ID: MRFR/E&P/6452-HCR | 110 Pages | Published By Anshula Mandaokar on March 2023
Hybrid Switchgear Market is projected to be worth USD 37.53 billion by 2027, registering a CAGR of 16.89% CAGR during the forecast period (2021 - 2027).
The hybrid switchgear market is projected to register a CAGR of 16.89% from 2022 to 2030.Increasing inclination toward sustainable power coupled with a combination of cogeneration plants across grid infrastructure will drive the industry demand. Growing measures to assure security & stability with the retrofitting and substituting conventional power frameworks will stimulate market growth. The absence of reliable & efficient electric networks in-line with the advancements in existing infrastructure across major economies has integrated a positive scenario. The hybrid switchgear market size is expected to reach approximately USD Significant value by 2030. Moreover, the rapidly growing electrification need in remote areas and the increasing electricity generation have positively affected the growth of several electrical equipment. The growing targets by regional governments for delivering electricity in rural areas and growing investments in this industry are the key market trends projected to cater to the market growth.
COVID-19 Impact Analysis
The COVID-19 pandemic has moderately impacted the overall hybrid switchgear industry statistics because of lockdown inconveniences, closing of different assemblies and industrial facilities, and postponements in various infrastructural projects. Consistent maintenance of electrical grid frameworks during the pandemic and vaccination drives to curb the Covid-19 spread will supplement sector development. Moreover, increasing building construction development facilities, followed by the rising demand for replacing and renovating aging grid infrastructure, will support overall growth.
Hybrid Switchgear Market Dynamics
The key factors driving the market's growth are the increasing involvement of the private sector in transmission and distribution, resulting in infrastructure development in developing economies such as Australia, China, Thailand, and India. Furthermore, key players such as ABB and GE are actively collaborating with governments of developing economies in Asia to strengthen the efficiency and reliability of transmission and distribution networks. Also, factors such as enhanced power consumption, government mandates on energy efficiency, growing adoption of renewable resources in the power mix, and upgradation of aging hydropower plants in Asia-Pacific are propelling the growth of the hybrid switchgear industry.
Exponentially growing industrial infrastructure
The enhanced energy demand to strengthen rapid urbanization and growing awareness for the new generation mix is estimated to fuel the market growth. This equipment is primarily utilized in complex electrical substations and enterprises to withstand variable operating voltages, along with increased environmental conditions to support the stability of the voltage. Infrastructural developments are fueling the utilization of switching components in commercial applications. The construction and upgradation of recent industrial structures, including power plants, government offices, banks, and other commercial buildings, will further drive market growth.
The growing integration of smart monitoring and control units across power grid infrastructure
Switching tools are created by digital solutions, integrating advanced smart monitoring and control units and other features for incorporation into the power grid infrastructure. Growing investments in sustainable power generation technology will further accelerate the demand for this equipment. Hence, the enhancing adoption of switching equipment equipped with advanced features is a new trend that would accelerate the hybrid switchgear market growth over the forecast period.
Harsh environmental conditions & high price of hybrid switchgear equipment
The harsh environmental conditions, such as pressure, temperature, and humidity, along with water leakage from the environment, are some of the major factors which can impact the efficiency of electrical switchgear equipment that is usually installed in an outdoor location. Hence, to cater to the atmospheric circumstances, regulatory institutions formulated stringent restrictions and specifications for higher reliability and feasibility. This equipment includes advanced features and a lot-based control system, which makes its cost higher. It provides a complete solution that is complex and expensive. Therefore, the high capital investment in the hybrid switchgear industry and the harsh environmental conditions may hinder market growth over the forecast period.
The intelligent switchgear business is expanding continuously with continual advances in infrastructure and production facilities. Smart switchgear, which plays an important part in energy distribution to industry and residential areas, is one of the sector's most important stimulants. As a result, implementing smart power distribution devices such as smart switchgear is critical for ensuring increased performance, power continuity, and resource optimization while lowering the transmission, operational, and maintenance costs. New smart hybrid switchgear is flexible, energy-efficient, and future-proof. They offer update and upgrade solutions with zero downtime; these technologies are expected to grow significantly over the forecasted period and provide growth opportunities.
The growing energy demand has led to a need for a reliable and stable T&D network. The primary reasons behind the rising number of blackouts are the lack of investments, aging infrastructure, and improper regulations for the modernization of the grid. New regulations for reducing power blackouts and upgrading the aging power system infrastructure across the globe are creating a potential opportunity for the growth of the market.
By Voltage Insights
The hybrid switchgear market segmentation, based on voltage, is up to 72.5 kV, 72.5-245 kV, and 245-550 kV. The up to 72.5 kV category held a prominent market share in 2021 owing to the wide deployment in distribution networks along with the high fault enduring capacity. However, 245-550 kV was the fastest-growing category due to growing industrialization and increased demand for the components.
By Installation Insights
The hybrid switchgear market segmentation, based on installation, is onshore and offshore. In 2021, the onshore category accounted for the largest market share due to the increased adoption of hybrid switchgear in wind turbine towers. However, offshore was the fastest-growing category due to the growing product establishment.
By Application Insights
Based on application, the market is divided into infrastructure, transportation, industrial, and others. The industrial category dominated the market in 2021due to increased demand for hybrid switchgear in the industrial sector. However, infrastructure was the fastest-growing category due to the heavy investment in developing hybrid switchgear.
Global Hybrid Switchgear Market Share by Region, 2021 (%)
Hybrid Switchgear Market Overview by Region
By region, the hybrid switchgear market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.
North America dominated the market share in 2021 due to growing investments in the commercial & industrial sectors. The establishment of supportive government initiatives and favorable directives and targets to provide a sustainable energy mix has accelerated the sale of the witching equipment. The US and Canada are the key countries operating in the region.
Asia-Pacific accounted for the second-largest market share in 2021 due to the presence of huge potential for building large industrial plants along with the rapidly developing residential & commercial sectors projected to contribute to regional growth. Developing countries such as China, India, and South Korea are experiencing excessive energy demand due to the growing need for the transmission & distribution of electric power and electrification projects. According to India Brand Equity Foundation (IBEF), increasing electrification would drive power consumption growth to 1,847 TWh in India by 2022. Other prominent nations present in the Asia-Pacific are Japan, Australia, and Southeast Asian countries, which would also contribute to the industry's growth rate over the forecast period.
Hybrid Switchgear Market Competitive Landscape
The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Companies such as ABB (Switzerland), GE (US), Mitsubishi Electric (Japan), Siemens (Germany), and Toshiba Corporation (Japan) dominate the market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, joint ventures, product introduction, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in November 2022, GE introduced Digital “HYpact” Switchgear to make grids more predictable based on the digital hybrid compact switchgear. HYpact switchgear is now fitted with digital power sensors using very sensitive low-power instrument transformers instead of conventional oil-immersed instrument transformers.
Prominent players in the hybrid switchgear market research include Skipperseil (India), TGOOD (Colombia), Schneider Electric (France), Hitachi (Japan), CG (India), L&T (India), Chint (China), Hyosung (South Korea), Taikai Power Engineering (China), and Capchem Electricals Pvt. Ltd (India), among others.
Scope of the Hybrid Switchgear Market Segmantation
By Voltage Outlook
By Installation Outlook
By Application Outlook
By Region Outlook
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the hybrid switchgear market report segmented by voltage, installation, and application by value (in US dollars). Also, to understand the consumption/ demand created by consumers of hybrid switchgear market forecast between 2022 and 2030
To identify and infer the drivers, opportunities, restraints, and challenges in the hybrid switchgear market size
To find out the factors which are impacting the hybrid switchgear market size among consumers
To identify and understand the several factors involved in the market affected by the pandemic
To provide a detailed insight into the key companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, recent developments, product offerings, SWOT analysis, and key strategies.
|CAGR||16.89% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application, Voltage, Standard|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ABB (Switzerland), GE (US), Mitsubishi Electric (Japan), Siemens (Germany), Toshiba Corporation (Japan), Skipperseil (India), TGOOD (Colombia), Schneider Electric (France), Hitachi (Japan), CG (India), L&T (India), Chint (China), Hyosung (South Korea), Taikai Power Engineering (China), and Capchem Electricals Pvt. Ltd (India)|
|Key Market Opportunities||
|Key Market Drivers||
The hybrid switchgear market forecast period is 2022 - 2030
The market is expected to register a CAGR of ~16.89% over the next 10 years, according to hybrid switchgear market research.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2030
North America held the largest share in 2021
The market size is expected to be USD Significant value by 2030.
ABB (Switzerland), Mitsubishi Electric (Japan), GE (US), Siemens (Germany), and Toshiba Corporation (Japan) are the major companies operating in the market.