New York, July 17, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Switchgear Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06459649/?utm_source=GNW
Key Highlights
In an electrical power system, Switchgear is the device that controls, regulates, and switches on or off the electrical circuit. Switches, fuses, circuit breakers, isolators, relays, current, and potential transformers, indicating instruments, lightning arresters, and control panels are examples of switchgear devices. The power supply system is linked directly to the switchgear system. It is positioned on the high and low-voltage sides of the power transformer. It is used to switch off the equipment’s power so that it may be examined and maintained and clear the issue. When a power system fails, a high amount of current runs through the equipment, damaging it and interrupting service.
The rapid development of electricity in rural areas and expanding energy output have increased the need for a wide range of electrical equipment. Increased regional government goals for bringing power to rural regions and increased investment in this industry are the major Switchgear Market trends predicted to drive market expansion. It is an electrical component used in a circuit to control, monitor, and regulate it. It ensures operational safety, cost-effectiveness, and availability in various residential, commercial, industrial, and utility applications.
Switchgear equipment is fundamentally used in complex electrical substations to withstand fluctuating operating voltage in highly volatile environmental conditions. Developing new industrial structures, including powerplants for safe and reliable operations, is further estimated to stimulate market growth. Increasing investments to develop renewable energy, along with favorable norms of the governments to support the new technology, are anticipated to foster the industry landscape.
With the help of monitoring technology, Switchgear informs maintenance personnel when aging and over-used equipment will break, allowing them to make better decisions by supplying real-time data showing defects and improvement opportunities. Aside from those mentioned above, there are certain constraints as well, such as environmental variables such as temperature and humidity, as well as water seepage from the ground, which can impact the performance of switchgear electrical networks, particularly those located outside.
As countries approach full lockdown to prevent the spread of COVID-19, different enterprises in the power industry across multiple areas have been forced to shut down their production plants and processing industries. Companies throughout the globe have delayed significant power projects, investments, and acquisitions, restricting market development. Furthermore, the COVID-19 epidemic has impacted current and future investments in the power industry. After the pandemic, production plants resumed, and the market’s growth is growing rapidly.
Switchgear Market Trends
Growing Focus on Infrastructure and Renewable Energy Sources Drives the Market Growth
The upgradation of the aging infrastructure is further anticipated to power the market’s growth. For instance, around 65 gigawatts of European onshore wind turbines would reach end-of-design-life by the next five years. The upgradation of equipment concerning extending the life span would drive the market for switchgear. Another significant factor fueling the switchgear market growth is the rising construction activities worldwide, owing to the increasing focus on infrastructure. The construction industry is witnessing growth in emerging economies, including China and India, apart from the advanced economies, like the United States, Canada, and countries in the European Union (EU), which are already focusing on their existing infrastructure.
The demand for HVDC transmission systems is expected to supplement further the integration of large-scale renewables located far away from the demand centers in China’s power grid. This, in turn, is likely to drive the high-voltage switchgear market in the country.
For instance, in April this year, Hitachi Energy launched its OceaniQTM portfolio for the offshore energy market. Oceania addresses applications for fixed platforms, floating structures, and subsea power systems for wind, marine, and other offshore operators by combining cross-industry expertise from the power and marine industries. Hitachi Energy develops its OceaniQ products, services, and solutions in close collaboration with clients and partners to meet the unique demands of offshore energy operators.
According to IRENA, the global installed renewable energy capacity reached 3.1 terawatts last year, a 9.3 percent increase over the previous year. The renewable energy market has grown in recent decades due to falling renewable technology prices and concerns about the environmental impact of more traditional sources.
Using the direct current in solar plants, wind turbines, energy depots, and charging stations provides several efficiency benefits. However, safe switching with direct current sets tremendous demands on electromagnetic components. They must be able to regulate high voltages and electric arcs that occur with DC applications and safely shut them off.
According to EIA, Asia and Oceania produced over 4,000 terawatt hours of emission-free electricity last year, with renewables accounting for approximately 3,400 terawatt hours.
Asia-Pacific Dominates the Market
The Asia-Pacific market is expected to drive the global switchgear market during the forecast period. The significant factors contributing to the dominance in this region are the upgradation of the aging electrical grid infrastructure and increasing electricity demand in the region.
Developing countries, like India in the region, are extensively upgrading and installing new transmission lines and distribution networks to uphold the infrastructural developments, which is expected to be a significant driver of the global switchgear market.
The presence of several rural areas in India and the accent on providing power to these areas by the government of India are the factors expected to contribute to the demand for switchgear in Asia-Pacific. The rise in the switchgear application is also reflected in developments in product design and an increase in the overall power grid efficiency.
According to EIA, the annual investment of china in energy efficiency in the buildings sector amounted to USD 29 billion this year. Such investments in the region’s end-user sector thereby support the market studied’s growth.
Furthermore, According to IRENA, China, India, and Japan have been leading countries in this region for installing renewable energy in the last year. China was the leader in renewable energy installations, with a capacity of around 1,020 gigawatts in the Asia-Pacific region.
Switchgear Industry Overview
The switchgear market is highly fragmented, with key players like ABB Ltd., Havells India Ltd., Mitsubishi Electric Corporation, Schneider Electric, and Siemens AG, among others. Players in the market are adopting strategies such as partnerships, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In May 2022, Schneider Electric, one of the global leaders in energy management and automation digital transformation, launched its new SureSeT MV switchgear product for the North American market. SureSeT is a solution to meet clients’ growing space optimization and operational efficiency demand.
In April 2022, Siemens AG, Smart Infrastructure, provided its newest environmentally friendly switchgear technology to EWE NETZ GmbH, which maintains highly efficient power networks in Germany. EWE NETZ has completed a new medium-voltage switchgear installation in Brake, Lower Saxony, that features seven fluorine gas-free NXPLUS C 24 circuit-breaker panels from Siemens’ green-blue GIS line. As a result, EWE NETZ is one of the first grid operators in Germany to use environmentally beneficial insulating gas.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06459649/?utm_source=GNW
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