Low Voltage Switchgear Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Low voltage switchgear Market is segmented By Product Type (Withdrawable Unit, Plug-in, Fixed Mounting, Others), By Installation (Indoor, Outdoor), By Current (DC, AC), By Voltage Rating (≤ 250 Volts, 251 to 750 Volts, >750 Volts), By Application (Substations, Motor Control, Power Factor Correction, Distribution), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Low Voltage Switchgear Market is expected to grow at a high CAGR during the forecast period (2024-2031).

Low voltages switchgear are designed to provide low voltage short-circuit and overload protection. This switchgear is an integral part of three-phase power distribution transformers, low-voltage power circuit breakers (LV-PCB) fuse gear 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 switchgear industry has substantial use in the circuit breakers, contactors, miniature circuit breakers, molded case circuit breakers, residual current devices, thermal overload and protection relays, and starters. The low voltage switchgear's major end-use industry 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%.

Market Summary

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Market Dynamics

The market is driven by the rising demand for the power supply with growing infrastructure and smart grid networks worldwide with the 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 infrastructure development increases with an average of USD 3.7 trillion per year. It is projected to reach around USD 94 trillion by 2040. Thus infrastructure development needs the low voltage switchgear 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 a robust, centralized, and protected power supply with 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 switchgear with new advanced technology using a molded case circuit breaker (MCCB) to strengthen its switchgear portfolio.  This switchgear provides centralized protection for low voltage power types of equipment and circuits used in industrial, commercial, and utility installations, including generators, transformers, motors, etc.

Market Segment Analysis

The global Low voltage switchgear market is segmented based on product type, installation, current, voltage rating, application, and region.

The global low voltage switchgear market is bifurcated into Withdrawable unit, plug-in, fixed mounting, and others in terms of product type. This fixed mounting segment has the highest share in 2019 due to high protection capacity and low failure rates.

Similarly, in the Withdrawable unit, the plug-in segment also increases faster due to the 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 an increase in government supports and funding for the foundation of small-scale businesses. For instance, on 13th May 2020, India's Government announced Rs 3 lakh crore loans for micro, small, medium-sized enterprises (MSMEs).

Similarly, the outdoor segment is also growing faster due to the 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 and DC currents. Among these, the AC segment had the highest share in 2019. This is primarily due to increasing global investment in the power sector. The AC segment has fewer economic losses, lesser heat accumulation, and flexible and effective high-end voltage levels. According to the International Energy Agency (IEA) and International Renewable Energy Agency (IRENA) estimation, 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 these, the above 750 Volts segment had the highest market share in 2019. This growth is anticipated due to the wide range of applications, including water treatment plants, co-generation plants, and the industrial power supply types of equipment and semiconductors. According to the Semicon Europa Organization in 2017, the Semiconductor Industry has been reached around USD 400 billion around the globe.

Similarly, ≤ 250 Volts, 251 to 750 Volts segments have the highest market share due to an increase in the demand for electronic devices with the surge in motors' online sales, pumps blowers, and fans.

Further, the global low voltage switchgear market is also classified based on the application as a substation, motor control, power factor correction, and distribution. Among this distribution, the segment has the highest market share in 2019 as a surge in low voltage switchgear utilization by utility, electricity, and power sectors demand commercial and industrial purposes. According to the estimation report by the 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 the support of renewable energy and continuous installation of the smart grid.

Similarly, the substation and power factor correction segment is expected to witness positive market growth due to the consumers' growing demand 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 America was valued from around USD 82 billion to USD 90 billion for transmission systems and substations.

 Furthermore, the motor control segment is also growing faster due to compact size technology for various applications like a 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.

Market Geographical Share

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 infrastructure, manufacturing facilities with the surge in industrialization followed by the North America region. Several companies are shifting their manufacturing facilities of automotive, mobile devices, and other electronic components to emerging countries like China, India, and Japan due to the availability of low-cost labor with the surge in population. China holds the leading position for the low voltage switchgear market owing to raising the high investment for infrastructure development and growing population demand. For instance, on 10th March 2020, the Chinese Government has released a major infrastructure development plan for 1,13 major cities and provinces. The major 8 cities and province investment budget was valued at around USD 4.8 trillion for projects 2020.

North America is expected to grow faster due to increasing 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 electricity is projected to reach around USD 46 billion only in the United States from 2018 to 2030 with an average increment of USD 3.61 billion annually. The Organization also stated that between 2010 to 2015, Smart Grid Investment Grant (SGIG) has granted around USD 3.4 billion for the infrastructure development of 99 projects in the United States and USD 8 billion for the smart grid modernization.

Companies and Competitive Landscape

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 launching new technology advanced low voltage switchgear for various electronic and electrical instruments. For instance, on 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 collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance 24th Jan 2020, Siemens acquired a New Delhi-based C&S Electric Company for approximately EUR 267 million. This acquisition has strengthened Siemens' product portfolio for supplying low-voltage power distribution and electrical installation technology infrastructure, power generation, transmission, and distribution.