Europe Switchgear Market Size

Europe Switchgear Market Analysis

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.