Asia Pacific Switchgear Market - By Voltage (LV, MV, HV), By Insulation (Air, Gas, Oil, Vacuum), By Current (AC, DC) By Application (Residential, Commercial & Industrial, Utility) & Forecast, 2024 – 2032

Asia Pacific Switchgear Market Size

Asia Pacific Switchgear Market size was valued at USD 56.9 billion in 2023 and is projected to grow at a CAGR of 6.8% between 2024 and 2032. The introduction of advanced, adaptable, and secure power distribution technologies has established a sustainable foundation for the industry. While manufacturers and suppliers have continuously refined their R&D efforts to broaden and improve their product offerings, significant investments from leading industry players to integrate versatile technological platforms have marked a significant milestone. Furthermore, consumer preferences for deploying these products to protect the environment and prolong the lifespan of electrical infrastructure have contributed significantly to the industry's advantages.
 

A switchgear is a stationary electrical device which is used to transfer electrical energy within two or more circuits using electromagnetic induction. In recent years, the switchgear industry has seen a significant increase in demand, primarily due to the growing need for effective control systems in Transmission and Distribution (T&D). This upsurge is driven by several factors, including the increasing demand for refurbishing existing electrical infrastructure and rising investments in grid infrastructure projects. In addition, the lack of efficient and reliable electrical networks in developing nations, combined with a shift toward upgrading existing infrastructure in developed countries, has created a favorable business environment for the switchgear industry.

While the power supply management industry remains a primary concern, it's essential to acknowledge that regional regulatory and geopolitical constraints have consistently hindered its growth. Turmoil in various countries has the potential to exert a significant impact on energy markets, thereby disrupting the dynamics of the industry. Political instability and associated risks can have far-reaching consequences, affecting the stability of local, regional, and even global energy markets by deterring investments or causing disruptions in the energy supply chain.
 

COVID-19 Impact

The switchgear industry experienced a decline in overall installations and deployments across the power sector due to the global impact of the pandemic. However, the power sector, being a necessity and the backbone of the economy, has shown resilience, and ongoing developments in renewable power generation and the refurbishment of energy equipment have had a positive impact on the industry in the post-COVID-19 period. Government initiatives aimed at providing sustainable power solutions, coupled with ambitious plans to enhance grid infrastructure with efficient power systems, are expected to significantly influence market dynamics.
 

During the COVID-19 pandemic, the industry saw some installations and deployments of power solutions, albeit with certain restrictions imposed by governments on various construction sites. The increasing demand for the refurbishment and replacement of aging electrical components, along with substantial investments in the modernization of grid networks, will further contribute to a positive business outlook for the industry.
 

Asia Pacific Switchgear Market Trends

The increasing adoption of distributed generation and smart grid networks has compelled installers to embrace effective power supply units. Furthermore, the growing importance of heavy-duty industrial machinery, especially for large-scale motor control operations, is expected to drive the demand for circuit protection equipment. The substantial migration of populations to suburban areas, driven by an increasing reliance on manufactured goods, has heightened the focus on expanding residential, commercial, and industrial electricity networks.
 

Additionally, the expansion of electric transportation networks, industrial process units, and Special Economic Zones (SEZs) in developing economies has spurred the demand for global switchgear solutions. The industry has gained significant momentum, thanks to supportive government initiatives aimed at deploying and expanding power grid infrastructure. These efforts are often complemented by the development of stand-alone micro-grid projects in areas with limited access to electricity.
 

Asia Pacific Switchgear Market Analysis

Based on voltage, the Asia pacific switchgear market is segmented as LV, MV, and HV. The LV segment held a majority market value of more than USD 31.6 billion in 2022. The industry has been significantly influenced by a range of regulatory mandates and guidelines aimed at standardizing products and shaping deployment and manufacturing trends worldwide. Regulators and installers are particularly focused on grid-isolated zones, recognizing their substantial potential for market expansion and business growth. Furthermore, the increasing demand for energy, coupled with favorable consumer preferences for sustainable electricity networks, is expected to drive the segment demand.
 

Based on insulation, the Asia pacific switchgear market is segmented as air, gas, oil, vacuum, and others. Vacuum insulation currently dominates the market share of more than 56.8% in 2022 owing to its lower competitive pressure from other well-established insulation technologies and its high level of reliability among consumers. This product has experienced increased demand thanks to its cost-effectiveness, dependable and safe operations, as well as its leak-free technology. As a result, its versatility in various applications and the continuous improvement of its technological features are expected to positively influence the demand for vacuum-insulated distribution components. Over the years, vacuum insulation technology has gained momentum due to its regional advantages and its ease of manufacturing and installation. While these components may have higher initial costs compared to alternative insulation technologies, they have garnered preference among utilities and consumers due to their longer lifecycles and lower maintenance expenses.
 

Based on current, the Asia pacific switchgear market is segmented as AC and DC. The increasing need for swift fault clearance capabilities, combined with the rising demand for DC (Direct Current) systems, is expected to drive the demand for DC power distribution components. The ability to support interconnections with AC (Alternating Current) circuits due to lower operational losses will further encourage the adoption of these products. Long-distance electrification networks often incorporate DC infrastructure due to its advantages, such as lower operational losses and effective resistance. Consequently, DC units are more commonly used for effective electricity supply, particularly in high-voltage transmission lines, as opposed to low-voltage distribution networks. Nevertheless, the technology faces limited adoption within the power distribution component industry due to its significant reliance on AC infrastructure.
 

Based on application, the Asia pacific switchgear market is segmented as residential, commercial & industrial, and utility. The commercial & industrial application is set to grow at a CAGR of over 6.1% through 2032. Substantial suburban migration, coupled with supportive regulatory initiatives aimed at improving living conditions for urban and domestic residents, has spurred urbanization and commercial growth across the Asia Pacific region. This trend has resulted in a notable increase in population density in cities and has prompted efforts to electrify grid-isolated regions, consequently leading to a significant surge in energy consumption.
 

The noticeable increase in peak load demand has necessitated utilities and installers to invest in upgrading and expanding versatile electric supply components to ensure the reliability and security of the grid. As a result, the growing demand for efficient power distribution networks, driven by the rising energy requirements, is expected to have a positive impact on the distribution component industry landscape as a whole.
 

The Switchgear market across China held a market share of over 32% in 2022. China's ongoing urbanization and industrialization were driving significant demand for switchgear, especially in new urban developments and industrial zones. China has been actively pursuing the development of smart grids to enhance energy efficiency and grid management. This has led to increased investments in advanced switchgear technologies capable of supporting smart grid functions. China has been a global leader in renewable energy deployment, particularly in wind and solar power. The integration of renewable energy sources into the grid has driven the need for advanced switchgear to manage and control the fluctuating power supply. To support long-distance power transmission and connect remote renewable energy projects, China has been investing in HVDC technology. This has created demand for specialized HVDC switchgear. Concerns about environmental impacts, including greenhouse gas emissions associated with certain types of switchgear, have influenced product development and technology choices. The Chinese government has been implementing stricter energy efficiency standards for switchgear, encouraging the adoption of more energy-efficient models.
 

Asia Pacific Switchgear Market Share

Some of the major business players operating across the Asia Pacific switchgear market are:

• ABB
• Siemens
• GE
• Mitsubishi Electric Corporation
• Schneider Electric
• Ormazabal
• Bharat Heavy Electricals Limited
• CG Power and Industrial Solutions Limited
• Chint Group
• Eaton
• Hyosung Heavy Industries
• Lucy Group Ltd
• HD HYUNDAI ELECTRIC CO., LTD
• Toshiba Corporation
• Powell Industries
• Fuji Electric Co., Ltd 
• Hitachi Ltd
   

These players focus on new product launch & commercialization and strategic partnerships for market expansion. Furthermore, these players are increasingly investing in research & development activities, which enable them to introduce innovative products and garner maximum revenue in the market.
 

Asia Pacific Switchgear Industry News:

• In February 2020, Eaton Corporation acquired Power Distribution, Inc (PDI), a leading supplier of power monitoring, static switching, and power distribution equipment & services for industrial & commercial data centers. This acquisition helped the company to expand its data center power monitoring & distribution solutions.
   
• In April 2022, Bharat Heavy Electricals Ltd. (BHEL) developed a bus potential Switchgear module for Gas Insulator Systems (GIS). This model will reduce the cost of power Switchgears 90% with the help of indigenous power Switchgears. Currently, this model is installed and commissioned at a substation in Haryana.
   

Asia Pacific 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

• LV
• MV
• HV

By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

By Current

• AC
• DC

By Application

• Residential
• Commercial & Industrial
• Utility

The above information is provided for the following countries:

• China
• Japan
• South Korea
• India
• Australia