Switchgear Monitoring System Market Size & Growth Analysis to 2030

The global switchgear monitoring system market size was valued at around USD 2 billion in 2022 and anticipated to register a significant CAGR over 6% during the forecast period from 2023 to 2030. The market is primarily driven by the increasing global demand for electricity, arising from population growth, urbanization, and industrial expansion. To ensure uninterrupted power supply, power utilities and industries require reliable electrical infrastructure, including switchgear. Aging infrastructure is a significant concern, as deteriorating assets can lead to performance degradation and higher maintenance costs. Monitoring systems are crucial in assessing the condition of aging equipment and facilitating maintenance planning.

Grid modernization projects, aimed at improving grid efficiency and reliability, depend on switchgear monitoring for optimal performance. Regulatory compliance is another driver, with governments imposing stringent standards for safety, reliability, and environmental protection. Preventive maintenance, enabled by monitoring systems, reduces downtime and lowers maintenance expenses. Environmental concerns have led to increased scrutiny of insulating gases like SF6, making gas monitoring systems essential. Additionally, digitalization and the IoT enhance real-time insights into switchgear performance.

Market Snapshot:

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Market Drivers:

Increasing Energy Demand: The global population is growing, industries are expanding, and urbanization is on the rise. All of these trends lead to an ever-increasing demand for electricity. To meet this demand, power utilities and industries need to ensure the continuous and reliable operation of their electrical infrastructure, including switchgear. Monitoring systems provide the tools needed to maintain and enhance the performance of these critical assets, ensuring uninterrupted power supply.

Aging Infrastructure: Many electrical grids and facilities worldwide rely on aging switchgear and related equipment. Over time, these assets deteriorate, which can result in decreased performance, increased downtime, and higher maintenance costs. Switchgear monitoring systems offer a solution by assessing the condition of aging infrastructure and providing valuable data for maintenance planning and, if necessary, replacement.

Grid Modernization: In an effort to improve the efficiency, reliability, and resilience of electrical grids, power utilities are investing in grid modernization projects. These projects involve the integration of advanced technologies and the automation of grid operations. Switchgear monitoring systems are an integral part of these efforts, helping to manage and optimize the performance of modernized grids.

Regulatory Compliance: Governments and regulatory bodies often establish strict standards and regulations for power infrastructure to ensure safety, reliability, and environmental protection. Compliance with these standards requires the implementation of monitoring systems to continuously track the performance of switchgear and other electrical assets, helping to mitigate risks and ensure adherence to regulatory requirements.

Preventive Maintenance: Unplanned downtime can be costly for industries, particularly in sectors where production processes depend on a stable power supply. Switchgear monitoring systems enable predictive and preventive maintenance, allowing organizations to identify potential issues before they result in unplanned outages. This approach reduces downtime, minimizes maintenance costs, and optimizes asset performance.

Environmental Concerns: Environmental regulations and growing concerns about greenhouse gas emissions have prompted scrutiny of sulfur hexafluoride (SF6), a common insulating gas used in switchgear. Monitoring systems that track SF6 gas levels help power utilities manage and reduce emissions, ensuring compliance with environmental regulations and sustainability goals.

Digitalization and IoT: The widespread adoption of digital technologies and the Internet of Things (IoT) in the energy sector have opened up new possibilities for monitoring and managing switchgear. These systems leverage sensors and data analytics to provide real-time insights into switchgear performance, facilitating proactive maintenance and optimizing operations.

Grid Resilience and Reliability: Natural disasters, cyberattacks, and other unexpected events can disrupt power grids. Switchgear monitoring systems play a crucial role in maintaining grid resilience, ensuring that power distribution remains reliable during and after such events. These systems can rapidly detect faults and enable remote control and isolation of affected equipment.

Market Insights:

Market Analysis by Type:

The global switchgear monitoring system market is bifurcated into type, component, voltage, monitoring parameter, end-use, and geography. On the basis of type, the GIS segment dominated the market in the benchmark year 2022. GIS tends to assert dominance in high-voltage applications, particularly above 33 kV, owing to its compatibility with high voltage management and its compact, enclosed design, which suits space-constrained urban environments. GIS is also preferred for critical infrastructure, power transmission networks, and regions with stringent environmental regulations, as its sealed enclosure efficiently manages and reduces emissions of SF6 gas, an insulating medium known for its high global warming potential. In contrast, AIS systems are typically dominant in medium-voltage applications below 33 kV due to their cost-effectiveness and simplified design. They excel in various environments, such as industries, commercial buildings, and rural areas, where space constraints are less critical, making them a versatile choice.

Gas Insulated Switchgear (GIS): Gas Insulated Switchgear (GIS) is a type of high-voltage switchgear that uses a dense insulating gas, typically sulfur hexafluoride (SF6), to enclose and insulate the electrical components. It is characterized by its compact and sealed design, making it suitable for installations in densely populated urban areas or locations with limited space. GIS systems are known for their high reliability and reduced maintenance needs due to the sealed enclosure, which protects internal components from environmental factors. Monitoring systems for GIS focus on tracking parameters such as SF6 gas pressure, temperature, and density to ensure the integrity of the insulation and promptly detect any abnormalities. GIS is commonly used in high-voltage applications, such as substations and power transmission networks.

Air Insulated Switchgear (AIS): Air Insulated Switchgear (AIS) is a type of switchgear that uses air as the insulating medium between electrical conductors. Unlike GIS, AIS systems do not rely on specialized insulating gases and are characterized by a simpler and cost-effective design. They are often used in medium-voltage applications and are suitable for industrial and commercial installations where space constraints are less critical. AIS systems are easier to maintain and typically involve monitoring parameters such as temperature, current, and voltage to ensure safe and efficient operation. While AIS has a stable presence in medium-voltage applications, it may be less space-efficient and require more extensive maintenance compared to GIS.

Market Analysis by Voltage:

On the basis of voltage, the global switchgear monitoring systems market is segmented into low voltage switchgear, medium voltage switchgear, and high voltage switchgear. the medium voltage switchgear segment is expected to grow at a significant CAGR over the forecast period by 2030. MV switchgear, which operates in the voltage range of 1 kV to 33 kV, enjoys prominence for several reasons. It caters to the consistent and substantial demand for electrical power distribution solutions in industrial complexes, commercial buildings, and distribution networks. Its versatility allows it to address diverse voltage requirements and power distribution challenges across various industries. Moreover, as regions worldwide focus on infrastructure development, including industrial and commercial expansion, MV switchgear becomes an integral component to ensure reliable power distribution systems meet the growing demands. Additionally, MV switchgear plays a pivotal role in power distribution networks, maintaining efficient electricity flow and preventing grid disruptions. Lastly, safety and efficient maintenance are paramount in industrial and commercial settings, and MV switchgear monitoring systems contribute to these objectives by enhancing safety and minimizing downtime through timely fault detection and performance optimization.

Low Voltage (LV) Switchgear: Low Voltage (LV) switchgear operates at voltages typically below 1 kV and is commonly used in residential, commercial, and some industrial applications. It forms the backbone of electrical distribution systems within buildings and facilities. LV switchgear is characterized by its compatibility with standard voltage levels found in most households and commercial buildings. Monitoring systems for LV switchgear primarily focus on parameters such as current, voltage, and power quality to ensure the safe and efficient distribution of electricity within these environments. The primary objectives are enhancing safety, optimizing energy use, and minimizing downtime in LV electrical systems.

Medium Voltage (MV) Switchgear: Medium Voltage (MV) switchgear operates at voltages ranging from 1 kV to 33 kV and is commonly employed in industrial facilities, commercial complexes, and power distribution networks. It plays a crucial role in managing power distribution within industrial settings where voltage requirements exceed those of Low Voltage systems. Monitoring systems for MV switchgear encompass parameters such as temperature, current, and fault detection to ensure the reliability and safety of electrical systems. MV switchgear is vital in power distribution networks, where it facilitates the efficient and dependable flow of electricity. Monitoring systems in this segment help prevent disruptions and reduce maintenance costs.

High Voltage (HV) Switchgear: High Voltage (HV) switchgear operates at voltages above 33 kV and is typically used in power substations, large industrial complexes, and utility-scale power generation and transmission. It forms the critical infrastructure for electricity generation, transmission, and distribution on a larger scale. Monitoring systems in HV switchgear are essential for grid stability, reliability, and safety, given the high voltages involved. They play a vital role in ensuring the smooth flow of electricity in power grids and preventing potential faults that could disrupt the grid. Additionally, HV switchgear monitoring systems often focus on environmental compliance, particularly in managing sulfur hexafluoride (SF6) gas, which is commonly used as an insulating medium in high-voltage systems, to minimize environmental impact and meet regulatory requirements.

The switchgear monitoring system market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Type:

• GIS
• AIS

By Component:

• Hardware
• Software

By Voltage:

• Low Voltage (LV) Switchgear
• Medium Voltage (MV) Switchgear
• High Voltage (HV) Switchgear

By Monitoring Parameter:

• Temperature Monitoring
• Gas Monitoring
• Partial Discharge Monitoring
• Others

By End-Use:

• Utilities
• Industries
• Commercial
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia Pacific dominated the global switchgear monitoring system market in 2022 and expected to maintain its dominance over the forecast period. Asia-Pacific’s dominance in the switchgear monitoring system market is the result of several converging factors. The region’s rapid economic growth, led by powerhouses like China and India, has fueled urbanization and industrialization, significantly increasing the demand for electricity. In response, governments across Asia-Pacific have undertaken ambitious infrastructure development projects, including smart grids and renewable energy integration, necessitating advanced monitoring solutions. These governments have also enforced regulations aimed at enhancing grid reliability and reducing environmental impact, spurring the adoption of switchgear monitoring systems.

Moreover, Asia-Pacific’s thriving technology sector has played a pivotal role in driving innovation and the adoption of cutting-edge monitoring technologies. Businesses and industries in the region have become increasingly aware of the operational efficiency gains, reduced downtime, and improved asset management that these systems offer. Additionally, Asia-Pacific’s substantial investments in renewable energy generation have further accentuated the importance of reliable switchgear monitoring systems to efficiently integrate intermittent energy sources into the grid.

Competitive Analysis:

Some of the major market players operating in the global switchgear monitoring system market are Schneider Electric SE, ABB Ltd., Siemens AG, Eaton Corporation, General Electric Company (GE), and Hitachi Ltd. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In 2023, Schneider Electric launched its new EcoStruxure Power Device Advisor, a cloud-based platform that uses artificial intelligence to monitor and analyze switchgear performance.
• In 2023, Siemens released its new SENTRON PAC5100 switchgear monitoring system, which offers real-time monitoring of all switchgear parameters, including temperature, current, voltage, and vibration.
• In 2023, ABB announced its partnership with Microsoft to develop cloud-based switchgear monitoring solutions using Azure IoT Edge.
• In 2022, GE acquired GridSense, a provider of real-time switchgear monitoring solutions.
• In 2022, Eaton released its new IntelliView switchgear monitoring system, which offers a comprehensive view of switchgear performance across multiple sites.
• In 2022, KONCAR launched its new Smart Switchgear solution, which provides real-time monitoring and predictive analytics for switchgear.

Key Companies:

• Schneider Electric SE
• ABB Ltd
• Siemens AG
• Eaton Corporation
• General Electric Company (GE)
• Hitachi Ltd.
• Schweitzer Engineering Laboratories, Inc. (SEL)
• OMICRON Electronics GmbH
• Echelon Corporation
• Lucy Electric UK Ltd.
• IPEC Ltd.

Key Questions Answered by Switchgear Monitoring System Market Report

• Global switchgear monitoring system market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Switchgear monitoring system submarket forecasts from 2023-2030 covering the market by type, component, voltage, monitoring parameter, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level switchgear monitoring system markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market