The switchgear market is projected to grow significantly, reaching a value of US$ 155.28 billion by 2031, up from US$ 92.34 billion in 2023, reflecting an estimated compound annual growth rate (CAGR) of 6.7% during the period from 2023 to 2031.

The market for switchgear is categorized geographically into several regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America. As of 2023, Europe is experiencing notable growth, primarily driven by the increasing adoption of renewable energy sources. According to a report from the European Union, renewable energy accounted for 43% of the total energy production in the EU in 2022, making it the largest contributor to energy generation. Additionally, electricity consumption in the EU reached 23% of the final energy use, sourced from various means. Both renewable energy and fossil fuels contributed equally to electricity production at 39%, with nuclear energy providing 22%. Among renewable sources, wind energy led with a 15% share, followed by hydropower at 10%, solar energy at 8%, and biofuels at 5%. This surge in renewable energy utilization is propelling the demand for switchgear across electrical grids, residential setups, industrial applications, and public infrastructure in Europe.

In Europe, numerous companies are actively pursuing initiatives to innovate and enhance switchgear technology. For instance, in October 2022, ABB inaugurated the first Climatic Test Chamber in Europe designed for testing energized Medium Voltage (MV) switchgear. This facility can simulate extreme environmental conditions, including pollution testing at temperatures ranging from -50?C to 80?C. The switchgear developed by ABB is engineered to maintain power supply even under severe weather conditions that could potentially disrupt the grid.

The analysis of the switchgear market encompasses several segments, including insulation type, voltage level, current type, and end-user applications.

Regarding insulation, the market is divided into gas-insulated, air-insulated, and other types. Gas-insulated switchgear (GIS) is preferred over air-insulated switchgear (AIS) due to its superior dielectric strength. The most commonly used insulating gas in switchgear is sulfur hexafluoride (SF6), which is contained in a sealed tank that houses the electrical connections. The industrial and power distribution sectors are witnessing a rising demand for gas-insulated switchgear, prompting manufacturers to expand their production capabilities. For example, in May 2024, Siemens India announced plans to increase the capacity of its gas-insulated switchgear manufacturing facility by approximately 23%, aiming to produce around 22,000 feeders from its Ring Main Unit and 1,500 panels from its medium-voltage gas-insulated switchgear unit in India.

Additionally, the increasing demand for electricity is a significant factor driving the growth of the switchgear market. The introduction of SF6-free switchgear is anticipated to create new trends in the market in the upcoming years.

In terms of voltage classification, the switchgear market is segmented into low voltage, medium voltage, and high voltage categories. Low-voltage switchgear is utilized for the safe and efficient distribution of power at voltages up to 1,000 volts and currents up to 6,000 amps. Key customer segments for low-voltage switchgear include distribution utilities, industrial facilities, residential and commercial buildings, and agricultural users. Common devices within the low-voltage switchgear category include heat overload and protection relays, contactors, starters, distribution boards, switches, high rupturing capacity fuses, air circuit breakers, molded case circuit breakers, motor protection circuit breakers, miniature circuit breakers, residual current devices, and fuse and fuse switch units.

Prominent players in the switchgear market include 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, among others.

The forecast for the switchgear market is based on a combination of extensive secondary and primary research findings, including key publications from companies, data from industry associations, and various databases. Comprehensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative insights related to the growth of the switchgear market. This research process also aids in providing an overview and forecast of the market across all segments. Furthermore, numerous primary interviews have been conducted with industry stakeholders to validate the data and obtain analytical insights. This includes discussions with industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the switchgear sector.