Spiraling Energy Demand and Increasing Investments in Energy Infrastructure to Drive Demand for Switchgears, According to New Report by Global Industry Analysts, Inc.
San Jose, California (PRWEB) October 29, 2013 -- Follow us on LinkedIn – Energy generation, transmission, and distribution are the three core areas which require utmost attention in the electric power industry. The increase in electricity demand worldwide has been demanding a parallel rise in electricity generation capacity. Against this backdrop, power generation companies across the globe, both state-owned and private electricity generation firms, are stepping up production capacities. While developing markets are expected to witness development of new power plants, developed markets such as the US and Europe are expected to see planned expansions in their existing power generation capacity and development of new renewable power generation facilities. Strong investments in electric utilities are therefore helping generate demand for switchgears, which are critical components in electric power systems.
Government directives to replace older redundant systems to achieve operational safety and security, is helping spur demand for newer more efficient power equipment. Moreover, the desire to achieve optimum facility usage along with operational efficiency also necessitates upgrades of obsolete systems. Retrofitting is therefore coming to the fore as an important operational strategy to cope with problems such as capacity underutilization, capital constraints and power loss during transmission. Increase in plant retrofits and upgrades are expected to benefit demand for switchgears.
Increasing focus on renewable energy is also helping lend significant traction to market growth. The addition of intermitted renewable energy sources such as wind and solar power causes ebbs and flows in current that can harm the grid, due to which electric utilities will increasingly adopt grid protection technologies. Switchgear technologies are designed for protection of high-voltage equipment and circuits against power outages and surges and will therefore find great demand against this backdrop of rapidly changing energy mixes and load profiles. For instance, offshore wind power projects are typically linked to HVDC (high voltage direct current) transmission lines, which necessitate use of advanced switchgears.
While electric utilities represent the largest end-use market for switchgears, future growth is forecast to stem from non-utility end-use markets such as industrial, commercial and residential sectors. Industrial co-generation for reliable onsite power and cost savings is especially boosting demand for switchgears in the industrial sector. Resurgence in residential and commercial construction activity in most regional markets across the globe is helping drive demand for switchgears. Steady growth in educational institutions, shopping malls, R&D facilities, retailing sector, defense establishments and government offices is also expected to generate demand for medium and low voltage switchgears in commercial and institutional markets in the coming years.
The market is also expected to benefit from technology advancements and product developments. With growing competition in the market, key factors that can help a company differentiate their product offerings from those of competitors are quality, reliability and durability. Manufacturers of switchgears are focusing on innovations to hedge the challenges of the difficult economic scenario, particularly in developed markets such as Europe and the United States. Technology developments like magnetic actuation and arc resistant technology are being explored by OEMs in order to enhance the efficiency and reliability of switchgear equipment. With new regulations influencing energy efficiency standards, investments are currently being directed towards developing compact, efficient and environmental friendly solutions.
As stated by the new market research report on Switchgears, Asia Pacific represents the largest and the fastest growing regional market worldwide with a CAGR of 7.2% over the analysis period. Growth in the region is supported by rapid energy infrastructure development, rising foreign direct investments in the renewable energy sector, and growing emphasis on rural electrification.
Key players covered in the report include ABB Ltd., Alstom SA, Eaton Corporation, G&W Electric Company, General Electric Company, Mitsubishi Electric Corporation, Powell Industries Inc., S&C Electric Company, Schneider Electric SA, Siemens AG and Thomas & Betts Corporation.
The research report titled “Switchgears: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, issues, and recent industry activity of major companies worldwide. The report provides market estimates and projections for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Product segments analyzed include LV Switchgear, MV Switchgear and HV Switchgear.
For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Switchgears_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Telephone: 408-528-9966
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Web Site: http://www.StrategyR.com/
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Public Relations, Global Industry Analysts, Inc., http://www.StrategyR.com/, 408-528-9966, [email protected]
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