The demand for electricity in industrial and consumer applications is growing by leaps and bounds. And the demand for safe and reliable technology to harness electrical power is also growing worldwide. The outlook for the global switchgear business market remains promising in the coming years, and growth is expected in most sectors.
Switchgear Business Demand
Switchgears combine electrical disconnect switches, fuses, and circuit breakers both to disconnect equipment as well as to avoid downstream faults. By allowing the isolation of electrical equipment within a broader system, switchgears provide vital protection within modern industrial applications heavily reliant upon high-voltage electricity. Modern switchgears can conduct and control up to 1,1000kV. The five primary methods of quenching electrical arc used by modern switchgears include:
- Carbon Dioxide
As global demand for electricity increases, there is an ever-growing demand for systems to protect expensive electrical equipment, help re-connect power after an outage, and ensure that power generation plants are safe and consistent in providing electricity. The world is consuming more and more electricity, and the switchgear business is a vital component in meeting this demand.
According to a recent forecast, the global switchgear market is projected to continue growing throughout the 2017-2020 period considered in the Global Switchgear Market, Forecast to 2020. The study concluded that, while the low-voltage segment dominates in terms of revenue, both the high-voltage and medium-voltage switchgear markets are quite well-established and growing steadily. This growth is driven by not only rising power demand, but also factors such as growing renewable and industrial establishments, growing distributed energy resources, natural disasters, and the need for replacing aged infrastructure.
Similar studies have also concluded that the switchgear business is booming. The study, Switchgear Market Growth, Future Prospects and Competitive Landscape, 2017-2025, found considerable growth among all the major manufacturers of switchgears. These leading switchgear manufacturers include, among others:
- Siemens (our client)
- Schneider Electric (our client)
- ABB (our client)
- Mitsubishi Electric
- Hyundai Heavy Industries
- Toshiba Corporation
The primary region most associated with growth in previous years has been Asia Pacific, and the trend will most likely continue. However, North America is a close runner up with promising gains being made in several key areas of the switchgear business. In 2016, the North American switchgear market reached about $90 million USD, up $8 million from just eight years prior. Over the coming years, this growth is expected to continue.