Low Voltage Switchgear Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The low-voltage switchgear market is valued at $45 billion in 2023 and is expected to reach $58 billion by 2030, at a CAGR of 3.7%. This growth is driven by the increasing need for efficient and reliable power distribution systems in residential, commercial and industrial applications. The high investment in the construction of the network, the growing use of renewable energy and the ongoing modernization of the grid will also boost this market. The technological advancements, such as the integration of smart grid and automation into electrical systems, will also increase the demand for low-voltage switchgear. The leading players in this market, such as Schneider Electric, Siemens and ABB, are engaged in strategic initiatives, such as collaborations, product innovations and R & D, to strengthen their offerings and capture a larger market share. These efforts will help to further stimulate the market and improve the performance of the distribution network.

Regional Market Size

Regional Deep Dive

The Low Voltage Switchgear Market is expected to grow significantly across the globe, owing to the rising demand for reliable and efficient electrical distribution systems. Various factors, such as urbanization, industrialization, and the growing demand for clean and sustainable energy sources, are expected to drive the market growth. Each region has its own characteristics, which are influenced by local regulations, economic conditions, and technological developments, and are expected to shape the future of the market.

Europe

• Europe is focusing heavily on sustainability, with the European Union's Green Deal promoting the adoption of low voltage switchgear that supports renewable energy integration and energy efficiency.
• Key players such as Siemens and ABB are investing in R&D to develop advanced switchgear solutions that comply with stringent EU regulations, which is expected to drive market growth in the region.

Asia Pacific

• The Asia-Pacific region is experiencing rapid industrial growth, particularly in countries like China and India, where infrastructure development is a key driver for low voltage switchgear demand.
• Government initiatives, such as India's Smart Cities Mission, are fostering investments in modern electrical infrastructure, leading to increased adoption of low voltage switchgear technologies.

Latin America

• Latin America is seeing a growing emphasis on renewable energy projects, particularly in Brazil and Chile, which is driving the demand for low voltage switchgear that can support these initiatives.
• Regulatory frameworks in countries like Brazil are evolving to encourage energy efficiency, prompting local manufacturers to innovate and adapt their product offerings to meet new standards.

North America

• The North American market is witnessing a surge in demand for smart grid technologies, with companies like Schneider Electric and Eaton leading the charge in innovation and product development.
• Regulatory changes, particularly in energy efficiency standards set by the U.S. Department of Energy, are pushing manufacturers to develop more energy-efficient low voltage switchgear solutions, enhancing market competitiveness.

Middle East And Africa

• In the Middle East and Africa, the market is being shaped by significant investments in infrastructure projects, particularly in the UAE and Saudi Arabia, where low voltage switchgear is essential for new developments.
• The region's focus on diversifying its economy away from oil dependency is leading to increased demand for reliable electrical systems, with companies like Schneider Electric and Siemens actively participating in regional projects.

Did You Know?

“Did you know that low voltage switchgear can significantly reduce energy losses in electrical distribution systems, with some modern designs achieving efficiency improvements of up to 30%?” — International Electrotechnical Commission (IEC)

Segmental Market Size

The low-voltage switchgear market is currently growing steadily, a result of the growing need for reliable and efficient electrical distribution systems. In this market the main driving forces are the rising demand for energy-saving solutions and the more stringent regulations on electrical safety and reliability. The technological development of smart grid solutions also contributes to the demand for low-voltage switchgear, since industries are modernizing their electrical distribution systems. The use of low-voltage switchgear is currently in the stage of a major expansion. Notable examples of companies that are leading the way in this expansion are Siemens and Schneider Electric. This product group is used in commercial buildings, industrial plants and in the construction of new renewable energy sources. Its main role is to manage electrical loads and ensure safety. It is also used in the construction of new power plants. The trend towards energy-saving solutions and the more stringent regulations on electrical safety and reliability are accelerating the growth of this market. The technological development of IoT-enabled switchgear and advanced monitoring systems will further shape its development.

Future Outlook

From 2023 to 2030, the low-voltage switchgear market is expected to grow at a steady pace, with a CAGR of 3.7% from an estimated value of $4517.46 million to $57,890.06 million. This growth is driven by the rising demand for electrical distribution systems in various industries, including residential, commercial and industrial applications. The penetration of low-voltage switchgear in new construction projects is expected to rise significantly by the end of the period, reaching an estimated 60.0% by 2030, compared to the current 45.0%. In addition, technological advances such as the integration of smart grids and the growing use of alternative energy sources are expected to drive market growth. Energy efficiency and the need to reduce carbon dioxide emissions will also boost demand for low-voltage switchgear. The growing importance of automation in electrical systems and the development of electric vehicles will also open up new opportunities for market players. Companies that invest in sustainable practices and in new technologies will be able to position themselves more favourably in the new market environment.