switchgear market is expected to grow at a CAGR of 6.8% during the forecast period. The rising demand for energy owing to the rapid urbanization is a key factor driving the growth of the global switchgear market. In an electric power system, switchgear is composed of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate electrical equipment. In June 2022, Tata Power Solar launched India's largest floating solar power project in Kayamkulam, Kerala on a 350-acre water body, backwaters area, having an installed capacity of 101.6 Megawatt Peak. The increasing installation of new power plants for safe and reliable operation is a key factor driving the growth of the global switchgear market. 

The considerable increase in the investments to produce renewable energy along with cohesive government policies to support the new technology is further anticipated to boost the demand for switchgear. According to IEA’s World Energy Investment Report 2019, the global energy investment stabilized at over $1.8 trillion in 2018, with more spending on upstream oil and gas and coal supply, offset by lower spending on fossil-fuel-based generation and renewable power. Emerging smart technologies and digitalization is anticipated to offer lucrative opportunities for the growth of the global switchgear market. The existence of stringent environmental and safety regulations related to the switchgear may restrain the market growth. 

Segmental Outlook 

The global switchgear market is segmented by type and end-user. The market segmentation based on the type includes voltage, insulation, and installation. The voltage segment is further segmented into low voltage, medium voltage, and high voltage. The insulation type is further sub-segmented into gas insulated switchgear (GIS), air-insulated switchgear (AIS), and other insulation types. GIS held a considerable share in the global switchgear market. GIS is more environment-friendly, reliable, and flexible compared to AIS. Additionally, GIS are highly preferred over AIS owing to lower installation time and maintenance cost compared to AIS. Based on the installation, the market is sub-segmented into indoor and outdoor. Based on end-user, the market is segmented into residential, industrial, and commercial.

Industrial Segment Held Considerable Share in the Global Switchgear Market

The industrial segment holds a considerable share in the market. Under the industrial segment, the power, energy and utility industry is the largest consumer of switchgear during the forecast period. The increasing investment by players in new energy and utility plants is further anticipated to drive the growth of this market segment.

Regional Outlook

The global switchgear market is further segmented based on geography including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. North America is anticipated to exhibit considerable growth in the global switchgear market. 

Global Switchgear Market Growth, by Region 2022-2028

Asia-Pacific holds Considerable Share in the Global Switchgear Market 

Asia-Pacific held a considerable share in the global switchgear market in 2021. The up-gradation of the ageing electrical grid infrastructure and increasing electricity demand in the region are some key factors driving the growth of the market in the region. The rapid infrastructure development for renewable energy sources, increasing grid modernization projects, and replacement of the old grid with capacity enhancements are some contributors to the regional market growth. The emerging economies of the region such as India and China are witnessing rapid urbanization that led to increased energy demand. The power generation capacity in India has grown at a rate of over 10.0% in the past few years, while the transmission and distribution networks have witnessed moderate growth. This has led to the growing demand for robust power system equipment, such as switchgear across the country.

Market Players Outlook

The major companies operating in the global switchgear market include ABB Ltd., Mitsubishi Electric Corp., Schneider Electric, Siemens AG, and Eaton Corp. The companies are focusing on product innovation, technology advancements, expansions, mergers and acquisitions, and finding a new market or innovation in their core competency to expand individual market share. For instance, in April 2020, ABB Ltd. expanded its UniGear medium-voltage switchgear portfolio by introducing UniGear ZS1 63 kA. The new UniGear ZS1 63kA short circuit current rating is available up to 17.5 kV. Customers can now select standard UniGear panel configurations in applications where until today, they had to apply special designs or use segregated power networks. The use of standard panels will bring efficiency to both operations and capital expenditure.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global switchgear market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.