The global switchgear market consists of components that facilitate the opening, closing, or changing connections of circuits to control and protect electric power systems. Devices like circuit breakers, fuses, and switches assist in the protection, isolation, and control of essential industrial processes and machinery. The need for switchgear arises from the increased electrification of processes and machines to enhance efficiency and productivity.
The global switchgear market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased electrification of processes and machines is one of the major market trends propelling the growth of the switchgear market. With industrialization and automation gaining rapid pace, there is a growing demand for switchgear from various end use industries like oil and gas, mining, transportation, and power utilities. Switchgears are an integral part of electrical infrastructures to safely and reliably manage energy. They help industries achieve maximum uptime by protecting critical equipment from power fluctuations and outages. The rising installation of variable speed drives and energy efficient motors has further accelerated the need for medium and low voltage switchgear.
SWOT Analysis
Strength: The switchgear market has a wide range of applications across various industries such as power generation, transmission, distribution and many others.
Weakness: Large initial investments are required for setting up switchgear infrastructure. Additionally, frequent technological advancements leads to higher maintenance costs.
Opportunity: Growing investments in renewable energy projects across the globe is opening new opportunities for switchgear manufacturers. Additionally, transition towards smart grid technologies will augment the demand.
Threats: Volatile raw material prices poses major threat. Changing regulatory landscape across countries is another challenge.
Key Takeaways
Global Switchgear Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. This growth can be attributed to rising investments in expanding T&D network along with focus on upgrading aging infrastructure.
Regionally, Asia Pacific dominates the global market and is expected to maintain its lead position during the forecast period driven by countries like China and India. These countries are witnessing rapid industrialization and infrastructural development which requires reliable power supply.
Key players operating in the switchgear market are Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Lenze SE, Flender Ltd, Nord Drivesystems Pvt Ltd., Bosch Rexroth AG, Zollern GmbH & Co. KG, INGECO GEARS Pvt. Ltd, Kngear, Essential Power Transmission Pvt. Ltd., Bonfiglioli Drives Co. Ltd., and Elecon Engineering Company Limited. Among these, Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Lenze SE and Flender Ltd together account for over 30% of global market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it