Switchgear Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[221+ Page Report] According to the report published by Facts & Factors, the global switchgear market size was evaluated at $91.1 billion in 2022 and is slated to hit $121.2 billion by the end of 2030 with a CAGR of nearly 5.8% between 2023 and 2030.

The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace. The switchgear industry report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the switchgear market report explores the investor and stakeholder space to help companies make data-driven decisions.

Market Overview

Switchgear is a term describing a variety of switching equipment fulfilling common needs such as controlling, protecting, and isolating power systems. Moreover, it is also defined as an electronic power system encompassing fuses, electrical disconnect switches, and circuit breakers that are used for regulating the functions of any electrical device. Furthermore, switchgear is utilized for both de-energizing equipments for allowing the completion of work and clearing downstream of faults.

Key Insights

• As per the analysis shared by our research analyst, the global switchgear market is projected to expand annually at the annual growth rate of around 5.8% over the forecast timespan (2023-2030)
• In terms of revenue, the global switchgear market size was evaluated at nearly $91.1 billion in 2022 and is expected to reach $121.2 billion by 2030.
• The global switchgear market is anticipated to record massive growth over the forecast period owing to the implementation of new regulations aimed at reducing power blackouts along with strengthening power distribution networks.
• Based on insulation, the gas-insulated switchgear segment is predicted to contribute majorly towards the global market share over the forecast timeline.
• In terms of current, the AC segment is projected to account for a major share of the global market in 2023-2030.
• On the basis of end-user, the transmission & distribution utilities segment is set to register the highest CAGR over the period from 2023 to 2030.
• Region-wise, the Asia-Pacific switchgear market is projected to register the highest CAGR during the assessment period.

Industry Growth Factors

• Growing demand for power supply in remote areas will boost the global market expansion

The rise in the electrification requirements in remote regions along with the surge in power generation has provided impetus to the global switchgear market expansion. Implementation of new regulations aimed at reducing power blackouts along with strengthening power distribution networks will prop up the global market surge. The need for switchgear for taking smart decisions pertaining to real-time data is likely to scale up the growth of the market across the globe. A surge in the extension of renewable energy capacity will spur the expansion of the market across the globe.

High energy demand has resulted in a need for stable and reliable transmission & distribution networks, thereby propping the expansion of the global market. A surge in the integration of smart monitoring and control units across the power grid infrastructure will prop up the growth of the global market. The rapid expansion of industrial infrastructure is predicted to embellish the expansion of the market across the globe.

Restraints

• Escalating need for huge fund allocation for producing switchgear equipment to hinder the global industry expansion

Extreme environmental conditions and massive switchgear devices can put brakes on the global switchgear industry growth. Large-scale requirements of capital investment for manufacturing switchgear equipment can further impede the expansion of the industry across the globe.

Opportunities

• The onset of new smart technologies and rapid digitization can open new growth opportunities for the global market

Escalating demand for smart technologies and digitization will open new growth avenues for the global switchgear market. New product launches and mergers & acquisitions have played a key role not only in leveraging the global market surge but have also opened new horizons of growth for the market across the globe.

Challenges

• Surging temperatures caused by the use of switchgear can prove to be a big challenge in the growth of the global industry

Rising temperatures and arc flashing can be a challenging task for the switchgear industry across the globe. Volatility in raw material costs can further create obstructions in the growth of the global industry.

Segmentation Analysis

The global switchgear market is sectored into insulation, installation, voltage, current, end-user, and region.

In terms of insulation, the global switchgear market is sectored into gas-insulated switchgear and air-insulated switchgear segments. Furthermore, the gas-insulated switchgear segment, which accrued more than half of the global market share in 2022, is projected to retain its segment domination in the assessment period. The segmental surge in the coming eight years can be due to the massive demand for gas-insulated switchgear in a slew of end-use industries.

Based on the current, the switchgear industry across the globe is divided into AC and DC segments. Moreover, the AC segment, which accumulated nearly two-fifths of the global industry share in 2022, is forecast to lead the global industry expansion even in the next few years. The growth of the segment in the coming years can be due to the rise in AC switchgear tools in the utility and residential sectors for offering protection, control, and isolation to electrical systems.

On the basis of end-user, the global switchgear market is divided into transmission & distribution utilities, commercial sector, and residential sector segments. Moreover, the transmission & distribution utilities segment, which accounted for a major share of the global market in 2022, is predicted to register the highest CAGR in the forecast timespan.

The growth of the segment over the forecast timeline can be due to a prominent increment in the use of renewable and non-renewable energy sources that will help in addressing the concerns pertaining to scarcity of power supply for the surging population across the globe.

Based on the installation, the global switchgear market is bifurcated into indoor and outdoor segments.

On the basis of voltage, the switchgear industry across the globe is predicted to be segregated into low, medium, and high segments.

Recent Breakthroughs:

• In the first half of 2023, ABB Ltd., a leading digital tech firm based in Switzerland., declared the commissioning of a factory unit in Nashik for producing gas-insulated switchgear. Such initiatives are likely to expand the scope of the switchgear market in India and across the Asia-Pacific zone.
• In the last quarter of 2022, Fuji Electric Co., Ltd., a Japan-based electrical equipment firm, launched VC-V20A-1 switchgear. The move is likely to provide impetus to activities such as product innovations and new product launches and will boost the growth of the global industry.
• In the second half of 2022, Schneider Electric joined hands with ARDECO for manufacturing power & energy tech tools such as switchgear and control panels in the UAE. The initiative is likely to embellish the expansion of switchgear business space in the Middle East region.

Report Scope

Regional Insights

• Asia-Pacific switchgear market to register the highest CAGR over the forecast period

Asia-Pacific, which garnered more than 55% of the global switchgear market revenue in 2022, is anticipated to record the fastest CAGR during the assessment timeframe. The regional market expansion over 2023-2030 can be due to the presence of big industries such as manufacturing & processing in the countries such as India and China.

Moreover, emerging economies are investing heavily in power infrastructural growth that requires a strong grid structure. Furthermore, the large-scale presence of manufacturers in the region will contribute majorly towards regional infrastructural growth.

Furthermore, the European switchgear industry is set to witness mammoth growth in the forecasting years. The factors that are likely to determine the growth of the regional market include favorable government policies such as the offering of subsidies for technological innovations and legislations by the EU promoting the use of renewable & sustainable energy.

Competitive Space

• CG Power and Industrial Solutions Limited 
• Fuji Electric Co. Ltd. 
• Eaton Corporation PLC 
• Hitachi Ltd. 
• General Electric Company 
• Meidensha Corporation 
• Larsen & Toubro Limited 
• Toshiba Corporation 
• Powell Industries Inc. 
• Havells India Ltd. 
• ABB Ltd. 
• Schneider Electric 
• Mitsubishi Electric Corporation 
• Siemens AG.

The global switchgear market is segmented as follows:

By Insulation Segment Analysis

• Gas-Insulated Switchgear
•  Air-Insulated Switchgear

By Installation Segment Analysis

• Indoor
• Outdoor

By Voltage Segment Analysis

• Low
• Medium
• High

By Current Segment Analysis

• AC
• DC

By End-User Segment Analysis

• Transmission & Distribution Utilities
• Commercial Sector
• Residential Sector

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America