Switchgear Market Size and Share Analysis Report by Insulation Type (Gas-Insulated, Air-Insulated), Installation Type (Indoor, Outdoor), Voltage (Low, Medium, High), End Use (Transmission & Distribution, Industrial, Commercial, Residential) – Global Industry Growth Forecast to 2030

Market Overview

The global switchgear market size stood at $93,432.6 million in 2021, and it will grow at a CAGR of 5.9% during 2021–2030. The major factors driving the market include the enhancement in power distribution infrastructure and growing construction activities. Essentially, the industry is growing due to the rising energy demand in developing and developed nations, as well as technological improvements and adoption of automation.

APAC held the largest market share, of around 45%, in 2021. It is also expected to witness the fastest growth among all the other regions during the forecast period. China is projected to have the largest market share in the APAC region among all nations. To satisfy the demands of China's rising population, the power generation sector is expanding at a rapid pace.

The country is investing increasingly in local and international energy infrastructure projects. According to the Boston University Global Development Policy Center, foreign direct investments and development financing enabled 106.2 GW of overseas power generation capacity for China from 2000 to 2018.

Gas-Insulated Switchgear Demand Is Expected To Grow at a Significant Rate

The gas-insulated switchgear category is projected to grow at the highest CAGR, of around 7%, during 2021­–2030, based on insulation type, owing to the rising urbanization and industrialization rates and various government initiatives to decrease carbon emission, along with the expansion of the electrical grid.

In April 2021, Siemens Energy won a contract to deliver 10 bays of sulfur-hexafluoride-free gas-insulated switchgear to Finland’s transmission system operator. It will be the first GIS in Finland that replaces sulfur hexafluoride, a potent greenhouse gas, with clean air, with zero potential for global warming.

Indoor Switchgear Accounted for Larger Market Share

The indoor category held the larger market share globally in 2021, and it is expected to witness a CAGR of 6.0% during the forecast period. This is due to the fact that indoor switchgear offers more security, is less prone to damage by environmental conditions, has lower operating costs, reduces the risk of electrocuting, due to its grounded metal enclosures; is easy to maintain and durable, and takes up less space than outdoor variants. Additionally, the trend of smart homes is fueling the demand for smart indoor switchgear, which is integrated with IoT, thus providing real-time monitoring, predictive diagnostics, and precise protection against electrical faults.

Due to this reason, the residential sector is expected to provide opportunities to the switchgear market, owing to the rising population, along with the increasing construction of residential infrastructure across the world. These products can reduce the incidence of fire accidents and electricity supply faults, which is why they are increasingly being deployed in residential properties. Owing to the rise in the construction of residential establishments, for instance, the pledge by the U.K.’s government to build around 100,000 homes by 2020 and another 500,000 in the subsequent two years, the market will advance.

Rising Demand for Low-Voltage Switchgear

Low-voltage variants held the largest share in 2021, and their sales value is expected to reach $85 billion by 2030. They are three-phase power distribution products that are designed to supply electric power of up to 6,000 Amperes at up to 1,000 Volts. They are typically used for low-voltage switchboards, motor control centers (MCCs), and other feeder circuits.
On the secondary side of a power distribution transformer, such electrical components are frequently encountered. Low-voltage switchgear is commonly used to supply power to LV-MCCs, low-voltage switchboards, and other branch and feeder circuits. It is also utilized to provide energy for critical power and process applications in the manufacturing, mining, and metals, petrochemicals, pulp and paper, utility, water treatment, data center, and healthcare sectors.

Europe Generates Second-Highest Revenue in Market

With the increasing demand for energy and the rising environmental awareness for innovative energy generation and transmission technologies, the European region held the second-largest switchgear market share, over 20%, in 2021. The industrial sector contributed significant revenue to industry players in Germany, France, the U.K., Italy, and Spain. The advent of advanced robotics and industrial equipment is driving the demand for these products in these countries.

Enhancements in Smart Electricity Grid Infrastructure Are Driving Market

The electricity infrastructure is outdated in many nations, and it is being pushed to perform more than it was meant for. Globally, innovative technology, equipment, and controls are being used to modernize the grid, in order to make it smarter and more robust. Smart grids can interact and collaborate to provide power in a more-efficient and reliable manner. Thus, they can drastically minimize the length and frequency of power outages, as well as the impact of storms; restore service more quickly when outages occur, and add new capacity.

Furthermore, a growing number of governments throughout the world are considering smart grid technology as a strategic infrastructure investment that will enable long-term economic development and help them meet their carbon emission reduction objectives. In the near future, this trend is projected to generate possibilities for organizations participating in the smart grid network industry.

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To Increase Market Share, Companies Involved in Various Strategic Developments

Major players operating in the switchgear market have been involved in several strategic developments, such as product launches and acquisitions, to remain competitive. For instance:

In June 2021, GE Renewable Energy’s Grid Solutions signed a contract with Doosan Heavy Industries and Construction Co. Ltd. to build a substation for the Yanbu-4 independent water producer (IWP) plant. This will an integrated seawater RO project in Saudi Arabia using clean energy.

In June 2021, Toshiba Energy Systems & Solutions Corporation collaborated with Meidensha Corporation to develop GIS for 72kV/84kV applications, using a natural-origin gas that contains no sulfur hexafluoride.

In May 2021, Hitachi ABB Power Grids was granted a contract to install a large-scale HVDC interconnection enabling Saudi Arabia and Egypt to exchange electricity of up to 3,000 MW, much of which is expected to be generated from renewable sources.

Top Manufacturers of Switchgears Are:

• ABB Ltd.
• Schneider Electric
• Hyundai Electric & Energy Systems Co. Ltd.
• Siemens AG
• General Electric Company
• Mitsubishi Electric Corporation
• Legrand
• Hitachi Ltd.
• Toshiba Corporation
• Hyosung Corporation

Switchgear Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Insulation Type

• Gas-Insulated
• Air-Insulated

Based on Installation Type

• Indoor
• Outdoor

Based on Voltage

• Low-Voltage
• Medium-Voltage
• High-Voltage

Based on End Use

• Transmission & Distribution
• Industrial
• Commercial
• Residential

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  •  Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  •  Saudi Arabia
  • South Africa