Low And Medium Voltage Switchgear Market to grow by USD 45.84 Billion (2024-2028), driven by Increasing electricity generation,with AI driving market transformation - Technavio

The global low and medium voltage switchgear market is projected to grow by USD 45.84 billion at a CAGR of 7.1% from 2023 to 2028. Key drivers include the rising switchgear demand, increasing electricity consumption, infrastructure development, and the expansion of renewable energy switchgear projects. Additionally, advancements in switchgear technology are enhancing electrical distribution efficiency and supporting smart grid solutions.Regulations limiting SF6 gas emissions are also pushing switchgear suppliers toward innovative solutions, reshaping market dynamics and creating new opportunities and challenges. The market is further driven by the need for industrial switchgear in manufacturing and energy-intensive industries, as well as grid modernization efforts aimed at improving electrical network reliability and efficiency.AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Market Segmentation

By Type

• Gas-Insulated Switchgear (GIS)
• Air-Insulated Switchgear (AIS)

By Installation Site

• Indoor
• Outdoor

By Geography

• APAC

  • China

  • India

• Europe

  • Germany

  • UK

• North America

  • US

• Middle East and Africa

• South America

Market Insights by Type

The GIS segment is expected to witness substantial growth during the forecast period due to its reliability, reduced maintenance, and space efficiency. GIS, along with circuit breakers, switches, HRC fuses, and distribution boards, plays a crucial role in expanding electrical infrastructure and supporting the transition to renewable energy.

Key challenges for this segment include safety concerns, environmental regulations, and integration of distributed energy resources. However, advancements in digital substations and smart grid IT systems are fostering innovation and commercialization.

Regional Market Trends

APAC (50% Market Growth Contribution)

• China: Rising electricity demand due to urbanization and increasing industrial activity.
• India: Expanding renewable energy projects and infrastructural advancements.

Europe

• Germany: Transition to renewable energy sources, driving switchgear demand.
• UK: Aging electrical infrastructure requiring modernization.

North America

• US: Growth in construction activities and smart grid integration.

Middle East and Africa

• Investments in power infrastructure and renewable energy projects.

South America

• Expansion of distributed energy resources and grid modernization.

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Market Dynamics

Drivers

• Increasing electricity generation: Demand for stable power distribution is rising, necessitating low and medium voltage switchgear.
• Infrastructure development and renewable energy adoption: Growth in construction activities and the shift to solar and wind energy require modern switchgear.

Trends

• Focus on infrastructure and renewable energy: Countries are investing in upgrading electrical networks to support sustainability goals.
• Smart grid adoption: The integration of digital substations and automation is improving efficiency.

Challenges

• Regulations restricting SF6 gas emissions: Manufacturers are forced to explore alternative insulating technologies.
• High initial investment and replacement costs: Installation and integration expenses can slow market adoption.

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Key Players

• ABB Ltd.
• CG Power and Industrial Solutions Ltd.
• DRIESCHER GmbH
• Eaton Corp. Plc
• Efacec
• Fuji Electric Co. Ltd.
• General Electric Co.
• Hyosung Heavy Industries Corp.
• LS ELECTRIC Co. Ltd.
• Meidensha Corp.
• Mitsubishi Electric Corp.
• Powell Industries Inc.
• Regal Rexnord Corp.
• Schneider Electric SE
• Siemens AG
• SIM Switchgear Ltd.
• Switchgear for energy technology GmbH
• TGOOD Global Ltd.
• Toshiba Corp.
• Zhejiang CHINT Electrics Co. Ltd.

Future Insights

The low and medium voltage switchgear market is expected to grow significantly due to ongoing infrastructure developments, renewable energy expansion, and technological innovations in smart grids. While challenges such as SF6 gas regulations and high investment costs persist, advancements in GIS, digital substations, and alternative insulation technologies will drive market expansion.