure may shape the market landscape.
The switchgear market is extremely competitive, with many market participants. Some players are attempting to carve out a niche for a specific demographic. Market participants have focused on strategic alliances and innovations to gain a competitive advantage.
Several regional and international players populate the market. Leading corporations are focusing on various mergers and acquisitions to strengthen their positions. ABB acquired GE Industrial Solutions to broaden its reach and capitalize on new growth opportunities in various regions.
Increased mergers and acquisitions with emerging ventures for technological innovations and agreements in infrastructure establishments may drive switchgear market growth. Furthermore, the main considerations for the business scenario are emission compliance, distribution network, cost competitiveness, and differentiation.
Key Players
| Attributes | Details |
|---|---|
| Date | November 2018 |
| Company | Siemens |
| Strategy | Contract |
| Details | Siemens was awarded a contract in November 2018 to supply gas-insulated switchgear with clean air and vacuum switching technology for 145 kV in Norway. These products provide more reliable and efficient switching and arc-extinguishing functions. |
| Attributes | Details |
|---|---|
| Date | August 2019 |
| Company | MHI Vestas Offshore Wind |
| Strategy | Agreement |
| Details | MHI Vestas Offshore Wind signed an agreement in August 2019 with Mitsubishi Electric Europe B.V. and Taiwanese manufacturer Shihlin Electric Co. to provide high-voltage switchgear by 2022. |
| Attributes | Details |
|---|---|
| Date | July 2019 |
| Company | Eaton |
| Strategy | Announcement |
| Details | Eaton announced in July 2019 that it may acquire Innovative Switchgear Solutions, Inc. of the United States, to introduce advanced medium voltage products in North America. This acquisition may provide customers with compact, low-maintenance, and highly configurable solutions. |
| Attributes | Details |
|---|---|
| Date | April 2020 |
| Company | ABB |
| Strategy | Expansion |
| Details | ABB may invest in the expansion of its switchgear portfolio, which includes UniGear medium-voltage. |
| Attributes | Details |
|---|---|
| Date | January 2020 |
| Company | Siemens AG |
| Strategy | Acquisition |
| Details | Siemens AG completed the acquisition of New Delhi-based switchgear and power equipment manufacturer C&S Electric Limited for around EUR 267 million in January 2020. |
| Attributes | Details |
|---|---|
| Date | July 2021 |
| Company | GE Renewable Energy |
| Strategy | Awards |
| Details | The European Commission's life climate action program awarded GE Renewable Energy's Grid Solutions business USD 2.6 million in July 2021 to help fund the development of a sulfur hexafluoride (SF6)-free 245-kilovolt (kV) g3 live tank circuit breaker. The new circuit breaker may employ GE's g3 gas technology to achieve the same high performance and small-dimensional footprint as a standard SF6 circuit breaker. |
| Attributes | Details |
|---|---|
| Date | April 2021 |
| Company | GE and Hitachi-ABB Power Grids |
| Strategy | Cross-licensing Agreement |
| Details | In April 2021, GE and Hitachi-ABB Power Grids agreed to a non-exclusive cross-licensing agreement that may allow them to expand their high-voltage equipment line by using a game-changing gas alternative to sulfur hexafluoride (SF6). SF6 is a switching and insulating gas commonly used in high-voltage electrical equipment. It is a significant greenhouse gas. |
| Attributes | Details |
|---|---|
| Date | January 2022 |
| Company | ABB and Samsung Electronics |
| Strategy | Collaboration |
| Details | ABB and Samsung Electronics announced a collaboration in January 2022 to provide jointly developed technologies for energy savings, energy management, and smart Internet of Things (IoT) connections for residential and commercial buildings. |
The switchgear market is valued at US$ 4,828.4 million in 2023.
The switchgear market is rising at a 5.3% CAGR through 2033.
Germany’s switchgear market is recording a 3.7% CAGR through 2033.
China’s switchgear market is registering a 5.9% CAGR through 2033.
The medium and high-voltage segment may lead the switchgear market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component Type 5.1. Power Distributor Switch Breaker 5.2. Switch Disconnector 5.3. MCCB 5.4. HRC Fuse 5.5. Earth Switch 5.6. MCB 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Voltage Type 6.1. Low Voltage (less than 1kV) 6.2. Medium Voltage (1kV to 75kV) 6.3. High Voltage (75kV to 230kV) 6.4. Extra High Voltage (230kV to 500kV) 6.5. Ultra-High Voltage (above 500kV) 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Construction Type 7.1. Outdoor 7.2. Indoor 7.3. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Insulation Type 8.1. Air Insulated Switchgear 8.2. Gas Insulated Switchgear 8.3. Oil Insulated Switchgear 8.4. Vacuum Insulated Switchgear 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 9.1. T&D Utilities 9.2. Commercial 9.3. Industrial 9.4. Residential 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. Eastern Europe 10.5. South Asia and Pacific 10.6. East Asia 10.7. Middle East and Africa 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Powell Industries 20.2. Caterpillar 20.3. IEM 20.4. WEG SA 20.5. ABB Ltd. 20.6. Siemens AG 20.7. Schneider Electric 20.8. Eaton Corporation 20.9. Alstom 20.10. Toshiba Corporation 21. Assumptions & Acronyms Used 22. Research Methodology
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Switchgear Market
