Report Overview

A growing need for reliable power distribution systems, renewable energy integration, infrastructure upgrades, and rapid urbanization are expected to drive Australia and New Zealand Switchgear Market during the forecast period between 2024 and 2030.

Australia and New Zealand Switchgear Market – Industry Trends & Forecast Report, 2030

Australia and New Zealand Switchgear Market size by value was estimated at USD 2.81 billion in 2023. During the forecast period between 2024 and 2030, Australia and New Zealand Switchgear Market size is expected to expand at a CAGR of 5.52% reaching a value of USD 4.04 billion by 2030. Australia and New Zealand Switchgear Market is driven by several key factors: rising energy demand, urbanization, and industrialization, which necessitate reliable power distribution systems. The integration of renewable energy sources like solar and wind also boosts demand for advanced switchgear. Additionally, infrastructure upgrades and the modernization of aging electrical systems are crucial. Government regulations and initiatives aimed at improving electrical safety and reducing energy losses further propel market growth.

Switchgears – Overview

Switchgear is a crucial component in electrical power systems, designed to control, protect, and isolate electrical equipment. It includes devices like circuit breakers, fuses, and relays, which safeguard systems from faults such as short circuits and overloads. Switchgear ensures the safe de-energization of equipment for maintenance and repairs, enhancing system reliability and safety. It is used across various voltage levels, from low to high, and is essential for maintaining an uninterrupted power supply and protecting electrical infrastructure.

Australia and New Zealand Switchgear Market      

Growth Drivers

Growth of Smart Electricity Grid Infrastructure

The growth of smart electricity grid infrastructure is a significant driver for Australia and New Zealand Switchgear Market. Smart grids enhance the efficiency, reliability, and sustainability of electricity distribution by integrating advanced technologies like IoT and real-time data analytics. The grid modernization supports the seamless integration of renewable energy sources, reduces energy losses, and improves grid management. Government initiatives and investments in smart grid projects further accelerate the adoption of advanced switchgear solutions.

Challenges

Downturn in Building & Construction Sector

Downturn in building & construction sector could pose a significant restraint for the growth of Australia and New Zealand Switchgear Market. Factors such as increased construction costs, labor shortages, and a rise in construction insolvencies have led to a slowdown in both residential and non-residential construction activities. The reduced construction activities directly affect the demand for switchgear, as fewer new buildings and infrastructure projects require electrical distribution systems.

Impact of Escalating Geopolitical Tensions on Australia and New Zealand Switchgear Market    

Intensifying and further spreading of geopolitical tensions among countries across major regions could adversely affect Australia and New Zealand Switchgear Market. Heightened tensions can disrupt supply chains, leading to delays in the procurement of essential components and increased costs. Trade restrictions and tariffs may also affect the availability and pricing of raw materials. Additionally, geopolitical instability can lead to fluctuating currency exchange rates, impacting the cost of imports and exports. These factors collectively create an uncertain business environment, making it challenging for companies to plan and invest in new projects. Further, increased defense spending in response to geopolitical threats may divert funds from infrastructure development, potentially slowing down the growth of Australia and New Zealand Switchgear Market.

Australia and New Zealand Switchgear Market

Segmental Information    

Australia and New Zealand Switchgear Market – By Installation

By installation, Australia and New Zealand Switchgear Market is divided into Indoor and Outdoor segments. The indoor segment holds a larger share of Australia and New Zealand Switchgear Market by installation, due to the widespread use of indoor switchgear in commercial and industrial settings, where space is often constrained, and there is a need for compact, safe, and efficient power distribution systems. Indoor switchgear also offers better protection from environmental factors, making it more reliable and preferred for applications in urban infrastructure, high-rise buildings, and factories across both countries.

Australia and New Zealand Switchgear Market – By Insulation Type

Based on insulation type, Australia and New Zealand Switchgear Market is divided into Air Insulated, Gas Insulated, and other segments. The air insulated segment is the largest insulation type in Australia and New Zealand Switchgear Market, due to the widespread use in medium- and low-voltage applications across residential, commercial, and industrial sectors. Air insulated switchgear is preferred for its cost-effectiveness, safety, and reliability in moderate voltage requirements. The market's strong focus on energy infrastructure development, renewable energy integration, and utility upgrades further fuels the demand for air insulated switchgear over gas insulated alternatives.

Australia and New Zealand Switchgear Market – By Current

On the basis of current, Australia and New Zealand Switchgear Market is divided into AC and DC segments. The AC (Alternating Current) segment holds a larger share of Australia and New Zealand Switchgear Market. The segment’s dominance is driven by the widespread use of AC systems in power distribution, transmission, and industrial applications across various sectors. AC switchgear is essential for managing high-voltage power transmission in urban infrastructure, commercial buildings, and industrial plants. Its versatility and efficiency in handling high power loads contribute to its larger adoption compared to the DC (Direct Current) segment in the region.

Australia and New Zealand Switchgear Market – By End User

Based on end user, Australia and New Zealand Switchgear Market is divided into Transmission & Distribution Utilities, Industries, Commercial & Residential, and other segments. The transmission & distribution utilities segment is the largest end user in Australia and New Zealand Switchgear Market, due to significant investments in upgrading and expanding power infrastructure to accommodate growing energy demands. The increasing focus on renewable energy integration, grid modernization, and reliable electricity distribution has further accelerated demand in this segment. Transmission & distribution utilities play a crucial role in ensuring efficient power delivery, making it the primary contributor to Australia and New Zealand Switchgear Market.

Competitive Landscape

Key players in the highly competitive Australia and New Zealand Switchgear Market include Schneider Electric, ABB, Siemens, Eaton, Legrand, Hager, Clipsal, Preece Cardew, Baxter Electrical, and Delta Electronics. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 - Siemens formed a strategic partnership with a leading renewable energy company to develop and deploy smart grid solutions across several regions.

• In April 2024 - ABB launched its latest eco-efficient switchgear technology, which uses alternative gases to SF6, significantly reducing the environmental impact of its products.

Scope of the Report

By Installation

• Indoor

• Outdoor

By Insulation Type

• Air Insulated

• Gas Insulated

• Others

By Voltage

• Low

• Medium

• High

By Current

• AC

• DC

By End User

• Transmission & Distribution Utilities

• Industries

• Commercial & Residential

• Others