Switchgear Monitoring System Market Size, Share, Analysis

[208 Pages Report] The global switchgear monitoring system market is estimated to grow from USD 1.8 billion in 2023 to USD 2.7 billion by 2028; it is expected to record a CAGR of 8.4% during the forecast period. The increasing demand for switchgear monitoring systems is driven by growing energy requirements, the incorporation of renewable energy sources, electrification and continuous grid modernization initiatives. These products play a critical role in the efficient transmission and distribution of electricity, addressing the needs of urbanization, industrial expansion, and emerging markets, all while adhering to environmental regulations.

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Switchgear Monitoring System Market Dynamics

Driver: Growing demand for reliable and continuous power supply

The growth in the demand for reliable and continuous power supply is driven by a confluence of factors, including increasing focus renewable energy , deployment of smart grids and digitalization, technological advancements, and the rising prevalence of electronic devices and data-driven systems. In an era where our lives are intricately connected to electricity, the importance of an uninterrupted power supply cannot be overstated. Industries depend on a constant energy source to maintain production and operations. Any power disruption can result in financial losses, delayed deliveries, and reduced competitiveness. The demand for continuous power supply is also amplified by the increasing integration of renewable energy sources into the power grid infrastructure, which can be intermittent.

Restraint: Implementation of stringent regulations to limit SF6 emissions from switchgears and ring main units

The implementation of switchgear monitoring systems is constrained by high costs associated with various elements. These expenses encompass the initial investment in hardware components, including the switchgear devices themselves, as well as the accompanying software and licensing fees. Additionally, there are substantial costs related to the implementation of a comprehensive switchgear monitoring system is hindered by several factors, including the extensive IT testing, project management, software integration, and staff training required. The high cost of deployment further limits its widespread adoption. Additionally, the integration of the new system necessitates significant investments in replacing the aging grid infrastructure and ensuring compatibility between hardware and software configurations. Moreover, the lack of an advanced communication network in many utilities poses a major challenge. Consequently, utilities in developing countries are hesitant to adopt switchgear monitoring systems.

Opportunities: Continuous increase in power generation capacity 

The growing deployment of smart grid and digitalization is creating significant opportunities for switchgear monitoring systems. As the electricity industry embraces digital intelligence and advanced metering, grid operations are becoming more efficient, enabling the integration of renewable energies and optimizing the balance between energy demand and supply. The increasing adoption of smart grids, the need for reliable power supply, and the growing emphasis on operational efficiency are driving the demand for switchgear monitoring systems. Additionally, the expansion of renewable energy infrastructure and the integration of digital technologies in power distribution networks are expected to surge the demand for switchgear monitoring systems. The switchgear monitoring system market is experiencing steady growth due to these factors, and it offers immense opportunities for industry participants and stakeholders.

Challenges: Supply chain disruptions

Inadequate data storage and management are significant concerns for switchgear monitoring systems. The effective management of data is crucial for ensuring the reliability and performance of switchgear assets in power grids. The lack of adequate data can hinder the implementation of supervised methods for condition monitoring, health assessment, and maintenance strategies. To address this issue, it is essential to consider robust data storage and management solutions that can support the continuous monitoring and analysis of switchgear performance. One approach to addressing inadequate data storage and management is to implement intelligent switchgear systems that are equipped with advanced data processing, storage, and visualization capabilities. These systems can store data from various sensors and analyze it to identify trends that could lead to unscheduled downtime. Additionally, the use of non-contact sensors such as IR cameras and thermal imaging cameras for periodic temperature measurement in switchgears can provide valuable data for condition monitoring.

Switchgear monitoring system Market Ecosystem

Leading companies in this market include well-established, financially secure producers of Switchgear monitoring system. These corporations have been long operating in the market and have a differentiated product portfolio, modern manufacturing technologies, and robust sales and marketing networks. Major companies in this market include ABB (Switzerland), Siemens Energy (Germany), Schneider Electric (France), General Electric (US), and Eaton (Ireland).

The temperature monitoring segment, is expected to be the largest segment market by services, during the forecast period.

By services, the switchgear monitoring market is divided into four segment: Partial Discharge Monitoring, Gas Monitoring, Temperature Monitoring and Others. Temperature Monitoring segment by services is the largest segment in the market. Specifically, this segment benefits from the expansion of renewable energy sources and smart grid modernization. The operational temperature of switchgear plays a pivotal role in determining the asset's longevity, exhibiting a substantial correlation with its operational life. This integrated system continuously monitors switchgear temperatures, providing real-time data for assessing equipment health. Empowering operators to proactively manage thermal conditions, optimize maintenance strategies, and ensure prolonged operational reliability of switchgear assets in power distribution and transmission networks, making it the dominant segment in the market.

By voltage, the high & extra high volatage segment is expected to be the largest segment, during the forecast period.

This report segments the switchgear monitoring system market based on voltage into three segments: high & extra high voltage, medium voltage, and low voltage. The high & extra high voltage segment is expected to be the largest segment during the forecast period. These advanced switchgear systems find extensive use among various end users, including Transmission and Distribution (T&D) utilities, large power generation plants, as well as in railways and metros. Particularly crucial in transmission systems, high-voltage switchgear ensures the reliability and protection of grid infrastructure, making it an indispensable component for maintaining the stability of power networks. The demand for high-voltage switchgear is notably driven by substantial investments in transmission infrastructure, with emerging economies such as India, China, Saudi Arabia, and the UAE playing pivotal roles in boosting this segment of the market.

By end user, the industrial segment is expected to be the second fastest segment, during the forecast period

This report segments the switchgear monitoring system market based on end user into four segments: utilities, industrial, commercial, and others. The industrial segment is expected to be the second fastest segment during the forecast period. The systems deployed in this sector boast advanced technologies, including integrated protection and remote communication. These features not only safeguard costly instruments but also contribute to maximizing their lifespan and efficiency. Switchgear monitoring systems play a crucial role in ensuring the efficient and uninterrupted power supply across a spectrum of industries, including manufacturing, marine, oil & gas, mining, aviation, cement, aluminum, iron and steel, and automobile and chemicals. These systems are designed to comply with stringent safety standards to safeguard both equipment and personnel, these factors playing pivotal roles in boosting this segment of the market.

“Asia Pacific is expected to  be the largest and fastest region in the switchgear monitoring system market.”

Asia Pacific is expected to be the largest and fastest region in the switchgear monitoring systems market between 2023–2028. The market in Asia Pacific comprises China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific countries. The region has a well-established electrical infrastructure that requires continuous modernization and upgrades to ensure reliability and efficiency. Moreover, a growing emphasis on renewable energy integration and grid resilience drives demand for switchgear monitoring system. Additionally, the regionhave set ambitious targets for natural gas and renewable power generation from solar and wind sources, aiming to diversify their energy portfolios in the coming years. These are the key factors fostering the growth of the switchgear monitoring system market in the North America.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the switchgear monitoring system market are ABB (Switzerland), Siemens Energy (Germany), Schneider Electric (France), General Electric (US), and Eaton (Ireland). Between 2019 and 2023, 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 market. 

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Scope of the Report

This research report categorizes the blower market by product type, pressure, end-use industry, distribution channel, and region

On the basis of type, the switchgear monitoring system market has been segmented as follows:

• Air Insulated Switchgear
• Gas Insulated Switchgear

On the basis of component, the switchgear monitoring market has been segmented as follows:

• Hardware
• Software

On the basis of voltage, the switchgear monitoring market has been segmented as follows:

• Low Voltage
• Medium Voltage
• High & Extra High Voltage

On the basis of services, the switchgear monitoring market has been segmented as follows:

• Partial Discharge Monitoring
• Gas Monitoring
• Temperature Monitoring
• Others

On the basis of the end-user, the market has been segmented as follows:

• Utilities
• Industrial
• Commercial
• Others

On the basis of region, the switchgear monitoring market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In August 2023, Eaton invests more than USD 500 million in its North American manufacturing to meet rapidly increasing demand for the company’s electrical solutions across utility, commercial, data center, healthcare, industrial and residential markets.
• In November 2022, The Digital HYpact switchgear was developed by General Electric as part of the EU-funded IN2STEMPO project, which is developing a smart railway power grid with an interconnected system that integrates smart metering, innovative power electronic components, energy management, and energy storage systems.
• In October 2023, Eaton investing USD 85 million to increase North American manufacturing of essential utility solutions advancing the energy transition and electrification.

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