Global Switchgear Market 2015

A switchgear is a combination of devices designed to control, regulate, meter and protect electric generation, transmission and distribution equipment, and electric motor control systems. The global market for switchgears is anticipated to do well in the coming times as demand is likely to be driven by medium and high voltage types of switchgears. Revenues in the switchgears market are closely tied with the demand for transformers, therefore, any increase in demand for transformers will lead to a rise in demand for switchgears and vice versa.

The global gas insulated switchgear market is expected to show impressive growth in the future. The market for switchgears will continue to evolve globally, led mainly by escalating demand for renewable sources of energy, growth in construction and industrial sectors especially in developing countries, and government efforts to upgrade and modernize electricity transmission and distribution systems. Although environmental regulations offer scope for expansion, volatile oil prices, rising raw material prices, and restricted flow of investments in the electricity sector act as immediate stumbling blocks.

Rising investment in alternative sources of energy is expected to contribute to the growth of Medium Voltage and Low Voltage switchgears used for switching and general protection. Moreover, this application area will also trigger demand for miniature circuit breakers (MCB) and molded case circuit breaker (MCCB).

Key players reigning over the global switchgears marketplace include ABB Ltd, AREVA T&D, Eaton Corporation, General Electric Company, Mitsubishi Electric Corporation, Powell Industries Inc., Siemens AG, Schneider Electric SA, amongst others.

Against a backdrop of tough economic climate, corporate success will critically hinge upon the ability to research and develop new innovative products at competitive prices and validate new applications for existing products to distinguish themselves from that of competitors. Several technological developments such as arc-resistant technology and magnetic actuation have been undertaken by various original equipment manufacturers (OEMs) focusing on enhancing the reliability and efficiency of switchgear equipment. Growth in switchgears will also be sustained by government directives to replace older redundant systems to achieve operational safety, and security in industrial establishments.