Low Voltage Switchgear Market

REVIVAL OF INVESTMENTS IN THE CONSTRUCTION SECTOR

The term switchgear refers to all the primary and secondary switches and panels required to provide electrical power and distribution on a construction project. The switchgear will accept primary power from the utility and convert it into usable voltage and amperage for the structure to function properly.

The market revenue is expected to increase as building construction projects and retrofits resume. New LVSG with monitoring and analytics capabilities for energy management, construction and rural development activities starting in 2022, and technological advancements and innovations such as digital LVSG, smart switchgear, reduced physical footprint, and eco-efficient switchgear.

Increased investment in the construction sector and industrial infrastructure has increased demand for switchgear. Governments in developing countries are investing proactively in industrialization, urbanization, and rural development, as well as the renewal of existing transmission and distribution networks, which has boosted the deployment of LV and MV switchgears.

GROWING INVESTMENTS IN RENEWABLE ENERGY

According to the International Energy Agency, nearly three-quarters of global emissions reductions between 2020 and 2025 will occur in the electricity sector, according to the IEA's recent Roadmap to Net Zero by 2050. To achieve this reduction, coal-fired electricity generation must fall by more than 6% per year.

AGING ELECTRICITY DISTRIBUTION INFRASTRUCTURE

The increasing burden on electrical infrastructure has resulted in the need for either replacing or refurbishing the electrical equipment required to ensure a reliable and uninterrupted power supply. As per the Department of Energy Report, uninterrupted power can be ensured only through a system capable of handling sudden power spikes and drops.

For instance, the US is driven by the replacements in the grid, therefore providing an opportunity for the utilities to introduce automation-equipped low voltage switchgear in the network leading to a highly modern and automated grid. Moreover, the criticality of the low voltage switchgear market has only increased in the recent past due to rising expenditure in infrastructural expansion. For instance, increasing grid complexity in the grid infrastructure in the developing countries is encouraging the deployment of low voltage switchgear in the distribution grid.

The Global Low Voltage Switchgear Market Industry is projected to experience substantial growth, with a market value anticipated to reach 45.6 USD Billion in 2024 and 69.4 USD Billion by 2035. This growth trajectory indicates a robust demand for low voltage switchgear solutions, driven by various factors such as urbanization, technological advancements, and regulatory compliance. The expected CAGR of 3.88% from 2025 to 2035 further emphasizes the market's potential for expansion, reflecting the increasing reliance on efficient electrical distribution systems across diverse sectors.

The Global Low Voltage Switchgear Market Industry experiences a notable surge in demand driven by the increasing integration of renewable energy sources. As countries strive to meet their sustainability goals, the adoption of solar and wind energy systems is on the rise. This shift necessitates advanced low voltage switchgear solutions to manage and distribute electricity efficiently. For instance, in 2024, the market is projected to reach 45.6 USD Billion, reflecting the growing need for reliable electrical distribution systems that can accommodate fluctuating energy inputs from renewable sources.

The concept of smart cities is gaining traction globally, leading to increased investments in advanced electrical infrastructure. The Global Low Voltage Switchgear Market Industry stands to benefit from this trend as smart cities require efficient and reliable power distribution systems. Investments in smart grid technologies and energy-efficient solutions are integral to the development of these urban environments. As cities evolve to incorporate smart technologies, the demand for low voltage switchgear that supports these initiatives is likely to grow, contributing to the overall expansion of the market.

The Global Low Voltage Switchgear Market Industry is influenced by stringent regulatory compliance and safety standards imposed by governments worldwide. These regulations aim to ensure the safety and reliability of electrical installations, prompting manufacturers to develop advanced low voltage switchgear solutions that meet these requirements. Compliance with international standards not only enhances product credibility but also expands market opportunities. As industries prioritize safety and reliability, the demand for compliant low voltage switchgear is expected to rise, further driving market growth in the coming years.

Rapid urbanization and ongoing infrastructure development globally contribute significantly to the Global Low Voltage Switchgear Market Industry. As urban populations expand, the demand for reliable electrical systems in residential, commercial, and industrial sectors increases. Governments and private entities invest heavily in infrastructure projects, which require robust low voltage switchgear for effective power distribution. This trend is expected to propel the market towards a valuation of 69.4 USD Billion by 2035, indicating a strong correlation between urban growth and the need for advanced electrical solutions.

Technological innovations play a pivotal role in shaping the Global Low Voltage Switchgear Market Industry. The introduction of smart grid technologies and automation in electrical systems enhances the efficiency and reliability of power distribution. These advancements enable real-time monitoring and control of electrical networks, reducing downtime and improving safety. As industries increasingly adopt these technologies, the demand for sophisticated low voltage switchgear solutions is likely to grow. This trend aligns with the projected CAGR of 3.88% for the period 2025-2035, underscoring the importance of innovation in driving market growth.

Based on Region, the Low Voltage Switchgear market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America Low Voltage Switchgear market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. North America is one of the prominent regional markets for low voltage switchgear, owing to an increase in the share of renewable energy sources and a growing need for upgrading the T&D networks in the region.

The region is experiencing high investment in energy efficiency due to decreasing technology prices and third-party energy efficiency programs. According to the North American Energy Efficiency Program Implementation, annual energy efficiency spending is expected to reach USD 11.3 billion by 2030, driving the market for power T&D equipment.

The US low voltage switchgear market is projected to witness significant growth due to increased power demand for commercial and industrial applications and increasing oil production activities. Moreover, Canada is investing in the smart grid technology of Ottawa's net-zero energy communities to enhance the electricity grid. This investment is worth USD 5 million and would also drive the installation of microgrids in the country. Such factors would boost the demand for low-voltage switchgear.

Furthermore, data centers require a continuous and reliable power supply for the effective and uninterrupted functioning of computing and networking equipment in the data center, which leads to an increase in the demand for power T&D equipment in data centers. Hence, the significant increase in power demand and the increasing number of data centers lead to a demand for power T&D equipment in this region during the forecast period.

The competitive landscape of the Low Voltage Switchgear market is influenced by several key players who offer products for various applications. Major market participants, including Schneider Electric, General Electric, Hyosung Corporation, Hyundai Electric & Energy Systems Co, Ltd, Fuji Electric Co Ltd, among others. Siemens aims to strengthen the growth of its business segments through contracts, agreements, and mergers & acquisitions.

Furthermore, its strong alliances with several large multinational companies in the global market enable it to accelerate its growth. The company is expanding its presence in the global market by providing software and related solutions and adding new technologies to its portfolio to capture new markets. It aims to enhance its product portfolio through innovation and investments, which will help the company take advantage of new opportunities in the energy management industry.

ABB is focused on product development strategies to integrate automation in its industrial automation division. Moreover, its long-term growth strategy involves expanding its core business operations through acquisitions, ensuring its financial stability. The Low Voltage Switchgear Market comprises various global, regional, and local service providers that are continuously evolving to enhance their market position.

Expansion of smart grid networks and integration of sustainable energy infrastructure are the key factors that aid market growth. The service providers compete based on cost, efficiency, and reliability of low voltage switchgears to stay relevant in the competitive market.

Siemens.: Siemens is a global engineering and manufacturing company specializing in electrification, automation, digitalization, innovation, and technology. It provides automation and control, power, transportation, and medical diagnosis engineering solutions. The company offers various products and services in drive technology, energy, financing, healthcare, industrial automation, mobility, services, software, and consumer products sectors.

It is the world's largest producer of energy-efficient and resource-saving technologies and a leading provider of power generation, transmission systems, and medical diagnostic equipment. Siemens has a global presence in about 200 countries worldwide and operates through 289 production houses, manufacturing facilities, and R&D centers.

Eaton Corporation.: Eaton Corporation (Eaton) is a global power management company. It provides energy-efficient solutions for effectively managing electrical, hydraulic, and mechanical power systems efficiently, safely, and sustainably. The company operates through six business segments: electrical products, electrical systems and services, vehicles, hydraulics, aerospace, and e-mobility.

It offers its products and solutions for applications in various industrial verticals, including aviation, data centers, food & beverage, healthcare, oil & gas, mining, metals & minerals, machine building, rail, utility, transportation, and government & military. The company offers a wide range of products and solutions, such as circuit breakers, fuses, solar switches, inverters, switch disconnectors, vacuum interrupters, distribution boards, switchgear, relays, busways, sensors, and power management solutions.