Switchgears Market

Switchgears Market Size

The global switchgear market was valued at USD 156.3 billion in 2024 and is estimated to reach the value of USD 317.5 billion by 2034, growing at a CAGR of 7.3% from 2025 to 2034, due to rising demand for electricity worldwide, thereby creating strong need for electrical systems and equipment.

The government across the world are relentlessly taking new initiative by bringing new projects with significant investments in electrical infrastructure. According to OECD estimates, worldwide investments in innovative city initiatives are projected to total around USD 1.8 trillion for metropolitan infrastructure projects, indicating substantial growth opportunities for advanced switchgear solutions.

Developed and developing companies are working on numerous projects in energy sectors, driving the need for electrical equipment, thereby creating the demand for switchgear worldwide. The switchgear will become a crucial need for all manufacturers in the world in almost every industry. This need will further increase with ongoing the reliance of technology for the manufacturers.

The companies in these industries, along with the considerable research and development, are bringing new innovation and development, transforming the landscape of switchgear market. For instance, Siemens introduced the 8DAB 24 and enhanced the NXPLUS C 24, focusing on industrialized and high-end ratings up to 24 kV and 2500 A. These products will have a huge role in the companies share in the industry.

This increasing demand necessitates substantial investments in power transmission equipment and distribution infrastructure. The industry is revolutionizing due to ongoing multiple projects in this industry. The electrical infrastructure is crucially carrying a demand for the electrical equipment, thereby creating a huge demand for switchgears.

Switchgears Market Trends

• The rising trends in switchgear is mainly advanced technology including AI, IoT, and blockchain. These technologies are creating major impact on the demand for switchgear. The rising preference for these technologies and growing use of AI in electrical industry, are significantly aiding the market growth.
  
• The economic changes brought by the developed economies is tremendous and this is what propels the integration of the AI in different sectors. In Germany, AI investment is expected to increase the national income by more than 13 percent by 2025, which is over USD 488 billion of economic value, demonstrating the growth potential of the technology.
  
• The increasing inclination of technology especially towards AI and IoT are transforming switchgear along with many other industries. AI adoption in enterprises has reached major milestones. Over 80% of Adobe Experience Cloud clients use AI to enhance their web experience, and so their adoption of AI in digital business is nearly universal.
  
• Recent innovations reveal a tendency toward miniaturization and more effective utilization of available spatial resources. The shift towards size reduction and efficiency of space utilization can be seen in recent developments. For instance, Fuji Electric is dramatic saving switchgear, developing in December of 2022, which reduced the footprint of standalone models by 20% from previous models through proprietary analytical technologies.
  
• Nations like China and the United States are making considerable investments which are developing the switchgear industry at a higher rate. The magnanimous investment in smart grid investments depicts a foreseen elevation in importance where the State Grid Corporation of China put CNY 65 billion toward smart grid technology in 2021 in anticipation of energy consumption reaching 667.5 quadrillion British Thermal Units by 2025.
  

Switchgears Market Analysis

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• The switchgear industry was valued at USD 133.6 billion, USD 144.6 billion and USD 156.3 billion in 2022, 2023 and 2024 respectively. Government and companies, along with the mitigating operational costs, are complying with governmental regulations, and meeting climate goals. They are constantly trying to achieve crucial output in this market. They are making considerable investments in switchgear technology to reach those aims.
  
• The low voltage segment is anticipated to reach more than USD 180 billion by 2034 and will significantly grow in coming years mainly due to the rising preference for renewable energy across the world. According to data from Eurostat, renewable sources of energy are around 43% of total energy production in Europe in 2022, leading the continent in energy production.
  
• The medium voltage segment held around 55.1% market share in 2024, which is also growing with rising utility applications across the sector. There are numerous projects that are under construction which will significantly create a strong need for switchgear as well other electrical equipment. The medium voltage switchgear will preferably used in renewable energy sector as well as manufacturing.
  
• High voltage segment is also important due to growing preference for maximizing energy usage and enabling effective functioning. Companies in this industry are opting production innovation with consideration of better energy efficiency. For instance, Siemens’ Desigo innovated CC platform controls HVAC as well as lighting to lower energy expenditure by up to 30%.
  
• The switchgear marketplace comprises three segments: low voltage (LV), medium voltage (MV), and high voltage (HV) – classified on their purpose use in the electrical distribution. Lower voltage range switchgears have the widest sales capacity since they are employed for domestic and commercial purposes, thus increasing market weight. MV switchgear encompasses industrial and large-scale distribution while HV switchgear is integral for power transmission networks.
  

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• The vacuum insulation segment accounted for over 55.6% revenue share in 2024 and will grow with the CAGR of more than 6.8% through 2034 and will be further projected to grow in the coming years. It is mainly due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping the market grow.
  
• The switchgear market in Europe continues to be strong owing to the simultaneous efforts towards upgrading electrical grids, modernizing utilities and replacing inadequate infrastructure. A case in point is the European Union’s decision to allocate USD 5.84 billion from CEF towards energy infrastructure projects for 2021-2027 which have a focus on grid improvements.
  
• The gas insulation segment is anticipated to grow at a CAGR of over 7.7% through 2034. There is a rapid growth of innovation, along with the increase in gas consumption all over the world, in the gas insulation industry and technology. This facilitates the need for power distribution systems which gas-insulated switchgear (GIS) support by offering compact and reliable solutions.
  
• In 2024, the air insulation segment exceeded USD 10.6 billion since the projects in this segment are increasing tremendously. For instance, U.S., the INEC association  reported 44,265 construction projects in 2022, marking a 9.2% increase from the previous year, with 24,418 housing units approved.
  

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• The U.S. switchgear market in 2022, 2023 and 2024 was valued at USD 15.5 billion, USD 16.6 billion and USD 17.7 billion respectively. The primary shift can be attributed to the increased demand for energy operational management and the modernization of electrical infrastructure. The expansion of industries calls for new up-to-date robust and modular electrical power systems to be constructed.
  
• In 2024, North America switchgear market dominated more than 42.2% market share, which is expected to increase further by 2034, due to rising number of electrical infrastructure projects and industrialization in the U.S. Power systems operate infrastructure such as factories, manufacturing plants, and data centers which increasingly open up due to industrialization.
  
• China also holds crucial role in the growth of this market since China is a leading supplier of sensors, controllers, and automation equipment that form the backbone of Switchgear solutions. China in 2023 spent approximately USD 72 Billion in electrical infrastructure industry. This number show the importance of switchgear industry in China.
  
• In Germany, advanced switchgear technologies are developed and incorporated by top-class companies including Bosch, Siemens, and Schneider Electric. These German automates and energy systems that are already utilizing smart grids, energy storage, and IoT solutions, and are now starting to get implemented into buildings-especially for commercial and industrial projects in smart cities.
  
• Europe is always ahead when it comes to technology. These technological innovations in Europe have spurred the growth as well as demand for the electrical equipment remarkably. European association are crucially taking initiatives in this sector for its growth. For instance, the European Commission had approved the German government's USD 29.69 billion support scheme for renewable energy.
  
• Middle East & Africa region is also progressing gradually in the electrical infrastructure. Multiple companies are investing huge amount in the Middle East & Africa. As environmental concerns have grown, the Middle East has made consistent improvements in energy usage and efficiency through sustainable development. Dubai, for example, has implemented Energy Strategy 203 to efficiently control energy usage and cut significant carbon emissions by 2030.
  
• Saudi Arabia has become a hub for technology as well as building infrastructure in the world. For instance, Saudi Arabia started the Rua Al Madinah project in August 2022 to expand the Kingdom's tourism and pilgrimage industries. The building project was designed and carried out by Rua Al Madinah Holding Company, which is owned by PIF and is in line with Saudi Arabia's Vision 2030.
  

Switchgears Market Share

Top 4 companies including ABB, Siemens, General Electric and Eaton hold more than 40% market around the world on account of their large network all over the world. The giant companies continuously research the new product and solutions, making them vital player in this industry worldwide. These companies prefer a massive investment specially in R&D. Additionally, these companies executes various business expansion tactics to gain a significant market share in that industry.

Switchgears Market Companies

• ABB had the net sales of USD 24.26 billion in 2024 (Q3). In 2024, ABB, unveiled the 500 mm panel version of the UniGear ZS1, its latest in air-insulated medium-voltage switchgear technology, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023.
  
• Siemens has augmented the 8DAB 24 and the NXPLUS C 24 with a focus on high tier industrialized ratings on. The flexibly is designed for optimized Eco heavy Industrial use. The 8DAB 24 sets a standard with reduced carbon emissions throughout its entire life cycle. Due to these attributes, it is ideally suited for facilitating long term shift to renewable energy.
  
• Following the 3rd Quarter of FY2024, Schneider Electric reported a total revenue of USD 28.99 billion. Schneider Electric has unveiled the next generation of its innovative product, SureSeT MV switchgear, specifically for use in Canada. This new generation solution seeks to offer a digital ready enablement of primary switchgear applications featuring the EvoPacT circuit breaker.
  

Major players operating in the switchgears market are:

• ABB
• Bharat Heavy Electricals
• CG Power and Industrial Solutions
• E + I Engineering
• Eaton
• Fuji Electric
• General Electric
• HD Hyundai Electric
• Hitachi
• Hyosung Heavy Industries
• Lucy Group
• Mitsubishi Electric
• Ormazabal
• Schneider Electric
• Siemens
• Skema
• Toshiba
  

Switchgears Industry News

• In November 2024, ABB designed OPTIMAX 6.4, software solution that is a key component of their new digital energy infrastructure, The Enhancement Systems, which mainly focuses on endorsing energy efficiency and to accelerate decarbonization. Along with that, the company endorsed their energy platform with cutting edge technology in modular mode.  These innovations are tailored to modern business needs, enabling companies to seamlessly adopt energy-efficient practices while reaping both environmental and economic rewards. It’s a significant leap toward smarter, more sustainable energy solutions.
  
• In October 2023, Siemens Smart Infrastructure expanded their layout of environmentally friendly and digitally equipped medium-voltage switchgear to assist in the effort of decarbonarization of power grids. The new blue GIS primary switchgear have been developed to allow for an early change towards conductive grids without the need of regulation which means they are now F-gas free. Siemens launched the 8DAB 24 and modernized the NXPLUS C 24, designed for industrialized and high-end tariffs 24 kV and 2500 A. These switches have been manufactured under Robust Eco Design principles. Due to ecological considerations at the design stage of the 8DAB 24, its entire life cycle will now involve minimizing the carbon footprint. Such ability makes it an ideal candidate for being deployed in the desired system.
  
• In July 2024, CG Power announced a USD 78 billion investment to complete its capacity expansion within 18 months, focusing on scaling up production for transformers, motors, and switchgears. The company also ventured into semiconductor manufacturing and initiated development of an Outsourced Assembly and Testing (OSAT) facility in Gujarat, reinforcing its strategic growth in high-demand sectors.
  

This switchgears market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” and “000 Units” from 2021 to 2034, for the following segments:

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Market, By Voltage

• Low
• Medium
• High

Market, By Insulation

• Air
• Gas
• Oil
• Vacuum
• Others

Market, By Current

• AC
• DC

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following regions and countries:

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