Switchgear is an integral component for the transmission and distribution of electricity across various industries and play a crucial role in providing safety and reliability of power supply systems. Some of the key products within the switchgear market include geared motors that enable controlled motion and precision, reducers that decrease speed and increase torque in industrial machineries, magnetic starters and contactors that protect electrical circuits from overload or short circuit, and inverters that convert DC to AC power. The growing need for efficient industrial automation across manufacturing sectors like food processing, automotive, energy, and mining is a major driver for switchgears. Switchgears help improve productivity and optimize operations by regulating electric motor speed and motion.
The global Switchgear Market is estimated to be valued at US$ 110.35 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the switchgear market is the growing demand for energy-efficient solutions. With industries focusing on reducing energy consumption and decreasing carbon footprint, there is increased adoption of premium efficient gear drives and variable speed drives that offer significant energy savings compared to conventional technologies. Another major trend is the rising popularity of integrated switchgear panels especially in commercial buildings and data centers where multiple electrical components can be mounted, wired, and tested as a single enclosed stand-alone unit before installation. This eases construction and commissioning activities. Remote monitoring of switchgear panels is also gaining traction as it allows real-time equipment performance monitoring and predictive maintenance.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the switchgear market is moderate as huge capital investments are required to produce switchgears. However, the availability of raw materials and presence of new technologies poses threat.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of several switchgear manufacturers and availability of substitutes providing buyers with options.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used for manufacturing switchgears are available from multiple sources.
Threat of new substitutes: The threat of new substitutes is moderate owing to technological advances and introduction of innovative products. However, switchgears are entrenched products requiring high capabilities.
Competitive rivalry: The competitive rivalry in the market is high due to presence of several global and regional players offering varied products. Manufacturers differentiate their offerings on the basis of quality, design and pricing.
Key Takeaways
Global Switchgear Market Demand is expected to witness high growth over the forecast period.
Regionally, Asia Pacific dominates the market and is expected to continue its dominance owing to rapid industrialization and infrastructural developments in the region. China, India and ASEAN countries are major markets in Asia Pacific.
Europe is another prominent regional market for switchgears driven by high demand from utilities sector. Well established grid infrastructure and stringent regulations regarding safety and quality are factors contributing to growth of switchgear market in Europe. Germany, UK and France account for major share.
Key players operating in the switchgear market are Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Lenze SE, Flender Ltd, Nord Drivesystems Pvt Ltd., Bosch Rexroth AG, Zollern GmbH & Co. KG, INGECO GEARS Pvt. Ltd, Kngear, Essential Power Transmission Pvt. Ltd., Bonfiglioli Drives Co. Ltd., and Elecon Engineering Company Limited. The market players are focusing on new product launches, expansions and acquisitions to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it