The switchgear market consists of sales of switchgears and related services that are used in various applications such as in transmission and distribution utility, residential, commercial and industrial. A switchgear refers to collection of the switching devices that are used for controlling, protecting, and switching the electrical circuits and equipment.
The global switchgear market is expected to grow from $72.08 billion in 2021 to $82.24 billion in 2022 at a Compound Annual Growth Rate (CAGR) of 14.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $128.01 billion in 2026 at a CAGR of 11.7%.
Types of products
The main product types of switchgear are high voltage, medium voltage and low voltage. The products are installed indoor and outdoor as Gas-Insulated Switchgear (GIS), Air-Insulated Switchgear (AIS) and others.
GIS (Gas-Insulated high-voltage Switchgear) is metal-encapsulated switchgear that contains high-voltage components such as circuit breakers and disconnectors and can be safely operated in confined spaces. Extensions, city buildings, roofs, offshore platforms, industrial plants, and hydropower plants are all examples of places where GIS is used.
The demand for electricity generation is projected to drive the switchgear market. The availability of electricity has become essential for economic development and poverty alleviation.
Development of industrialization, urbanization requires continuous electricity supply, and the reliability of the electrical supply depends heavily on the performance of the switchgear. Therefore, the demand for electricity generation is driving the demand for switchgear in the forecast period.
For instance, global demand for electricity rises at 2.1% per year to 2040 in the Specified Policies Scenario, double the rate of primary energy growth by 2040.
Unstable prices of raw materials are restraining the growth of the switchgear market. Price fluctuation is due to the availability of low-quality materials at cheaper prices. The use of low-quality products increases the risk of breakdown of insulation layers or short circuit conditions and other failures. Thereby inconsistent pricing in raw materials of the switchgear is expected to hinder the market growth.
The last few years witnessed a rising demand for installation of electric substations to restore normal power supply as fast as possible in case of emergencies. The installation of mobile substations enables the restoration of electricity under outdoor conditions or in unforeseen circumstances and is functionally designed to provide temporary power supplies as soon as possible.
Also, these mobile substations incorporate generator, transformer, metal-clad switchgear, outdoor load break switches and breakers, which are used for network extensions, and temporary switching stations. For instance, Siemens delivered two mobile substations for national grid SA, and Aktif group delivered 10 mobile substations to the ministry of electricity Iraq.
Therefore, increasing the adoption of mobile substations is one of the latest trends that will positively impact the switchgear market.
In January 2020, Siemens Ltd, a Germany-based engineering and electronics company acquired C&S Electric Limited for Rs 2,100 crore (294.4 million). With this acquisition, Siemens aimed to cater to the demand for reliable and efficient power supply in India. C&S Electric Limited is an India-based switchgear and power equipment manufacturing company.
For further information: https://www.reportlinker.com/p06247501/?utm_source=GNW
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