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The global Switchgear Market is estimated to be valued at US$ 110.35 Mn or in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Switchgear is used in regulating, controlling and isolating electrical equipment which includes circuit breakers, fuses and other devices. Switchgear protects the electrical system from faults, overload and short circuits. They provide safety and reliability in power transmission and distribution.
Market key trends:
One of the key trends in the switchgear market is the growing demand for smart switchgears. Smart switchgears incorporate elements of automation, communication and digitalization which improve the reliability, efficiency and safety of power distribution. They provide real time monitoring of the electrical system, fault detection and remote operations. Adoption of smart grids and distributed energy resources is driving the demand for smart switchgears which can integrate with advanced metering infrastructure and enhance grid flexibility.
SWOT Analysis
Strength: The switchgear market has strong potential for growth owing to the increasing investments in transmission and distribution infrastructure projects globally. There is rising adoption of smart switchgear technologies that provide enhanced safety, reliability and productivity.
Weakness: High initial investment requirements for setting up new switchgear infrastructure poses a challenge. Stringent government regulations regarding safety and environmental standards increase compliance costs for manufacturers.
Opportunity: Growing focus on renewable energy integration and establishment of smart grids in developing nations offers lucrative opportunities. Advancements in gas insulated switchgear (GIS) and vacuum circuit breaker technologies will drive innovations.
Threats: Economic slowdowns can result in reduced capital expenditure towards grid modernization programs. Substitutes such as circuit breakers and fuses pose threat to certain product segments. Trade barriers and geopolitical tensions impact global supply chains.
Key Takeaways
The global Switchgear Market Share is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing investments in T&D infrastructure projects worldwide. Rapid urbanization and expansion of industrial sectors especially in Asia Pacific is boosting the demand for switchgears.
Regional analysis
Asia Pacific dominated the global market in 2022, and is estimated to continue its dominance during the forecast period. This high growth is attributed to presence of emerging economies such as China and India undertaking massive infrastructure development projects. Government initiatives to modernize the aging power network and set up smart grids will propel the APAC switchgear market. North America and Europe are also lucrative markets owing to rising investments to upgrade and replace aging equipment.
Key players
Key players operating in the switchgear market are ABB Ltd., Fuji Electric Co. Ltd., Havells India Ltd., Powell Industries, Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, Schneider Electric, Hitachi Ltd., Siemens AG, Meidensha Corporation, Eaton Corporation PLC, and Toshiba International Corporation. The major players are focusing on new product launches, partnerships and expansions to gain higher market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
