Global Low Voltage Switchgear Market - 2019-2026
Low voltages switchgears are designed to provide the low voltage short-circuit and overload protection. These switchgears are the integral part of three-phase power distribution transformers, low-voltage power circuit breakers (LV-PCB) fusegear products distribution boards and Factory assemblies. They are designed to handle the power supply reliably, safely, and efficiently with voltages up to 1,000 volts and current up to 6,000 amps. The low voltage switchgears industry has substantial use in the circuit breakers, contactors, miniature circuit breakers, moulded case circuit breakers, residual current devices, thermal overload and protection relays, and starters. The major end use industry for the low voltage switchgears includes buildings, residential and commercial, utilities, manufacturing industries, agriculture, infrastructure entities, and OEMs. The contribution of low voltage switchgear in the electrical industry is around 10.1%. The global low voltage switchgear market valued USD XX million in 2018 and it is expected to grow at a CAGR of XX% to reach USD XX million by 2026.
The market is driven by the rising demand for the power supply with growing infrastructure and smart grid network around the globe with surge in population. As low voltage switchgear has substantial use in medium to large sized commercial, industrial facilities, the electrical utility transmission and distribution systems. According to the global infrastructure hub organization outlook report, the total investment for the infrastructure development is increasing with an average rate of USD 3.7 trillion per year and is projected to reach to around USD 94 trillion by 2040. Thus infrastructure development needs the low voltage switchgears for controlling and maintaining the power supply through the transformers and distribution network lines.
There is a rise in the launch of new innovative technology implemented with robust, centralized and protected power supply with the help of low voltage switchgear for power equipment and circuits in commercial and industrial sectors. For instance on 9th Jan 2020, Finolex Cables Company had launched low voltage industrial switchgears with new advanced technology using molded case circuit breaker (MCCB) to strengthen switchgear portfolio of the company. This switchgear provides centralized protection for low voltage power equipments and circuits used in industrial, commercial and utility installations including generators, transformers, motors etc.
The global Low voltage switchgear market is segmented based on product type, installation, current, voltage rating, application, and region.
In terms of product type the global low voltage switchgear market is bifurcated into Withdrawable unit, plug-in, fixed mounting and others. Among this fixed mounting segment has highest share in 2019 owing to high protection capacity and low failure rates.
Similarly, Withdrawable unit, plug-in segment also increasing at fastest pace owing to surge in the energy demand for the electronic devices supply with plug in supply and growing the small scale businesses drives the Withdrawable unit segmental growth around the globe.
In terms of installation type, the global low voltage switchgear market is divided into indoor and outdoor. Among this indoor segment has the highest share in 2019. This is owing to increasing in the government supports and funding for the foundation of small scale businesses. For instance 13th May 2020, the Government of India has been announced the package of Rs 3 lakh crore loans for the micro, small, medium sized enterprises (MSMEs).
Similarly outdoor segment is also growing at faster pace due to increasing adoption of large scale integration and distribution network with robust power generation technologies.
Depending on the current type, the global low voltage switchgear market is segmented into AC current and DC current. Among this AC segment has the highest share in the 2019. This is primarily owing to increasing the global investment in the power sector due to AC segment has less economical losses, lesser heat accumulation, flexible and effective high-end voltage levels. According to the estimation by International Energy Agency (IEA) and International Renewable Energy Agency (IRENA) the power sector investment is projected to reach around USD 39.6 trillion by 2050.
Depending on the voltage rating, the global low voltage switchgear market is segmented into ≤ 250 Volts, 251 to 750 Volts and above 750 Volts. Among this, above 750 Volts segment has the highest market share in 2019. This growth is anticipated due to wide range of applications including for the water treatment plants, co-generation plants and for the industrial power supply equipments and for semiconductors. According to the Semicon Europa Organization in 2017, the Semiconductor Industry has been reached to around USD 400 billion around the globe.
Similarly, ≤ 250 Volts, 251 to 750 Volts segments has the highest market share owing to increase in the demand for the electronic devices with surge in the online sale of motors, pumps blowers, and fans.
Further, the global low voltage switchgear market is also classified based on the application as substation, motor control, power factor correction and distribution. Among this distribution segment has the highest market share in 2019 as surge in the utilization of low voltage switchgear by utility, electricity and power sectors demand for the commercial and industrial purpose. According to the estimation report by Federation of American Scientists Organization (FAS) in 2018, the distribution system investment was valued from around USD 232 billion to USD 339 billion including with support of renewable energy and continuous installation of the smart grid.
Similarly substation and power factor correction segment is expected to witness positive market growth due to the growing demand by the consumers to distribute the power supply. According to the Federation of American Scientists Organization (FAS) in 2018, the primary amount for the substations and transmission system in the America was valued from around USD 82 billion to USD 90 billion for transmission systems and substations.
Furthermore, motor control segment is also growing at faster pace due to launching of compact size technology for variety of applications like fan, cooler etc. For instance on 6th February 2020 Toshiba Company had launched low power, Compact, and high resolution micro-stepping motor driver with IC compact package. This motor driver has voltage capacity from low to medium and has reduced vibration with better efficiency.
By region, the global Low voltage switchgear market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, Asia Pacific dominated the global low voltage switchgear market and expected to grow at the highest CAGR during the forecasted period due to growing the infrastructure, manufacturing facilities with surge in industrialization followed by North America region. Several companies are shifting their manufacturing facilities of automotive, mobile devices, and other electronic components to the emerging countries like China, India, and Japan due to the availability of low cost labor with surge in population. China holds the leading position for the low voltage switchgear market owing to raising the high investment for the infrastructure development and growing population demand. For instance on 10th March 2020, Chinese Government has released plan for the major infrastructure development for 1,13 major cities and provinces. The major 8 cities and province investment budget was valued to around USD 4.8 trillion for projects 2020.
North America is expected to growing at faster pace owing to increasing the investment for the smart grids, distribution and transmission systems due to rising electricity demand in this region followed by Europe. According to the Federation of American Scientists Organization (FAS) in 2018, the smart grid spending on the electricity is projected to reach to around USD 46 billion only in the United States from 2018 to 2030 with average increment of USD 3.61 billion annually. The Organization also stated that in between 2010 to 2015, Smart Grid Investment Grant (SGIG) has granted around USD 3.4 billion in for the infrastructure development of 99 projects in the United States and around USD 8 billion for the smart grid modernization.
The global Low voltage switchgear market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Schneider Electric, ABB, E+I Engineering, General Electric , Siemens, Hyosung, Eaton, L&T, Mitsubishi , Hyundai Electric, Powell, Hitachi, Hubbell, Fuji Electric, Skema, Norelco, START, Lucy Electric are the leading market players with significant market share.
Major players are receiving launching new technology advanced low voltage switchgear for various applications in the electronic and electrical instruments. For instance, Jun 12th, 2018 Schneider Electric had been launched innovative technology medium voltage switchgear for the gas-insulated in the solid dielectric busbar with capacity up to 38kV in the U.S. region. This design has low maintenance seamless handling and provides safety for any gas handling.
Companies are entering into the collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance 24th Jan 2020, Siemens had been acquired New Delhi-based C&S Electric Company approximately EUR 267 million. This acquisition has strengthened the Siemens' product portfolio for supplying of low-voltage power distribution and electrical installation technology infrastructure, power generation, transmission and distribution.