The pandemic has undoubtedly affected every market involved in the global supply chain! However, amidst all the chaos caused by different industries, the global switchgear industry continued to be on the greener side of the graph! Looking back at the industry’s recent performance, the global switchgear market was valued at nearly $96.9 billion in 2019, highlighting a CAGR (compound annual growth rate) of 5.9% since 2015. Adding to it, the industry also experienced a growth of 10-15 per cent in 2020-21.
But, what led to the increase in demand for switch gears amidst the pandemic? Let’s find out!
Drivers Of The Switchgear Industry!
Increased Demand For Electricity
Rising power consumption is likely to be a major driver of the switchgear market in the foreseeable future. This is due to increased population and demand for electrical and electronic goods, particularly in developing nations like China, India, Brazil, and several African countries. As a result, global power demand is expected to rise 57 per cent from 25,000 TWh in 2017 to 38,700 TWh in 2050. The primary drivers for the surge would be:
i. A large chunk of this increase will come from emerging economies like China and India. For example, from 2017 to 2022, India’s electricity consumption is predicted to expand at a CAGR of 7.1 per cent.
iii. Supporting the demand for the residential switchgear market. Adding to it, the increasing demand for environmentally friendly switchgear will also influence the market’s movement.
The Future Of Switchgears in India
With the rapid urbanization and industrialization, the Indian switchgear market is likely to grow in sync with a rising power consumption over the next several years. Furthermore, the necessity for smart appliances to ensure the system’s long-term viability has boosted the demand for safe and energy-efficient switchgear. This year, the market will be pushed even further by increased infrastructure and a strong corporate climate.
While the industry faced a decline in sales in the first few months of 2020, the market continues to move steadily, expected to recover and grow at a CAGR of 7.5% from 2021, with an expected valuation to cross a $113.5 billion mark in 2023, the industry.
Adding to it, the newly injected investments into the country’s infrastructure project has also improved the scope of switchgear industries in India. The development of airports, metros, and hospitals will boost the market of LV switchgears even further.