Switchgear equipment are devices consisting of circuit breakers, fuses or any other associated equipment used for operating, isolating, protecting and managing electricity distribution in an electrical power system. These equipment are used in transmission and distribution systems to control the flow of power and limit electrical currents. They protect circuits and equipment in the system by limiting electrical currents to safe levels in the event of a short circuit or any sudden overloading. The growing demand for ensured power supply across manufacturing industries and commercial spaces has been driving increased adoption of switchgear.
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 Dynamics:
One of the key drivers for the growth of the switchgear market has been the rising demand for ensured and uninterrupted power supply across industrial operations and commercial facilities. Any downtime in operations or disruption in electricity supply can significantly impact productivity and costs. Switchgear equipment help protect equipment and critical infrastructure from damages caused by short circuits, overloading or voltage fluctuations. They improve reliability of power distribution. Additionally, growing focus on upgrading aging power infrastructure in developed markets as well as rapid industrialization and infrastructure development in emerging economies has also been fueling the sales of switchgear. However, volatile raw material costs pose a challenge for manufacturers and could hamper market growth over the forecast period.
SWOT Analysis
Strength: Switchgear improves power transmission and distribution efficiency with its ability to protect, control, and isolate electrical equipment. It has bushings and disconnect switches that allow for safe deenergizing and redirection of power flow. Switchgear also offers protection against short circuits, lightning strikes, and other faults through circuit breakers and relays.
Weakness: Switchgear maintenance requires periodic testing, which increases operational costs over time if not budgeted properly. Switchgear equipment is also bulky and occupies significant floor space in substations and other facilities.
Opportunity: Investments in upgrading aging power infrastructure in developed markets and expanding electricity access in developing regions will drive switchgear demand. Renewable energy integration is another growth avenue as it requires equipment to safely manage intermittent power supply.
Threats: Strict safety and performance standards across regions complicate global manufacturing and distribution. Geopolitical tensions can disrupt supply chains and international projects.
Key Takeaways
The Global Switchgear Market Share is expected to witness high growth over the forecast period from 2024 to 2031. The market size is projected to reach US$ 127.13 Mn in 2024 and grow at a CAGR of 4.4% through 2031.
Regional analysis: Asia Pacific is currently the largest and fastest growing regional market for switchgear due to rapid electrification in populous countries like China and India. Japan, South Korea and other developed nations also have well-established power sectors offering opportunities. North America and Europe are established markets where demand will be driven by grid modernization initiatives.
Key players operating in the switchgear market are Nanjing Huayi Electric, TGOOD Electric, Schneider Electric SE, ABB Ltd., Mitsubishi Electric Corporation, Siemens AG, General Electric Company, Eaton Corporation PLC. Regional analysis focuses on Asia Pacific as the fastest growing region where China, India and other developing economies are investing heavily in developing electricity transmission and distribution networks. Key players like Schneider Electric SE, ABB Ltd. and Siemens AG have established manufacturing bases in the region to cater to the rising demand.
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https://www.newsstatix.com/switchgear-market-size-share-growth-outlook-2023/
