Global Low Voltage Switchgear Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Low Voltage Switchgear Market Growth

Low voltage switchgear is comprised of circuit breakers, switches, HRC fuses, earth leakage circuit breakers, off load electrical isolators, and other components to ensure the safety of electrical equipment. It is designed to distribute power safely and efficiently at a voltage of up to 1,000 volts.

Smart grids are advanced electric networks that will incorporate next-generation technologies for smart operation, which can boost the low voltage switchgear demand. As proper monitoring systems are implemented, the switchgear can be utilised to monitor the grid and inform the operator about any fault or old component which is on the verge of failure.

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Low Voltage Switchgear Market Trends

Favourable Government Regulations

Governments are implementing regulations for the incorporation of sustainable energy resources for residential and commercial organisations. Furthermore, plans are being implemented for the electrification of rural areas, which will further stimulate market growth.

Rising electricity consumption

Industrial development is at its peak in developing countries and with new technological advancements, the electricity demand has elevated across various sectors. This will augment the growth of the low voltage switchgear market with the development of new power generation facilities.

High Installation Cost and Lack of Skilled Manpower

The installation of low voltage switchgear requires a significant amount of capital investment as it needs to be in a proper environment to reduce the chances of a fault occurring. The installation and maintenance process for low voltage switchgear can be time-consuming and requires skilled workers to reduce the occurrence probability of accidents, such as arcing faults.

Recent Developments

As per the low voltage switchgear market dynamics and trends, Schneider Electric announced that it aims to enhance manufacturing operations in Oconee and Richland counties, South Carolina. The company, which specialises in energy management and automation solutions, plans to invest USD 23.8 million across both initiatives, resulting in the creation of 280 new employment opportunities for local residents. The Oconee facility is engaged in the production of low-voltage motor control centres, panelboard boxes and trims, as well as lighting and PowerLink panelboards. Meanwhile, the Richland facility is responsible for the manufacturing of NW breakers, low-voltage switchgear, and switchboards. Specifically, the Oconee plant will see the addition of 130 new jobs, while the Richland plant will generate 150 new positions.

Industry Outlook

Growing Manufacturing Sector and Rising Demand for Energy Storage Systems (ESS)

As per the low voltage switchgear industry analysis, 2023 data stated that China leads the global manufacturing sector, contributing 28.4% to the world's manufacturing output, followed by the United States with 16.6%. Japan ranks third with 7.5%, while Germany, with 5.8%, and India, with 3.3%, round out the top five. These countries' dominance in manufacturing reflects their industrial capabilities and the scale of their production activities. The significance of these manufacturing powerhouses directly impacts the Low Voltage (LV) Switchgear market. High manufacturing output demands robust electrical infrastructure, including reliable and efficient LV switchgear systems to ensure safe and effective power distribution in factories and production facilities.

New installations of residential energy storage systems (ESS) in Europe have boosted the low voltage switchgear industry revenue. The installations in terms of both power (MW) and energy (MWh) have risen sharply, particularly from 2020 onwards. In 2022, installations reached 1,043 MW and 2,045 MWh, reflecting a year-on-year growth rate of 73.16% for MWh, indicating strong momentum in the residential ESS market. Germany dominates the European residential ESS market, accounting for 72% of the installed capacity in 2022.

Other key markets include Italy (9%), the UK (4%), Spain (3%), and France (2%), which can boost the growth of the low voltage switchgear industry. This concentration in Germany underscores its leading role in adopting residential energy storage solutions, driven by the country’s strong focus on renewable energy and energy independence. The increasing adoption of residential ESS is directly linked to the growing demand for low voltage (LV) switchgear, as these systems require reliable and efficient electrical infrastructure for safe operation and integration with household power systems.

Versatility and Wide Application, High Safety Standards, and Established Technology Support the Growth of the Low Voltage Switchgear Market.

• LV switchgear is used across multiple industries, including residential, commercial, industrial, and utility sectors, ensuring a broad customer base and consistent demand.
• LV switchgear is critical for maintaining electrical safety, offering protection against overloads, short circuits, and other electrical faults, which enhances low voltage switchgear market value in electrical system.
• The technology behind LV switchgear is well-developed and reliable, reducing the risk of failure and making it a trusted component in electrical infrastructure.
• With widespread adoption in both developed and emerging markets, the LV switchgear market benefits from strong global demand.

Price Sensitivity, Complex Installation and Maintenance, and Vulnerability to Economic Fluctuations Can Challenge the Low Voltage Switchgear Market Growth.

• Customers often prioritise cost, which can lead to price wars and challenges in maintaining profitability, especially for premium products. 
• The installation and maintenance of LV switchgear systems can be complex, requiring skilled technicians and adding to operational costs for end-users that can impact low voltage switchgear demand forecast.
• Downturns in construction, industrial activities, and infrastructure investments caused by economic slowdown directly impact market demand.
• Stricter environmental and safety regulations could increase compliance costs, impacting profitability and market competitiveness.
• Global economic instability can reduce investment in new infrastructure projects, leading to decreased demand for LV switchgear.
• The rapid pace of technological change could lead to obsolescence for traditional LV switchgear products, potentially reducing demand for older systems.
• Global supply chain challenges, such as shortages of raw materials or delays in component deliveries, can disrupt production schedules and increase costs, affecting market supply and pricing.

Growth in Renewable Energy Projects Infrastructural Development, Technological Advancements, and Rising Adoption of Energy Storage Systems Provide Opportunities to the Low Voltage Switchgear Market.

• The expansion of renewable energy installations, particularly solar and wind farms, creates low voltage switchgear market opportunities as these projects require reliable electrical distribution systems.
• Rapid urbanization and infrastructure development are driving demand for LV switchgear, particularly in the construction of smart cities and new industrial facilities.
• Innovations such as smart switchgear with digital monitoring and IoT integration offer new growth opportunities, catering to the increasing demand for automation and energy efficiency.
• The rise of energy storage solutions, particularly in residential and commercial settings, presents an opportunity for increased demand for LV switchgear.

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Low Voltage Switchgear Industry Segmentations

Based on product, the market divisions include fixed mounting, plug-in, and withdrawable units. Based on the installation, the market bifurcations include indoor and outdoor. Based on voltage rating, the different segments of the market include less than 250V, 250-750V, and 752-1000V. Based on application, the market can be divided into distribution, power factor correction, motor control, substation, and sub-distribution, among others. Based on end-use, the market is divided into residential, commercial, and industrial.

The regional markets for the low voltage switchgear market can be divided into North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa.

Low Voltage Switchgear Market Share

By Product

Based on product, the market can be segmented into fixed mounting, plug-in, and withdrawable units.

The fixed mounting low voltage switchgear is expected to hold a major low voltage switchgear market share during the forecast period. This is due to the low failure rate among these types of low-voltage switchgear.

With the inclination toward upgrading existing grid infrastructure, withdrawable units are expected to experience rapid growth. Withdrawable switchgear enables end-users to change to get a new circuit breaker without affecting the remaining parts of the electrical system.

By Installation

Based on installation, low voltage switchgear can be segmented into indoor and outdoor. Indoor LV switchgear is a block module which has electrical switchgear equipment. It is made with a combination of fuses, disconnect switches, and circuit breakers, to ensure safety equipment. Indoor LV switchgear is expected to exhibit a CAGR of 8.1% between 2024 and 2032.

Outdoor low voltage switchgear in low voltage switchgear market is comprised of the same components, they are used in outdoor substations of an electric power system.

Competitive Landscape

ABB Ltd. is a multinational technology company founded in 1988. It is headquartered in Switzerland. The company works in four business sectors including electrification, motion (which includes generators, electrical motors, drives and services), process automation, and robotics and discrete automation.

ABB has an extensive focus on research and development to innovate a new range of products, systems and services to increase energy efficiency and reliability for the industrial and infrastructure and other end-users.

Vertiv Group Corporation is an American company in low voltage switchgear market, that provides power management and IT solution services. Their products include critical power management systems, thermal management services, intelligent centres and centralised management systems, and other services for management and increasing efficiency.

Hubbell Incorporation is a manufacturer of electrical and electronic products for residential and industrial applications. It was founded in 1888 and is headquartered in the United States.

They provide products in four different categories including data and communications, electrical and electronics, lighting and controls, power and utilities.

Other key market players include Al Hassan Engineering Co. S.A.O.G, Eaton Corporation plc, Hyosung heavy industries, and Fuji Electric co., Ltd., among others.

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Low Voltage Switchgear Market Regional Insights

Asia-Pacific leads the global market, driven by rapid urban growth, industrial expansion, and increased energy needs. Countries like China and India are heavily investing in infrastructure and renewable energy projects, boosting low voltage switchgear market revenue. The market in these countries are also expected to grow at CAGR of 9.0% and 8.2% in the forecast period.

In North America, the market is growing due to efforts to modernise aging electrical systems and integrate renewable energy sources. The U.S. and Canada are focusing on enhancing grid reliability and efficiency, which increases the need for advanced switchgear solutions.

Competitive Factors in the Global Low Voltage Switchgear Market.

• Companies that offer smart LV switchgear with digital monitoring, automation, and integration with IoT systems gain a competitive edge and can aid low voltage switchgear demand growth.
• Innovation in designing more compact, modular, and customisable switchgear allows for greater flexibility in installation and use, appealing to a broader range of industries.
• Products that demonstrate high reliability, durability, and compliance with rigorous safety standards are preferred in critical applications, giving companies a competitive advantage.
• LV switchgear with a proven track record of longevity and minimal maintenance requirements is highly valued. 
• Companies that can optimize production processes, reduce costs, and offer value-driven pricing are better positioned in the market, especially in price-sensitive regions.
• Large manufacturers with economies of scale can produce LV switchgear at lower costs, allowing them to offer more competitive prices or invest in additional features without significant cost increases.
• A strong global presence and an extensive distribution network enable companies to serve diverse markets effectively. 
• Providing comprehensive after-sales services, including technical support, training, and maintenance, helps build long-term relationships with clients and enhances customer loyalty, making it a crucial competitive factor that can affect low voltage switchgear demand forecast. 
• The ability to provide customized LV switchgear solutions that meet specific customer requirements, such as unique configurations or specialized applications, can set a company apart from its competitors. 
• As sustainability becomes a key consideration, companies offering energy-efficient and environmentally friendly LV switchgear gain a competitive advantage.

Key Price Indicators of the Global Low Voltage Switchgear Market.

• The cost of raw materials, particularly copper and steel, significantly impacts the price of LV switchgear. Price changes in these materials can directly impact the overall cost structure.
• Advances in technology, such as the development of more compact and efficient switchgear, can influence pricing. 
• The integration of smart features and automation in LV switchgear can increase the product's price due to the added functionality and complexity.
• The presence of numerous competitors in the low voltage switchgear market exerts downward pressure on prices, especially in regions with many local manufacturers. 
• Companies offering customized solutions or value-added services, such as after-sales support and maintenance contracts, may be able to command higher prices, depending on the level of service differentiation.