Fixed Switch Cabinet Market: Overview
The market size for fixed switch cabinets was USD 2.8 billion in 2021, and it is projected to grow at a CAGR of 4.9 percent during the forecast period. The fixed switch cabinets market is expected to grow due to the increasing use of fixed switch cabinets in applications such as electricity transmission and distribution, transportation networks, and energy & power. IoT integration in fixed switch cabinets and an increasing emphasis on customer service offer lucrative opportunities for market expansion. Due to the large demand for electrical security solutions, such as electrical enclosures, to prevent energy theft and protect electrical circuits from environmental conditions such as dust, rain, and others, sales of fixed switch cabinets are anticipated to increase.
During the past decade, the electrical and electronics industry has experienced tremendous growth, which has led to the development of ultra-modern fixed switch cabinets, which offer high safety, driving the market growth. As a result of the rising safety concerns when using switches, the market for fixed switch cabinets is expected to grow rapidly. The growth of the fixed switch cabinet market size is expected to be driven by the increase in consumer electronics demand across the globe. Also, the lucrative features provided by fixed switch cabinets are expected to provide growth opportunities to the fixed switch cabinet market.
Additionally, the government is investing heavily in cabinet switches to ensure safety, which is expected to boost the market. However, the presence of counterfeit products is expected to restrain the market growth due to the presence of counterfeit products. The shelves in the switch cabinet are fixed, mounted or sliding in such a way that allows easy access to the sides and banks of equipment. General Electric Company and Fuji Electric Co Ltd are the fixed switch cabinet market players. They find their utility in numerous applications such as infrastructure & utilities, energy, industrial, and residential.
Fixed Switch Cabinet Market: COVID-19 Impact
A major downfall affected the global economy due to the COVID-19 pandemic. Businesses of all sizes were affected, irrespective of their size. Also, governments worldwide imposed lockdowns on their nations to prevent the pandemic's spread, resulting in temporary industrial shutdowns. People across the globe faced a shortage of various goods and services due to the industrial closure. Further, due to government-imposed travel restrictions, the worldwide supply chain was also severely disrupted, resulting in significant losses for various industries. All these factors are negatively affecting the growth of the market.
Fixed Switch Cabinet Market: Drivers
Construction of Renewable Energy Infrastructure to Drive Market Growth
The rising environmental concerns associated with nuclear and fossil fuel use are causing governments throughout the world to shift their focus to renewable energy sources like wind and solar. To make use of renewable resources, they are heavily focusing on building green energy infrastructures. Under the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan, the Indian government will allocate USD 4.59 billion to build green infrastructure to increase renewable energy capacity to 25,750 MW by 2022. Growing demand for electrical security solutions like fixed switch cabinets has been driven by the construction of solar panels and windmills, which are increasingly used to prevent electricity theft and protect electrical circuits from external factors such as dust and rain.
Government Initiatives for Electrification Driving Market Growth
To meet the growing demand for electricity across urban and rural areas in developing countries, the governments are undertaking various initiatives to increase power distribution infrastructure and electrification rates. For instance, the Indian Ministry of Power has announced the launch of a Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme in order to increase electrification rates and improve the quality and reliability of power supply in rural areas. In India, such initiatives are expected to increase sales of fixed switch cabinets.
Fixed Switch Cabinet Market: Restraints
High Costs Compared to Other Products to Hamper Market Growth
Compared to conventional products, fixed switch cabinets perform better regarding propagation delays, data rate, and noise reduction. However, fixed switch cabinets are more expensive. Counterfeit is commonly used as a low-cost solution. Fixed switch cabinets are offered at low costs by several companies. However, their high cost is expected to restrict their demand.
Fixed Switch Cabinet Market: Segment Overview
High Voltage Switch Cabinet to Dominate Market
With increased investments and awareness related to tower development, high-voltage cabinets with better features have become more common. These include heat dissipation systems, airflow ventilation structures, and fire safety features. Increased demand from infrastructure and utility projects, energy applications such as industrial processes and power generation, as well as residential electricity consumption in developing countries, are driving the growth of the high voltage switch cabinet market.
With Increased Demand for Infrastructure, Іnfrаѕtruсturе & Utіlіtіеѕ Category to Dominate Market
In the forecast period, the іnfrаѕtruсturе & utіlіtіеѕ segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. There are a variety of fixed switch cabinet standards for applications that require different voltage levels in infrastructure and utilities. Because it regulates the amount of electricity a building consumes by distributing it appropriately, they are necessary for infrastructure and utilities. It consists mainly of high-voltage cabinets with a large number of slots that can accommodate different types of circuit breakers.
Fixed Switch Cabinet Market: Regional Landscape
Asia Pacific to Dominate Market due to Presence of Major Electrical Device Manufacturers
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. China is increasingly investing in encouraging clean energy production to achieve its goal of producing 35% to 39% of non-fossil fuel energy annually. According to the Center for Strategic & International Studies, China's National Energy Administration plans to invest more than US$ 360 billion in developing renewable energy, for instance. To meet the growing demand for electricity across urban and rural areas in developing countries, the governments are undertaking various initiatives to increase power distribution infrastructure and electrification rates. For instance, the Indian Ministry of Power has announced the launch of a Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme in order to increase electrification rates and improve the quality and reliability of power supply in rural areas.
Global Fixed Switch Cabinet Market: Competitive Landscape
In February 2018, According to Rittal North America LLC, a U.S.-based enclosure and case system provider, the SE 8 enclosures had 30% more interior space and were more durable than unibody enclosures.
Few of the players in the fixed switch cabinet market include General Electric Company, Fuji Electric Co. Ltd., Senteg GmbH, Hyundai Heavy Industries, Eaton Corporation plc, Mitsubishi Electric Pvt. Ltd., ABB Corporation, Toshiba Corporation, SIEMENS AG, Schneider Electric SE
Regional Classification of the Global Fixed Switch Cabinet Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Fixed Switch Cabinet Market
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