- The high voltage segment is expected to hold the largest share of the switchgear market, by voltage, during the forecast period.
- The outdoor segment is expected to be the fastest growing segment of the switchgear market, by installation, during the forecast period.
- The Asia Pacific region is estimated to be the fastest growing market for switchgears during the forecast period.
The global switchgear market is projected to reach $143.5 billion by 2024 from an estimated $102.6 billion in 2019, at a CAGR of 6.9%. Growing investments in renewable energy and demand for safe and secure electrical distribution systems have increased the demand for switchgears. Additionally, the revival of investments in the construction sector is driving the global market.
The switchgear market is dominated by few major players that have a wide regional presence. The leading players in the switchgear market are Schneider Electric (France), Siemens AG (Germany), ABB (Switzerland), General Electric (US), and Eaton (Ireland).
The Asia Pacific region is estimated to be the fastest growing market for switchgears during the forecast period. The region has been segmented, by country, into China, Japan, India, Australia, and Rest of Asia Pacific. The growth of this region is primarily driven by countries such as China and India, which are among the top countries in the world with aging infrastructure. Increasing T&D network expansion and industrialization projects in emerging countries such as India and China are some of the key factors responsible for the growth of the switchgear market.
The switchgear market, by insulation, is segmented into air insulated and gas insulated switchgear. The gas insulated switchgear segment holds the largest market share in 2018 and is projected to grow at the highest CAGR during the forecast period. They are mainly used in industrial areas to fulfill high-energy demands through a space-saving design of minimum cost. The gas insulated switchgears are deployed in various industries, serving different needs at varying voltage levels. Many developed countries have also started improving their T&D network to ensure safety and security.
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The report segments the switchgear market, by installation, into indoor and outdoor. The outdoor segment of the switchgear market is expected to grow at the highest CAGR during the forecast period as high voltage switchgear is mainly installed outdoor. These switchgears help enhance the transfer of electricity over long distances and larger loads, thereby providing reliable switching operations. So, the outdoor switchgears find their application in the transmission and sub-transmission sector. Increasing requirements of these equipment for high load transmission are expected to drive the outdoor switchgear market.
Growing energy demand has resulted in the need for a stable and reliable T&D network. According to the DOE and the North American Electric Reliability Corp., uninterrupted power can only be ensured through a system capable of handling sudden power shoots and drops. The US endures more blackouts than any other developed nation, as the power outages last more than an hour and have increased steadily in the past few years, costing the American businesses about $150 billion per year. The main reasons behind the increasing number of blackouts are aging infrastructure, lack of investments, and lack of clear policy to modernize the grid.
According to the Canadian Electricity Association, the current Canadian electricity sector requires an investment of $400 billion for the next 20 years. The demand for electricity has grown 10% over the past decade, despite more energy-efficient products and buildings, as the end-users rely more on digital devices nowadays and the usage of air-conditioners (during summers) and other electrical appliances is growing. The North American Energy Working Group initiative was taken by the US, Canada, and Mexico to know the full range of energy development, production, transport and transmission, distribution, and consumption in North America. It considers the full range of energy sources as well as efficient and clean production and use of energy.
New regulations to reduce/limit the power blackouts and upgrade the aged power networks across the globe (particularly, North America, Europe, and parts of APAC) are creating a market for the entire power sector equipment value chain. Switchgear, with the help of monitoring solutions, alerts the maintenance team when aging and over-used equipment are on the verge of failure and enables to make smarter decisions by providing real-time data to reveal problems and improvement opportunities.