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Get a SampleOctober 2023
The global switchgear market size was USD 80.74 billion in 2023, calculated at USD 87.04 billion in 2024 and is expected to reach around USD 184.46 billion by 2034. The market is expanding at a solid CAGR of 7.8% over the forecast period 2024 to 2034.
The global switchgear market size accounted for USD 87.04 billion in 2024 and is expected to reach around USD 184.46 billion by 2034, expanding at a CAGR of 7.8% from 2024 to 2034.
The Asia Pacific switchgear market size was estimated at USD 39.56 billion in 2023 and is predicted to be worth around USD 90.39 billion by 2034, at a CAGR of 8% from 2024 to 2034.
Asia Pacific was the leading switchgear market in 2023. This is attributed to the huge demand for the switchgear in the various industries in the region. The rapid urbanization and rapid industrialization is significantly boosting the demand for the efficient and uninterrupted power supply. The favorable government policies has played a major role in the establishment of the huge industries in the region. Moreover, the countries like China, India, and South Korea are heavily investing in the electrification of the rural areas. This is expected to significantly drive the demand for the electricity, which will spur the growth of the Asia Pacific switchgear market.
Europe is expected to show a promising growth rate during the forecast period. The formulation of stringent government regulations regarding the adoption of clean and green energy across the Europe is expected to significantly propel the demand for the switchgear. The presence of several huge industries along with the increased number of commercial spaces and rising investments in the upgradation of the aging infrastructure are the various factors that drives the growth of the Europe switchgear market.
The growing investments in the replacement of old power infrastructure and rising focus on the renewable energy are the most prominent factors that are expected to drive the market growth during the forecast period. The government initiatives and subsidies play a crucial role in the market growth. The government has established certain standards for the distributors that make the distributors to provide continuous and convenient electricity to the end consumers. The distributors receive incentives based on their performances. Such government schemes in various countries are expected to drive the growth of the global switchgear market in the forthcoming years. The rapid electrification of the rural areas and the continuously rising need for electricity in remote areas has fueled electricity generation, which in turn fosters the demand for the electrical equipment across the globe. The power generation plants using offshore and onshore solar, hydro, and wind power sources are expected to drive the need for the new distribution lines, which will positively impact the growth of the switchgear market. Moreover, rapid urbanization and growing investments in construction activities is significantly augmenting the demand for the switchgear across the developing regions. Furthermore, the innovations and the new product launches is exponentially driving the sales of the switchgear. For example, Eaton launched a switchgear in two parts.
The increasing energy demand across the globe is fueled the demand for the stable and reliable transmission and distribution network. The uninterrupted supply of power can be provided through the systems that can efficiently handle sudden power drop and spikes. The extended power shortages can result in huge losses to the businesses. The major reason behind the rising power outages is the lack of proper policies to modernize power grid and the aging power infrastructure. Therefore, the rising investments in the replacement of aging infrastructure in the developed and developing regions are expected to significantly drive the growth of the global switchgear market. The switchgear helps to safeguard the electrical equipment from sudden power spikes and drops. The switchgear isolates the circuits from the power supply that enables the easy repair and maintenance. These features of the switchgear results in high costs. Furthermore, the switchgear involves various components such as fuses, circuit breakers, switches, control panels, and protective relays that makes the cost of the switchgear high. Therefore, the high costs of the switchgear may hinder the market growth during the forecast period.
| Report Coverage | Details |
| Market Size in 2023 | USD 80.74 Billion |
| Market Size in 2024 | USD 87.04 Billion |
| Market Size in 2034 | USD 184.46 Billion |
| Growth Rate from 2024 to 2034 | CAGR of 7.8% |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | By Voltage, By Insulation, By Installation, and By End User |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The medium and high voltage segment dominated the global switchgear market in 2023. The rising infrastructural developments across the globe and the rapid industrialization are the major factors that drive the demand for the medium and high voltage switchgears. The establishment of huge industries is driving the need for the high voltage power, which is significantly boosting the demand for the high and medium voltage switchgear.
On the other hand, the low voltage is estimated to be the fastest-growing segment during the forecast period. The rising deployment of the distribution networks with the high fault enduring capacities is expected to drive the growth of the low voltage switchgear. This low voltage capacity is witnessing rapid surge in usage in the residential and commercial sectors.
Based on the insulation, the air insulation segment dominated the global switchgear market in 2023. The air insulated switchgears are the most extensively used medium voltage switchgears. The increased adoption of the air insulated switchgear in the manufacturing & processing, transmission& distribution, infrastructure, transportation, oil & gas, and various other industries have resulted in the dominance of the air insulated segment.
Based on the installation, the outdoor was the dominant segment in 2023 and is estimated to be the fastest-growing segment during the forecast period. The ability of the switchgear to sustain in the harsh climatic conditions has increased its deployment in the outdoor locations across the globe. The reliability and economical operations associated with the switchgear in the outdoor locations has fueled the growth of this segment.
The transmission & distribution segment dominated the global market in 2023. The extensive utilization of the switchgear in the transmission and distribution utility across the globe has significantly boosted the growth of the segment. The rising need for energy and continuous supply along with the need for minimizing the energy losses has fueled the growth.
The commercial & residential is estimated to be the most opportunistic segment. The growing investments in the urbanization and rising number of commercial spaces across the urban cities is significantly boosting the demand for the switchgear across the globe.
Segments Covered in the Report
By Voltage
By Insulation
By Installation
By End User
By Geography
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October 2023