According to a Future Market Insights (FMI) report, the switchgear market is forecasted to experience a growth of 5.3% CAGR, reaching a valuation of US$ 7,685.3 million by 2033, as per FMI’s analysis. The industry’s size is predicted to reach a market value of US$ 4,828.4 million in 2023.
Surging concerns over energy efficiency and reducing power wastage via distribution channels and transmission are propelling the demand for switchgear. This is because of switchgear’s critical role in reducing losses and ensuring efficient power usage.
Establishing and extending smart grids is another crucial factor propelling the demand for switchgear. Smart grids are complex power networks outfitted with technologies like self-healing and predictive maintenance. As a result, demand for complex systems that support such functionalities is gaining momentum.
The surging trend of electrification of transportation, especially in the automotive sector, is also supporting the expansion of the switchgear industry. The widespread utilization of Electric Vehicles (EVs) entails more robust and durable power distribution systems, where switchgear acts as a significant component.
The booming construction sector, especially industrial and commercial, has made it necessary for the use of an energy-saving electrical distribution system, thus fueling the product demand.
The regulatory force for safer and eco-friendly devices, particularly the ones sans Sulfur Hexafluoride (SF6), a vital GHG, is generating new market growth prospects.
Top Highlights from the FMI’s Analysis of the Switchgear Market:
- The United States switchgear industry is reaching maturity levels, as FMI expects the market to acquire an 18.6% market share in 2023.
- The German switchgear industry is a key market in the Europe region. In 2023, the market gathered a value share of 3.7%, and in upcoming years, the switchgear manufacturers are expected to probe the market further.
- Japan is expected to account for a 4.1% market share in 2023, suggesting significant investment opportunities as the years roll by.
- The Australian market is anticipated to acquire market share of 1.3% in 2023. Even though the market share is comparatively low, the manufacturers are expected to explore the market for future expansion.
- India is projected to expand at a stellar CAGR of 6.3% from 2023 to 2033, whereas China is anticipated to propel at a slightly lower CAGR of 5.9% over the same period. These markets are projected to be crucial investment pockets in the upcoming period.
Developments Related to Switchgear Intensifying the Competitiveness among Key Players:
- ABB announced its novel low-voltage switchgear called NeoGear in 2020. The product is equipped with distinct laminated bus plate technology. The switchgear presents better reliability, safety, efficiency, and flexibility. NeoGear’s lower footprint and smart condition monitoring solutions make it space-saving and sustainable.
- Hitachi Energy and National Grid , an energy firm, accomplished its pilot project in the United Kingdom in 2021. The project focuses on the replacement of SF6, which is a greenhouse gas with an escalated Global Warming Potential (GWP), with an eco-efficient gas mixture in high-voltage gas-insulated lines. The project is part of an exclusive Hitachi Energy’s EconiQ portfolio that aims to provide environmentally friendly solutions.
- Meiden Asia, a Meidensha Corporation subsidiary, obtained a significant stake in the Vietstar Industry Corporation, a Vietnamese switchgear manufacturer, in 2020. This move permits Meiden Asia to pave its way into the electric power industry in Vietnam and extend its business operations in the Mekong region.
Key Players Profiled in Switchgear Market Report:
- Powell Industries
- Caterpillar
- IEM
- WEG SA
- ABB Ltd.
- Siemens AG
- Schlender Electric
- Eaton Corporation
- Alstom
- Toshiba Corporation
- Hitachi Limited
- Hyundai Electric and Energy Systems
- Fuji Electric
- Havells India Pvt. Ltd.
- Crompton Greeves
- BHEL
- Noja Power Switchgear Pty. Ltd.
- TIPECO
- Abdullah Abunayyan Holding
- Meta Switchgear
- Wahah Electric Supply Company
About the Industrial Automation Division at Future Market Insights (FMI):
Future Market Insights (FMI) is a highly experienced Industrial Automation team that aids companies from all over the world with their specific business intelligence needs through professional research, actionable insights, and strategic recommendations. With a library of over a thousand research and 1 million+ data points, the team has spent over a decade analyzing the industrial automation domain across 50+ countries. From start to end, the company provides unrivaled research and consulting services. Please get in touch with us to see how we can help.
