DC Switchgear Market Report

Concerns about the environment are driving government agencies to invest in renewable energy-based electricity generation. Solar, wind, biomass, hydropower and geothermal power facilities are all located in remote locations. The International Energy Agency estimates that around US$2.8 trillion will be invested in energy in 2023, with over US$1.7 trillion going towards clean energy sectors such as renewable power, nuclear energy, and low-emission technologies. The increased demand for DC switchgear in railways and electric vehicle applications is driving market expansion. Rising consumer interest in electric cars (EV) is expected to boost demand, consequently fuelling the demand for EV charging infrastructure throughout the forecast period. This, in turn, is likely to increase the need for DC switchgear.

Companies use HVDC systems to connect such remote power producing sources while minimising transmission losses. For long-distance power transmissions, HVDC transmission is thought to be efficient. The integration of renewable energy sources with HVDC transmission systems is a rising trend that offers lucrative growth potential for the market. Furthermore, in terms of voltage, the segment up to 750 V is anticipated to be the largest in the DC switchgear market. The high cost effectiveness related to 750V DC power systems is projected to boost development in the DC switchgear market up to 750V segments. During the forecast period, the fixed mount segment is anticipated to have the biggest market share of DC switchgear. Fixed DC switchgear's great cost effectiveness, low failure rate and exceptional factor of safety are likely to boost acceptance rates even more.

The performance of DC switchgear electrical systems, particularly those located outdoor, may be impacted by environmental factors such as temperature, humidity and groundwater seepage. High levels of electromagnetic interference (EMI), vast temperature variations, vibration and shock, as well as the presence of hazardous substances, all have the potential to disrupt or damage electronic equipment performance. While smart gadgets help any electrical system run smoothly, they can also offer a security threat owing to antisocial factors. Bypassing security via remote access can result in theft of data and security breaches, which can result in power outages. Multilayer cybersecurity is required to protect the security of substations, which include DC switchgear. The power-conducting components that conduct or interrupt the flow of electrical power, such as switches, fuses, circuit breakers, and lightning arrestors, and control systems such as  current transformers, protective relays, control panels, potential transformers, and associated circuitry that control, monitor  and protect the power-conducting parts that make the switchgear solution complex and costly. The high cost of these switchgears is a significant barrier to the expansion of the DC switchgear market.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. During ADIPEC 2023 in Abu Dhabi in September 2023, ABB will unveil the 500 mm panel version of its UniGear ZS1 air-insulated medium-voltage switchgear. At ABB's booth 3110 in Hall 3, the VD4 circuit breaker and asset health monitoring are featured in this state-of-the-art switchgear, highlighting ABB's commitment to reliability and sustainability. Designed to tackle energy efficiency, carbon reduction, and safety in sectors like oil and gas, this release highlights ABB’s commitment to innovative, high-performance solutions in the DC switchgear market.

However, in November 2023, Eaton expanded its medium voltage (up to 24kV) switchgear lineup, enhancing offerings for distribution networks and industrial applications. The new additions include the FMX single-busbar switchgear, W-VACi vacuum circuit breakers, and Unitole UX withdrawable switchgear. These products leverage vacuum switching and cast resin insulation, presenting an eco-friendly alternative to SF6-insulated equipment. Eaton’s latest innovations promise lower maintenance costs and reduced environmental impact, complementing their existing portfolio like the Xiria 24kV ring main units.

The rapidly expanding energy infrastructure, increasing government investments, the heavy presence of prominent DC switchgear manufacturers and an emergence of new and innovative products involving the majority of the country's leading companies all drive demand for DC switchgears in the US market. Similarly, the increasing usage of smart technology to improve safety and decrease energy loss is driving higher sales of smart switchgear in the United States. Switchgear is being developed by German manufacturers to increase substation transmission capacity. Germany's transmission infrastructure confronts significant challenges as it moves to a new energy mix. Renewable energy farms, which are mostly centred in northern Germany, need seamless T&D equipment like as switchgears in order to transport electricity to the nation's southern regions.