Size
According to a report by MarketsandMarkets, the global air insulated switchgear market was valued at USD 6.69 billion in 2020 and is expected to reach USD 8.41 billion by 2025, growing at a compound annual growth rate (CAGR) of 4.70% during the forecast period. The growth of the market is attributed to the increasing demand for electricity, the need to upgrade aging infrastructure, and the increasing investments in renewable energy projects. Factors such as the increasing adoption of smart grids and the growing demand for reliable power supply are also expected to drive the growth of the market.
Trends
Based on my knowledge cutoff of 2021, some of the trends in the global air insulated switchgear market are:
- Increasing adoption of smart grids: The implementation of smart grids is gaining traction globally, which requires advanced technology for power distribution and management. Air insulated switchgear is a critical component of smart grids as it ensures safe and reliable power distribution, leading to the growth of the market.
- Growing demand for renewable energy: The increasing demand for renewable energy is driving the growth of the global air insulated switchgear market. Air insulated switchgear is used in renewable energy generation systems such as wind turbines, solar farms, and hydropower plants.
- Technological advancements: The market is witnessing significant technological advancements, leading to the development of advanced air insulated switchgear that offers improved safety, reliability, and efficiency. For instance, the introduction of digital switchgear, which allows for remote monitoring and control of power distribution systems, is expected to drive the growth of the market.
- Replacement of aging infrastructure: The aging power infrastructure in many countries is creating a demand for the replacement of outdated and inefficient systems. Air insulated switchgear is a critical component of power distribution systems, and its replacement is expected to boost the growth of the market.
- Increasing investments in the power sector: Governments and private players are making significant investments in the power sector to improve the efficiency and reliability of power distribution systems. This is expected to drive the growth of the global air insulated switchgear market.
Growth
The global air insulated switchgear market is expected to grow during the forecast period due to several factors, including:
- Increasing demand for electricity: The demand for electricity is increasing globally due to the growing population and increasing urbanization. This is driving the need for safe, reliable, and efficient power distribution systems, leading to the growth of the air insulated switchgear market.
- Need for grid modernization: Aging power infrastructure in many countries is creating a need for grid modernization. This includes the replacement of outdated and inefficient systems with advanced technology, including air insulated switchgear.
- Growing investments in renewable energy: The increasing investments in renewable energy projects, such as wind and solar farms, are driving the demand for air insulated switchgear. This is because air insulated switchgear is used to distribute power from renewable energy sources to the grid.
- Technological advancements: The market is witnessing significant technological advancements, leading to the development of advanced air insulated switchgear that offers improved safety, reliability, and efficiency. This is expected to drive the growth of the market.
- Government initiatives: Governments around the world are promoting the adoption of advanced power distribution systems, including air insulated switchgear, to improve the reliability and efficiency of power grids. This is expected to boost the growth of the market.
Overall, the above factors are expected to drive the growth of the global air insulated switchgear market during the forecast period.
Analysis
The global air insulated switchgear market is a highly competitive and rapidly growing market. The market is expected to grow during the forecast period due to the increasing demand for electricity, the need for grid modernization, growing investments in renewable energy, technological advancements, and government initiatives.
The market is segmented based on voltage rating, installation, application, and region. Based on voltage rating, the market is divided into up to 36 kV, 36-72.5 kV, and above 72.5 kV. The up to 36 kV segment holds the largest share of the market due to its extensive use in residential and commercial applications.
Based on installation, the market is divided into indoor and outdoor. The indoor segment holds the largest share of the market due to its advantages such as low maintenance, compact design, and easy installation.
Based on application, the market is divided into transmission and distribution, manufacturing and processing, and infrastructure and transportation. The transmission and distribution segment holds the largest share of the market due to the increasing demand for safe, reliable, and efficient power distribution systems.
Geographically, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific is expected to dominate the market due to the increasing demand for electricity, rapid urbanization, and the growing investments in renewable energy projects in countries such as China, India, and Japan.
In conclusion, the global air insulated switchgear market is expected to grow during the forecast period due to various factors, and it is a highly competitive market with several key players. The market is segmented based on voltage rating, installation, application, and region, and Asia Pacific is expected to dominate the market due to the increasing demand for electricity and growing investments in renewable energy projects.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Knox Market Research journalist was involved in the writing and production of this article.
