by The global switchgear market offers a diverse range of switching equipment such as circuit breakers, load break switches, miniature circuit breakers (MCBs), reclosers and fuses that protect and control electrical power systems in industries and commercial infrastructure. Switchgears are designed to be operated manually or automatically to protect circuits and electrical equipment. They allow safe isolation of electrical equipment for repair or maintenance and also protect circuits from damage caused by overload or short circuits. With growing urbanization and industrialization across the world, demand for reliable and secure power transmission is increasing exponentially. The rapidly expanding manufacturing sector coupled with increasing commercial construction is expected to drive the need for switchgears in the coming years.
The global switchgear market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the switchgear market is the rising acceptance of gas insulated switchgears (GIS). Gas insulated switchgears allow for more compact and space saving substations with higher reliability. The sulfur hexafluoride gas insulation provides excellent dielectric properties combined with small enclosure size compared to air or oil insulated switchgears. Additionally, GIS have very low maintenance requirements and negligible environmental impact making them preferred over conventional switchgears. Manufacturers are extensively investing in developing advanced gas insulated switchgear solutions integrated with digital technologies for condition monitoring and predictive maintenance of electrical grids.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the switchgear market is low to moderate due to the presence of established players in the market as well as high initial investment required for setting up a manufacturing facility.
Bargaining power of buyers: The bargaining power of buyers in the switchgear market is moderate as buyers have the option to choose from various established manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are a sufficient number of component suppliers operating in the market.
Threat of new substitutes: The threat of substitutes is low in the switchgear market as there are limited substitutes available for switchgear products.
Competitive rivalry: The competitive rivalry in the switchgear market is high due to the presence of numerous global and regional players offering a wide range of customized switchgear solutions.
Key Takeaways
The global Switchgear Market Share is expected to witness high growth over the forecast period. The global switchgear market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030.
Asia Pacific dominates the global switchgear market and is anticipated to continue its dominance over the forecast period. The growth in Asia Pacific can be attributed to an increase in investments in the renewable energy sector and robust industrial & infrastructure development in countries such as China and India. North America is also expected to experience strong growth in the switchgear market owing to rapid development of transmission & distribution networks and increased focus on upgrading aging power infrastructure in the US. The market in Europe is projected to exhibit moderate growth supported by rising investments to enhance interconnection capabilities for large-scale integration of renewable energy.
Key players operating in the switchgear market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others. AB Volvo offers a range of switchgears such as circuit breakers, contactors, and relays for industries. Scania AB provides switchgear solutions catering to power generation, transmission & distribution, and infrastructure sectors.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
