Global Electric Switchgear Market Outlook to 2030

Global Electric Switchgear Market Overview

• The Global Electric Switchgear Market has experienced notable growth, reaching a valuation of USD 93 billion in 2023. This growth is driven by the rapid expansion of power generation and distribution infrastructure worldwide.

• The electric switchgear market is dominated by key players such as Siemens AG, ABB Ltd., Schneider Electric, General Electric, and Eaton Corporation. These companies have established a strong global presence, leveraging their extensive product portfolios, technological innovations, and strategic partnerships.
• In 2023, Siemens AG announced the launch of its new gas-insulated switchgear (GIS) solution, which is designed to significantly reduce the environmental impact by minimizing the use of sulfur hexafluoride (SF6), a potent greenhouse gas. This innovation aligns with the industry's move towards more sustainable practices.
• Cities like Shanghai, New York, and Mumbai are leading the global electric switchgear market due to their massive urbanization projects and ongoing upgrades to electrical infrastructure. Shanghai, with its focus on smart city initiatives, has been investing heavily in advanced switchgear solutions to support its growing demand for reliable and efficient power distribution.

Global Electric Switchgear Market Segmentation

Global Electric Switchgear Market is divided into further segments:

• By Product Type: The Global Electric Switchgear Market is segmented by product type into low voltage, medium voltage, and high voltage switchgear. In 2023, medium voltage switchgear dominated the market share, driven by its widespread application in industrial and commercial sectors.

• By Region: The Global Electric Switchgear Market is segmented by region into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East & Africa (MEA). In 2023, the Asia-Pacific region dominated the market share, largely due to the rapid urbanization and industrialization in countries like China and India.

• By End-User: The electric switchgear market is segmented by end-users into utilities, industrial, and commercial sectors. In 2023, the utilities segment held the largest market share due to the increasing investments in upgrading power distribution networks and the integration of renewable energy sources.

Global Electric Switchgear Market Competitive Landscape

• ABB Ltd.: In 2024, ABB launched a breakthrough eco-efficient switchgear solution that uses a new gas mixture called AirPlus™ to minimize environmental impact compared to traditional SF6 gas-insulated switchgear. ABB's AirPlus™ technology represents a significant advancement in sustainable electrical infrastructure, aligning with the industry's growing demand for environmentally friendly solutions.
• Schneider Electric: In 2024, Schneider Electric expanded its product portfolio with the introduction of modular switchgear systems designed for easy integration into smart grid projects. These systems are particularly suited for urban environments where space is limited. Schneider Electric has secured contracts for these modular systems in major cities across Europe and Asia.

Global Electric Switchgear Industry Analysis

Global Electric Switchgear MarketGrowth Drivers

• Expansion of Renewable Energy Projects: The global shift towards renewable energy is driving increased demand for electric switchgear. As countries expand their renewable capacities, especially in wind and solar, the need for efficient switchgear systems grows. For example, China plans to add 50 GW of wind energy capacity by 2024, requiring advanced switchgear for effective integration into the national grid.
• Increased Industrialization in Emerging Economies: Emerging economies in the Asia-Pacific region are undergoing rapid industrialization, leading to increased electricity demand and a corresponding rise in the need for electric switchgear. In 2024, India's manufacturing sector is expected to grow by 8.2%, fueled by initiatives like "Make in India," which aims to establish India as a global manufacturing hub.
• Increasing Electrification Needs: The demand for electrification, especially in rural and remote regions, is a significant factor driving market growth. Governments are establishing goals to improve electricity access, which is resulting in increased investments in power infrastructure and switchgear solutions to facilitate these efforts.

Global Electric Switchgear Market Challenges

• Intense Competition from Unorganized Sector: Prominent switchgear manufacturers face significant competition from the unorganized sector, which includes local and gray market players offering inexpensive, low-quality products. For instance: Gray market players acquire and distribute switchgear via unauthorized dealers, providing lower-cost products that compete with established branded offerings.
• Compatibility Issues with Aging Infrastructure: Integrating new technology switchgear into aging electrical infrastructure can lead to compatibility issues, requiring extensive testing and validation. Older switchgear uses electromechanical relays for protection, while modern systems employ digital relays and Intelligent Electronic Devices (IEDs). Integrating these technologies requires extensive testing to ensure coordination and avoid nuisance tripping.

Global Electric Switchgear Market Government Initiatives

• The European Green Deal: The European Green Deal was introduced in 2019 by the European Commission with the overarching aim of making the European Union climate neutral by 2050.In 2023, the EU reached provisional agreements on key elements of the "Fit for 55" package, including reforms to the Emissions Trading System (ETS) and the introduction of a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage.
• 13th Five-Year Plan for Energy Development: The 13th Five-Year Plan for Energy Development in China was introduced in 2016, outlining strategies to modernize the energy sector and promote the integration of renewable energy sources. In October 2023, the Chinese government announced plans to invest heavily in renewable energy projects and smart grid technologies as part of its ongoing efforts to meet the goals set out in the 13th Five-Year Plan. 

Global Electric Switchgear Market Future Outlook

The global electric switchgear market is ready for significant growth in the coming years, driven by the increasing adoption of renewable energy, the need for infrastructure modernization, rising demand from developing regions, advancements in switchgear technologies, and strategic collaborations among industry players.

Future Market trends

• Increased Adoption of Smart Grid Technologies: Over the next five years, the adoption of smart grid technologies is expected to accelerate, driven by the need for more efficient and reliable power distribution. By 2028, it is projected that majority of new grid infrastructure projects will incorporate smart grid components, including digital switchgear.
• Growth in Demand for Eco-Friendly Switchgear: The demand for eco-friendly switchgear solutions is expected to grow significantly through 2028, as more countries implement stringent environmental regulations. Manufacturers will continue to innovate in this space, developing new materials and technologies to replace SF6 and other harmful gases, driven by regulations in the EU and other regions.