| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 99.7 Billion |
| 2025 Market Size | USD 105.1 Billion |
| 2032 Forecast | USD 162.9 Billion |
| Growth Rate (CAGR) | 6.5% |
| Largest Region | Asia-Pacific |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Consolidated |
| Largest End User Category | Transmission & Distribution |
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The global switchgear market size stands at an estimated USD 99.7 billion in 2024, and it will grow at a CAGR of 6.5% during 2025–2032, reaching USD 162.9 billion in 2032. The major factors driving the market include the enhancement in power distribution infrastructure and growing construction activities. Essentially, the industry is growing due to the rising energy demand in developing and developed nations, as well as technological improvements and adoption of automation.
The rampant industrialization also drives the market as switchgear is widely used to control manufacturing machinery and protect it from current surges and other electrical hazards. Moreover, the growing environmental concerns are compelling utilities and industries to replace their conventional gas-insulated switchgear with air-insulated models. Another major trend is high-voltage direct current (HVDC) transmission, which requires robust, high-power switchgear. Similarly, smart switchgear, integrated with AI and ML, is becoming popular as it is better able to control current flow and anticipate problems before they occur.
The gas-insulated switchgear category is the largest, with 55% share in 2024, and it is projected to grow at the highest CAGR, of around 7%, during 2025–2032. This will be owing to the rising urbanization and industrialization rates and various government initiatives to decrease carbon emission, along with the expansion of the electrical grid.
In April 2021, Siemens Energy won a contract to deliver 10 bays of sulfur-hexafluoride-free gas-insulated switchgear to Finland’s transmission system operator. It will be the first GIS in Finland that replaces sulfur hexafluoride, a potent greenhouse gas, with clean air, with zero potential for global warming.
The following insulation types are covered in this report:
The indoor category holds the larger market share globally in 2024, of 65%, and it will also be the faster-growing bifurcation during this decade. This is due to the fact that indoor switchgear offers more security, is less prone to damage by environmental conditions, has lower operating costs, reduces the risk of electrocuting, due to its grounded metal enclosures; is easy to maintain and durable, and takes up less space than outdoor variants. Additionally, the trend of smart homes is fueling the demand for smart indoor switchgear, which is integrated with IoT, thus providing real-time monitoring, predictive diagnostics, and precise protection against electrical faults.
Due to this reason, the residential sector is expected to provide opportunities to the switchgear market, owing to the rising population, along with the increasing construction of residential infrastructure across the world. These products can reduce the incidence of fire accidents and electricity supply faults, which is why they are increasingly being deployed in residential properties. Owing to the rise in the construction of residential establishments, for instance, the pledge by the U.K.’s government to build around 100,000 homes by 2020 and another 500,000 in the subsequent two years, the market will advance.
The segment is bifurcated as below:
Low-voltage variants held the largest share in 2021, and their sales value is expected to reach USD 90 billion by 2032. They are three-phase power distribution products that are designed to supply electric power of up to 6,000 Amperes at up to 1,000 Volts. They are typically used for low-voltage switchboards, motor control centers (MCCs), and other feeder circuits.
On the secondary side of a power distribution transformer, such electrical components are frequently encountered. Low-voltage switchgear is commonly used to supply power to LV-MCCs, low-voltage switchboards, and other branch and feeder circuits. It is also utilized to provide energy for critical power and process applications in the manufacturing, mining, and metals, petrochemicals, pulp and paper, utility, water treatment, data center, and healthcare sectors.
The medium category will have the highest CAGR, of 8.5%, during the forecast period. These models are widely used in large facilities, such as industrial plants, residential colonies, and shopping malls, for power distribution to individual houses or production units. In this regard, the rampant industrialization and urbanization is the key driver for the market in this category.
We have analyzed the following voltage ratings:
T&D Utilities dominate the market with 40% share, because switchgear is intrinsic to their operations. For energy transmission for power plants to intermediate locations and local substations, high-voltage switchgear is used. Further, to send electricity from these substations to those dedicated to a specific residential colony, industrial zone, or commercial area, medium-voltage variants are required. For further energy transmission to individual homes, stores, and individual machines or sections of a manufacturing plant, low-voltage switchgear is used. The growing demand for switchgear is general is owed to the growing investments in electricity transmission and distribution infrastructure. In August 2024, the Office of Gas and Electricity Markets in the U.K. approved an investment of USD 4.4 billion (GBP 3.4 billion) to lay a 500-km-long undersea power cable between Yorkshire and Scotland, in order to utilize offshore wind energy. Similarly, the same month, SunCable received approval from the Australian government to lay a 2,000-km subsea power cable from Australia’s Northern Territory to the country’s maritime border with Indonesia. The two-stage project ultimately envisages the laying of an undersea cable, 4,300 km long, between Australia and Singapore, which will deliver 6 Gigawatts of renewably produced electricity. Moreover, the Crown Estate has initiated the second phase of the fifth round of its ground leasing program to set up floating wind power plants in the Celtic Sea.
The residential category will have the highest CAGR, of 6.5%, in the forecast period. This is attributed to the growing urban population in the world, which demands all modern facilities and conveniences. Hence, with the rapid construction of residential societies, independent houses, villas and condominiums, and multi-tenant buildings, the demand for low- and medium-voltage switchgear continues to increase. The USD 500-NEOM city project, being executed across 26,500 m2 of land is the largest multi-use infrastructure project underway currently.
The following end uses have been analyzed in the report:
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Below is the regional breakdown of this market:
The market is consolidated as the major players have been involved in several strategic developments, such as product launches and acquisitions, to remain competitive. Additionally, these systems are capital-intensive to research on and manufacture as they must meet the high-power demands of utilities, while complying with safety and environmental regulations. Additionally, large-scale users, such as utilities and multinational manufacturing entities, major buy from established players, who can be trusted and can customize their products.
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