Rising Power Consumption Boosts Switchgear Market Growth
According to our latest study titled “Switchgear Market Forecast to 2031 – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Insulation, Voltage, Current Type, and End User,” the market was valued at US$ 92.34 billion in 2023 and is projected to reach US$ 155.28 billion by 2031; it is estimated to register a CAGR of 6.7% from 2023 to 2031. The report includes growth prospects in light of current switchgear market trends and factors influencing the market growth.
Power consumption worldwide is rising at a fast pace. According to a US Energy Information Administration (EIA) report, global energy consumption is expected to increase by 56% between 2013 and 2040. Many factors are contributing to this increase in energy consumption, with population outburst being one of the main factors. As the world’s population reaches 8.5 billion by 2030, according to United Nations projections, the demand for energy will continue to accelerate. Another main parameter for the rise in power consumption is economic growth. As various economies globally are expanding, so is the demand for energy and power. According to the US Energy Information Administration, the total electricity consumption recorded in the US in 2022 was about 4.07 trillion kWh—i.e., 14 times higher than the amount of electricity consumed in 1950. The total electricity consumption by end-use consumers is calculated by the summation of retail sales of electricity to consumers and direct use of electricity. The industrial or commercial facility—which is involved in producing electricity—accounts for the most direct use of electricity.
Switchgear Market – by Region, 2023 and 2031
Switchgear Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Insulation (Gas-Insulated, Air-Insulated, and Others), Voltage (Low Voltage, Medium Voltage, and High Voltage), Current Type (Alternating Current and Direct Current), End User (Energy and Utilities, Commercial and Residential Building, Manufacturing, Railways, Oil and Gas, Mining, Water and Wastewater, and Others), and Geography
Switchgear Market Size (2021-2031) and Regional Overview
Download Free Sample
Source: The Insight Partners Analysis
Further, Japan was the world’s fifth-highest energy consumer in 2021. The consumption grew by 2.3% in 2021 compared to 2020. The total production of all-electric energy-producing facilities is 948 billion kWh, i.e., meeting 105% of its requirements. On similar grounds, power consumption is rising at a fast pace in various developed and developing economies. Therefore, surging power consumption propels the need for robust and reliable electrical systems. As switchgear plays a crucial role in protecting and isolating electrical circuits, as well as enhancing grid stability, the rising power consumption globally drives the switchgear market size.
The switchgear market analysis has been carried out by considering the following segments: insulation, voltage, current type, and end user. Based on insulation, the market is segmented into air-insulated, gas-insulated, and others. By voltage, the market is categorized into high voltage, medium voltage, and low voltage. In terms of current type, the market is divided into alternating current and direct current. In terms of end use, the market is segmented into commercial & residential buildings, energy & utilities, manufacturing, mining, oil & gas, railways, water & wastewater, and others. The energy and utilities segment held the largest switchgear market share in 2023.
The scope of the switchgear market report is primarily divided into North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Asia Pacific accounted for the largest switchgear market share in 2023. A few of the most rapidly expanding economies in Asia Pacific are playing a pivotal role in the world's energy transition. Asia Pacific has been utilizing smart grid systems, particularly for rural electrification, which is further driven by favorable government initiatives. In smart grid operation, switchgear is used to prevent electrical faults. Furthermore, countries such as China, Singapore, and Malaysia are deploying smart grids for energy security purposes. Also, the Metropolitan Electricity Authority of Thailand is developing a smart grid plan incorporating all relevant technologies. At the same time, the Provincial Electricity Authority has started smart meter trials and substation automation projects in Pattaya city.
Increasing internet penetration and digitalization in Asia Pacific fuels the construction of data center infrastructure. The majority of data centers located in the region are 7–12 years old and lack the required infrastructure to support modern high computing platforms. Retrofitting old data centers to support cloud computing platforms is characterized as an expensive proposition. Switchgear is widely used in data centers for an uninterrupted power supply and fault protection. Therefore, as many organizations are seeking to build new data centers, the switchgear market growth is projected to increase significantly in the upcoming years.
Mitsubishi Electric Corp, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, Toshiba Infrastructure Systems and Solutions Corp, ABB Ltd, Fuji Electric Co Ltd, GE Vernova, Hitachi Energy Ltd, and Hubbell Inc are among the key players profiled in the switchgear market report.
Contact Us
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com