Global Switchgear Market Will Approach $84 Bn by 2020, According to a New Study on ASDReports
Thursday 7 January 2016, Amsterdam
The report, now available on ASDReports, The global switchgear market is set to rise from an estimated $49.7 billion in 2015 to just under $84 billion by 2020.
According to the company’s latest report*, this increase represents an impressive Compound Annual Growth Rate (CAGR) of 11%, driven primarily by the need for many countries to repair or replace their aging grid infrastructures and increasing renewable energy installations.
Other switchgear market drivers include the rapidly burgeoning demand for power caused by booming populations, growing industrialization and urbanization, and the need for utilities to provide a safe and efficient energy supply in deregulated markets.
Tanmay Mishra, Analyst covering Power, says that while the potential growth of the switchgear space will be a boon to manufacturers of the product worldwide, the market will be rocked somewhat by upcoming Asian manufacturers posing challenges to established ones.
Mishra explains: “In the Chinese high-voltage switchgear market, established international players ABB and Siemens face tough competition from the local manufacturers Chint Electrics, China Xian Electric Group, and Guangdong Zhujiang Switchgear, which together account for almost 85% of the market.
“Even in India, domestic manufacturers hold a significant share of the market in the medium- and low-voltage segments.”
The presence of so many manufacturers in the arena, particularly in the Chinese and Indian markets, will induce intense competition and huge pricing pressures.
As Mishra elaborates: “As the scope of product differentiation is quite low for switchgears, price is a key criterion for gaining market share, meaning multi-nationals are facing tough competition from Chinese and Indian manufacturers.
“Pricing pressure is reducing manufacturers’ profit margins, and while this will have moderate effects on most switchgear markets, such competitive pricing means smaller ones will actually deteriorate over the forecast period.”
Despite this report indicates that overall market growth will remain strong, with China continuing to lead the way, particularly in the high-voltage switchgear space, which is expected to increase from $17.4 billion to $35.8 billion in the forecast period. This increase represents an impressive CAGR of 15.6%, and is indicative of the country’s commitment to bringing its grid infrastructure up to date.
*Switchgear Market for Power Industry, Update 2015 - Global Market Size, Equipment Market Share and Key Country Analysis to 2020
This report provides analysis of the global switchgear market, with annualized market data from 2006 and forecast to 2020, with a particular focus on the US, Canada, China, India, the UK, Italy and Saudi Arabia.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by a team of industry experts.
Switchgear Market for Power Industry, Update 2015 - Global Market Size, Equipment Market Share and Key Country Analysis to 2020
Publish date : December 2015
Report code : ASDR-247126
Pages : 170