The global switchgears industry has been forecast to reach a value of $49 billion by 2018, driven by spiralling energy demand and the increase in investments in energy infrastructure.
In an electric power system, switchgear is the combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate electrical equipment.
A switchgear is used both to de-energize equipment to allow work to be done and to clear faults downstream. This type of equipment is important because it is directly linked to the reliability of the electricity supply.
Energy generation, transmission, and distribution are the three core areas which require utmost attention in the electric power industry. The increase in electricity demand worldwide has been demanding a parallel rise in electricity generation capacity.
Against this backdrop, power generation companies across the globe, both state-owned and private electricity generation firms, are stepping up production capacities.
While developing markets are expected to witness development of new power plants, developed markets such as the US and Europe are expected to see planned expansions in their existing power generation capacity and development of new renewable power generation facilities.
Strong investments in electric utilities are therefore helping generate demand for switchgears, which are critical components in electric power systems.
While electric utilities represent the largest end-use market for switchgears, future growth is forecast to stem from non-utility end-use markets such as industrial, commercial and residential sectors.
Industrial co-generation for reliable onsite power and cost savings is especially boosting demand for switchgears in the industrial sector. Resurgence in residential and commercial construction activity in most regional markets across the globe is helping drive demand for switchgears.
Steady growth in educational institutions, shopping malls, R&D facilities, retailing sector, defence establishments and government offices is also expected to generate demand for medium and low voltage switchgears in commercial and institutional markets in the coming years.
The market is also expected to benefit from technology advancements and product developments. With growing competition in the market, key factors that can help a company differentiate their product offerings from those of competitors are quality, reliability and durability.
For more information on the global switchgears market, see the latest research: Global Switchgears Market
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