Pad-Mounted Switchgear Market To Generate Revenue worth $8,910.8 Million by 2030
- Published: February 2024
The pad-mounted switchgear market is projected to generate USD 8,910.8 million revenue by 2030, advancing at a CAGR of 6.8% during 2024–2030. This can be ascribed to the rising renewable energy consumption, expanding smart grid infrastructure, and rising investment in underground distribution network. Moreover, the rising demand for urbanization and growing need for reliable power distribution systems augment the market revenue.
Additionally, the emergence of smart grid technologies has led to an increase in the demand for switchgear, which is designed to provide reliable and safe distribution of power in urban and suburban areas. Smart grid technologies are designed to improve the efficiency, reliability, and safety of the electrical grid. The next generation of switchgear is integrated with advanced sensors, communication capabilities, and control systems.
It is designed to be highly reliable, with a low risk of failure or downtime, and typically installed in underground vaults or mounted on concrete pads. As the demand for power continues to grow, these technologies are expected to play an increasingly important role in ensuring the safe and reliable distribution of power to residential and commercial industries.
Moreover, the rise in the number of electrification projects is expected to increase the demand for switchgear. This is because electrification projects often involve the establishment of new power generation facilities, laying of transmission lines, and setting up distribution networks, which require a significant number of switchgear systems to operate efficiently and reliably. Additionally, the increasing focus on renewable energy sources is expected to propel the growth of the market.
Additionally, the rising government investment in both developed and developing nations in smart grid technologies, to reduce carbon emissions and mitigate the effects of climate change, drives the market. For instance, the Government of India's Department of Science and Technology (DST) and Swedish Energy Agency are collaborating on research and development projects in the area of smart grids.
Industrial Category Holds Second-Largest Share in Market
The industrial sector category is set to generate the second-highest revenue in the market in the forecast years. As industrial facilities, such as factories, refineries, and power plant, often witness harsh environments, equipment that is durable and reliable is needed. Switchgear is designed to be rugged and able to withstand extreme temperatures, high humidity, and other environmental forces, which makes it well suited for use in these industries.
Moreover, cement plants require a lot of electricity to operate crushing machines, mixers, kilns, and other kinds of machines. The electrical distribution system must be reliable and efficient to ensure that the plant operates smoothly and without interruption. The switchgear is typically installed outdoor, near the equipment it serves, which reduces the length of electric cables and improves the efficiency of the system. It is often operated in harsh environments, such as dusty and dirty areas, which mandates electrical equipment that is durable.
North America Holds Strong Position
North America held around 30% revenue share in 2023, primarily due to the rising investment in new power generation projects. According to the Energy Information Administration, developers planned to add 54.5 GW of power generation capacity in the U.S. in 2023.
Moreover, Asia-Pacific is projected to witness the fastest growth in the forecast years. With the rising industrialization and urbanization levels, along with concrete government efforts to raise electricity generation, the demand for all pieces of transmission & distribution equipment is surging in the region.
The major players operating in the pad-mounted switchgear market include ABB Ltd., International Electrical Products Company, S&C Electric Company, Hubbell Incorporated, Electro-Mechanical Company LLC, Electric Equipment & Engineering Company (EEE), Eaton Corporation plc, ENTEC Electric & Electronic, G&W Electric Company, and Trayer Engineering Corporation.