MARKET OVERVIEW- GLOBAL DC SWITCHGEAR MARKET
Switchgear is a group of electrical devices that includes fuses, circuit breakers, and electrical disconnect switches. They are used to protect, monitor, control, and isolate electrical equipment. A DC Switchgear refers to a type of electrical switchgear that is used for direct current (DC) applications. DC Switchgear is used in a variety of DC power systems, including DC traction power systems, DC distribution systems, and DC transmission systems. The evolution of electrical distribution networks has increased the demand for switchgear. Switchgears enable safe operations while assisting in the continuity of service and providing superior convenience in commercial and residential applications. It protects equipment from short circuits and fault currents and provides protection to individuals by limiting current flow through the system to a safe level. Thus it finds extensive applications in residential, commercial, and industrial sectors worldwide.
MARKET DRIVERS
Increasing investments in the development of renewable energy sources, as well as favorable government regulations and subsidies to support new technologies, are expected to improve the market. Increasing measures to reduce the overall carbon footprint, combined with increasing consumer awareness of the benefits of renewable energy production, would then intensify the use of transition devices will drive the market growth. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), renewable energy investment in India reached USD 14.5 billion in 2021, an increase of 125.5% from 2020. These initiatives are expected to increase the demand for DC Switchgears in the upcoming days. In addition, the increasing demand for commuter rail networks, expansion, and modernization of the goods rail network, and upgrading of existing metro lines across the globe are expected to fuel the growth of the railway segment of the DC Switchgear market.
MARKET OPPORTUNITIES
The market is expected to have a new opportunity with increasing investment in the manufacturing of DC switchgear by Switchgear manufacturers and raw materials providers as well as power companies and global government leaders will bring a lot of opportunities in the market in the forecast period. In addition, the increasing demand for IoT-connected switchgear product development with an ever-increasing demand for switchgear in manufacturing facilities and power grids. Thus as new products enter the scene, the DC switchgear market will likely continue to expand worldwide.
MARKET RESTRAINTS
The key restraining factor hampering the growth of the global DC Switchgear market is the high cost associated with DC Switchgear products especially high-voltage and medium-voltage switchgear. This has resulted in reluctance among consumers to purchase costly DC Switchgear products. The high cost of these switchgear poses a serious challenge to the growth of the DC Switchgear market.
MARKET GROWTH CHALLENGES
The DC switchgear market is facing some challenges such as increased heat, increased pressure, and arc faults. The temperature has become a major concern due to the extremely high voltage equipment present within the switchgear. A switchgear needs a constant track of temperature conditions and it is impossible to constantly track the switchgear temperature conditions with repeated visits to the setup if an issue is not addressed immediately, then the issue can get worsen. In addition, switchgear triggers a long-term power outage, equipment destruction, and a safety threat to workers by an arc fault.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global DC Switchgear market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increasing demand for different DC Switchgear due to Increasing investments in the development of renewable energy along with government initiatives as well as increasing demand for the commuter rail network, expansion, and modernization of the goods rail network, and upgrading of existing metro lines across the globe are expected to fuel the growth the DC Switchgear market to promote renewable energy and is expected to witness the growth at a specific CAGR from 2023-2029.
DC SWITCHGEAR MARKET SEGMENTAL OVERVIEW
The global DC Switchgear market comprises different market segments like voltage, deployment type, and application and geography.
DC SWITCHGEAR MARKET BY VOLTAGE
By voltage, the DC Switchgear includes key segments of
- Low Voltage (Up 1kV)
- Medium Voltage (1kV - 69kV)
- High voltage (69kV-230kV)
- Extra High Voltage (Above 230kV)
- Others
Low Voltage (Up 1kV) is expected to dominate the market over the forecast period. A low-voltage DC switchgear protects the users from insulation failure and protects devices from events such as overvoltage and overcurrent. Recent developments in electric infrastructure, along with the rise in infrastructure spending and growing measures to ensure stability and safety are major factors due to which, the low-voltage DC switchgear segment is expected to dominate the market over the estimated time period.
DC SWITCHGEAR MARKET BY DEPLOYMENT TYPE
The DC Switchgear market based on deployment type as follows
- Fixed Mounting
- Plug-in
- Withdrawable Units
Fixed mounting design is typically used in applications where the front panel must contain all metering and applicable instrumentation, or where minimal housing depth is important (such as inside traction power substations). The fixed mounting DC switchgear offers some key benefits in terms of cost efficiency, low failure rate, and safety. Due to these key factors, the fixed mounting segment is expected to lead the market over the projected time period.
DC SWITCHGEAR MARKET BY APPLICATION
The DC Switchgear market includes key applications like
- Railways
- Solar Farms
- Marine
- Power Generation
- Others
DC switchgear is used to provide protection for railway lines that are powered by direct current. The railway’ segment is expected to lead the market due to the modernization of existing subway lines, the development of suburban rail networks, and government investments and initiatives in improving railway infrastructure. Also, various DC switchgear companies are getting contracts from various government and private organizations for supplying electrical equipment. This is expected to create new growth opportunities for key players in the market.
DC SWITCHGEAR MARKET BY GEOGRAPHY
The global DC Switchgear market is studied for the following regions
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
The Asia Pacific region is projected to lead the market during the forecast period. Asia Pacific is expected to dominate the region. The increasing urbanization and increasing population and growing demand for electricity as well as increasing demand for renewable energy in the Asia Pacific region will drive the market growth. In addition, government subsidies, and rising technology demands in the region will boost the market growth. Apart from that, the increasing smart grid and IoT technology developments that furthering the demand for switchgear in the Asia Pacific region.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL DC SWITCHGEAR MARKET
The outbreak of COVID-19 has affected major industries overall, among sectors such as manufacturing, and services due to hindering various industrial operations and disrupting the supply chain hence, the DC Switchgear market is expected to witness to decline in revenue growth. The revenue for most of the end-users of DC Switchgear has drastically decreased during the lockdown period. According to the United Nations Conference on Trade and Development, the quantity of loaded goods in international maritime trade between 1970 and 2021 increased, although the years 2020 and 2021 saw a small dip compared with a pre-pandemic year. The health issues across the globe are increasing the risk of the spread of COVID-19, which has led to a decrease in the import and export of products and goods between countries and has made an impact on maritime, and cargo travel that indeed affects the DC switchgear market.
Axiom MRC provides a 360-degree analysis of micro and macroeconomic factors in the global DC Switchgear market. In addition, a complete analysis of changes in the global DC Switchgear market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of a pandemic on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the DC Switchgear market is majorly focused on expanding the global growth of the DC Switchgear industry with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the DC Switchgear sector has led the growing demand for the market. Besides, the market offers a range of products in different applications to fulfill the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- Hitachi Energy Ltd.
- Siemens
- PLUTON Rail PTY LTD
- ABB
- Eaton
- L&T Electrical & Automation
- Lucy Electric
- Powell Industries
- Myers Power Production, Inc.
- Grimard
- DAOQ Group.
- Schaltbau GmbH.
- FLOHE GmbH
RECENT DEVELOPMENT:
August 2022: Hitachi Energy has announced a collaboration with US’s Eversource of the installation for the world’s first eco-efficient EconiQ™ 420-kilovolt (kV) circuit-breaker. This will be the first 420 kV SF6-free circuit-breaker installation in the country with a game-changing technology that eliminates sulfur hexafluoride (SF6)
June 2021: Siemens Energy company has announced a partnership with Mitsubishi Electric company and signed a Memorandum of Understanding (MoU) to conduct a feasibility study on the joint development of high-voltage switching solutions with zero global warming potential (GWP) that substitute greenhouse gases with clean air for insulation.
