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The Europe Switchgear Market is expected to grow with a CAGR of 6.7% during the forecast period (2022-2027). In electrical substations, switchgear equipment is required to tolerate variable operating voltage in highly volatile ambient circumstances. Limiting power outages and strengthening power distribution networks generate demand for such power sector equipment.
- Increased capacity additions based on renewable energy sources in the region are making the switchgear market grow in Europe. The European Union's focus on energy conservation is also promoting the growth trajectory of the European Switchgear market.
- For instance, the EU is revising its climate, energy, and transportation-related legislation to align present laws with the 2030 and 2050 goals through the "Fit for 55" package. In this package with the European Climate Law, the EU has established a goal of reaching climate neutrality by 2050 as part of the European Green Deal. This necessitates a significant reduction in present greenhouse gas emissions over the next few decades. As a first step toward climate neutrality, the EU has increased its 2030 climate ambition, aiming for a 55 percent reduction in emissions by 2030.
- All the countries in the region are aggressively moving towards implementing smart electric grids and distribution. Smart power distribution equipment like switchgear is essential for better performance, power continuity, and resource optimization while lowering the transmission, operational, and maintenance costs. Switchgears are more adaptable, energy-efficient, and future-proof than ever before. They provide a zero-downtime updates and upgrade options. These technologies are projected to increase greatly and give prospects for expansion with governmental support in the region.
- For instance, the European Commission initiatives ETIP Smart Networks for Energy Transition (SNET) and Bridge (formerly known as Bridge H2020) are made for smart energy systems, which are critical in accelerating the clean energy transition and achieving the Repower EU strategy. They aim to help decarbonize energy systems, transportation, industry, and building stock and engage consumers and citizen communities in energy systems.
- COVID-19 has negatively impacted the Switchgear market because many supply chain restrictions remained for switchgear makers, particularly in base metals like copper, aluminum, steel plastics, electronics, and transportation services. The global shutdown during the pandemic has led to a considerable drop in manufacturing and industrial activity in the region, directly affecting the switchgear market, which is predominantly used in these industries and manufacturing units.
Scope of the Report
Switchgear can be defined as a wide range of switching devices that are used in controlling, safeguarding, and isolating power systems. This term could be broadened to encompass equipment that regulates a power supply, circuit breakers, and other comparable technology. It can be classified By type (by Voltage Type- (Low Voltage, Medium Voltage, & High Voltage), By Insulation Type- (Gas Insulated, Air Insulated, and others), By Installation Type- (Indoor, Outdoor)), and By End-User Industry Type- (Commercial, Residential, & Industrial)
|Rest of Europe|
Key Market Trends
Gas Insulated Switchgear Hold Significant Market Share
- Gas-insulated switchgear is expected to hold the major share in the market owing to the increasing government initiatives and investments to reduce carbon emissions and drive renewable energy projects. Moreover, the growing improvements in smart infrastructure and rising adoption of HVDC technology further propel market growth.
- Growing investments in smart grids and energy systems and the extension or replacement of old switchgear at substations in European regions are augmented to create ample opportunities in the market.
- For instance, in September 2021, the National grid awarded Linxon a six-year, GBP 1 billion projects to rewire South London via 32 km of deep underground tunnels. Linxon will design, supply, install, and commission connection bays at two existing National Grid substation sites, undertake modification works at two other sites, and construct a new seven-bay 400/132 kV gas-insulated switchgear substation at Bengeworth Road.
- In September 2021, GE Renewable Energy's Grid Solution business was also awarded a contract for Sweden's first SF6 free gas-insulated switchgear. The GIS will be installed at the Vattenfall Eldistribution AB Lindhov substation in Tumba, located approximately 25 km from Stockholm.
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Growing Focus on Renewable Energy Sources in Europe to avoid the energy dependency on Russia
- The Russia-Ukraine war has fueled the EU renewable energy drive to focus more aggressively. The European Union seeks to speed up the deployment of solar energy on a wide scale while simultaneously reviving Europe's solar manufacturing industry. The initiative is part of the EU's ambition to wean itself off Russian fossil fuels, particularly natural gas. The EU's new dedicated solar strategy aims to double solar capacity by 2025 and install 600 gigawatts by 2030.
- In addition, the EU commission has planned to increase investments and make solar panel installations mandatory for new public buildings by 2026 and new residential buildings by 2029. This will boost the regional Switchgear market because of its application in the solar power implementation processes.
- According to Commission estimates, an additional EURO 26 billion in solar energy investment will be required between 2022 and 2027, on top of the investment already planned under previous climate laws.
- Zolar, based in Berlin, has raised EURO 100 million in funding to grow its small solar system supply network and fulfill the increased demand for clean energy. Germany is particularly vulnerable to the energy crisis produced by the Ukraine conflict since it is still largely reliant on Russian gas imports, resulting in skyrocketing gas prices for German customers. This transformation in the country shows the growth potential of the Switchgear market in the region.
- Wind energy is another renewable energy source, and the EU has strategized its path for a regional wind energy revolution. Germany, Belgium, the Netherlands, and Denmark have planned to build 150 gigawatts offshore wind capacity in the North Sea. The agreement was made at an offshore wind meeting in Denmark when Europe was also trying to reduce its dependency on Russian energy imports in the short term due to the Ukraine conflict. This revolution will also drive the regional Switchgear market because of its application in the new grid constructions.
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The European switchgear market is fragmented and competitive due to various established and regional switchgear manufacturers. The key players are involved in multiple strategies such as mergers and acquisitions and product innovations to gain a competitive edge over others.
- May 2022: Iberdrola, headquartered in Bilbao, Spain, is one of the world's largest electric utilities and wind power providers, to become carbon neutral in Europe by 2030. It is systematically adopting its ecologically friendly business approach to attain this goal. The power distribution unit of Iberdrola Group has commissioned Siemens Smart Infrastructure to supply its sustainable medium-voltage switchgear to the northern Spanish province of Burgos.
- June 2022: ABB, a global technology business, has invested EURO 700,000 in the first test facility of its kind in Europe to energize medium-voltage (MV) switchgear. The chamber will test the switchgear stability in all stimulated harsh conditions, including temperatures as low as minus 50 degrees Celsius and as high as 80 degrees Celsius, as well as 0-100 percent humidity and water condensation.
- June 2021: Vattenfall, a multinational company in Sweden, intends to construct a new large-scale warehouse to hold main components and spare parts for its wind farms in the United Kingdom, Scandinavia, and Northern Europe. Gearboxes, generators, transformers, shafts, blades, array cables, and switchgear will be stored near Esbjerg, Denmark.
- May 2022: Nuventura, a German startup, intends to share its technology with Chinese industries to find an alternative for sulfur hexafluoride, the most destructive greenhouse gas on the planet. For controlling, isolating, and protecting electrical equipment, sulfur hexafluoride is commonly employed in switchgear and circuit breakers.
- June 2021: Siemens Energy and Mitsubishi Electric have signed a Memorandum of Understanding (MoU) to perform a feasibility study on the cooperative development of zero-GWP high-voltage switching systems that use clean air instead of greenhouse gases for insulation. Both businesses will look for ways to expand the use of clean-air insulation technologies to higher voltages. They'll start with a 245-kV dead-tank circuit breaker, which will help clients across the globe get climate-neutral high-voltage switching solutions faster. Both companies will continue to produce, sell, and service switchgear solutions.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growth of Smart Electricity Grid Infrastructure in the region
4.2.2 Growing Focus on Renewable Energy Sources in Europe to avoid the energy dependency on Russia
4.3 Market Restraints
4.3.1 Stringent Environmental and Safety Regulations
4.4 Value Chain / Supply Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 COVID-19 Impact on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 By Voltage Type
5.1.2 By InsulationType
188.8.131.52 Gas Insulated
184.108.40.206 Air Insulated
5.1.3 By Installation Type
5.2 By End-User
5.3 By Country
5.3.5 Rest of Europe
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 ABB Ltd.
6.1.3 Rockwell automation
6.1.4 Schneider Electric
6.1.5 Siemens AG
6.1.6 Toshiba International Corporation
6.1.7 Hitachi, Ltd.
6.1.8 Eaton Corporation
6.1.9 Crompton Greaves Power and Industrial Solutions Limited
7. Investment Analysis
8. Future of the Market
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Frequently Asked Questions
What is the study period of this market?
The Europe Switchgear Market market is studied from 2020 - 2027.
What is the growth rate of Europe Switchgear Market?
The Europe Switchgear Market is growing at a CAGR of 6.7% over the next 5 years.
Who are the key players in Europe Switchgear Market?
ABB Ltd., Honeywell Automation Inc, Rockwell Automation, Schneider Electric, Siemens AG are the major companies operating in Europe Switchgear Market.