The global switchgear market is expected to generate revenue amounting to USD 67.50 billion in 2020, and is projected to reach to USD 93.43 billion by 2026, growing at a CAGR of 5.57% over the forecast period. Switchgears are electrical devices composed of fuses, circuit breaker and electrical disconnect switches used to protect, monitor, control and isolate electrical equipment. Rise in the number of construction activities across the globe is one of the major factors driving the market for switchgears during the forecast period. The increasing focus on infrastructure along with growing demand for renewable energy sources are also driving the market growth for switchgears. The expansion of the power grid in rural areas is enhancing the market size during the forecast period. Growing demand for efficient transmission and distribution control systems are propelling the market growth. Growing inclination towards renewable power generation and integration of cogeneration plants across the power grid infrastructure will propel the global demand for switchgear. Rise in smart city infrastructures across various regions including North America, Europe, Asia Pacific, and Central & South America is further projected to propel the market growth of switchgear. Increasing funding from several private, governmental financial institutions including the World Bank, International Finance Corporation (IFC), and the Asian Development Bank (ADB) towards electrification across developing countries are also driving the market growth for switchgears. However, harsh environmental conditions and high cost of switchgears are likely to hamper the market growth during the forecast period.

Global Switchgear Market

The global switchgear market is segmented on the basis of insulation into GIS and AIS. The AIS air insulated switchgear segment is expected to hold the largest market share in the global switchgear market during the forecast period. Air insulated switchgear are among the common type of medium-voltage switchgear that are used among end users. AIS are combination of electrical disconnector switches, circuit breakers, and earth switches that are used to control, isolate, and protect electrical equipment using air as its insulating medium. Growing demand from end users including transmission & distribution, manufacturing and processing, infrastructure and transportation, and oil & gas, among other industries are driving the market growth for AIS. They are relatively cost-effective, pollution-free, simple construction, and easy to maintain than GISs and hence is expected to drive the market during the forecast period.

On the basis of installation, the global switchgear market is segmented into indoor switchgear and outdoor switchgear. The outdoor switchgear segment is expected to grow at a high CAGR during the forecast period. High-voltage switchgears are mainly installed outdoor. Outdoor switchgears help enhance the transfer of electricity over long distances and larger loads, thereby providing reliable switching operations. The outdoor switchgears find their application in the transmission and sub-transmission sector. Increasing requirements of outdoor switchgear equipment for high load transmission are expected to drive the outdoor switchgear market during the forecast period.

On the basis of end user, the market is segmented into T&D utilities, industries, and commercial & residential among others. The T&D utilities segment is expected to hold the largest market share in the global switchgear market during the forecast period. The T&D utilities segment is involved in development of power generation, transmission, and distribution of electricity. Electric utilities include investor-owned and publicly owned cooperatives and nationalized entities, which are the major providers of electricity in most of the countries, worldwide. T&D utilities include non-renewable and renewable sources of energy to fulfill the demand for electricity.

On the basis of region, the market of switchgear is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. The Asia Pacific region is expected to dominate the market and is also estimated to expand at a rapid pace during the forecast period. Growth in urbanization along with growing number smart cities especially in China and India are driving the market growth in the region. Additionally, the installation of a new substation, along with the upgrade of existing electrical infrastructure, is expected to propel the market during the forecast period. The increasing infrastructure development for renewable energy sources, along with growing market for grid modernization, replacement are some more factors expected to propel the market growth in the region.

Check the report description at: Global Switchgear Market Size, Trends & Analysis - Forecasts to 2026