Switchgear Market Trends

Drivers

• Increasing Infrastructure Development

The increasing pace of infrastructure development in developing countries is one of the main factors contributing to the global switchgear market growth. With the increase of urbanization comes the need for effective and dependable power distribution systems. In addition, the switch gear is paramount in the control and protection of the electricals in the new commercial, residential and industrial buildings.

• Rising Adoption of Renewable Energy

The shift towards renewable energy sources, such as wind and solar, is driving demand for advanced switchgear solutions. Efficient integration and management systems for renewable energy projects involving the grid is necessary to keep them stable and reliable. In this regard, switchgear helps in optimizing energy utilization and security of the grid thus making power providing switchgears most sought after.

Restraints

• Technological Complexity and Maintenance Requirements

With the advanced gas-insulated switchgear and hybrid systems becoming increasingly sophisticated, the operation and maintenance of these systems can become quite difficult. There is a need for expertise on the installation and the rectification of faults, which results in extended periods of inactivity and high operating costs leading to the poor adoption of advanced switchgear in the more underdeveloped regions.

• Slow Regulatory Approvals

The issues pertaining to regulatory compliance and the approval of the new switchgear technologies, especially in emerging markets, tend to limit the growth of the market. The high standards for safety and compliance remain merged with the prolonged processes of governance that result in stifling the introduction of new switchgear solutions, especially innovative energy-efficient ones, hence the retardation of the market enlarging.