The Global Switchgear Market Growth Accelerated By Increased Demand For Switchgear From Renewable Energy Sector
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| Switchgear Market |
Switchgear equipment are devices consisting of circuit breakers, fuses or any other associated equipment used for operating, isolating, protecting and managing electricity distribution in an electrical power system. These equipment are used in transmission and distribution systems to control the flow of power and limit electrical currents. They protect circuits and equipment in the system by limiting electrical currents to safe levels in the event of a short circuit or any sudden overloading. The growing demand for ensured power supply across manufacturing industries and commercial spaces has been driving increased adoption of switchgear.
The global switchgear market is
estimated to be valued at US$ 127.13 Mn
in 2024 and is expected to exhibit a CAGR
of 4.4% over the forecast period 2024 to 2031, as highlighted in a new
report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the
growth of the switchgear market has been the rising demand for ensured and
uninterrupted power supply across industrial operations and commercial
facilities. Any downtime in operations or disruption in electricity supply can
significantly impact productivity and costs. Switchgear equipment help protect
equipment and critical infrastructure from damages caused by short circuits,
overloading or voltage fluctuations. They improve reliability of power
distribution. Additionally, growing focus on upgrading aging power
infrastructure in developed markets as well as rapid industrialization and
infrastructure development in emerging economies has also been fueling the
sales of switchgear. However, volatile raw material costs pose a challenge for
manufacturers and could hamper market growth over the forecast period.
SWOT Analysis
Strength: Switchgear improves
power transmission and distribution efficiency with its ability to protect, control,
and isolate electrical equipment. It has bushings and disconnect switches that
allow for safe deenergizing and redirection of power flow. Switchgear also
offers protection against short circuits, lightning strikes, and other faults
through circuit breakers and relays.
Weakness: Switchgear maintenance
requires periodic testing, which increases operational costs over time if not
budgeted properly. Switchgear equipment is also bulky and occupies significant
floor space in substations and other facilities.
Opportunity: Investments in
upgrading aging power infrastructure in developed markets and expanding
electricity access in developing regions will drive switchgear demand.
Renewable energy integration is another growth avenue as it requires equipment
to safely manage intermittent power supply.
Threats: Strict safety and
performance standards across regions complicate global manufacturing and
distribution. Geopolitical tensions can disrupt supply chains and international
projects.
Key Takeaways
The Global
Switchgear Market Share is expected to witness high growth over the
forecast period from 2024 to 2031. The market size is projected to reach US$ 127.13 Mn in 2024 and grow at a CAGR of 4.4% through 2031.
Regional analysis: Asia Pacific is currently the largest and
fastest growing regional market for switchgear due to rapid electrification in
populous countries like China and India. Japan, South Korea and other developed
nations also have well-established power sectors offering opportunities. North
America and Europe are established markets where demand will be driven by grid
modernization initiatives.
Key players operating in the switchgear market are Nanjing Huayi
Electric, TGOOD Electric, Schneider Electric SE, ABB Ltd., Mitsubishi Electric
Corporation, Siemens AG, General Electric Company, Eaton Corporation PLC.
Regional analysis focuses on Asia Pacific as the fastest growing region where
China, India and other developing economies are investing heavily in developing
electricity transmission and distribution networks. Key players like Schneider
Electric SE, ABB Ltd. and Siemens AG have established manufacturing bases in
the region to cater to the rising demand.
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