Switchgear Market Size, Share, Growth, Report 2026 to 2035

Switchgear Market Size and Growth 2026 to 2035

The global switchgear market size was reached at USD 100.57 billion in 2025 and is expected to exceed around USD 204.63 billion by 2035, exhibiting at a compound annual growth rate (CAGR) of 7.4% over the forecast period from 2026 to 2035. The switchgear market is experiencing significant growth due to increasing electricity consumption, ongoing grid expansion, and widespread electrification initiatives. In 2023, global electricity demand rose by more than 2.5%, resulting in over 800 terawatt-hours of additional consumption. This trend has increased the need for reliable protection and control equipment within transmission and distribution networks. Utilities continue to be the main users, representing about 40% to 45% of total switchgear installations. This is driven by the replacement of aging grids in North America and Europe, as well as the construction of new substations and feeder lines in developing regions. At the same time, the integration of renewable energy sources is further supporting switchgear deployment. In 2023, more than 500 gigawatts of new renewable power capacity were added worldwide, with each installation requiring medium- and high-voltage switchgear to ensure proper grid connection and protection.

Industrialization, urban development, and the adoption of digital power management systems are important factors driving switchgear production and use. The Asia-Pacific region is currently the largest consumer of switchgear, accounting for more than half of new annual installations. This is mainly due to rapid grid expansion in countries like China and India. As a result, manufacturing output is increasing, with leading electrical equipment manufacturers expanding their factory capacity by 20% to 30% in recent years. This expansion is aimed at meeting the growing demand from sectors such as data centers, railways, electric vehicle charging infrastructure, and industrial facilities. Furthermore, the use of smart and digitally monitored switchgear is on the rise. Utilities have reported reductions of 15% to 25% in outage duration and maintenance costs after implementing condition-monitoring and automated switchgear systems. These developments are expected to support long-term market growth, extending beyond the basic need for grid expansion.

Report Highlights

• Asia-Pacific holds the largest share of the global switchgear market at 48.2%. This growth is mainly due to rapid electrification, expanding power grids, and the integration of renewable energy in countries such as China, India, and those in Southeast Asia.
• Medium-voltage switchgear makes up 52.4% of total market. It is commonly used in distribution networks, substations, industrial sites, and for connecting renewable power sources
• Indoor switchgear accounts for 53.4% of installations. Its use is increasing in commercial buildings, industrial plants, and urban substations, where saving space and protecting the environment are important.
• Air-insulated switchgear is the most widely used insulation technology, with a 44.8% market share. Its popularity comes from being cost-effective, easy to maintain, and suitable for many standard power distribution systems.
• Transmission and distribution utilities are the largest users of switchgear, making up 41.2% of market. This is driven by efforts to modernize power grids, replace old infrastructure, and meet growing electricity needs worldwide.

Increasing Need to Digitalize the Power Sector Driving the Switchgear Market

The digitalization of the power sector is significantly driving the demand for switchgear. As utilities and industries move from manual, asset-heavy networks to smart and data-driven grids, there is a growing need for advanced equipment. Power utilities are now deploying digital substations, IoT-enabled sensors, and automated protection systems to enhance grid visibility, reduce outages, and manage the increasing complexity of power flows from renewable and distributed energy sources. Recent statistics show that over 70% of utilities worldwide have started smart grid or digital substation initiatives, which is directly increasing the adoption of intelligent switchgear with real-time monitoring and remote-control features.

The use of digital switchgear allows for predictive maintenance, enabling utilities to reduce unplanned outages by 20% to 30% and lower operational costs by up to 25%. This is especially important as electricity demand, electric vehicle charging, and renewable generation continue to grow. As a result, investments in automation, cybersecurity, and grid resilience are making digital switchgear a fundamental part of modern power infrastructure.

Recent Major Milestones

1. Torrent Electricals switchgear portfolio launch

In January 2026, Torrent Electricals entered the switchgear market by launching a new product portfolio for residential and industrial customers.

The launch reflects the growing importance of switchgear in the electrical goods sector, supported by rising electrification and infrastructure development. With this expansion, Torrent and other companies are increasing competition, making products more accessible, and helping to expand the use of reliable electrical protection systems in smaller commercial and residential markets. These developments are expected to deepen the market and support the growth of regional manufacturing.

2. Major manufacturing investments by CG Power & Industrial Solutions (Murugappa Group)

CG Power & Industrial Solutions has announced an investment of approximately INR 748 crore (USD 90 million) to establish a new greenfield switchgear manufacturing facility in western India.

This initiative is projected to double the company's production capacity for medium and extra-high-voltage equipment and automation systems. By expanding local manufacturing, CG Power seeks to reinforce supply chains, minimize reliance on imports, and position India as a key export hub for power infrastructure components. These advancements are expected to address the increasing requirements of utilities, industries, and renewable energy projects, thereby supporting sustained market growth.

3. Socomec new India manufacturing investment

Socomec, a French power solutions provider, has announced plans to invest USD 7-10 million in a new manufacturing facility in India, aligning with its growth strategy under the 'Make in India' initiative.

As a leading player in the Indian solar DC switchgear market, the company intends to expand local production to meet increasing demand from sectors including data centers, renewable energy, electric vehicle charging, and healthcare. This investment reflects the confidence of international companies in the regional switchgear market and is anticipated to enhance technological capabilities, increase supply chain flexibility, and support competitive pricing.

4. Siemens Energy switchgear and transformer factories investment

Siemens Energy will invest EUR 2 billion (USD 2.3 billion) by 2028 to expand its transformer and switchgear manufacturing facilities worldwide.

This investment will help modernize power-grid equipment production, improve technology, and increase the company's manufacturing presence. As power networks adapt to smart grids, renewable energy, and higher electrification, these investments are important for supply reliability and innovation in switchgear technology. Increasing production capacity will also allow faster delivery and help utilities adopt advanced grid solutions more efficiently.

Report Scope

Market Dynamics

Market Drivers

• Expansion and Modernization of Power Infrastructure: The rising investments in the expansion and modernization of aging power transmission and distribution networks are driving the growth of the switchgear market. In regions like North America and Europe, many power grids have been operating for more than 30 to 40 years, which increases the need for replacement to improve reliability and safety. Meanwhile, developing economies are constructing new substations and distribution lines to accommodate increasing urbanization and industrialization. Switchgear plays a crucial role in these developments, as it provides fault protection, load management, and ensures stable power delivery throughout expanding networks.
• Rapid Growth of Renewable Energy and Electrification: The switchgear market is witnessing growth mainly due to the increasing integration of renewable energy sources and the ongoing electrification across multiple sectors. Currently, expansion of solar and wind projects is driving demand for medium and high voltage switchgear, which is critical for grid connectivity and system protection. Further, rapid development of electric vehicle charging infrastructure and electrified railways is adding complexity to distribution networks, leading to higher requirement for advanced switchgear solutions. As renewable energy sources are variable and decentralized, advanced switchgear is now essential for managing power flows and maintaining grid stability. Going forward, these factors are expected to support the growth of the switchgear market in line with the global shift towards sustainable energy systems.

Market Restraints

• High Initial Cost of Advanced Switchgear Systems: Advanced switchgear, particularly gas-insulated and digital types, requires a higher initial investment compared to conventional equipment. The costs associated with sensors, communication modules, installation, and skilled commissioning can restrict adoption, especially among small utilities and industries that are sensitive to costs. In many developing regions, budget limitations frequently delay upgrades, which slows the adoption of modern switchgear technologies even though these solutions offer significant long-term operational advantages.
• Environmental and Regulatory Concerns: The presence of environmental regulations has become a significant restraint for the switchgear market, especially for products that use sulfur hexafluoride (SF6), which is recognized as a potent greenhouse gas. As emission rules and reporting requirements become stricter, manufacturers and utilities are facing higher compliance costs. Although there are alternative insulation technologies available, the process of shifting to these eco-friendly solutions involves redesigning products, conducting thorough testing, and obtaining certification. This transition can temporarily slow down the adoption of new products in the market and extend the timelines required for product development.

Market Opportunities

• Adoption of Digital and Smart Switchgear: The growth of the switchgear market is significantly influenced by the increasing digitalization of power systems. As utilities and industries seek to enhance efficiency and performance, there has been a notable shift towards the adoption of intelligent switchgear that incorporates real-time monitoring, predictive maintenance, and remote operation capabilities. These advanced features are being integrated especially in smart grids, data centers, and other critical infrastructure, where the demand for reliable and efficient power management is high. It is anticipated that this ongoing trend will continue to drive the market forward in the coming years, presenting considerable opportunities for manufacturers of advanced switchgear solutions.
• Infrastructure Growth in Emerging Economies: The switchgear market is experiencing considerable growth due to rapid industrialization, urban development, and electrification efforts in emerging markets such as Asia, the Middle East, and Africa. As governments in these regions invest heavily in building substations, metro rail networks, airports, and industrial corridors, the demand for low-, medium-, and high-voltage switchgear is increasing. These infrastructure projects and government initiatives are also promoting local manufacturing and enabling technology transfer, which further supports the expansion of the switchgear market in these areas.

Market Challenges

• Supply Chain and Raw Material Volatility: The switchgear industry is facing major challenges because of disruptions in supply chains and unstable prices of key raw materials like copper, aluminum, and steel. These issues have caused delays in getting components and have raised input costs, which affects production schedules, profit margins, and the timely completion of projects. As a result, manufacturers need to manage complex global supply chains to ensure on-time delivery. This makes operational efficiency very important for the industry.
• Technical Complexity and Skilled Workforce Shortage: The increasing complexity of modern switchgear systems is largely driven by the integration of digital platforms, automation software, and cybersecurity features. As a result, there is a greater reliance on skilled professionals for the design, installation, and maintenance of these systems. In many regions, a shortage of trained electrical and power-system experts has become a significant challenge, potentially delaying deployment, extending commissioning periods, and impacting long-term system performance.

Switchgear Market Regional Analysis

The switchgear market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

North America Switchgear Market: Driver by Grid Modernization and Digitalization Initiatives

The North America switchgear market size was valued at USD 18.81 billion in 2025 and is projected to surpass around USD 38.27 billion by 2035. The North America market is witnessing notable growth, largely due to increased investments in grid modernization and the replacement of outdated transmission and distribution systems. As renewable energy sources are integrated and transportation becomes more electrified, the need for a stable and efficient power supply is rising. Utilities and developers are upgrading their networks to support cleaner energy and to address the growing demand for electricity. This trend has led to a higher adoption of advanced switchgear, especially those with digital monitoring systems that improve reliability and grid resilience. In the United States, the demand for high- and medium-voltage switchgear is projected to rise further, driven by ongoing infrastructure development and significant investments in the power sector.

Recent Developments:

• Hitachi Energy and other equipment makers announced over USD 1 billion in new manufacturing investments across the U.S. to ease supply shortages of key grid gear including switchgear.
• In Pennsylvania, Hitachi and Mitsubishi announced manufacturing expansions and new switchgear factories to meet growing electricity demand and support local power infrastructure growth.

Asia-Pacific (APAC) Switchgear Market: Driver by Electrification and Infrastructure Expansion

The Asia-Pacific switchgear market size was estimated at USD 48.47 billion in 2025 and is anticipated to record USD 98.63 billion by 2035. Asia-Pacific leads the global switchgear market, mainly because of rapid electrification, fast urbanisation, and large-scale infrastructure projects in countries like China and India. The expansion of utility grids, higher industrial energy needs, and the growing number of renewable energy plants are major factors increasing the demand for switchgear in the region. Both digital and conventional switchgear are being used to address the varied requirements of the market. Ongoing efforts to expand grid coverage, modernize networks, and increase renewable energy capacity are expected to further drive the growth of the switchgear market in Asia-Pacific over the coming years.

Recent Developments:

• CG Power & Industrial Solutions (India) announced a INR 748 crore investment in a new switchgear manufacturing plant to boost capacity for MV and EHV switchgear.
• Socomec plans to invest USD 7-10 million in a new factory in India to expand production under the "Make in India" initiative and serve fast-growing sectors like renewables and EV charging.

Europe Switchgear Market: Driver by Renewable Integration and Regulatory Support for Grid Expansion

The Europe switchgear market size was estimated at USD 26.25 billion in 2025 and is predicted to grow around USD 53.41 billion by 2035. The Europe market is experiencing steady growth, primarily driven by the increasing capacity of renewable energy sources and the implementation of more stringent safety and regulatory standards. The accelerated deployment of wind and solar power systems has led to a greater demand for advanced switchgear capable of supporting grid integration and fulfilling environmental criteria. In response, EU governments are allocating significant investments toward enhancing grid resilience and developing digital substation projects, which are essential for managing the variable output associated with renewable energy and for improving overall efficiency. Consequently, the demand for modern switchgear equipped with automation and predictive maintenance capabilities is projected to rise throughout the region.

Recent Developments

• The European Union and member states continue large-scale renewable deployment, exemplified by significant wind power installations (around 16.4 GW in 2024), increasing demand for switchgear in grid connection and renewable integration.

Switchgear Market Share, By Region, 2025 (%)

LAMEA (Latin America, Middle East & Africa) Switchgear Market: Driver by Electrification and Grid Extension Initiatives

The LAMEA switchgear market was valued at USD 7.04 billion in 2025 and is anticipated to reach around USD 14.32 billion by 2035. The LAMEA is expanding, mainly because of higher government investments in infrastructure, rural electrification, and industrial growth. Many countries in these regions are upgrading power grids and building new transmission and distribution networks, which is driving demand for medium and low voltage switchgear. Electrification projects in underserved areas are also increasing the need for modular and cost-effective switchgear solutions designed for local needs.

Recent Developments:

• Brazil and Saudi Arabia are leading AI-based electrical switchgear adoption, reflecting regional interest in smart solutions.
  The broader Middle East & Africa market's investment in transmission and distribution infrastructure is driving demand for both traditional and smart switchgear units

Switchgear Market Segmental Analysis

The switchgear market is segmented into voltage, installation, insulation, end user, and region.

Voltage Analysis

Medium-voltage (MV) switchgear holds a dominant position in the market because it is essential for distribution networks and is extensively utilized in substations, industrial facilities, commercial buildings, and renewable energy systems. This widespread use results in MV switchgear accounting for the largest share of both installations and revenue. The typical voltage range of 3 to 36 kV allows MV switchgear to serve a broad spectrum of utilities and industries. Furthermore, the ongoing demand for distribution automation and ring main units (RMUs) continues to drive production volumes for manufacturers and suppliers.

High-voltage (HV) switchgear represents the fastest-growing segment in the market, primarily because of the expansion of transmission networks, cross-border interconnections, and the requirement to transmit power from large-scale renewable projects including offshore wind and solar parks. Rising investments in extra-high voltage (EHV) and HV lines and substations are increasing the demand for larger and more advanced switchgear. Additionally, utility upgrades focused on enhancing transfer capacity and strengthening grid resilience are expected to further support the growth of the HV switchgear market.

Installation Analysis

Indoor switchgear is widely used in established substations, commercial buildings, and many industrial facilities. This is because it is easier to integrate with control rooms and provides better environmental protection for sensitive digital components. Indoor switchgear is also the standard for secondary distribution in built environments. As a result, indoor units make up the majority of the installed base in mature markets.

Switchgear Market Share, By Installation, 2025 (%)

Outdoor installation is the fastest-growing segment in the switchgear market. This growth is driven by rapid distribution network extensions, the increasing use of pad-mounted and pole-mounted RMUs, and rural electrification projects. Space-constrained urban distribution projects also prefer compact outdoor solutions. Utilities are increasingly deploying automated outdoor switchgear to reduce construction costs and extend service to new areas.

Insulation Analysis

Air-insulated switchgear is the most widely used technology across the globe due to its lower capital cost, simple design, and proven application in conventional substations and industrial facilities. AIS is preferred in areas with enough space and where reducing costs is a priority. This has resulted in AIS holding the largest installed base by units and generating the highest traditional revenue in many regions.

Switchgear Market Share, By Insulation, 2025 (%)

Gas-insulated switchgear is the fastest-growing segment. The growth of GIS is mainly due to its compact size, higher reliability in crowded or difficult environments, and its suitability for urban substations and offshore platforms. As urban areas become more crowded and the demand for underground or compact substations rises, the adoption of GIS is increasing, despite its higher unit costs.

End User Analysis

Transmission and distribution utilities account for the largest share of end-user demand for switchgear. The grid operators are mainly responsible for purchasing most of the medium- and high-voltage switchgear that is required for new substations, grid upgrades, and equipment replacements. The capital programs of utilities are focused on improving reliability and resilience, as well as integrating renewable energy sources, which significantly drive the procurement of switchgear in the market.

Switchgear Market Share, By End User, 2025 (%)

The industrial segment is currently the fastest-growing end-user category for switchgear. Industries including manufacturing, data centers, mining, oil and gas, and large process plants are increasing their investments in electrification, power quality solutions, backup systems, and on-site renewable energy integration. This rising investment is driving the demand for advanced medium- and low-voltage switchgear that provides automation, improved safety features, and reliability. As a result, the industrial segment is experiencing faster growth compared to the more established procurement cycles of utilities.

Switchgear Market Top Companies

• ABB Ltd.
• Fuji Electric
• Eaton Corporation
• Larsen & Toubro Limited
• General Electric
• Schneider Electric
• Hitachi Limited
• Mitsubishi Electric
• Bharat Heavy Electricals Limited (BHEL)
• Siemens AG
• Crompton Greaves
• Legrand
• Powell Industries
• Atlas Electric, Inc.

Recent Developments by Major Companies

ABB Ltd.

• In 2025, ABB introduced next-generation switchgear solutions tailored for AI-ready data centers, launching its advanced MNS low-voltage switchgear equipped with the new SACE Emax 3 air circuit breaker to improve reliability, cybersecurity, and operational efficiency at events such as Data Center World Asia 2025. This product supports the surge in data center capacity worldwide and reflects growing demand for robust power distribution systems that can handle complex and high-density electrical loads.
• Completed the acquisition of Gamesa Electric's power electronics business in Spain, strengthening its renewable power conversion portfolio and positioning ABB to serve integrated grid and generation applications that increasingly require advanced switchgear interfaces.
• Local product rollout in China with new 24 kV Safe Air GIS and 12 kV SafeRing Air units, expanding SF₆-free switchgear availability aligned with global sustainability goals.

Schneider Electric

• In November 2025, Schneider Electric launched its GM AirSeT SF6-free primary gas-insulated switchgear technology at ENLIT Europe, expanding its portfolio into higher-rating applications while eliminating high-global-warming-potential gases and bolstering sustainable grid deployments for utilities and large industrial users.
• Schneider also signed a long-term framework agreement with E.ON to deliver SF6-free medium-voltage switchgear across Europe, accelerating the transition to greener and digitally ready grids ahead of new regulatory mandates.
• The company further introduced RM AirSeT and SM AirSeT pure-air switchgear in West Africa, supporting decarbonization efforts and enabling infrastructure improvements in emerging power markets.

Market Segmentation

By Voltage

• High
• Medium
• Low

By Installation

• Outdoor
• Indoor

By Insulation

• Air
• Oil
• Gas
• Vacuum

By Current

• AC
• DC

By End User

• Transmission & Distribution Utility
• Industrial
• Residential & Commercial

By Region

• North America
• APAC
• Europe
• LAMEA