Pad-Mounted Switchgear Market

[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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Scope of the Report

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
• 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.

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