July 19, 2024
Switchgear Market

Expanding use of renewable energy is projected to drive the growth of the global Switchgear Market

The global Switchgear Market is estimated to be valued at US$ 110.35 Mn 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 enables safe isolation and switching of electrical equipment in case of electricity breakdowns. It helps prevent accidents and damage to generators, transformers, circuit breakers and other substation equipment. Switchgear provides protection, control and isolation for electrical grids and industrial power systems. It performs critical functions such as making, breaking, and interrupting currents under normal or abnormal circuit conditions like short-circuit, overload or earth fault. Some key advantages of switchgear include safety, reliability, flexibility and optimum power utilization. Rising investments in renewable energy and refurbishment of aging transmission infrastructure are fueling demand for switchgear.

Market key trends:
One of the key trends in the switchgear market is increasing focus on renewable energy generation. Governments across the globe are heavily investing in renewable energy to reduce dependence on fossil fuels and meet their net zero emissions targets. This is positively impacting demand for switchgear from wind and solar power projects. Switchgear helps integrate renewable energy into the existing grid infrastructure by facilitating bi-directional flow of electricity. Furthermore, aging power grids especially in developed markets are undergoing refurbishment which involves installation of new switchgear and replacement of old switchgear, thus driving market revenues.
Porter’s Analysis

Threat of new entrants: The threat of new entrants in the switchgear market is medium as it requires significant investment and capital to set up manufacturing facilities. There are also economies of scale in production.

Bargaining power of buyers: The bargaining power of buyers is high as switchgear products are undifferentiated and buyers have numerous options. Buyers can negotiate on price and quality standards.

Bargaining power of suppliers: The bargaining power of suppliers is medium as there are many component manufacturers. Switchgear manufacturers can source components from different suppliers.

Threat of new substitutes: The threat of substitutes is low as switchgear products have no close substitute and are indispensable for power distribution and transmission in the utility and industrial sectors.

Competitive rivalry: Competition in the switchgear market is high owing to the presence of numerous global and regional players. Players compete based on product quality, capabilities, prices, and innovation.

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 renewable energy projects and T&D infrastructure upgrades across regions.

Regional analysis

Asia Pacific dominates the global switchgear market, accounting for around 40% of the total market share in 2023, driven by rapid industrialization, growth of the power sector, and investment in smart grid development in China and India. North America and Europe are also significant markets owing to ongoing refurbishment of aging power infrastructure.

Key players

Key players operating in the switchgear market are ABB Ltd., Fuji Electric Co. Ltd., Havells India Ltd., Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, Schneider Electric, Hitachi Ltd., Siemens AG, Meidensha Corporation, Eaton Corporation PLC, and Toshiba International Corporation. ABB Ltd. and Schneider Electric are the leading players with wide geographical presence and expertise across product categories.

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