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The low voltage (LV) and medium voltage (MV) switchgear market size is estimated to grow at a CAGR of 6.75% between 2022 and 2027 and the size of the market is forecast to increase by USD 40,704.86 million. The growth of the market depends on several factors, such as the increasing electricity generation, the increasing implementation of smart grid technology, and the capacity expansion for renewable power generation.
This report extensively covers market segmentation by type (GIS and AIS), installation sites (indoor and outdoor), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Low and Medium Voltage Switchgear Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing implementation of smart grid technology is the key factor driving the growth of the global low voltage (LV) and medium voltage (MV) switchgear market. In smart grid technology, automated switchgear technology is preferred over conventional technology. In traditional substations, all signals, controls, and interlocks are fixed, and records are kept manually in a logbook. Therefore, making comparisons for analysis and solving problems requires a lot of work and effort. An automated substation where all functions are automated is more efficient and requires less manpower. Traditionally, substations used remote terminal devices as links between the switch and the control center. Some of these remote terminal units had intelligent features such as interconnection capabilities, but substation or site-wide automation was not available.
However, now more and more remote terminal equipment is being replaced or supplemented by special intelligent electrical equipment capable of multiple protection and metering in smart grid technology. In addition, smart gates and distributors were introduced in the substation. Smart grid technology integrates monitoring and signaling in addition to protection and control functions. Manufacturers add intelligent embedded protection and control electronics to a switch to improve network efficiency and reliability. Hence, the implementation of smart grid technology will propel the growth of the global low and medium voltage switchgear market during the forecast period.
Growing focus on infrastructure and renewable energy sources is the primary trend in the global low voltage (LV) and medium voltage (MV) switchgear market growth. The upgradation of the aging infrastructure is anticipated to power the market's growth. For instance, around 65 gigawatts of European onshore wind turbines would reach end-of-design-life by the next five years. The upgradation of equipment concerning extending the life span would drive the market for switchgear. Another significant factor fueling the switchgear market growth is the rising construction activities worldwide, owing to the increasing focus on infrastructure. The construction industry is witnessing growth in emerging economies, including China and India, apart from the advanced economies, like the US, Canada, and countries in the European Union (EU), which are already focusing on their existing infrastructure.
For instance, in April 2022, Hitachi Energy launched its OceaniQTM portfolio for the offshore energy market. The use of direct current in solar power plants, wind turbines, energy storage and charging stations offers several efficiency advantages. However, safe DC switching makes enormous demands on electromagnetic components. They must be able to regulate and safely close high voltages and switchboards in DC applications. Hence, the growing focus on infrastructure and renewable energy sources will drive the global low and medium voltage switchgear market during the forecast period.
Regulations restricting SF6 gas emissions is a major challenge to the growth of the global low voltage (LV) and medium voltage (MV) switchgear market. SF6 gas is commonly used as an insulating medium in low and medium voltage switchgear. It has superior electrical insulation properties, which makes it ideal for use in high-voltage transmission systems. However, SF6 is classified as a greenhouse gas (GHG). SF6 is the most potent GHG in global warming potential among the group of chemicals known as fluorinated gases. Strict measures have been put in place to limit SF6 emissions. The European climate change program (ECCP) highlighted SF6 reduction as a crucial component in its greenhouse reduction measures as early as the mid-2000s to achieve the EU's Kyoto protocol commitments.
Most of the regulations that apply to the use of SF6 apply to a chemically similar group of fluorinated gases called F-gases. This includes both hydrofluorocarbons (HFCs), which have short lifetimes in the atmosphere, and perfluorocarbons (PFCs), which have long lifetimes. Greener alternatives have largely replaced HFCs and PFCs. As F-gas rules become more stringent, they will have a negative impact on the use of SF6 gas, which is expected to hamper the growth of the global low and medium voltage switchgear market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd.: The company offers low and medium voltage switchgears such as ABB NeoGear and MNS low-voltage switchgear.
CG Power and Industrial Solutions Ltd.: The company offers low and medium voltage switchgears such as AIS and GIS.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The GIS segment will account for a major share of the market's growth during the forecast period. Gas-insulated switchgear is a type of switchgear used to control, protect and isolate electrical equipment in power transmission and distribution systems. It uses gas as an insulating medium instead of air, which allows for more compact and efficient designs.
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The GIS segment was valued at USD 50,127.37 Million in 2017 and continued to grow until 2021. The demand for GIS in the global low and medium voltage switchgear market is driven by various factors, such as the increasing demand for electricity, the need for efficient and reliable power transmission and distribution systems, and the growing focus on renewable energy sources. Additionally, the growing demand for compact and space-saving switchgear solutions is also contributing to the growth of the Gas Insulated Switchgear segment in the global low and medium voltage switchgear market during the forecast period.
Based on installation sites, the market has been segmented into indoor and outdoor. The indoor segment will account for the largest share of this segment. The indoor segment is a significant part of the global low and medium voltage switchgear market, as it includes a wide range of products designed for various applications in commercial, industrial, and residential buildings. Some common types of indoor switchgear installations are power distribution centers, control panels, substations, and switch rooms. The indoor segment of the global low and medium voltage switchgear market is expected to continue to grow as the demand for electricity increases and more buildings and infrastructure projects are constructed. There will be a growing need for reliable and efficient electrical distribution and control systems indoors, which will boost the growth of the indoor segment of the global low and medium voltage switchgear market during the forecast period.
APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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APAC exhibits a high demand for electric power. This is because of the growth of the electricity-consuming sectors in this region. Rapid urbanization and enhanced living standards have improved electricity consumption in many major countries in the region, such as India and China. Private players currently operate several utilities in the region, and this has boosted the effective production and distribution of electricity. Such expansions have helped to reduce the total price of electricity and promote fair market competition in the power sector. A continuous supply of electricity has become vital due to the improvement in the economic conditions of the region. Such factors will increase the market growth in this region during the forcast period.
The COVID-19 pandemic had a negative impact on the low and medium voltage switchgear market in APAC. However, in 2021, the rollout of vaccination drives across the region led to the resumption of travel activities and started the supply chain activities. There is an increase in demand for switchgear products as construction projects have resumed. Therefore, the increasing demand for switchgear products in different end-user industries such as construction and automobile will drive the growth of the regional low and medium voltage switchgear market during the forecast period.
The low and medium voltage switchgear market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Low And Medium Voltage Switchgear Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.75% |
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Market growth 2023-2027 |
USD 40,704.86 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.25 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 49% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., CG Power and Industrial Solutions Ltd., DRIESCHER GmbH, Eaton Corp. Plc, Efacec Servicos Corporativos S.A., Fuji Electric Co. Ltd., General Electric Co., Hyosung Heavy Industries Corp., LS ELECTRIC Co. Ltd., Meidensha Corp., Mitsubishi Electric Corp., Powell Industries Inc., Regal Rexnord Corp., Schneider Electric SE, Siemens AG, SIM Switchgear Ltd., Switchgear for energy technology GmbH, TGOOD Global Ltd., Toshiba Corp., and Zhejiang CHINT Electrics Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Installation Sites
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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