Switchgear Market Global Trends And Market Size Analysis

Switchgear Market Global Trends, Market Size Analysis

As the name suggests, switchgear technology comprises of electrical protection systems. Switchgears are used in almost every electrical system which include from common households to industrial-grade electrical systems. Switchgears are inherently automated and protect systems from short circuit, insulation failure, overload, etc. In a nutshell, switchgears ensure a seamless flow of electricity in the system without letting the hardware and connected equipment take any damage. Although switchgears do not require manual intervention for being operated, modern intelligent switchgears are equipped with sensors that can detect potential threats or flaws in an electrical system before they occur. Intelligent switchgears are becoming a need of the time due to their specific perks. Switchgears can be classified on the basis of their load bearing capacities and applications. The load bearing capacities of switchgears can range from low voltage to medium and high voltage whereas their applications range from household to medium and large commercial applications. 

The smart grid technology and intelligent switchgear technology are growing hand-in-hand on a global level. This is quite prevalent in the developing regions. The switchgear market size is also increasing along with its steady demand. The global switchgear market is growing with an exponential Compound Annual Growth Rate (CAGR) of 5-6 percent and the growth rate is likely to sustain till 2020. Talking about the global market value, the switchgear market and especially intelligent switchgear market is expected to attain a global market value $89.3 billion. Increasing urbanization and infrastructural developments in the developing regions such as APAC, MEA, and LATAM have pushed demand whereas European region is also likely to drive the demand in the near future. 

Switchgear Market Global Trends

Being a developing region, APAC is witnessing rapid urbanization and therefore, infrastructural development on a large scale. The region is expected to drive the demand for intelligent switchgears in the coming years. Such a growth is also a result of growing power distribution industry. 

● The power distribution industry in the APAC is going through many upgrades and expansions due to rising demand for electricity in the region. However, the growth in the power industry in the North American and European region is due to the adoption of renewable energy projects and sources. Despite such growth in the power distribution sector, increasing price-based completion is likely to affect the overall growth. 

● The global intelligent switchgear industry is also witnessing various engagement strategies in which partnering suppliers and service providers are equipping themselves with the best technological infrastructure. 

● The suppliers and service providers are willing to understand the know-how for proving the best services whereas a few significant constraints are also causing volatility in the prices of raw materials such as coal or diesel. 

● Some of the industry leaders that distribute power on a global level are ABB, Siemens, Schneider Electric, General Electric, and Hyundai. These players dominate approximately 45 percent of the global market. The rest of the market is quite fragmented and dominated by the local players spread across various global regions. 

● Factors/players that drive the market have increased their investments in the Transmission and Development (T&D) infrastructure. Some other market trends include enhanced focus on innovation and employee safety. 

● Emerging economies are setting the industry trends by upgrading existing substations to intelligent substation for improved efficiency and safety standards. The price volatility in the switchgear raw materials such as steel, copper, and aluminum is also likely to impact the production costs as these are the critical production elements. Along with that, global and local market disruptions are occurring as the local players are giving tough competition to the global players regarding pricing and supply control. 

● Low and medium voltage switchgears are going to be in high demand due to rising safety concerns of both the residential and medium-commercial level applications. Being a developing region, APAC holds quite a huge market share of approximately 55 percent. The region has also showed quite a huge demand in the intelligent switchgear segment and similar solutions. Developing countries such as India, China, Vietnam, and Indonesia are going through positive market disruptions due to infrastructural development and increasing urbanization. 

● On the other hand, there are certain market constraints such as the price of the raw materials. Materials such as steel, copper, and crude oil. The prices of such materials are subject to fluctuations due to the unregulated local markets in various global regions. Manufacturers, miners, and suppliers are trying to reduce the costs which in-turn is pushing for adopting efficient manufacturing techniques. 

The global switchgear market is quite fragmented due to the presence of strong local players in specific regions. However, with the rising demand for automated switchgears, the businesses are opting for efficient solutions that are consumer-friendly and optimized for smooth performance. The market is also growing with an exponential in the developing regions such as APAC and especially in the South-East Asian countries.

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