The rapid development of industrial infrastructure and expansion witnessed in the construction sector, primarily in the emerging markets, are fuelling demand for Low Voltage Medium Voltage Switchgear. With governments proactively investing in urbanization and rural development, renewal of existing transmission and distribution networks is on the cards. This is expected to create attractive opportunities for the LV and MV switchgear market.
Transparency Market Research says that the global LV and MV switchgear market will exhibit a CAGR of 6.8% between 2016 and 2024.
The market had a valuation of US$56.23 bn in 2015 and is expected to reach US$98.80 bn by the end of the forecast period. Growth witnessed by the market in developing countries such as Indonesia, India, and China in particular has been strong due to the accelerated electrification witnessed across these nations.
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The lack of adequate electrification has been inhibiting the growth of the industrial sector across emerging economies. To counter the situation, governments in India and China have adopted several approaches to improve grid connectivity in remote locations.
A significant portion of the budget for such improvement plans has been allocated to urbanization, thus fuelling the deployment of smart grid technology. This subsequently translates into greater opportunities for sales of LV and MV switchgear in these countries.
In the last few years, the market has witnessed positive growth globally. However, intense price-based competition between established and local players has been creating bottlenecks for the market. Besides this, the easy availability of substitutes for switchgear might also hinder sales of LV and MV switchgear.
Nevertheless, in the near future, several countries located in the African and Asian sub-continent are expected to provide lucrative opportunities for the market. Furthermore, the increasing demand for renewable energy will also bolster sales of LV and MV switchgear in the forthcoming years.