Low voltage switchgear market to garner significant revenue by 2024, driven by shifting trends toward zero emission electrification programs
Publisher : Fractovia | Published Date : 2018-01-09Request Sample
Most of the renowned companies in the power grid sector are rapidly penetrating low voltage switchgear market, in order to strengthen their customer base as well as to empower their position via acquisition of existing service providers. For instance, the U.S. based pioneered provider of welding solutions and highly advanced services to transmission, generation, and distribution sectors, AZZ, has recently announced its decision to acquire Powergrid Solutions, Inc in 2017. This buyout is likely to successfully trigger new growth opportunities for both the firms in low voltage switchgear industry, given that Powergrid Solutions is a rather strong manufacturer of low and medium voltage switchgear equipment. In addition, this deal would help AZZ expand its product portfolio and its reach in low voltage switchgear market mainly across commercial, utility, renewable energy and industrial sectors.
Europe Low Voltage Switchgear Market Size, By Voltage Rating, 2016 (USD Billion)
Considering the massive scope of low voltage switchgear market, many of the regional giants have been depicting interest in product digitalization and expansion, which may favorably impel this business sphere in the years ahead. For instance, one of the leading Chinese firms in clean energy and industrial electrical equipment, CHINT Group has inaugurated its first low voltage switchgear factory in Egypt, Africa, in collaboration with EGEMAC. Increasing deployment of wind power and hydropower plants across African countries is thus slated to push low voltage switchgear market outlook, owing to growing use of the product for transmission, distribution, power generation of electric systems in commercial buildings and mining applications. Speaking of the regional expansion, another region depicting growth in this business space is India. Recently, post installing its first digital plant in Germany and second in China, Siemens has established a digital factory in India, in order to attain the top position in India low voltage switchgear market. Through digitization, Siemens will be able to accomplish the increasing requirement of product very efficiently and effectively, as its digitalized plant can produce about 180 types of low-voltage switchgear within merely a few seconds. Many other players in low voltage switchgear industry are also investing in India to focus on low voltage electric products, owing to their growing demand across infrastructure and real estate sectors.
Increasing advancement in microgrid technology and surging initiatives taken by regional governments to improve energy grid capability is likely to influence low voltage switchgear industry share. Rapid industrialization and urbanization have also had a positive effect on the expansion of energy grids. Taking into account the escalating improvement in energy grid technologies, several participants in low voltage switchgear market have shifted their focus toward establishing bases in various countries. ABB, one of the most prominent low voltage switchgear industry players, has been particularly proactive with regards to regional expansion and product differentiation, a gist of which is provided below:
ABB’s emergence in U.S. is slated to fuel low voltage switchgear industry size
In September 2017, ABB extended its expanded its electrification business across United States with the acquisition of GE Industrial Solutions. ABB’s electrification products department supplies solar inverters, low-voltage products, and charging infrastructure for electric vehicles. ABB expansion across the U.S. will help enhance its technical capabilities and boost the productivity of its U.S. based unit. Such increasing adoption business growth strategies are also likely to stimulate U.S. low voltage switchgear industry trends. In fact, according to Global Market Insights, Inc., U.S. low voltage switchgear market will register an annual growth rate of more than 6% over the years ahead pertaining to the surging implementation of regulatory norms related to electrification.
Apart from the U.S., ABB also expanded its business across Canada – as per records, the company will be providing components required for power distribution for the light rail transit line project in Toronto. In that project, Canada government has invested USD 8.4 billion to ensure emission-free transportation across Canada. This electrification project will also minimize the overall transportation cost, as currently, nearly 25% of energy consumed for transportation via trains, aircraft, and vehicles is derived from fossil fuels, which leads to air pollution. In addition, depleting fossil fuel resources have also prompted most countries to increase their dependency on renewable and emission-free energy sources. In this regard, many regional governments are encouraging people to adopt electric vehicles for transportation, which will also favor low voltage switchgear industry growth, owing to the increasing requirement of EV charging stations.
The growing awareness among the people about energy efficiency and hazardous impact of fossil fuel emissions are slated to boost low voltage switchgear market. In addition, it is undeniable that the growing deployment of numerous governmental programs with regards to electrification will also propel the product demand over the coming years, thereby augmenting the revenue graph of low voltage switchgear market.
