PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1324283
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1324283
The global switchgear market is witnessing significant growth, driven by the expansion of smart grid networks worldwide. With increasing investments and the expansion of smart grid infrastructure, the demand for switchgear to carry out control and protection functions is expected to rise in the coming years. Governments across the globe are emphasizing digitalization and smart grid technologies, making substantial investments in resilient electricity grids to address energy security risks induced by climate changes.
Government Initiatives and Investments in Smart Grids Boost Switchgear Market
China's State Grid Corporation has announced plans to invest US$3.5 billion in enhancing its digital infrastructure, while Europe has laid out smart grid expansion plans from 2021 to 2030, with an annual investment of around US$70 billion for emission-free electricity generation. In the United States, efforts are being made to build a highly resilient smart grid network to achieve carbon-free electricity generation by 2035. Such government initiatives and investments in smart grid infrastructure are expected to create lucrative opportunities for switchgears, thereby bolstering the growth of the switchgear market.
Indoor Installations Leading the Charge
The demand for switchgear for indoor installations is set to witness significant growth globally. The importance of protective control for power system networks is driving the adoption of indoor switchgear, which ensures streamlined working of electrical appliances and protects them from electric overload and short circuits. Indoor switchgear offers advantages such as higher safety, low space requirements, easier maintenance, high durability, and lower operating costs, making them ideal for home and commercial spaces. Additionally, indoor switchgear is more cost-effective, customizable, and reliable compared to outdoor counterparts, further contributing to its rising demand and the overall growth of the switchgear market.
Gas Insulated Switchgear Gaining Momentum
Gas Insulated Switchgear (GIS) is expected to hold a significant share in the switchgear market. GIS is preferred for substations with limited space due to its compact design and low maintenance requirements. It provides higher reliability, reducing the frequency of outages, and is often installed in confined spaces such as offices, roofs, offshore substations, and buildings. The ease of assembly and its environment-friendly nature make GIS a sought-after solution for various applications, thus driving its demand and influencing the growth of the switchgear market.
Asia Pacific Emerging as a Key Revenue Pocket
Asia Pacific is poised to be a key revenue pocket for the switchgear market due to substantial industrialization and increasing investments in electricity networks and smart grids in countries like China and India. The region's ambitious expansion plans for state-owned utilities and focus on renewables are driving significant investments in the sector. India's National Smart Grid Mission and Revamped Distribution Sector Scheme have mobilized substantial investments, making Asia Pacific a lucrative market for switchgear manufacturers and distributors.
Key Players in the Global Switchgear Market
Major companies in the global switchgear market include Schneider Electric SE, Hitachi ABB Power Grids Ltd., Siemens AG, GE, and Eaton Corporation. These players are continuously innovating and leveraging strategic partnerships to maintain a competitive edge in the market.