The global switchgear and switchboard equipment market is expected to grow to 174.49 billion in 2022, at a compound annual growth rate of 12.2%. The increase was primarily due to companies rescheduling operations and impacting from COVID-19, which earlier led to restrictive containment measures including social distancing, remote work and the closure of business activities that caused operational challenges.
The market is expected to reach USD 253.93 billion by 2026, growing at a CAGR of 9.8%.The switchgear and switchboard equipment market includes sales of switchgear and switchboard equipment and related services used in various applications and industries such as power transmission and distribution utilities, residential, commercial, and more.Switchgear refers to a collection of switching devices used to control, protect and switch circuits and equipment.
- Switchboard refers to a power distribution process system consisting of panels with different switches and indicators, the main product types used to guide and control electrical switchgear and switchboard equipment are switchboards and switchgear.
- Switchgear is a device that controls, regulates, and turns on or off electrical circuits in an electrical system.Products are used in industry, manufacturing, and other applications in the residential, commercial and industrial sectors l end users.
Asia Pacific is the largest region for the switchgear and distribution equipment market in 2021.Western Europe is the second largest region for the switchgear and distribution equipment market.The regions are Asia Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.The demand for power generation is expected to drive the switchgear and switchboard equipment market.Electricity supply has become a necessary condition for economic development and poverty reduction.
The development of industrialization and urbanization requires continuous power supply, and the reliability of power supply depends to a large extent on the performance of switchgear.Hence, the demand for power generation is driving the demand for switchgear and switchboard equipment over the forecast period.For example, global demand for electricity rises by 2.1% per year to 2040 in the specified policy scenario, a primary energy increase to 2040.Unstable raw material prices are restraining the growth of the switchgear and power distribution equipment market.
Price fluctuations are due to lower quality materials being available at cheaper prices.Using lower quality products increases the risk of insulation breakdown or short circuit conditions and other failures.Hence, inconsistent pricing of switchgear raw materials is expected to hinder market growth.According to the Manufacturers Outlook 2019 survey among global switchgear manufacturing companies, the primary concern of about 79.8% of respondents is the cost of raw materials to manufacture switchgear.
Over the past few years, the need to install substations to restore normal power supply as quickly as possible in an emergency has been increasing.Installing mobile substations can restore power es in outdoor conditions or unforeseen circumstances and is functionally designed to provide temporary power as quickly as possible.In addition, these mobile substations contain generators, transformers, metal-clad switchgear, outdoor load-break switches and circuit breakers for network expansion and temporary switchyards. Increasing adoption of mobile substations is one of the latest trends positively impacting the switchgear and switchboard equipment market.
Post time: Mar-30-2022