Published: Sep, 2016
The top three players in the global low voltage (LV) and medium voltage (MV) switchgear market accounted for 34.7% in 2015. Key players in the market are Schneider Electric SE, ABB Ltd., Siemens AG, GE Co, and Powell Industries. Established players have a strong hold on the global LV and MV switchgear market. New players lack expertise and face difficulty in meeting quality standards and requirements for switchgear products for big projects. However, rising demand for low-cost switchgear products across the globe will attract new players to the market and thus, the threat of new entrants is expected to be medium. The scope of product differentiation is low in the industry and thus, the market is driven by price competitiveness, states a new report by Transparency Market Research (TMR).
According to the report, the global low voltage and medium voltage switchgear market is expected to rise from US$56.23 bn in 2015 to US$98.80 bn by the end of 2024. On the basis of voltage, the less than 1 KV segment is expected to remain the dominant segment of the market, accounting for 45.8% of the market in 2024. By product, the IEC switchgear segment will continue to lead and account for 76.7% of the global low voltage and medium voltage switchgear market.
Power Plants Application Segment to Lead in Future
On the basis of application, the power plants segment, followed by the utilities sector segment will lead in the coming years. The power plants segment is anticipated to represent 38% of the market by 2024. By components, the circuit breaker segment was a clear leader in 2015 and will continue to do so in the coming few years. On the basis of insulation, the air insulated switchgear segment will account for 62% of the global market by 2024. Asia Pacific will lead in terms of geography in 2024.
Rural Electrification Programs by Government to Drive LV and MV Switchgear Market
The construction and industrial infrastructure in the developing countries such as India, China, and Indonesia are witnessing a growth, which is positively impacting the global LV and MV switchgear market. With initiatives by various governments for rural electrification such as the 12th five-year plan (2012-2017) on electrification projects by the Indian government, the demand for these switchgears is expected to increase. Additionally, the adoption of smart grid technology has created a heightened demand for low and middle-grade switchgear. This is expected to drive the market. Moreover, as old and obsolete transmission and distribution networks are unreliable and are responsible for greenhouse emissions, they are being replaced by new switchgear assembly, which is encouraging the market’s growth.
Companies Worried about Counterfeits of Switchgear and its Components
The recent times has seen many cases of counterfeiting and copying of low voltage switchgear technology as many illegal manufacturers are reproducing the original technology and selling at very low rates. The use of fake switchgear is risky in nature, causing serious hazards and accidents in industries. As such, the illegal switchgear market is expected to impede the growth of original switchgear market globally. “Additionally, the increased price-based competition in the market, the bottom line growth of companies would stagnate, even if they experience a top line growth at an individual level”, says a TMR analyst. All these factors are expected to impact the market negatively.
Increased Demand for Renewable Energy across Industry Verticals to Emerge as Opportunity
The rising demand for renewable energy sources for uninterrupted power supply for the smooth functioning of switchgear equipment in industries is expected to have a positive impact on the global LV and MV switchgear market. This is because, investments in renewable energy sources such as solar, wind, and hydroelectric power are expected to encourage switchgear manufacturers to expand their LV and MV product portfolio. This is expected to create opportunities in the market.
This information is based on the findings of a report published by Transparency Market Research titled “Low Voltage (LV) and Medium Voltage (MV) Switchgear Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global LV and MV switchgears market is segmented as follows:
- IEC (International Electro technical Commission) standards
- ANSI (American National Standards Institute) standards
- Other (JIS, NEMA and GOST) standards
- Power plants
- Oil & Gas and Petrochemical Industry
- Pulp and paper industry
- Utilities sector
- Less than 1kV
- 1kV - 5kV
- 6kV - 15kV
- 16kV - 27kV
- 28kV - 38kV
- Circuit Breaker
- Others (Enclosure, Fuses, Bus Bars and Switches)
- Air Insulated Switchgear
- Gas Insulated Switchgear
- Others (oil and solid)
- North America
- The U.S.
- The United Kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- Latin America
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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