SWITCHGEAR MARKET ANALYSIS

Market Challenges And Opportunities

Global Switchgear Market Drivers:

Growing infrastructure of smart electricity grid to drive the market growth

Electric infrastructure is aging in several countries and burden on these infrastructure is also growing. The global power generation and transmission sectors are adopting modernization of the grid in order to make it more resilient and smarter with the use of advanced technologies, controls, and equipment. Smart grids are capable of communicating and working together to deliver electricity more reliably and efficiently. Using these grids can offer vast reduction in the duration and frequency of power outages, storm impacts, and it can restore services at faster pace, whenever there are power outages. Thus, adoption of smart electricity grid infrastructure is growing all over the world, which is expected to drive growth of the market.

Increasing government initiatives to boost the market growth

Growing number of governments of countries around the world are focusing on adoption of renewable energy sources and advancing existing infrastructure of power generation. For instance, as per the International Energy Agency (IEA) Renewables Report 2020, governments around the world, in October 2020, announced energy-related stimulus packages work US$ 470 billion that aim at production and consumption of energy. These stimulus involve grants, loans, tax incentives, and rebates. Thus, such initiatives by governments of countries are anticipated to boost growth of the global switchgear market during the forecast period.

Global Switchgear Market Opportunities:

Growing adoption of switchgear intelligence is expected to bring growth opportunities in the global switchgear market over the forecast period. The inherent intelligence is growing in switchgear systems, which allows predictive maintenance for minimizing the failure and downtime in the electric grid sites. Digitization has become the next revolution in the switchgear industry, which is driving the demand for low voltage switchgear industry. Thus, the global market is likely to witness lucrative opportunities in the global switchgear market during the forecast period.

Increasing penetration of advanced technologies such as Internet of Things (IoT) and Smart technologies in switchgear industry is anticipated to generate business opportunities in the global switchgear market over the forecast period. The penetration of such advanced technologies is transforming the operation of medium-voltage switchgear systems. The usual lifespan of these equipment is 15 to 30 years, or longer. However, technology and equipment standards continue to change at faster pace. The technological advancements in switchgear systems are enhancing the offerings such as increased lifespan, due to which demand for these systems is growing, which in turn is driving the market growth.

Global Switchgear Market Restraints:

Stringent regulations towards safety and environment to hinder the market growth

When switchgears are not operated properly with safety precautions, they can cause hazards, such as fire and explosions, shock and burns, mechanical hazards, and heat build-up. Switchgears are subjected to the EU Regulation 517/2014. The use of SF6 is playing a major role in electrical energy technologies, however; it also has disadvantages such as a very high potential of global warming. Thus, governments around the world are imposing stringent regulations regarding safety and environmental impact of this technology, which affects adoption of this systems. Thus, this factor is expected to restrain growth of the global switchgear market during the forecast period.

Functional disadvantages of switchgear systems to limit the market pace

The use of switchgear systems also has disadvantages such as arc flashing, high temperature, and over pressure. An arc flash generates only a brief light flash before it extinguishes itself in a domestic condition. In industrial or commercial settings, voltages and currents are very high due to which, more energy is released due to electrical breakdowns. The result of this occurrence can be a major explosion with extreme heat, blinding light, toxic chemicals, massive pressure waves, and deafening noise. Thus, this factor is expected to hinder growth of the global switchgear market during the forecast period. However, market players are focusing on technological development to offer solutions to overcome these problems. This is likely to support growth of the global switchgear market over the forecast period.