Market Trends of Switchgear Industry
The Residential Segment to Witness a Significant Growth
- Electricity powers our modern world, yet its distribution poses significant safety challenges. Mishandling can swiftly turn these systems, meant for convenience, into lethal hazards. Hence, the installation of safety devices, especially switchgear systems, has become paramount in ensuring the security of distribution units and substations.
- Two primary types of switchgear dominate residential electrical connections, namely, metal-enclosed and metal-clad. Metal-enclosed switchgear, housed in high-quality steel enclosures, is predominantly used indoors for medium and low-voltage applications. On the other hand, metal-clad switchgear, designed for outdoor use, is not only weatherproof but also safeguards protective relays, circuit breakers, transformers, meters, and bus conductors.
- Switchgear plays a pivotal role in residential power distribution, witnessing a surge in global installations across residential societies and complexes. These systems, prevalent in such areas, effectively manage loads, regulate voltages, and aid in fault control.
- Market vendors are tailoring their offerings to meet the demands of the residential sector. For instance, Eaton boasts a diverse range of modular devices, emphasizing safety and energy efficiency. These products, certified as "listed as molded-case circuit breakers" under UL489 and CSA 22.2 No. 5-02 and compliant with the IEC 60947-2 standard, come in one, two, or three-pole variants and offer 20 intensity levels.
- Furthermore, according to Statistics Finland, from 2013 to 2023, the annual volume of completed residential buildings in Finland experienced fluctuations. By 2023, this volume peaked at over 12.63 million cubic meters, underscoring the nation's emphasis on residential building development for economic growth.
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Asia-Pacific to Register Major Growth
- China is driving a significant shift in its energy landscape, pivoting toward high-efficiency, cleaner digital technologies. The IEA projects that by 2024, China will dominate the global renewable capacity, accounting for a staggering 50%. In 2023, global renewable energy capacity surged, largely propelled by China's rapid expansion, resulting in a green power output unprecedented in recent history, as highlighted by the IEA.
- Establishing itself as a renewable energy powerhouse, China is poised to strengthen its position over the next five years. This momentum is fueled by the increasingly attractive economics of utility-scale solar power, outshining traditional coal and gas generation. As renewable energy projects surge, they pave the way for a burgeoning switchgear market.
- For instance, in May 2024, SAEL Ltd, an Indian renewable energy firm, geared up to issue its inaugural dollar-denominated bonds, aiming for a hefty USD 500 million. Specializing in sustainable energy ventures, particularly solar plant construction, SAEL plans to roll out this bond offering by June's end, underscoring the region's promising market trajectory.
- Emerging economies like India are ramping up their transmission and distribution networks to support their infrastructural growth. This, in turn, is set to be a key driver for the global switchgear market. With a growing preference for renewable energy sources, the region is witnessing a surge in new power generation centers, consequently boosting the demand for switchgear.
- For instance, in March 2023, Sterlite Power clinched a major transmission project in Rajasthan, India, aimed at channeling power from the state's renewable energy zones. The project, awarded under a build, own, operate, and transfer model for a 35-year term, underscores the region's escalating project landscape, painting a bullish outlook for the market.
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