Report Description

Forecast Period

2023-2028

Market Size (2022)

USD 1042.33 Million

CAGR (2023-2028)

5.13%

Market Size (2028)

USD 1431.50 Million

Fastest Growing Segment

Gas Insulated

Largest Market

South India


India Switchgear Market is growing owning to increasing adoption of smart switchgear and rising investment in developing renewable energy along with government regulations or subsidies. The increasing energy demands across various end-user industries have led to an increased focus on renewable energy solutions that has enabled the adoption of smart switchgears in the region. Moreover, innovations in smart grid technologies and growing focus toward environmental protection have further boosted the demand for switchgear. Surging demand for safe and secure control distribution systems and advanced monitoring units is increasing the capability for switchgear. Many enterprises are adopting switchgear as a cost-effective solution. Moreover, government assistance in the form of installation cost subsidies and tax breaks, high reliability and efficiency, modular structure with reduced maintenance requirements, performance enhancement through technological advancements; and increased penetration of smart switchgear and hybrid switchgears for smart cities in developing economies are driving the market. Additionally, the growing need for high voltage and ultra-high voltage switchgears in commercial and industrial sectors are exponentially increasing, which positively affects the market’s growth and is expected to boost the India Switchgear market during the forecast period.

Electrical switchgear or switchgear refers to a centralized collection of circuit breakers, fuses, and switches (circuit protection devices) that act to safeguard, regulate, and isolate electrical equipment. These circuit protection devices are mounted in metal constructions and they distribute power to various sections of a facility and the electrical loads within those sections. A collection of one or more of these structures is called a switchgear line-up or assembly. Switches are connected directly to the supply system by placing in the low & high voltage planes of the power transformer. The device de-energizes to clear the fault, test & maintain. These devices are critical in the power system to protect the equipment from the heavy current. Manual control provision, , entire reliability, and manual control provision are some of the features of the switchgear. The fundamental purpose of switchgear is protection, which is the termination of short-circuit, overload fault currents while preserving service to unaffected circuits and to enhance system availability by providing several sources to feed a load. Switches can function in both normal and abnormal conditions that can operate for proper electrical energy utilization and can be installed in residential, commercial, and industrial structures places, etc.

The Growth in Investments in Renewable Energy

The rapid growth in investment in renewable energy infrastructure and power generation capacities is expected to drive the India switchgear market during the forecast period. The rapid expansion of the market is attributed to the growing number of association and enterprises that are taking initiatives to invest in renewable energy sources. For instance, according to the India Brand Equity Foundation (IBEF), renewable energy for new power generation capacity attracted with investment in renewable energy in India reached around USD 14.5 billion in 2022, an increase of 125% over 2021 and 72% higher than in the pre-pandemic period of the 2019-20 financial year. Additionally, to support and promote the development of high-efficiency Low Voltage (LV) switchgear module, the government of India started the PLI in 2021 with an investment of INR 4,500 crore or USD 615.71 Million for enhancing India’s manufacturing capabilities and enhancing exports. According to the “National Programme on High-Efficiency Solar PV Modules” the national government had allocated an additional INR 19,500 crore or USD 2,668 Million in 2022 to lessen reliance on imports and enhancing the capability of renewable energy. Thus, the growth in the investment in renewable energy for infrastructure setup has increased the demand of switchgear in the market.

Emerging Digitalization and Digitalized Switchgear

The substation and switchgear industry are set to grow rapidly in the coming years with the increase in digitalization. Several technological solutions have emerged that have contributed significantly to enhancing the operational efficiency of utilities and to scaling down costs, making projects more viable. Digital switchgear and substations are one such solution which offers a range of benefits to utilities. To begin with, they are equipped with advanced software solutions that protect systems from potential cyber threats, thereby, strengthening system security. Furthermore, all the auxiliaries of the digital switchgear are automated, enabling faster implementation of future technological solutions. Moreover, since utilities can track real-time data from substations and remotely control specific functions of the switchgear, it provides operational and financial benefits. Real-time monitoring of data also reduces outage time and increase reliability of the system. In addition, digital substations and switchgears possess backward compatibility, which enables the smooth integration of new communication technology with the utilities existing systems, which is enabling the massive use of digital switchgear and is expected to drive the India Switchgear market during the forecast period.