Electrical switchgear is a combination of electrical components designed to regulate, control, and protect the electricity generation, transmission, and distribution equipment. The global electrical switchgear market is anticipated to grow in the coming years owing to the rise in demand for medium and high voltage electrical switchgear. Also, the increasing demand for transformers is expected to fuel the growth of this market segment, as revenue in the electrical switchgear market is directly proportional to demand transformers.
Furthermore, increasing investments in alternative energy sources are fueling the demand for low voltage and medium voltage switchgear. This, in turn, will trigger the demand for molded case circuit breaker (MCCB) and miniature circuit breakers (MCB).
Let’s look at the trends that will shape the dynamics of the global electrical switchgear market in the coming years:
- Expansion of the construction and industrial sector: Distribution of electricity in the real estate, construction, and industrial infrastructure sector requires several electrical components. Therefore, the growth in these sectors is expected increase the safety measures in electrical transmissions, fueling the demand for electrical switchgear.
- Rising demand for renewable energy: The high demand for integrating renewable energy sources in the power and energy sector will continue to drive the demand for electrical switchgear to ensure safety and protection of electricity transmission and distribution networks.
- The advent of smart grid technology: The accelerating trend of electrification in developing countries along with the advent of smart grid technology is expected to drive the growth of the global electrical switchgear market, especially the LV and MV market space.
With several such trends positively impacting the growth of the global electrical switchgear market. It is also necessary to consider the challenges in this market space. As a leading firm in the electrical switchgear market, you may be well acquainted with the urgent need to confront each of the unavoidable aspects that are curtailing the growth of your business. Although you may yet not have a plan do so, it is best recommended to consider implementing solutions such as market segmentation as it will assist in defining your future growth opportunities.
The Business Challenge
The client– A leading electrical switchgear manufacturer
Objective– To determine market opportunities and identify underserved market segments.
The client, a leading electrical switchgear manufacturer, wanted to evaluate the market opportunities in various underserved market segments. The client wanted to leverage Infiniti’s market segmentation solution to identify different market segments and group them accordingly. Additionally, the client wanted a detailed report on the entry barriers, new opportunities, risks, and competition in the auto accessories market space.
Results– The market segmentation solution offered insights on various market segments within the electrical switchgear market space. Also, assisted the client in identifying and establishing themselves in underserved markets.
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The market segmentation experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the electrical switchgear market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
The solution offered by our market segmentation experts helped the client in discover new market segments and opportunities. This engagement also helped the client to understand the needs and expectation of the end-user segments. Thereby, the client was able to make the necessary changes and additions to their existing portfolio of services to ensure the needs of its customers are met. Moreover, the solution offered included assistance in identification of optimum distribution strategies for their new products and services. It also enabled the electrical switchgear manufacturer to establish themselves in underserved markets.
Against a backdrop of tough economic environment, the success of the firms operating in the electrical switchgear market will rely on the organization’s ability to research and develop new innovative products at competitive prices. This also necessitates the validation of new applications for existing products to distinguish themselves from their competitors. Also, several original equipment manufacturers (OEMs) are increasingly focusing on improving the reliability and efficiency of the electrical switchgear equipment. They are also incorporating several technological innovations such as arc-resistant technology and magnetic actuation. The global gas insulated switchgear market is expected to show impressive growth in the future.
Moreover, future opportunities in the electrical switchgear market space are set to outweigh their challenges, driving significant changes in this sector. Therefore, those who carefully anticipate and access future challenges and opportunities to address them proactively, will be able to gain a stronger foothold in the electrical components market space.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the electrical switchgear market.