Switchgear systems are critical for power transmission and distribution. They protect electrical systems from damage caused by overload or short-circuit and help electric utilities to safely deliver power to residential, commercial and industrial customers. With growing awareness about environmental pollution and climate change, several nations are promoting adoption of electric vehicles (EVs) which require extensive infrastructure development including EV charging stations powered by switchgear systems.
The global Switchgear Market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a 30% CAGR over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing electric vehicle infrastructure development worldwide presents a major market opportunity for switchgear systems. Several governments are offering incentives and subsidies for installation of public EV charging stations to boost electric mobility. For example, the Biden administration in the US has allocated $7.5 billion towards building a nationwide network of 500,000 EV charging stations as part of its infrastructure development plan. Rapid deployment of EV charging infrastructure will drive the demand for switchgear that can safely handle high power loads required for EV charging. Switchgear manufacturers can capitalize on this opportunity by developing solutions tailored for commercial and public EV charging applications. They can also partner with EV charging station operators and leverage government initiatives to penetrate this high potential market segment.
Porter's Analysis
Threat of new entrants: The threat from new entrants is low due to high initial capital investment and established brand loyalty.
Bargaining power of buyers: The bargaining power of buyers is moderate owing to the presence of substitutes and differentiated products.
Bargaining power of suppliers: The bargaining power of suppliers is high since original equipment manufacturers depend on component suppliers for specialized parts.
Threat of new substitutes: The threat from substitutes is moderate as there are alternative off-highway vehicle options.
Competitive rivalry: Competition among existing players is high due to their large market shares and new product developments.
SWOT Analysis
Strengths: Established brands, extensive distribution network, technological innovation. Weaknesses: High R&D costs, stringent emission norms, fluctuating raw material prices. Opportunities: Government initiatives, growth in emerging markets, development of autonomous vehicles.
Threats: Trade wars and regulations, electric vehicle adoption, fluctuating fuel prices.
Key Takeaways
The global Switchgear Market Share is expected to witness high growth. The market size for 2023 is estimated to reach US$ 110.35 Mn and grow at a CAGR of 30% during the forecast period of 2023 to 2030.
Asia Pacific dominates the global switchgear market currently and is expected to maintain its pole position over the next few years. Factors such as increasing demand for renewable energy, rapid industrialization and favorable government policies will drive the Asia Pacific switchgear market. Factors such as increasing demand for renewable energy, rapid industrialization and favorable government policies will drive the Asia Pacific switchgear market. Countries such as China, India and Japan are major contributors to the Asia Pacific switchgear market growth.
Key players related content comprises Key players operating in the switchgear market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others. AB Volvo and Scania AB dominates the off-highway vehicle market owing to their diverse product portfolio and strong distribution network across regions.
For more insights, read- https://www.newsanalyticspro.com/switchgear-market-trends-size-and-share-analysis-2/
