Switchgear is essential equipment used in power distribution and transmission systems to control and protect electrical equipment from power surges and faults. It incorporates circuit breakers, relays, and fuses and disconnect switches used in utility substations and industrial power systems. Switchgears help improve reliability and safety in power infrastructure. The steadily growing requirements for continuous, stable, and affordable power supply from a variety of industries has significantly boosted demand for switchgears.
The global Switchgear Market is estimated to be valued at US$ 127.13 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the switchgear market is the increasing replacement of ageing power infrastructure. Most industrialized nations already have power grids that are decades old and prone to failures. As per estimates, over 50% of the existing transmission and distribution lines worldwide are over 25 years old. Replacing such old and outdated switchgear equipment with modern and more efficient systems can help reduce transmission losses, downtimes, and accidents. Additionally, adoption of renewable and decentralized energy has necessitated integration of smart switchgear for effective management of power flows from intermittent sources. Digital technologies like IoT, remote monitoring, and communication capabilities are being incorporated in new switchgear designs to enable intelligent grid and microgrid operations.
Threat of new entrants: High capital requirements and stringent regulations act as barriers for new companies to enter the switchgear market.
Bargaining power of buyers: The presence of many established switchgear manufacturers gives buyers higher bargaining power.
Bargaining power of suppliers: Major components like circuit breakers, relays, and other electrical components have specialized manufacturers constraining supplier power.
Threat of new substitutes: No direct substitute exists for switchgear as they serve a critical function in power distribution.
Competitive rivalry: The switchgear market has the presence of global players intensifying competition. However, companies differentiate based on product offerings and customer service.
The Global Switchgear Market Share is expected to witness high growth. Growth will be driven by increasing investments in transmission and distribution infrastructure across utilities and industries. Emerging economies in Asia Pacific and Middle East & Africa offer significant opportunities for market expansion. The global Switchgear Market is estimated to be valued at US$ 127.13 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
Regional analysis – Asia Pacific dominates the global market and is expected to continue its lead during the forecast period. This can be attributed to increasing investments to strengthen grid infrastructure in China and India. Other high potential markets include Japan, South Korea and Southeast Asian countries.
Key players – Key players operating in the switchgear market are Nanjing Huanan Electrical Equipment, Toshiba Corporation, Kirloskar Electric, Schneider Electric, Mitsubishi Electric Corporation, GE, Hyundai Heavy Industries, Fuji Electric, CHINT Group, Siemens AG. Leading manufacturers are focusing on development of smart switchgear integrated with digitization and IoT capabilities.