The switchgear market is anticipated to witness substantial growth in the coming years, according to a report by Future Market Insights (FMI). The market is projected to grow at a compound annual growth rate (CAGR) of 5.3% and reach a valuation of US$ 7,685.3 million by 2033.
Switchgear plays a crucial role in reducing power losses and ensuring efficient power usage, making it in high demand as concerns over energy efficiency and power wastage continue to rise. The establishment and extension of smart grids, which incorporate technologies like self-healing and predictive maintenance, are also driving the demand for switchgear.
The electrification of transportation, particularly in the automotive sector, is further supporting the expansion of the switchgear industry. As the usage of electric vehicles (EVs) increases, the need for robust and durable power distribution systems, with switchgear as a significant component, becomes essential.
The booming construction sector, especially in industrial and commercial segments, has also contributed to the demand for energy-saving electrical distribution systems, further fueling the need for switchgear.
Regulations promoting the use of safer and eco-friendly devices, particularly those without Sulfur Hexafluoride (SF6), a potent greenhouse gas, are creating new growth prospects for the switchgear market.
The FMI report highlights several key segments and regions within the switchgear market. The United States is expected to reach maturity levels, while Germany is a key market in Europe. Japan and Australia also present investment opportunities, and India and China are projected to be crucial investment pockets in the future.
To stay competitive in the market, major players have introduced innovative switchgear solutions. ABB launched its low-voltage switchgear called NeoGear, equipped with laminated bus plate technology, offering better reliability, safety, efficiency, and flexibility. Hitachi Energy and National Grid, in collaboration, have replaced SF6 with an eco-efficient gas mixture in high-voltage gas-insulated lines to meet safer and eco-friendly device regulations. Meiden Asia, a subsidiary of Meidensha Corporation, acquired a significant stake in Vietnamese switchgear manufacturer Vietstar Industry Corporation to expand its presence in the electric power industry in Vietnam and the Mekong region.
The switchgear market is highly competitive and evolving. Leading players in the market include ABB Ltd., Siemens AG, Eaton Corporation, Alstom, and Toshiba Corporation, among others.
As the demand for energy efficiency and sustainable power solutions continues to rise, the switchgear market is expected to witness significant growth in the coming years. The electrification of transportation, increased construction activities, and regulatory forces promoting eco-friendly devices are key drivers for market expansion.