Low and Medium Voltage Switchgear Market by Type, Installation Sites, and Geography - Forecast and Analysis 2023-2027

Low And Medium Voltage Switchgear Market Forecast 2023-2027

The low and medium voltage (MV) switchgear market size is forecast to increase by USD 40.70 billion, at a CAGR of 6.75% between 2022 and 2027. Market expansion hinges on various factors, including the uptick in electricity generation, widespread adoption of smart grid technology, and the amplification of capacity for renewable power generation. However, the market faces challenges such as stringent regulations curbing SF6 gas emissions, substantial investments required for network upgrades, and fluctuating prices of raw materials utilized in switchgear manufacturing. Smart grid technology prioritizes automated switchgear solutions over traditional alternatives. Unlike conventional substations, which depend on manual procedures and fixed controls, smart grid technology integrates automation throughout all operations, streamlining processes and minimizing the necessity for extensive manual involvement. By employing automated substations, activities such as analysis, troubleshooting, and documentation become more streamlined and demand fewer resources.

What will be the Size of the Low And Medium Voltage Switchgear Market During the Forecast Period?

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Market Segmentation

Type Segment 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 50,13 billion in 2017 and continued to grow until 2021. The demand for GIS in the global 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 market during the forecast period.

Installation Sites Segment Analysis

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 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 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 market during the forecast period.

Regional Analysis

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.

Technavio’s Exclusive Market Customer Landscape

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 Market Customer Landscape

Market Dynamics and Customer Landscape

The market is being propelled by several drivers and trends. One significant driver is the increasing adoption of renewable energy sources and green technologies. As the world shifts towards sustainable energy solutions, the demand for low and medium voltage switchgear, which plays a crucial role in the integration and distribution of renewable energy, continues to rise.

Additionally, the implementation of smart grid technology and the Internet of Things (IoT) in electrical systems are driving market growth. Smart grids require advanced switchgear solutions capable of managing complex grid operations efficiently. The integration of digital technologies enables enhanced monitoring, control, and automation of power distribution, contributing to improved reliability and efficiency.

Moreover, the emphasis on voltage stability and the need to mitigate faults and arc blasts in power systems are driving the demand for modern switchgear solutions. With the increasing focus on safety and reliability in electrical installations, there is a growing preference for switchgear equipped with features such as residual current devices and earth leakage circuit breakers.

Furthermore, a notable trend in the market is the development of compact and modular switchgear designs, including plug-in and withdrawable units. These innovations offer greater flexibility, scalability, and ease of installation, catering to the evolving needs of various industries and applications.

Overall, the Low and Medium Voltage Switchgear Market is witnessing steady growth driven by the demand for sustainable energy solutions, advancements in smart grid technology, and the need for safer and more reliable electrical infrastructure.

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.    

Key Market Driver

The primary driver propelling the global market forward is the increasing adoption of smart grid technology. Smart grid technology prioritizes automated switchgear solutions over traditional counterparts. Unlike conventional substations that rely on manual processes and fixed controls, smart grid technology introduces automation across all functions, streamlining operations and reducing the need for extensive manual intervention. With automated substations, tasks such as analysis, problem-solving, and record-keeping become more efficient and require fewer resources. Moreover, the integration of intelligent electrical equipment with multiple protection and metering capabilities enhances network efficiency and reliability. This transition from traditional remote terminal devices to advanced intelligent equipment signifies a shift towards smarter, more interconnected electrical systems. As smart grid technology continues to advance, incorporating monitoring, signaling, protection, and control functions, the demand for low and medium voltage switchgear equipped with intelligent embedded electronics is expected to surge, driving market growth in the foreseeable future.

Significant Market Trends

Growing focus on infrastructure and renewable energy sources is the primary trend in the global 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 market during the forecast period.

Major Market Challenge

Regulations restricting SF6 gas emissions is a major challenge to the growth of the global 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 market during the forecast period.

Who are the Major Low and Medium Voltage Switchgear Market Players?

Companies 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 companies, including:

• 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.
• Zhejiang CHINT Electrics Co. Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The 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. 

• Type Outlook
  • GIS
  • AIS

• Installation Sites Outlook
  • Indoor
  • Outdoor

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market plays a critical role in ensuring the safety and efficiency of electrical networks across various sectors, including industrial infrastructure and construction. With the increasing focus on electrification and modernization initiatives, there's a growing demand for reliable switchgear solutions capable of managing different voltage levels effectively. As a result, strategists are prioritizing investments in advanced technologies to enhance network reliability and safety standards. These systems provide essential protection and control functions, safeguarding electrical equipment and personnel from potential hazards. With continuous advancements in switchgear design and technology, the market is poised for sustained growth, offering innovative solutions to meet the evolving needs of modern electrical networks and infrastructure projects.

Furthermore, the market is witnessing rapid growth and technological innovation, presenting lucrative opportunities for the industry. With the increasing demand for electricity and the expansion of renewable energy sectors, there's a significant opportunity for switchgear manufacturers. Mining operations and industrialization drive the need for countermeasures against voltage fluctuations, emphasizing the importance of reliable switchgear solutions. The production value and profitability of companies are influenced by factors such as production costs and market demand. Pestel analysis identifies opportunities and threats, including outbreaks affecting production levels. Despite challenges, the market shows sustained gains, driven by rapid population growth and urbanization.

Technological advancements like smart meters and GIS enhance safety and efficiency in smart grids and national grids. Gas Insulated Switchgear (GIS) and air-insulated switchgear (AIS) cater to diverse environments, including city buildings and offshore platforms, with minimal maintenance requirements. Integration of renewable energy sources further boosts demand, particularly in emerging markets like India, where companies like CG Power and Elmeasure lead the market. As industries adapt to changing needs and demographics, the market continues to evolve, offering a range of environmentally friendly and flexible solutions with shorter installation times and reduced maintenance costs.

Technological innovation and advancement continue to shape industries, even as they strive to recover to pre-pandemic levels. In the realm of energy management, smart-grid solutions have emerged as a game-changer, offering efficient control and monitoring capabilities. This includes the integration of renewable power generation units, which aligns with the growing emphasis on environmental sustainability. In this landscape, disconnectors play a critical role, in facilitating safe operations and maintenance of electrical systems. These components, often made of metal, are designed to function reliably even in small spaces, making them suitable for diverse applications such as offices, rooftops, and additions to existing infrastructure.

The adoption of gas-insulated switchgear equipment further enhances safety and protection, particularly in environments where space is limited or environmental considerations are paramount. With their minimal maintenance requirements and robust design elements, they offer a reliable solution for managing electricity distribution networks. India's switchgear market is witnessing significant growth, driven by factors such as the increasing total installed capacity of renewable energy and ongoing investments in infrastructure development. Companies like CG Power and Industrial Solutions Limited are at the forefront of this transformation, leveraging their expertise to capitalize on upcoming opportunities in the real estate and construction sectors.

As industries adapt to changing market dynamics and target demographics, there is a growing demand for environment-friendly products and services. This presents lucrative opportunities for innovation and differentiation, particularly in sectors like railways, where energy-efficient solutions are in high demand. In conclusion, the convergence of technological innovation, environmental considerations, and shifting consumer preferences is reshaping the switchgear market landscape. Companies that can adapt to these trends and capitalize on upcoming opportunities stand to gain a competitive edge in this dynamic and evolving industry.

In the ever-evolving realm of electrical infrastructure, low voltage switchgear plays a pivotal role in ensuring the safe and efficient distribution of power across various sectors. From industrial settings to commercial applications, the demand for reliable and innovative solutions continues to drive advancements in switchgear technology. Key components such as switches, PFF load electrical isolators, HRC fuses, miniature circuit breakers (MCB), and molded case circuit breakers (MCCB) form the backbone of low voltage switchgear systems. These components, housed within distribution boards and complemented by incomers, sub-incomers, and feeders, enable precise control and management of electrical currents in both primary and secondary distribution networks.

In industrial settings, the reliability and performance of switchgear are paramount, with fixed mounting ensuring mechanical stability even in harsh operating conditions. Portable multifunctional modules cater to the dynamic needs of offshore wind farms, railway applications, and distributed energy resources, offering flexibility without compromising safety or efficiency. The emergence of digital substations and Internet of Things (IoT) devices signifies a shift towards smarter, interconnected power systems. Contemporary standards and government regulations drive the commercialization of energy-efficient switchgear solutions, promoting grid resilience in the face of natural disasters and cybersecurity threats.

However, market restraints such as initial investment costs, replacement cycles, and integration procedures pose challenges to widespread adoption. Environmental and safety concerns drive the exploration of alternative technologies like vacuum circuit breakers and solid-state switchgear, while fluctuating raw material prices and supply chain disruptions underscore the importance of resilience and adaptability in the industry. Despite technological obstacles and obsolescence risks, ongoing research and development efforts promise to drive innovation and address the evolving needs of the market. With a focus on energy efficiency, dependability, and safety, the low voltage switchgear industry continues to play a vital role in shaping the future of power infrastructure and electrical distribution worldwide.

Low And Medium Voltage Switchgear Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.75%
Market growth 2023-2027	USD 40,704.86 million
Market structure	Fragmented
YoY growth 2022-2023(%)	6.25
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 49%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, Market forecasting, 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.
Customization purview	If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Low And Medium Voltage Switchgear Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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