Pad–Mounted Switchgear Market by Type (Air, Gas, Solid Dielectric, Others), Voltage (Up to 15 kV, 15-25 kV, 25-38 kV), Application (Industrial, Commercial, & Residential), Standard (IEC, IEEE) and Region - Global Forecast to 2028
[218 Pages Report] The pad–mounted switchgear market is expected to grow from an estimated USD 5.6 billion in 2023 to USD 7.1 billion by 2028, at a CAGR of 5.1 % during the forecast period. Increasing adoption of underground distribution systems in urban and densely populated areas is common practice. Investments in distribution networks are on the rise in response to the high adoption of renewable energy. The increased investments in distribution networks are expectsed to drive the pad–mounted switchgear market.
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Pad–Mounted Switchgear Market Dynamics
Driver: Increase in global energy consumption
The energy demand worldwide has been rising gradually due to an increase in energy consumption in recent years. According to the International Energy Agency (IEA) Electricity Market Report 2022, after a slight decline in 2020, the world's demand for electricity increased by 6% in 2021. It was the highest percentage growth since 2010 during the financial crisis and the largest annual gain in absolute terms (almost 1,500 TWh). According to China Electricity Council, the power demand increased to 8,673 TWh in 2022 and rose about 3.6% from the previous year. Economic recovery, harsher weather, and a colder-than-average winter led to increased global electricity demand in 2021. This demand was primarily driven by the industrial sector; the commercial, service, and residential sectors also contributed significantly to this demand.
Restraint: High capital investment required for installation and maintenance
Installing advanced switchgear systems requires a high initial investment, which is a major barrier to adopting pad–mounted switchgear systems. The investment includes costs related to installation, procurement, implementation, testing, maintenance, and the commissioning of various field devices (automated voltage regulators, remote fault indicators, smart relays, automated feeder switches/reclosers, automated capacitors, transformer monitors, automated feeder monitors, and remote terminal units (RTUs), besides the installation of intelligent controls to manage the operation of these individual components.
Opportunity:Investments in upgrading and expanding power distribution infrastructure
The increasing energy demand has resulted in the need for stable and reliable transmission and distribution networks. Uninterrupted power can only be assured through a system capable of handling sudden power shorts and drops. Substations in developed nations are modernized to ensure an uninterrupted power supply with minimum losses. This is achieved by replacing the old components with modern and more efficient ones. These upgrades are smart and more protective from overcurrent situations. The rising demand for renewable energy sources and the increasing number of power generation plants drive investments in distribution infrastructure, making the distribution system capable of handling long-distance power flow and minimizing energy losses caused by strong currents. Many countries, such as the US, the UK, China, and India, are significantly investing in modernizing their substations and developing a reliable supply network.
Challenge: High competition from unorganized sector and strict government regulations prohibiting use of SF6 switchgear
Major switchgear manufacturers are exposed to tough competition from the unorganized sector, including local and gray market players supplying cheap, low-quality products. The local players sell goods manufactured in-house with their local brand name, whereas the gray market players import and sell goods by unauthorized dealers. These market players from the unorganized sector overpower big players in terms of price competitiveness and the local supply network they maintain, which is difficult for global players to achieve. The growth in switchgear sales from the gray market deteriorates the brand name of the market leaders if cheap-quality goods are sold under their name. The increasing sales from both local and gray market players reduce the opportunity for global players to increase their revenue (market share).
Pad-Mounted Switchgear Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of Pad-mounted Switchgear Market and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include EATON (Ireland), ABB (Switzerland), Hubbell (US), G&W Electric (US), and S&C Electric (US).
The industrial segment by application holds the second largest segment in 2022
The industrial sector comprises manufacturing and process industries, such as oil & gas, mining, chemical & pharmaceutical, steel, food & beverage, automotive, and cement. These industries require a constant power supply and reliable backup power. These industries prefer pad–mounted switchgear systems to avoid power outages and ensure an uninterrupted power supply. The industrial loads are connected to the distribution network at high voltage due to their bulk power requirements. These industries install separate substations for supplying power to their facilities. Industrial substations are installed in areas with hazardous conditions. In the mining and cement industries, switchgear systems are exposed to large volumes of dust and particulate matter. Hence, it is preferable to install pad–mounted switchgear solutions, wherever possible, to protect the components. They protect electrical equipment and components, such as circuit breakers and fuses, and help extend their lifespan. Thus, pad–mounted switchgear systems provide industry personnel with a safe working environment, thereby driving the market growth for industrial applications.
IEC segment by standard is estimated to be the largest segment for pad–mounted switchgear market
The IEC 61439 Standard applies to enclosures for which the rated voltage is under 1,000 VAC (at a frequency under 1,000 Hz) or 1,500 VDC. The standard defines design-verified assemblies (DVA) and eliminates type-tested assemblies (TTA) and partially type-tested assemblies (PTTA). To conform to the standard, type tests have been replaced by a design verification, which can be carried out by three equivalent and alternative methods—testing, calculation and measurement, and application of design rules.
Gas-insulated segment by type is estimated to be the largest segment for pad–mounted switchgear market
Gas-insulated pad–mounted switchgear systems accounted for a 41.1% market share in 2022. They use SF6 gas for insulation. SF6 has superior dielectric properties when used in phase-to-phase and phase-to-ground insulation applications at moderate pressure. In gas-insulated pad–mounted switchgear solutions, circuit breaker interrupters, switches, and fuses are encapsulated with SF6 gas inside grounded metal enclosures. SF6 gas-insulated switchgear solutions are generally used in high-voltage underground distribution networks due to their compact, fully enclosed, and space-saving design.
25–38 kV segment by voltage is estimated to be the largest segment for pad–mounted switchgear market
Pad–mounted switchgear solutions with voltage classes ranging from 25 to 38 kV are designed for large-scale commercial and industrial applications. These switchgear solutions are deployed in primary distribution feeders and substations. The demand for 25 to 38 kV gas-insulated pad–mounted switchgear systems is driven by the increasing investments in improving underground power distribution network infrastructure and the growing inclination toward replacing overhead lines with underground cables. Europe and North America are the key markets for 25–38 kV pad–mounted switchgear solutions owing to the rapid growth of the industrial and commercial sectors in these regions. These sectors require an uninterrupted high-quality power supply.
North America is expected to account for second-largest market size during the forecast period.
North America accounted for a 30.1% share of the pad–mounted switchgear market in 2021. In 2022, North America held the largest share of the pad–mounted switchgear market. It accounted for a 30.1% share, with a market size of USD 1,601 million in 2022. The North American pad–mounted switchgear market, by country, has been segmented into the US, Canada, and Mexico.
The US accounted for approximately 63.4% share of the North American pad–mounted switchgear market. The region has a combined population of almost 530 million and an economy representing more than one-quarter of the world’s GDP. According to the International Monetary Fund (IMF), the North American economy was expected to grow by approximately 5% in 2022. The region has extensive power demands and has seen growing investments in strengthening and modernizing its transmission and distribution utilities. According to the BP Statistical Review of World Energy 2021, this region was the second-largest consumer of energy, accounting for 19.4% of the total energy consumption in the world in 2020. According to the International Energy Agency’s World Energy Investment 2021 report, the utilities in North America invested approximately USD 165 billion in electricity generation and transmission and distribution infrastructure in 2020. The utilities in the region are undergoing a major digital operational transformation and are focusing on decentralization, digitization, and decarbonization of power systems.
Key Market Players
The Pad-Mounted Switchgear market is dominated by a few major players that have a wide regional presence. The major players in the pad-mounted switchgear market are Eaton (Ireland), Hubbell (US), G&W Electric (US), S&C Electric (US), and ABB (Switzerland). Between 2018 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the Pad-Mounted Switchgear market.
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Report Metric |
Details |
|
Market Size available for years |
2021–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million) |
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Segments covered |
By Type, By Standard, By Voltage, By Application |
|
Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
|
Companies covered |
Eaton (Ireland), Hubbell (US), ABB (Switzerland), G&W Electric (US), S&C Electric (US), Powell (US), Federal Pacific (US), Entec Electric & Electronic (South Korea), NOJA Power (Australia), TIEPCO (Saudi Arabia), Ghorit Electricals (China), Ningbo Tianan Group (China), Trayer Switchgear (US), KDM Steel (China), Switchgear Power Systems (US), Park Detroit and Park Electric (US), Beijing Kylin Power & Technology (China), Telawne Power Equipments Pvt. Ltd. (India), Ormazabal (Brazil), and Actom (Boksburg). |
This research report categorizes the pad–mounted switchgear market based on type, voltage, standard, application, and region.
By Type
- Air-insulated
- Gas-insulated
- Solid-Dielectric
- Others
By Application
- Industrial
- Commercial
- Residential
By Voltage
- Up to 15 kV
- 15–25 kV
- 25–38 kV
By Standard
- IEC
- IEEE
- Other Standards
By Region
- North America
- Asia Pacific
- South America
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Europe
- Middle East & Africa
Recent Developments
- In Jan 2023, Eaton collaborated with Rewiring America to help drive residential electrification education, awareness, and action.
- In Mar 2023, S&C Electric company, a leader in smart and resilient electrical grid solutions, announced the expansion of its US manufacturing footprint with a 275,000-square-foot facility in Palatine, Illinois, approximately 25 miles from S&C’s 47-acre Chicago headquarters and manufacturing campus in Rogers Park. The company employs 3,500 team members globally and more than 2,000 in Chicago, making it the second-largest manufacturer in the city.
- In January 2021, ABB completed the delivery of medium- and low-voltage digital solutions for the Shanghai Bailonggang Wastewater Treatment Plant expansion project in China. ABB also created a custom power management scheme as part of the project to ensure continuous operations and avoid downtime throughout the facility refurbishment.
- In August 2022, G&W Electric announced the acquisition of Veneta Isolatori SPA, a leading manufacturer and provider of a wide range of components, to quickly respond to customers’ requests and needs in the market.
Frequently Asked Questions (FAQ):
What is the current size of the Pad-Mounted Switchgear market?
The current market size of global pad–mounted switchgear market is estimated to be USD 5.3 billion in 2023.
What is the major drivers for pad–mounted switchgear market?
The US endures more blackouts than any other developed nation; power outages last more than an hour and have increased steadily in the past few years, costing American businesses about USD 150 billion annually. For instance, in February 2021, Texas saw record-low temperatures, snow, and ice, which made highways impassable. The state's electric grid operator lost control of the power supply, leaving millions without power. The main reasons behind the increasing number of blackouts are aging infrastructure, lack of investments, and the absence of regulatory policy that enables grid modernization. According to the Canadian Electricity Association, the current Canadian electricity sector requires an investment of USD 400 billion for the next 20 years. Electricity demand has grown 10% over the past decade, despite the increasing use of more energy-efficient products and the rising construction of energy-efficient buildings. End users rely more on digital devices, air-conditioners (during summer), and other electrical appliances.
What is the major restraint for pad–mounted switchgear market?
Technical complexities involved in safe operations of pad-mounted switchgear systems: Operator safety concerns in utilities and exposure to live components within switchgear are potential hazards. Older switchgear may contain parts manufactured from asbestos or asbestos-containing materials (ACMs). The Control of Asbestos Regulations 2012 places a duty on those responsible for the maintenance and repair of equipment to manage the risks from the potential for asbestos exposure. Advice should be sought from the original equipment supplier or a specialist maintenance provider on the likelihood of asbestos or ACMs in switchgear. A system should be in place to assess and appoint the people who can operate switchgear (authorized persons), record who they are, what training they have received, what experience they have, what items of switchgear they are permitted to operate, and what duties they are authorized to undertake.
Which is the largest-growing region during the forecasted period in pad–mounted switchgear market?
Europe is expected to account for the largest market size during the forecast period. The European power generation, transmission, and distribution systems are comparatively mature. Therefore, the EU emphasizes upgrading its aging infrastructure, integrating renewable energy sources such as solar and wind power, and building interconnections to enable more efficient power and energy trading. This would also require the replacement of the pad–mounted switchgear systems. According to the European Commission, expanding, replacing, and refurbishing the power grid to integrate renewable energy production necessary for reaching the 55% emission reduction target by 2030 would require annual investments of more than USD 61 billion. This presents a lucrative opportunity for the growth of the pad–mounted switchgear market in the region.
Which is the second largest-growing segment, by type during the forecasted period in pad–mounted switchgear market?
The air-insulated segment, by type, is projected to hold the highest market share during the forecast period. Air-insulated pad–mounted switchgear comprises a casing with internal volume for housing at least a busbar assembly and a circuit breaker. Applications of air-insulated pad–mounted switchgear include cable charging, transformer switching, and secondary distribution network. Air without moisture content, referred to as dry air, is used as an insulation medium. The use of dry air as an electrical insulator reduces carbon footprint. This is one of the reasons for the growth of the air-insulated pad–mounted switchgear market.
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This study involved major activities in estimating the current size of the pad–mounted switchgear market. Comprehensive secondary research was done to collect information on the market, peer market, and parent market. The next step involved was validation of these findings, assumptions, and market sizing with industry experts across the value chain through primary research. The total market size was estimated through country-wise analysis. Then, the market breakdown and data triangulation were performed to estimate the market size of the segments and sub-segments.
Secondary Research
The secondary research involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg BusinessWeek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the global pad–mounted switchgear market. The other secondary sources comprised press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturers, associations, trade directories, and databases.
Primary Research
The pad–mounted switchgear market comprises several stakeholders, such as product manufacturers, service providers, distributors, and end-users in the supply chain. The demand-side of this market is characterized by industrial end-users. Moreover, the demand is also fueled by the growing demand of underground distribution systems. The supply side is characterized by rising demand for contracts from the industrial sector, and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
- The bottom-up approach has been used to estimate and validate the size of the pad–mounted switchgear market.
- In this approach, the pad–mounted switchgear production statistics for each product type have been considered at a country and regional level.
- Extensive secondary and primary research has been carried out to understand the global market scenario for various types of pad–mounted switchgears.
- Several primary interviews have been conducted with key opinion leaders related to pad–mounted switchgear system development, including key OEMs and Tier I suppliers.
- Qualitative aspects such as market drivers, restraints, opportunities, and challenges have been taken into consideration while calculating and forecasting the market size.
Paad Mounted Switchgear Market Size: Tow-Down Approach
Data Triangulation
The overall market size is estimated using the market size estimation processes as explained above, followed by splitting of the market into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the pad–mounted switchgear market ecosystem.
Market Defenition
A pad-mounted switchgear is a compact unit locked in a steel or aluminum cabinet installed on top of a concrete pad. A switchgear system is a collection of switching and control equipment, such as circuit breakers, load break switches, isolators, and earthing switches used in transmission and distribution systems.
The growth of the pad-mounted switchgear market during the forecast period can be attributed to the planned in the grid infrastructure programs across major countries in North America, South America, Europe, Asia Pacific, and the Middle East & Africa.
Key Stakeholders
- Government Utility Providers
- Independent Power Producers
- Pad-mounted switchgear manufacturers
- Power equipment and garden tool manufacturers
- Consulting companies in the energy & power sector
- Distribution utilities
- Government and research organizations
- Organizations, forums, and associations
- Raw material suppliers
- State and national regulatory authorities
- Switchgear manufacturers, distributors, and suppliers
- Switchgear original equipment manufacturers (OEMs)
Objectives of the Study
- To define, describe, and forecast the size of the pad–mounted switchgear market by type, by application, by voltage, by standard, and region, in terms of value
- To estimate and forecast the global pad–mounted switchgear market for various segments with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), South America, Middle East & Africa, in terms of value
- To provide comprehensive information about the drivers, restraints, opportunities, and industry-specific challenges that affect the market growth
- To provide a detailed overview of the pad–mounted switchgear value chain, along with industry trends, use cases, security standards, and Porter’s five forces
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying high-growth segments and detail the competitive landscape for market players
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as joint ventures, mergers and acquisitions, contracts, and agreements, and new product launches, in the pad–mounted switchgear market
- To benchmark players within the market using the proprietary competitive leadership mapping framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio
- This report covers the pad–mounted switchgear market size in terms of value.
Available Customizations:
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Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
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Generating Response ...
Growth opportunities and latent adjacency in Pad–Mounted Switchgear Market