Market Trends of Europe Switchgear Industry
This section covers the major market trends shaping the Europe Switchgear Market according to our research experts:
Gas Insulated Switchgear Hold Significant Market Share
- Gas-insulated switchgear is expected to hold the major share in the market owing to the increasing government initiatives and investments to reduce carbon emissions and drive renewable energy projects. Moreover, the growing improvements in smart infrastructure and rising adoption of HVDC technology further propel market growth.
- Growing investments in smart grids and energy systems and the extension or replacement of old switchgear at substations in European regions are augmented to create ample opportunities in the market.
- For instance, in September 2021, the National grid awarded Linxon a six-year, GBP 1 billion projects to rewire South London via 32 km of deep underground tunnels. Linxon will design, supply, install, and commission connection bays at two existing National Grid substation sites, undertake modification works at two other sites, and construct a new seven-bay 400/132 kV gas-insulated switchgear substation at Bengeworth Road.
- In September 2021, GE Renewable Energy's Grid Solution business was also awarded a contract for Sweden's first SF6 free gas-insulated switchgear. The GIS will be installed at the Vattenfall Eldistribution AB Lindhov substation in Tumba, located approximately 25 km from Stockholm.
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Growing Focus on Renewable Energy Sources in Europe to avoid the energy dependency on Russia
- The Russia-Ukraine war has fueled the EU renewable energy drive to focus more aggressively. The European Union seeks to speed up the deployment of solar energy on a wide scale while simultaneously reviving Europe's solar manufacturing industry. The initiative is part of the EU's ambition to wean itself off Russian fossil fuels, particularly natural gas. The EU's new dedicated solar strategy aims to double solar capacity by 2025 and install 600 gigawatts by 2030.
- In addition, the EU commission has planned to increase investments and make solar panel installations mandatory for new public buildings by 2026 and new residential buildings by 2029. This will boost the regional Switchgear market because of its application in the solar power implementation processes.
- According to Commission estimates, an additional EURO 26 billion in solar energy investment will be required between 2022 and 2027, on top of the investment already planned under previous climate laws.
- Zolar, based in Berlin, has raised EURO 100 million in funding to grow its small solar system supply network and fulfill the increased demand for clean energy. Germany is particularly vulnerable to the energy crisis produced by the Ukraine conflict since it is still largely reliant on Russian gas imports, resulting in skyrocketing gas prices for German customers. This transformation in the country shows the growth potential of the Switchgear market in the region.
- Wind energy is another renewable energy source, and the EU has strategized its path for a regional wind energy revolution. Germany, Belgium, the Netherlands, and Denmark have planned to build 150 gigawatts offshore wind capacity in the North Sea. The agreement was made at an offshore wind meeting in Denmark when Europe was also trying to reduce its dependency on Russian energy imports in the short term due to the Ukraine conflict. This revolution will also drive the regional Switchgear market because of its application in the new grid constructions.
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