The global pad mounted switchgear market is expected to grow at a CAGR of over 3% during the forecast period. Factors such as increasing power generation capacity plan across the world, growing demand for replacing/refurbishing of aging power distribution infrastructure, and increasing electricity demand, particularly in China and India, owing to rapidly increasing industrial and infrastructural development activities, are expected to drive the market during the forecast period. Moreover, increasing investments in transmission and distribution infrastructure with efficient underground distribution systems are expected to bolster the growth of the market. However, delay in the implementation of electrification projects globally and high cost associated with pad mounted switchgears, the growth of the market is likely to be hampered.
- The Gas Insulated Switchgear (GIS) is expected to be the fastest growing segment in global pad mounted switchgear market and be the largest segment during the forecast period. Many key companies provide SF6 (Sulfur hexafluoride) switches for systems rated through 15kV to 38 kV, which acquire maximum share of the market.
- Rising electrification projects in Africa and Asia-Pacific countries, with several initiatives signaling that significant improvements are underway in the regions to improve the transmission and distribution network, is expected to create ample opportunities for the pad mounted switchgear market players.
- Asia-Pacific is expected to be the fastest growing market, owing to one-third of the world's population currently residing in India and China, with the two countries accounting major share of global electricity demand.
Key Market Trends
Gas Insulated Switchgear to Grow at the Fastes Ratet
- Gas-insulated switchgear (GIS) is a metal encapsulated switchgear which consists of high-voltage components such as circuit-breakers and disconnectors. A GIS is majorly used in confined spaces, for example, in city buildings, office spaces, on offshore platforms, extensions, on roofs, etc.
- Moreover, the medium-voltage gas-insulated switchgear segment is expected to witness significant demand over the forecast period, due to the rapid improvement in the power distribution sector through the implementation of smart grid and smart meter technology.
- Gas-insulated medium voltage switchgear is widely used in the wind farm generators. Medium voltage switchgear of up to 35 kVA SF6 gas-insulated, especially used for the protection of wind generators, is installed at the remote locations.
- Underground distribution is a common form for in European countries, with many countries, such as the Netherlands, having 100% of their distribution network underground because of several advantages such as increased reliability and low fault rate. Investments in distribution networks are expected to further contribute to the growth of the gas insulated pad-mounted switchgear market.
- Therefore, with increasing urbanization and industrialization across the developing economies, the demand for gas-insulated switchgear is expected to witness significant growth during the forecast period.
Asia-pacific to be the Fastest Growing Market
- Asia-Pacific is expected to be the fastest-growing region, due to the increasing power generation capacity plans, growing demand for replacing/refurbishing of aging transmission and distribution networks, and increasing electricity demand, particularly in China and India, owing to rapidly increasing industrial and infrastructural development activities.
- China has witnessed high rates of demand for electricity, owing to the unprecedented growth of the economy, coupled with factors, such as rapid industrialization and urbanization electricity. The robust economic growth in China reached nearly 7%, and the gross electricity consumption grew by 6.6%, exceeding 6,000 TWh, for the first time in 2017.
- Utilities and governments in China are developing new generation projects, particularly renewable energy ones, to meet the rising electricity demand. This is likely to require distribution infrastructure to accommodate these projects, which is expected to drive the growth of pad mounted switchgears in the country.
- With Australia’s ageing electricity infrastructure nearing the end of its lifespan, it has become crucial to refurbish/ renovate electricity distribution network for increasing renewable energy generation. Moreover, the country has been taking initiatives to modernize its energy infrastructure, for which, the government invests nearly USD 5 billion each year into the distribution network.
- Furthermore, the Indian government plans to invest further in strengthening the electrical network, to build a strong and smart grid, and this, in turn, is expected to supplement the demand for pad mounted switchgears in the country.
The pad mounted switchgear market is moderately fragmented. Some of the key players are ABB Ltd, S&C Electric Company, Eaton Corporation PLC, G&W Electric Co., and Hubbell Power Systems Inc.
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