AC Switchgear Market Size - By Voltage (Low, Medium, High), By Insulation (Air, Gas, Oil, Vacuum), By Application (Residential, Commercial & Industrial, Utility), Regional Outlook & Forecast, 2024 – 2032

AC Switchgear Market Size

AC Switchgear Market was valued at USD 126.3 billion in 2023 and is projected to expand at more than 7.3% CAGR from 2023 to 2032. Propelled by the need for efficient Transmission and Distribution (T&D) control systems. This increasing demand is attributed to several factors, including the refurbishment of existing electrical infrastructure and heightened investments in grid infrastructure. Additionally, the lack of reliable electric networks in developing nations, coupled with a shift toward enhancing existing infrastructure in developed countries, has contributed to creating a favorable business environment in the switchgear industry.
 

While some industries have managed to avoid the digital transformation that has swept the globe, the electricity sector has largely remained on the outskirts of this trend. In the power sector, investments in IT implementations have been relatively limited, as major players have primarily concentrated on expanding their capacity in their respective segments.
 

Many developing and developed regions worldwide rely on imported components to meet the growing demand for expanding and upgrading their electrical infrastructure. Manufacturers globally have been consistently emphasizing the reduction of their overall production costs to ensure long-term profitability and effective penetration in the industry. Nevertheless, a scarcity of raw material resources has compelled regional installers and component suppliers to depend on imports to meet the increasing energy demand.
 

COVID-19 Impact

The AC switchgear industry experienced a decrease in the installation and deployment of switchgear within the power sector due to the global impact of the pandemic. However, given the critical role of the power sector as an essential backbone of the economy and ongoing developments in renewable power generation and the refurbishment of energy equipment, the industry has shown signs of recovery and growth post-COVID-19.
 

AC Switchgear Market Trends

The rapid pace of commercialization and industrialization, aimed at boosting overall economic growth, along with Foreign Direct Investment (FDI) initiatives supporting industrial and commercial sectors, will significantly influence the demand for both primary and secondary electric distribution networks. Moreover, ongoing digitalization has played a substantial role in creating a competitive business environment, driven by the increasing energy requirements of communication base stations and data centers. The rising adoption of advanced, energy-efficient, reliable, and fire-resistant electrical components has created a favorable business landscape.
 

AC Switchgear Market Analysis

Based on voltage, the low voltage segment is set to grow at a CAGR of more than 7.1% through 2032. The industry has been significantly influenced by various regulatory mandates and guidelines aimed at standardizing products and shaping manufacturing trends on a global scale. Grid-isolated zones have become focal points for numerous regulators and installers due to their substantial potential for market expansion and business growth. Furthermore, the increasing energy demand and favorable consumer preferences for sustainable electricity networks will drive the growth of the low voltage market.
 

Based on insulation, the vacuum insulation currently dominates the market share due to its limited competition from other established insulation technologies and high levels of consumer trust. This product has experienced a surge in demand because of its cost-effectiveness, dependable and safe operations, as well as its leak-free technology. Therefore, the versatile applications of this product and its continually improving technological features will have a positive impact on the demand for vacuum-insulated distribution components. Over time, this technology has gained momentum due to its regional proximity advantages and ease of manufacturing and installation.
 

Based on application, the commercial & industrial segment held a market share of over 30.3% in 2022. Large-scale suburban migration, coupled with supportive regulatory measures aimed at ensuring the well-being of domestic residents, has resulted in urbanization and commercial growth worldwide. This population increase in cities, combined with initiatives to electrify grid-isolated regions, has led to a substantial surge in energy consumption. The noticeable increase in peak load demand has compelled utilities and installers to enhance and expand versatile electric supply components to ensure the reliability and security of the grid.
 

The Europe AC switchgear market is poised to showcase around 8.2% CAGR from 2023 to 2032. The electricity distribution business has diverse prospects across Europe. It varies in the size and number of operational areas, network characteristics, customers, and the ownership structure. Models utilized to review tariffs & revenues reflect this diversity to provide scope for effective comparison. Despite the diversity, Distribution System Operators (DSOs) in the region generally impart high supply quality & reliability for their customers. However, DSOs have been facing an accruing challenge of integrating the rising variable & decentralized generation share and new loads into the networks.
 

AC Switchgear Market Share

ABB commands a substantial share in the AC switchgear industry, distinguished for its extensive experience in engineering and producing diverse switchgear types, encompassing AC Switchgear, DC switchgear, among others. With a rich history deeply rooted in the transmission and distribution sector, the company has delivered switchgear solutions across a broad spectrum of applications, spanning commercial, industrial, and utility sectors.
 

Some of the key market players operating across the AC switchgear industry are:

• ABB
• Mitsubishi Electric Corporation
• Eaton Corporation
• Toshiba International Corporation
• Schneider Electric
• CG Power & Industrial Solutions Ltd.
• General Electric
• Siemens Energy
• HD HYUNDAI ELECTRIC CO., LTD.
• Chint Group
• Hyosung Heavy Industries
• Fuji Electric Co., Ltd.
• Hitachi Energy Ltd.
• Powell Industries
• Lucy Group Ltd.

AC Switchgear Market News:

• In November 2021, ABB launched the NeoGear 4-pole low-voltage switchgear and the 690 V versions. The product is designed to eliminate harmful exposures to live parts and further utilizes 92% fewer busbar components compared to traditional switchgears with 90% fewer electrical joints that improve switchgear availability.
   
• In April 2021, Siemens launched its new 8DJH 24 switchgears along with RMU for up to 24 kV, which is completely free from the fluorinated gases. The MV switchgear uses clean air technology, which is a climate-neutral insulation medium consisting of exclusively natural components from ambient air. The new technological advancement eliminates Sulfur Hexafluoride (SF6) as an insulating medium, or any gas mixture built on fluorine gases.
   

This AC switchgear market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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By Voltage

• Low
• Medium
• High

By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

By Application

• Residential
• Commercial & Industrial
• Utility

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea 
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Oman
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Peru
  • Argentina