ID: MRFR/IA - E/5359-CR | July 2022 | Region: Global | 132 Pages
Pressure Switch Market is expected to grow at USD 2.09 Billion by 2027, with a 4.71% CAGR during the forecast period.
$2.09 Billion
4.71%
Europe
2021-2027
The global pressure switch market is expected to surpass USD 2,410.8 million by 2027 with a significant CAGR rate of 5.9% during forecast period 2021-2027. The increasing number of smart homes, the need to lower operating costs, demand for energy-efficient temperature control systems, and the rise in government schemes to incentivize the replacement of HVAC systems are expected to drive the HVAC market. This, in turn, is expected to boost the demand for pressure switches.
Increasing investments in smart cities and the automotive industry and development in infrastructural projects increase the market growth. According to the German Association of the Automotive Industry (VDA), there was a 5.3% increase in sales of the automotive sector from 2016 to 2017. So, the rising demand for electric vehicles market and increasing automobile production are driving the market in the automotive & transportation sector. The global pressure switch market is projected to grow at a high rate during the forecast period, mainly due to the growth in HVAC and hydraulics & pneumatic-based applications. According to the Industrial Development Report 2018, governments worldwide have encouraged industrialization by increasing investments in industries, which further drives the growth of the global market.
The COVID-19 pandemic has reduced the profitability of businesses across almost all industries. Although the power sector has not been as negatively affected compared to other sectors, the electricity consumption by industrial and commercial customers is noticeably less. Moreover, the power sector has witnessed a falling demand and price reduction trend across the world. North America, especially the US and Canada, are heavily impacted and have recorded all-time low electricity prices in the first quarter of 2020 in the region. Moreover, due to the severity of the COVID-19 outbreak, many industries only focus on essential work. This has resulted in a pause on electric component installations. Manufacturers of hardware devices in the power market face several issues related to order closures due to global lockdown. The power generation industry requires hardwearing and efficient switchgear to deal with the demand for reliable energy. Additionally, some companies are operating at minimum capacity to support essential industries, such as power generation companies and the manufacturing industry. However, as economies are planning to resume business to increase revenue generation gradually, the demand for switchgear is expected to resume its average growth rate by early 2021.
The global pressure switch industry is growing steadily. The pressure switch market is driven by the rising demand for HVAC systems, increasing automation across various industries, and growing demand for pressure switches in the agriculture sector. However, intense pricing pressure is expected to restrain the market growth. Replacement of mechanical pressure switches with electronic pressure switches is expected to create opportunities for the market player.
The influx of the Industrial Internet of Things (IIoT) has prompted industries to adopt advanced automation solutions to enhance connectivity, reliability, flexibility, and accuracy in work processes. As a result, the pressure switches witness high demand from the manufacturing, food & beverage, oil & gas, chemical, power, and metal & mining industries. Automation in these industry verticals ensures better performance, reduces operational costs, and accelerates production in a facility. Thus, the automation of industrial processes across several industry verticals has fueled the growth of pressure switches.
While the widespread application of pressure switches in power generation, medical technology, paint and surface technology, waste disposal and recycling, bulk goods, and conveyor technology leads to increased shipment of these switches, the sales growth is significantly restrained by price erosion. This is partially due to the intense competition among the rising number of pressure switch manufacturers, which leads to rapid innovation in new areas of applications. Several companies channel their research & development activities toward providing cost-effective solutions for existing mechanical and electronic pressure switches manufacturing. Due to the pricing pressure for high-volume applications, manufacturers are compelled to decrease the prices of pressure switches. This fall in prices not only hampers the revenue growth in the highly competitive market but also reduces the margin for suppliers.
Several industries are increasingly replacing the mechanical pressure switches in their machinery with electronic pressure switches. They offer improved precision, accuracy, repeatability, simpler operation, higher number of switching cycles, and long-term stability. Therefore, during the forecast period, the market is expected to witness a growing demand for electronic pressure switches due to the replacement of mechanical pressure switches in aging infrastructure.
The global market has been segmented based on pressure range, application, end use and type.
Based on pressure range, the global market has been segmented into below 100 bar, 100 to 400 bar, and above 400 bar. Based on application, the global market has been segmented into HVAC, monitoring & control, safety & alarm system, and hydraulics & pneumatics.
Based on end use, the global market has been segmented into automotive & transportation, process & manufacturing industry, and commercial. Based on type, the global market has been segmented into electromechanical and solid state.
Globally, the pressure switch market has been categorized into the North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Asia-Pacific is likely to account for a maximum market share during the forecast years. The demand for pressure switches is high in that region. The key players are putting in maximum effort to increase the market revenue in the upcoming years.
Asia-Pacific comprises China, Japan, India, South Korea, and the rest of Asia-Pacific. The rising demand for pressure switches across sectors has boosted the market in Asia-Pacific. This region has one of the largest transportation industries. Road transport, cargo handling, warehousing, and air transport are the key transportation categories in Asia-Pacific. This rising industry and the developments across the region have propelled the growth of the pressure switches market.
GLOBAL PRESSURE SWITCH MARKET, BY REGION, 2030 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis
The global market for pressure switch has witnessed significant growth over the forecast period due to the rising demand for HVAC systems. There are several domestic, regional, and global players operating in the pressure switch market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global pressure switch market who have contributed to the market growth. These include Hitachi Power ABB Grids, Eaton, Parker Hannifin Corp, Barksdale Inc., BD|SENSORS GmbH, Tameson B.V, LEFOO, Emerson, Danfoss, SMC Corporation, Fox S.r.l., MAMCO, Nason, Applications Engineering Ltd., Suco, IFM, Baumer Group, Bosch Rexroth AG and Honeywell International Inc.
Among these, MRFR has identified top five key players in the global pressure switch market who have contributed to the global market growth.
Key Players
These players focus on expanding and enhancing their portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Recent Developments
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2019 to 2027. For this analysis, MRFR segmented the global pressure switch market report based on pressure range, application, end use and type.
By Pressure Range
By Application
By End Use
By Type
Report Attribute/Metric | Details |
---|---|
Market Size | 2020: USD 1,611.2 million 2027: USD 2,410.8 million |
CAGR | 5.9% |
Base Year | 2020 |
Forecast Period | 2021-2027 |
Historical Data | 2019 |
Forecast Units | Value (USD Million) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | By Pressure Range (Below 100 Bar, 100 to 400 Bar, Above 400 Bar) | By Application (HVAC, Monitoring & Control, Safety & Alarm System, Hydraulics & Pneumatics) | By End Use (Automotive & Transportation, Process & Manufacturing Industry, Commercial) Type (Electromechanical, Solid State) |
Geographies Covered | North America (US, Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Middle East & Africa (Saudi Arabia, UAE, South Africa, Rest of MEA), South America (Brazil, Argentina, Rest of South America. |
Key Vendors | Hitachi Power ABB Grids, Eaton, Parker Hannifin Corp, Barksdale Inc., BD|SENSORS GmbH, Tameson B.V, LEFOO, Emerson, Danfoss, SMC Corporation, Fox S.r.l., MAMCO, Nason, Applications Engineering Ltd., Suco, IFM, Baumer Group, Bosch Rexroth AG, Honeywell International Inc. |
Key Market Opportunities | Replacement of mechanical pressure switches with electronic pressure switches |
Key Market Drivers | Rising demand for HVAC systems |
A 5.9% CAGR is expected to transform the market.
The key contenders in the market are Honeywell International Inc (US), Eaton (Ireland), Parker Hannifin Corp (US), Emerson (US) and Bosch Rexroth AG (Germany).
The segments in the market are offering pressure range, application, end use and type.
The Asia Pacific regional market is projected to be the major driver of the market.