Switchgear Market Gains Traction with Electric Vehicle Adoption

According to a recent report by Grand View Research, Inc., the global switchgear market is projected to reach USD 160.07 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. The industrial and commercial sectors in emerging economies have seen substantial growth in recent years, fueled by ongoing urbanization—a hallmark of the modern era. As people migrate from rural areas to cities in search of improved living conditions and economic opportunities, urban centers have expanded rapidly. This migration has led to a surge in construction and infrastructure developments, including housing and transportation networks, thereby accelerating industrial and commercial activities.

The growth of these sectors relies heavily on the presence of reliable and efficient electrical distribution systems. A steady and uninterrupted electricity supply is essential for industrial facilities, commercial buildings, data centers, and infrastructure projects. Switchgear plays a critical role in ensuring the safety and continuity of electrical supply. As infrastructure expands and electricity demand rises, distribution networks face increasing strain, highlighting the need for advanced switchgear systems that can efficiently manage power across various sectors.

The switchgear market is dependent on raw materials such as copper, aluminum, steel, and insulating components. However, frequent fluctuations in the prices of these materials pose significant challenges for manufacturers. Sudden cost increases can drive up production expenses, forcing manufacturers to absorb or transfer these costs. These uncertainties complicate production planning and budgeting, thereby limiting the industry's ability to sustain consistent growth.

The rising adoption of electric vehicles (EVs) has significantly increased the demand for EV charging infrastructure, particularly charging stations. For example, in March 2023, India’s Minister of Heavy Industries approved Rs. 800 crores (USD 97.3 million) under the FAME India Scheme Phase II. This funding is designated for three Public Sector Undertaking (PSU) oil marketing companies to establish 7,432 fast-charging stations across the country. As more consumers shift from fossil fuel-powered vehicles to EVs, the need for reliable and efficient charging solutions becomes increasingly critical.

Switchgear systems are vital components of electrical power systems. They are designed to control, protect, and isolate electrical equipment, regulate electricity flow, manage distribution, and prevent faults or overloads. Within EV charging infrastructure, switchgear serves as the intermediary between the power grid and charging stations, ensuring safe and efficient electricity delivery. These systems help manage power flow to multiple chargers, ensuring stable and adequate electricity supply based on usage demand.

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Switchgear Market Report Highlights

• Voltage Segment: The medium voltage segment is expected to record the highest CAGR during the forecast period, owing to its crucial role in secure and efficient power distribution at medium-voltage levels.
• Insulation Type: The gas-insulated segment is projected to grow significantly, driven by the rising need for reliable and efficient power infrastructure, particularly in emerging markets.
• Installation Type: The indoor switchgear segment is expected to register the highest CAGR, supported by urbanization and the expansion of infrastructure in developing economies. These systems are well-suited for compact urban areas due to their space-saving design.
• End-Use Sector: The commercial and residential sector is anticipated to witness the highest CAGR from 2023 to 2030. This growth is driven by rapid urbanization and industrialization, which require robust electrical distribution and protection systems.
• Regional Outlook: The Asia Pacific region is forecast to experience the highest CAGR over the forecast period, propelled by rapid industrialization, urban growth, and increasing electricity demand.

Key Companies in the Global Switchgear Market

• ABB Ltd.
• Alstom
• Areva Inc.
• Bharat Heavy Electricals Limited (BHEL)
• Crompton Greaves
• Eaton Corporation
• General Electric
• Hitachi Limited
• Larsen & Toubro Limited
• Legrand
• Mitsubishi Electric Corporation
• NR Electric Co., Ltd.
• Powell Industries

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