April 23, 2024
Switchgear Market

Switchgear Market Is Expected To Be Flourished By Increasing Investments In Electric Vehicles

Switchgear is an assembly of electrical components used to control, protect and isolate electrical equipment. It includes circuit breakers, fuses, relays, switches and control gears. Switchgear is used in electric vehicles to protect the main circuit and provide safety in case of short circuits or voltage surges. The growing investments in electric vehicles is expected to boost the growth of global switchgear market over the forecast period. Electric vehicles work on battery power and require switchgear to monitor and control the flow of electricity in the circuit. Governments across countries are providing subsidies and incentives to manufacture electric vehicles which is increasing their adoption. Battery and charging infrastructure build up is also receiving investments to support electric mobility. All these factors are fueling the demand for switchgears from automotive applications.

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 Dynamics:
The growing investments in electric vehicles is one of the major drivers for switchgear market. As mentioned in the heading, governments worldwide are highly focusing on boosting electric mobility to reduce dependence on fossil fuels. The European Union has set a target to end the sale of new diesel and petrol cars by 2035. China also plans to ban petrol cars by 2040. Such initiatives are attracting huge investments in electric vehicles from automakers as well as battery and charging firms. As electric vehicles require switchgear for battery management and power control, their rising sales will propel the demand for switchgear. Another driver is the ongoing infrastructural development projects in industries. New industrial and commercial construction involves installation of switchgears for power distribution and industrial automation. Both these drivers are expected to fuel the global switchgear market over the forthcoming years.

Segment Analysis

The global switchgear market is dominated by the power distribution and transmission segment. This segment accounts for over 60% share of the total switchgear market due to the extensive use of switchgear equipment such as circuit breakers, fuses, and switches in power distribution networks to safely and reliably transmit electricity from the source to businesses and residential areas. The industrial segment is the second largest segment. Rapid industrialization and growth of manufacturing activities have increased the demand for switchgear from various end-use industries like oil and gas, mining, metals and mineral processing to ensure uninterrupted power supply and safety.

PEST Analysis

Political: Favorable government policies and initiatives towards expanding and upgrading transmission and distribution infrastructure in developing nations will boost market growth. Stringent safety regulations regarding use of equipment are being enforced.
Economic: Emerging economies present significant opportunities backed by increasing investments in network infrastructure, renewable energy integration, and industrialization. Fluctuating raw material prices may hamper market growth.
Social: Growing population and rapid urbanization have increased electricity demand. Initiatives towards universal electrification will drive demand.
Technological: Advancements in switchgear technologies such asSF6 alternative gases, vacuum circuit breakers, and digitalizationof networks are gaining traction. Introduction of IoT-enabledsmart switchgear is another key trend.

Key Takeaways
The global Switchgear Market Share 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.

The global switchgear market is expected to witness high growth supported by increasing investments in T&D network infrastructure and integration of renewables across regions. The Asia Pacific region dominates the global market and is expected to maintain its lead through 2030. China, India, Japan and Southeast Asian countries are major markets in the region due to ongoing grid modernization programs, industrialization and conducive policies. Governments in these countries are emphasizing grid upgrades to modernize aging infrastructure and improve reliability to support economic growth. Several programs focusing on smart grid development and renewable energy integration are propelling investments.

Key players

Key players operating in the switchgear market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others. Volvo and Scania are prominent players in the electric trucks segment leveraging innovations. Continental AG is focusing on transition to autonomous driving through investments in sensor technology. Peloton is collaborating with truck manufacturers for platooning solutions while Daimler is testing automated trucks for long-haul transportation.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it