China Switchgear Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.64 Billion |
| Market Size (2029) | USD 11.94 Billion |
| CAGR (2024 - 2029) | 4.39 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Switchgear Market Analysis
The China Switchgear Market size is estimated at USD 9.64 billion in 2024, and is expected to reach USD 11.94 billion by 2029, growing at a CAGR of 4.39% during the forecast period (2024-2029).
- Over the medium period, increasing electricity generation and consumption, along with the rising emphasis on renewable energy generation, are expected to drive the switchgear market during the forecast period.
- On the other hand, stringent environmental and safety regulations related to the switchgear market are restraining factors. Also, increasing competition from the unorganized sector of the overall switchgear market is expected to restrain the switchgear market in the coming years.
- Nevertheless, the expansion of power transmission and distribution (T&D) infrastructure to achieve high rates of electricity access in China is expected to create significant opportunities for switchgear market.
China Switchgear Market Trends
Industrial Sector is Expected to Witness a Significant Growth
- Switchgear is used in the industrial sector, including railway networks and industrial complexes. Conventionally, switchgear is installed on both sides of voltage transformers. In industries, switchgear and associated equipment arrangement may be united in one housing known as a unitized substation.
- Furthermore, the primary purpose of switchgear is to protect, isolate, and control electrical devices, which is essential for the industrial and manufacturing sector so that the expensive machinery is prevented from damage caused by electricity fluctuations. In addition, switchgear prevents downtime caused by damaged equipment, which is necessary for a profitable business operation.
- Several countries globally focus on developing domestic manufacturing sectors to aid economic growth and the switchgear market.
- Similarly, according to the National Bureau of Statistics in China, in 2022, there was a significant growth in the development of China's industrial production compared to 2020, with about 2.4% growth compared to a growth of 3.6% in 2022, which is directly going to aid the Switchgear industrial market.
- China is the second-largest economy in the world, only after the United States, with a total GDP of about USD 17.88 trillion, in 2022, according to the National Bureau of Statistics of China (NBS). The country's economy is rising significantly with increasing ongoing industrialization and urbanization.
- With continuous urbanization and increased population, the country witnessed a significant rise in primary energy consumption from roughly around 112.80 exajoule in 2011 to 159.39 exajoule of primary energy consumption in 2022.
- Therefore, owing to the above points, the demand for switchgear is expected to witness significant growth during the forecast period.
Growing Focus on Infrastructure and Renewable Energy Sources Drives the Market Growth
- Due to the rapid rise in renewable power generation, grid stability has become a significant issue in countries like China with a high level of renewable integration in their grids, which needs the modernization of older T&D infrastructure. As renewable power generated from sources such as solar and wind provide variable power output, traditional T&D systems may not be suitable for renewable energy transmission & distribution and require up-gradation or retrofitting.
- Moreover, China's increasing industrial operations to surpass the United States and become a superpower in terms of the economy are likely to drive the transformers' market in the country. The country's government has also banned coal-fired power plants at several locations; such measures instantly boosted the country's renewable installations and are likely to expand its transmission and distribution system to supply power.
- In 2021, China's total renewable energy installation capacity was 1160.7 gigawatts (GW), more than the installed capacity in 2021, 1020.2gigawatts (GW). With the increasing growth in renewable power generation, particularly from wind and solar PV, and connecting those to the country's grid, the demand for transformers is expected to remain high in the country.
- Moreover, the government's subsidies support large-scale solar PV development in the country. China has adopted a feed-in tariff subsidy policy for renewable energy, which has been marked as one of the most effective renewable energy support policies globally for solar PV developments.
- The upgradation of the aging infrastructure is further anticipated to power the market's growth. The upgradation of equipment concerning extending the life span would drive the market for switchgear. Another significant factor fueling the switchgear market growth is the rising construction activities worldwide, owing to the increasing focus on infrastructure.
- In March 2022, State Grid Corp of China started the construction of two ultrahigh voltage power transmission projects with a total investment of USD 1.7 billion. It comprises an ultrahigh voltage (UHV) power transmission line linking Fuzhou with Xiamen in Fujian province and a line connecting Zhumadian in Henan province with Wuhan in Hubei province. The project is likely to come online by 2023. Further, the planned investment by the State Grid Corporation of China in the country's electricity network infrastructure is likely to exceed CNY 500 billion in 2022, which is 25% more than the state-owned firm spent in 2021. Such increasing investments are anticipated to create a massive demand for switchgear (GIS).
- According to BP statical review 2022, the electricity generation of China accounted for 8848.7 terawatt-hours in 2022. With an annual growth rate of 10%, energy generation is expected to increase due to the increasing power demand, which, in turn, will drive the switchgear market in the forecast period.
China Switchgear Industry Overview
The China switchgear market is semi-consolidated. Some of the key players in this market (not in a particular order) include ABB Ltd, Schneider Electric SE, General Electric Company, Toshiba International Corporation, and Mitsubishi Electric Corporation, among others.
China Switchgear Market Leaders
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ABB Ltd
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Schneider Electric SE
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General Electric Company
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Toshiba International Corporation
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
China Switchgear Market News
- October 2023: China鈥檚 transmission grid developer, State Grid of China Corporation (SGCC), has announced the completion of the 1,000 kV Fuzhou鈥揦iamen ultra-high voltage alternating current power transmission and conversion project, also known as the Fujian North-South Transmission Project. This allows the line to be put into operation as scheduled before the end of 2023. The project involved the construction of a new 1,000 kV double-circuit line spanning 238 km and 832 towers, besides a 6 GW substation.
- July 2022: Hitachi Energy was chosen to supply China's Tuci offshore wind power project with WindSTAR transformers and a high-voltage hybrid switchgear plug and switch system (PASS). These solutions will allow the wind farm to run continuously and dependably at a voltage level of 66 kilovolts (kV), supporting the efficient use of offshore wind power and optimizing the local energy structure.
China Switchgear Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increasing Electricity Generation and Consumption
4.5.1.2 Rising Emphasis on Renewable Energy Generation
4.5.2 Restraints
4.5.2.1 Stringent Environmental and Safety Regulations
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Voltage
5.1.1.1 Low-Voltage
5.1.1.2 Medium-Voltage
5.1.1.3 High-Voltage
5.1.2 Insulation
5.1.2.1 Gas Insulated Switchgear (GIS)
5.1.2.2 Air Insulated Switchgear (AIS)
5.1.2.3 Other Insulation Types
5.1.3 Installation
5.1.3.1 Indoor
5.1.3.2 Outdoor
5.2 End-user Industry
5.2.1 Commertial
5.2.2 Residential
5.2.3 Industrial
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ABB Ltd
6.3.2 General Electric Company
6.3.3 Siemens AG
6.3.4 Toshiba International Corporation
6.3.5 Mitsubishi Electric Corporation
6.3.6 SGC SwitchGear Company
6.3.7 Larson & Turbo Limited
6.3.8 KOHL Gmbh
6.3.9 Hyosung Heavy Industries Corp.
6.3.10 Hitachi Energy Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Expansion of Power Transmission and Distribution (T&D) Infrastructure
China Switchgear Industry Segmentation
A switchgear is a term associated with power system protection and is used for regulating, switching on or off the electrical circuit, and controlling the electrical power system. The different components of switchgear are circuit breakers, isolators, relays, switches, fuses, and control panels. It is used to de-energize the equipment for testing, maintenance, and clearing the fault.
The China switchgear market is segmented by voltage type, end-user industry, insulation, and installation. By voltage type, the market is segmented into low-voltage, medium-voltage, and high-voltage), by insulation into gas-insulated switchgear (GIS), air-insulated switchgear (AIS), and other insulations, by installation into indoor and outdoor, and by end-user industry into commercial, residential, and industrial. For each segment, the market sizing and forecasts have been provided based on value (USD).
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China Switchgear Market Research Faqs
How big is the China Switchgear Market?
The China Switchgear Market size is expected to reach USD 9.64 billion in 2024 and grow at a CAGR of 4.39% to reach USD 11.94 billion by 2029.
What is the current China Switchgear Market size?
In 2024, the China Switchgear Market size is expected to reach USD 9.64 billion.
Who are the key players in China Switchgear Market?
ABB Ltd, Schneider Electric SE, General Electric Company, Toshiba International Corporation and Mitsubishi Electric Corporation are the major companies operating in the China Switchgear Market.
China Switchgear Industry Report
Statistics for the 2024 China Switchgear market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. China 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.
