The North America switchgear market is expected to amass a sizable revenue by 2027 owing to the increasing adoption of switchgear in commercial facilities and favorable government regulations pertaining to improved safety of switchgear across the region.
Electrical switchgear is a centralized collection of circuit breakers, switches, and fuses (circuit protection devices), which protects, controls, and isolates electrical equipment. These circuit protection devices are mounted atop metal structures and a collection of one or more such structures forms a switchgear line-up or assembly.
Switchgear is typically present across electric utility transmission and distribution systems, and also in medium- to large-sized commercial or industrial facilities.
The North America switchgear market has been segmented based on voltage, insulation, installation, current, application, and country.
On the basis of insulation, the market has been categorized into air, gas, oil, and vacuum. The oil sub-segment is projected to expand at a CAGR of over 5% through the study timeframe, fueled by the increasing inclination of manufacturers towards oil-insulated switchgear.
In North America, medium-voltage switchgear has typically been air-insulated, wherein the key to obtaining dielectric stability is dependent on enough air gaps between phase conductors.
Air-insulated switchgear has been a widely accepted solution until now, however, considerable doubts about their ability to avoid phase-to-phase faults have been raised within the past few years.
Due to rising concerns regarding the safety of air-insulated switchgear, manufacturers across various end-use industries are opting for safer and cost-effective solutions to install in their facilities.
This has enhanced consumer focus on oil-insulated switchgear as a viable alternative to air-insulated switchgear, which is expected to foster market adoption through the coming years across North America.
In terms of installation, the market has been divided into indoor and outdoor. In 2020, the North America switchgear market from indoor installation was valued at over USD 3 million. Going forward, the segment is anticipated to witness substantial revenue progress by 2027.
From the application perspective, the North America switchgear market has been bifurcated into residential & commercial, utilities, and industrial. The industrial sub-segment is estimated to register a steady CAGR of over 5% over the assessment period.
Increasing focus of manufacturers on expanding their presence in the region and the subsequent escalation in the need for switchgear in industrial facilities are likely to support segmental growth.
Citing an instance, E+I Engineering, a leading company for supply of electrical switchgear and power distribution systems in Ireland and the U.K., recently announced that it has nearly finished a USD 13 million expansion of its facility in South Carolina.
E+I Engineering, founded in 1986, has been involved in the production of electrical switchgear to offer in-house energy solutions. The company produces and supplies electrical power distribution products from its facilities in Donegal, Derry, the United Arab Emirates (UAE), and South Carolina.
The Donegal-based company’s new facility is expected to create 200 new jobs in the U.S. upon completion, which is anticipated to further boost the company’s market penetration through the analysis period.