Australia Switchgear Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.44 Billion |
| Market Size (2029) | USD 1.9 Billion |
| CAGR (2024 - 2029) | 5.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Switchgear Market Analysis
The Australia Switchgear Market size is estimated at USD 1.44 billion in 2024, and is expected to reach USD 1.9 billion by 2029, growing at a CAGR of 5.70% during the forecast period (2024-2029).
Increasing electricity generation and consumption and the changing dynamics in the power generation industry are expected to be the major drivers for the transmission and distribution of power, which are expected to drive the Australian switchgear market during the forecast period.
- The primary drivers of the Australian switchgear market are the upgradation and expansion of the electrification infrastructure and the demand for electrical networks for industrial and residential utilities. The rise in the demand for renewable energy sources is also one of the primary driving factors.
- The market is growing due to rising infrastructure development costs and legislative restrictions on extending the power grid in rural areas. Government directives are also driving market expansion to replace outdated systems in industrial organizations to ensure operational safety and security.
- Eastern Australia's National Electricity Market (NEM) operates the world's most extensive interconnected power system that runs for more than 5,000 km from North Queensland to Tasmania and central South Australia and meets the demand of more than 10 million end users. This is expected to drive the demand for switchgear during the forecast period.
- The Australian switchgear market was significantly impacted by the COVID-19 pandemic, as major suppliers of raw materials and finished products were hugely affected. The industry faced a reduction in production, disruption in the supply chain, and price fluctuations. The impact of the pandemic on the country's power sector also affected the industry.
Australia Switchgear Market Trends
High Voltage Switchgear to Hold Significant Market Share
- High-voltage switchgear is extremely popular in Australia. It comprises high-voltage components like circuit breakers and disconnectors. It is commonly used in city buildings, office spaces, offshore platforms, extensions, and roofs. High voltage switchgear is divided into two types, namely gas-insulated switchgear (GIS) and air-insulated switchgear (AIS). GIS is widely used in power transmission, railways, and integrating renewable energy-producing units into the grid.
- The demand for high-voltage switchgear is expected to be propelled by the country's potential to integrate renewable power generation units into the grid. For instance, according to the Australian Energy Market Operator (AEMO), the Australian grid could derive 75% of its electricity from renewables, mainly wind and solar, in the next five years.
- Furthermore, AEMO introduced a 30-year roadmap to ramp up the transition to renewables with investments in the National Energy Market (NEM) in its Integrated System Plan (ISP). The step change scenario predicts annual electricity consumption from the grid to double by 2050 as transport, cooking, heating, and industrial processes are electrified, and 60% of current coal generation is expected to exit by 2030.
- According to the Electricity (Network Safety) Regulations, Western Australia, an electricity network operator or electrical contractor who intends to design, construct, commission, operate, maintain, or decommission an electricity network must comply with the Australian Standard AS 62271 for high voltage AC switchgear and control gear. Furthermore, the Australian PV Institute (APVI) stated that as of December 2023, there were more than 3.69 million PV installations in Australia, with a combined capacity of more than 34.2 gigawatts.
- The major factors driving the growth in the market studied are the rising energy demand and the extension/replacement of old switchgear at sub-stations. Due to its space optimization, low maintenance, and protection against external elements, the demand for switchgear in Australia is expected to rise during the forecast period.
Adoption of Renewable Sources of Energy to Drive the Market
- The Australian government is implementing reforms to foster the security of supply, including a retailer reliability obligation, adjustments to system operation, and planning for market design post-2025 at higher levels of variable renewables. This is expected to propel the demand for switchgear during the forecast period.
- As per the Australian Energy Council, rooftop solar installations in Australia saw robust growth throughout 2023. The country added 2,785 MW of new rooftop solar capacity, pushing the cumulative total to 22,072 MW by December 2023. In terms of state-wise installations in 2023, New South Wales led with 930 MW, followed by Queensland at 720 MW, Victoria at 516 MW, Western Australia at 248 MW, South Australia at 236 MW, Tasmania at 45 MW, the Australian Capital Territory at 78 MW, and the Northern Territory at a modest 12 MW. Solar PV arrays produce a direct current (DC) output, which is then channeled into a PV inverter. Ensuring the presence of protective switchgear is paramount for the safe operation of any PV system.
- Furthermore, as per Rystad Energy, rooftop solar PV installations are expected to increase to a total capacity of 94.7 gigawatts (GW) in the next five years. This growth is in an upward trend for the rooftop solar market due to government regulations and policies, especially feed-in tariffs (FiTs) that guarantee an above-market price for producers. Such development is expected to boost the demand for switchgear in the market during the forecast period.
- The federal government released its long-awaited Australian Long-Term Emissions Reduction Plan, designed to achieve net zero emissions by 2050. The government's initiatives to achieve carbon neutrality may further boost the demand for switchgear in the market studied.
Australia Switchgear Industry Overview
The Australian switchgear market is fragmented due to the absence of a major player with a dominant market share. Major players in the market include ABB Ltd, Schneider Electric SE, and Tamco Switchgear Malaysia SDN BHD.
In November 2023, Ausgrid, at Westfield Miranda in Sydney, made a significant stride by installing Australia鈥檚 inaugural Siemens blue gas insulated (GIS) medium voltage switchgear. This innovative switchgear, utilizing climate-neutral 'clean air' in lieu of sulfur hexafluoride (SF6), marks a pivotal step in emissions reduction. By transitioning to 'clean air,' Ausgrid not only curbs its reliance on SF6 but does so without compromising performance or economic viability.
In May 2024, Hitachi Energy was chosen by Marinus Link Pty Ltd (MLPL) to spearhead a high-voltage direct current (HVDC) project. This project aims to bolster the connection between mainland Australia and Tasmania's grid. Spanning approximately 345 km, the HVDC system is expected to establish a bi-directional flow of renewable power between Victoria and Tasmania. Marinus Link's strategic use of converter technology at both terminuses underscores its commitment to stabilizing the grid and facilitating the integration of an increasing share of renewables.
Australia Switchgear Market Leaders
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ABB Ltd.
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Schneider Electric SE
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Siemens AG
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Tamco Switchgear Malaysia SDN BHD
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Eaton Corporation PLC
*Disclaimer: Major Players sorted in no particular order
Australia Switchgear Market News
- December 2023 - TGOOD Australia, a key player in Australia's power transmission and distribution market, unveiled its latest manufacturing facility. Specializing in critical substation equipment for power utilities, renewable energy, mining, and infrastructure, TGOOD recently supplied all prefabricated substation equipment for the Chinchilla BESS project, commissioned by CS Energy. The company's product lineup features a hybrid gas-insulated switchgear, a high-voltage gas-insulated switchgear, and a primary and secondary medium-voltage switchgear. This expansion signals TGOOD's commitment to growing its presence in Australia.
- In April 2024, the Australian government introduced the 'Future Made in Australia Act,' mirroring the US Inflation Reduction Act (IRA). This initiative aims to leverage the global shift toward renewable energy and harness Australia's abundant clean energy resources. By fostering local industries in renewable hydrogen, solar power, battery energy storage, green metals, and other emerging technologies, the Act is poised to catalyze a new era of advanced manufacturing in Australia.
Australia Switchgear Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Mining Activity and Strong Commodity Exports
5.1.2 Rise in Renewable Energy Spending
5.2 Market Challenges
5.2.1 Stringent Environmental and Safety Regulations
6. MARKET SEGMENTATION
6.1 By Voltage Class
6.1.1 High Voltage
6.1.2 Medium Voltage
6.2 By End User
6.2.1 Utilities
6.2.2 Residential and Commercial
6.2.3 Industrial
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 ABB Ltd
7.1.2 Schneider Electric SE
7.1.3 Siemens AG
7.1.4 Tamco Switchgear Malaysia SDN BHD
7.1.5 Eaton Corporation PLC
7.1.6 Terasaki Electric Co.
7.1.7 RPS Switchgear Limited
7.1.8 Switchgear Company NV
7.1.9 Mitsubishi Electric Corporation
7.1.10 Toshiba International Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK AND OPPORTUNITIES OF THE MARKET
Australia Switchgear Industry Segmentation
A switchgear, integral for power system protection, regulates, switches, and controls electrical circuits. Its components include circuit breakers, isolators, relays, switches, fuses, and control panels. Switchgear plays a crucial role in de-energizing equipment for testing, maintenance, and fault clearance.
The Australian switchgear market is segmented by voltage class (high voltage, medium voltage, and low voltage) and end user (utilities, residential and commercial, and industrial). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Voltage Class | |
| High Voltage | |
| Medium Voltage |
| By End User | |
| Utilities | |
| Residential and Commercial | |
| Industrial |
Australia Switchgear Market Research FAQs
How big is the Australia Switchgear Market?
The Australia Switchgear Market size is expected to reach USD 1.44 billion in 2024 and grow at a CAGR of 5.70% to reach USD 1.9 billion by 2029.
What is the current Australia Switchgear Market size?
In 2024, the Australia Switchgear Market size is expected to reach USD 1.44 billion.
Who are the key players in Australia Switchgear Market?
ABB Ltd., Schneider Electric SE, Siemens AG, Tamco Switchgear Malaysia SDN BHD and Eaton Corporation PLC are the major companies operating in the Australia Switchgear Market.
What years does this Australia Switchgear Market cover, and what was the market size in 2023?
In 2023, the Australia Switchgear Market size was estimated at USD 1.36 billion. The report covers the Australia Switchgear Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Switchgear Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Switchgear Industry Report
Statistics for the 2024 Australia Switchgear market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Australia Switchgear analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
