The switchgear market is estimated to be valued at USD 45,026.8 million in 2021 and is poised to grow at a significant CAGR of 9.9% over 2022-2028. Switchgear equipment is typically employed in complicated electrical substations to operate under varying operating voltages in a volatile environment. The market is expected to increase further due to the construction of new industrial infrastructure, such as power plants, for dependable and safe operations. Based on the product type GIS switchgear segment is projected to grow at a significant CAGR from 2022 to 2028. The adoption of GIS is gradually increasing due to the usage of GIS for power transmission, and the integration of renewable power generation units to the grid and railways. GIS switchgear provides high flexibility and reliability as compared with other solutions. Moreover, competitors are focusing on launching new products to maintain growth in the market. For instance, in 2020, Hitachi Energy successfully achieved 350 kV/20 30 kA DC current cutting for the EU PROMOTioN HVDC project (PROMOTioN, 2020). In 2019, GE launched an MVDC breaker product with a goal to handle up to 100 kV voltage. Rise in demand for electricity and increase in research activities and investment in the market are the factors driving the switchgear market. Moreover, rapid urbanization, rise in disposable income, and advancements in residential and commercial infrastructure are fuelling the demand for market growth over the forecast years. Recent Market Developments: In January 2022, ABB partnered with Samsung Electronics to provide jointly developed technologies for energy savings, energy management, and smart Internet of Things (IoT) connections for both residential and commercial buildings. In April 2021, GE and Hitachi-ABB Power Grids signed a non-exclusive cross-licensing agreement that will enable them to expand their high-voltage equipment line by adopting a game-changing gas alternative to sulfur hexafluoride (SF6). SF6 is an insulating and switching gas commonly used in high-voltage electrical equipment.
Fastest Growing Market
The switchgear market will be boosted by increasing investments in infrastructure and the rising need for better monitoring and control systems. Furthermore, the continued integration of renewable energy generation and retrofitting as well as replacement of conventional power infrastructure is expected to drive the growth of the market. The high voltage segment has grown in response to a growing reliance on large enterprises and utilities, such as power generation and industrial facilities. In addition, the heavy metal and mining industries, in tandem with the rapid construction of long-distance power networks are expected to create several opportunities in the market.
The CAGR of the switchgear market is 9.9% over the forecast period (2022 - 2028)
Siemens, General Electric, Mitsubishi Electric, Eaton, Legrand
The Asia Pacific is the fastest-growing region for the switchgear market