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Market Overview

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The Switchgear Market is projected to reach a size of USD 115.21 billion in 2023 and is expected to grow at a CAGR of 6.10% during the forecast period (2023-2028), reaching USD 154.90 billion by 2028.

Switchgear refers to the equipment used in power systems for controlling, regulating, and switching on or off electrical circuits. It encompasses various components such as circuit breakers, isolators, relays, switches, fuses, and control panels. Switchgear plays a crucial role in de-energizing equipment for testing, maintenance, and fault clearing purposes.

The Switchgear market is driven by the growing energy demand that encourages rapid urbanization and the need for a new generation mix. As the demand for electricity increases, the installation of switchgear becomes vital for effective power system management and protection.

In an electrical power system, switchgear acts as a device to control, regulate, and switch on or off electrical circuits. It consists of switches, fuses, circuit breakers, isolators, relays, current and potential transformers, indicating instruments, lightning arresters, and control panels. Switchgear plays a critical role in the power supply system, positioned on both the high and low-voltage sides of the power transformer. It enables the safe de-energization of equipment for inspection, maintenance, and fault clearance. During power system failures, switchgear prevents damage to equipment by interrupting the flow of excessive current.

The expansion of the Switchgear market is driven by the rapid electrification of rural areas and the increasing power generation capacity. Regional government initiatives to bring electricity to remote regions and investments in the power sector contribute to market growth. Switchgear finds extensive applications in residential, commercial, industrial, and utility settings, ensuring operational safety, cost-effectiveness, and reliability.

Switchgear equipment is primarily used in complex electrical substations to withstand fluctuating operating voltages and harsh environmental conditions. The development of new industrial structures, including power plants, that prioritize safe and reliable operations further drives market growth. Additionally, investments in renewable energy projects and supportive government regulations stimulate the industry landscape.

Switchgear plays a crucial role in the power industry by utilizing monitoring technology to provide real-time data on equipment condition, allowing maintenance personnel to make informed decisions regarding repairs and improvements. However, there are certain challenges to consider, such as environmental factors like temperature, humidity, and water seepage, which can affect the performance of switchgear systems, particularly those located outdoors.

The COVID-19 pandemic has had a significant impact on various sectors, including the power industry. With countries implementing lockdown measures to curb the spread of the virus, many enterprises in the power industry have been compelled to shut down their production plants and processing industries. This has led to delays in major power projects, investments, and acquisitions, thus restricting market development. Additionally, the pandemic has disrupted current and future investments in the power industry.

As countries gradually ease restrictions and production plants resume operations after the pandemic, the market is expected to experience rapid growth once again. Enterprises are adapting to the new normal and striving to regain momentum in the power industry.

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Market Segmentation

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The market is segmented based on various factors, including type, end user, and geography.

Segmentation by Type
Voltage – Low-Voltage, Medium-Voltage, High-Voltage
Insulation – Gas Insulated Switchgear (GIS), Air Insulated Switchgear (AIS), Other Insulation Types
Installation – Indoor, Outdoor

Segmentation by End User
Commercial
Residential
Industrial

Segmentation by Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

The Low-voltage segment accounted for the largest market share of 55.5% in 2022 and is projected to experience the highest compound annual growth rate (CAGR) of 6.8% over the forecast period. Low-voltage switchgear is a three-phase power distribution product designed to supply electric power up to 6,000 amps and voltage up to 1,000 volts. It finds application in low-voltage switchboards, motor control centers, and other feeder circuits. Various industries such as mining and metals, manufacturing, heavy industry, petrochemical, utility, water treatment plants, residential, data centers, healthcare, and pulp and paper industries are end-users of low-voltage switchgear. Manufacturers in the market must adhere to necessary standards applicable to low-voltage metal-enclosed switchgear. Some of these standards include ANSI/IEEE C37.20.1, ANSI/IEEE C37.20.7, UL 1558, and UL 1066.

The Air-insulated Switchgear (AIS) segment held the largest market share of 52.7% in 2022, while the Gas insulated Switchgear (GIS) segment is expected to witness the highest CAGR of 7.4% over the forecast period. AIS employs air as the insulation media and is designed for medium voltage power distribution systems ranging from 11KV to 36KV. It plays a crucial role in controlling and protecting the power system. The main circuit components of AIS are housed in gas-filled compartments. In high-voltage substations, air-insulated configurations require more space compared to gas-insulated setups. A common approach in AIS combines air-insulated busbars with gas-insulated switching devices. Hybrid switchgear integrates air-insulated busbars with prefabricated modules that include circuit breakers, disconnectors, earthing switches, and instrument transformers within a single, gas-insulated enclosure. Hybrid configurations require less space than AIS but have larger switchyards compared to GIS. High-voltage switchgear does not use solid or liquid media as insulation.

The residential segment dominated the market with a share of 52.2% in 2022, while the industrial segment is expected to witness the highest compound annual growth rate (CAGR) of 7.8% over the forecast period. In today’s world, electricity plays a crucial role. However, its distribution must be carried out safely and securely due to the potential hazards involved. Failing to handle electricity distribution safely can lead to deadly accidents. Therefore, the installation of safety devices and mechanisms is critical to maintaining security levels in distribution units and substations. Among various mechanisms, switchgear systems have gained popularity as a solution for safeguarding electrical connections in residential areas due to their functionalities and features.

Two major types of switchgear are commonly used for residential electrical connections: metal-enclosed switchgear and metal-clad switchgear. Metal-enclosed switchgear consists of an earthed metallic enclosure made of high-quality steel, housing multiple circuit breakers. It is typically installed indoors and used for medium and low voltage applications. On the other hand, metal-clad switchgear is usually placed outside in residential electrical connections. These systems are weatherproof and provide protection for various components including protective relays, circuit breakers, current and potential transformers, meters, and bus conductors.

Switchgear systems are increasingly being installed in residential power distribution networks worldwide. In residential societies and complexes, a combination of metal-clad and metal-enclosed switchgears can be found. This helps regulate load and voltage in these areas and facilitates fault management.

Market vendors offer products specifically designed for the residential sector. For instance, Eaton provides a comprehensive range of modular devices that prioritize safety and promote energy efficiency in residential settings. These products and systems are known for their high reliability, modernity, cost-effectiveness, advanced technology, and ease of installation. They have received certifications such as being listed as molded-case circuit breakers according to UL489 and CSA 22.2 No. 5-02, and they comply with the IEC 60947-2 standard. The product range includes versions with one, two, or three poles and offers a variety of intensity levels up to 20.

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Competitive Landscape

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The switchgear market exhibits fragmentation, with notable players such as ABB Ltd., Havells India Ltd., Mitsubishi Electric Corporation, Schneider Electric, and Siemens AG, among others. These key players in the market are implementing various strategies, including partnerships, innovations, and acquisitions, to enhance their product offerings and establish a sustainable competitive advantage.

In February 2023, ABB India announced the inauguration of a factory in Nashik dedicated to the production of gas-insulated switchgear. This facility aims to cater to customers across diverse industries, including power distribution, smart cities, data centers, transportation (metro, railways), tunnels, ports, highways, and other infrastructure projects. The new facility is expected to manufacture primary and secondary GIS systems.

In December 2022, Fuji Electric introduced the VC-V20A-1 switchgear, which boasts a compact footprint. This product adheres to the standards set by the International Electrotechnical Commission (IEC) and was marketed globally, with a particular focus on Southeast Asia.

In November 2022, Schneider Electric entered into a partnership with ARDECO to manufacture power and energy technology solutions in the United Arab Emirates. Within this collaboration, Schneider Electric was tasked with manufacturing a range of highly advanced energy automation solutions and integrated power solutions, encompassing switchgear and control panel integrations, as well as offering expertise in energy automation design and engineering.

Key companies profiled in this report include ABB Ltd, Havells India Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Siemens AG, Eaton Corporation, Toshiba International Corporation, Meidensha Corporation, Hitachi Ltd, Crompton Greaves Power and Industrial Solutions Limited, Powell Industries Inc., Fuji Electric Co. Ltd., Switchgear Company, Orecco Electric, General Electric, Hubbell Incorporated, ZPUE SA.

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Recent Industry Developments

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In April 2023, Siemens expanded its sustainable blue GIS portfolio by introducing the 8DAB 40. This switchgear is designed for primary distribution networks up to 40.5 kV and utilizes clean air as an insulating medium with a global warming potential (GWP) of less than 1. By employing this climate-friendly technology, the switchgear is entirely free from fluorinated gases.

In February 2023, Toshiba Transmission & Distribution Systems Private Limited (TTDI) announced that it had received orders for 23 units of 400 kV and nine units of 220 kV gas-insulated switchgear. These orders were part of efforts to develop and enhance power transmission and distribution networks, including the establishment of a new 2X500 MVA substation at Xeldem in Goa and pooling substations for solar and wind renewable projects at Alamuru and Kodamuru, operating at 400 kV voltage levels.

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Key Questions Answered

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What is the projected size of the Switchgear Market?
The Switchgear Market is expected to reach USD 115.21 billion in 2023 and grow at a CAGR of 6.10% to reach USD 154.90 billion by 2028.

What is the current size of the Switchgear Market?
As of 2023, the Switchgear Market is estimated to reach USD 115.21 billion.

Who are the key players in the Switchgear Market?
Major companies operating in the Switchgear Market include ABB Ltd., Havells India Ltd., Mitsubishi Electric Corporation, Schneider Electric, and Siemens AG.

Which region is experiencing the fastest growth in the Switchgear Market?
Asia Pacific is projected to have the highest compound annual growth rate (CAGR) during the forecast period (2023-2028).

Which region holds the largest market share in the Switchgear Market?
As of 2023, the Asia Pacific region holds the largest market share in the Switchgear Market.