The rapid pace of electrification in India being fuelled by government sponsored schemes has increased the demand for related equipment. The soaring demand for electrification in rural areas coupled with the rising electricity generation has positively affected the industry. The greater targets of regional governments to deliver electricity in remote areas has increased the investments in the sector facilitating the expansion of the allied industry as well. These factors have pushed the appliance market of which switchgear is a major one. Switchgear, an important electrical device to control, monitor, and regulate the circuit, and enhance the safety of the entire system, has also witnessed a jump in demand.
As per a report by Research and Market, a market research firm, the Indian switchgear market is expected to reach $3.7 billion by 2022. According to the same report, the switchgear market is projected to rise at a CAGR of 7.17% between 2021 to 2027. As switchgear are installed in residential, commercial, industrial and utility applications, the industry will meet the projected growth figures. The device is extremely important to ensure uninterrupted operations and safety.
The government of India is working on an ambitious target of achieving 175 GW renewable energy generation capacity by the end of this year. On the other hand, the government is tirelessly working on myriad infrastructure development schemes such as Smart Cities, Make in India, Digital India, Integrated Power Development Scheme, and Atal Mission for Rejuvenation and Urban Transformation, among others. With these programs, urbanisation and industrialisation have picked up pace; even small places are turning into decorated urban clusters. They all have significantly increased the demand for switchgear, contributing to the growth of the market in India.
India is a thriving economy experiencing expansion in business activities everyday. A number of new business houses are coming into existence while the existing ones are boosting production by the day. India is an economy containing a number of large industries such as the manufacturing, processing, and metallurgy industry. They all need power and related appliances to make their operations smooth. With time, the activities will rise further. Some of the industrial productions contain some amount of danger while using electricity. Switchgear provides immense security to them.
The electricity infrastructure in India is in a phase of transformation and the sector is receiving heavy investment from the stakeholders for the purpose. The ageing infrastructure has been a major reason behind the power blackouts that necessitated investment in the sector. This drive has boosted the implementation of the smart grid and smart meters in the transmission and distribution network over the last few years. A switching device is developed by integrating smart monitoring and control units, digital solutions, and other features to equip the system with the best equipment. On the other hand, the drive towards sustainable power generation and utilisation has also raised the inclination towards technologically advanced equipment, bringing attention to switchgear.
With the swift pace of urbanisation and industrialisation, the Indian switchgear market is expected to flourish over the period in sync with the increasing electricity demand. Besides, the need for smart appliances to make the entire system sustainable has increased the demand for switchgear that are safe and energy-efficient. Infrastructure boost and a thriving business environment will further push the market this year.