PUBLISHER: The Business Research Company | PRODUCT CODE: 1705567
PUBLISHER: The Business Research Company | PRODUCT CODE: 1705567
Paralleling switchgear (PSG) is a critical component in electrical systems that facilitates the connection and synchronization of multiple power sources, such as generators. This enables them to collectively deliver a higher capacity and enhanced reliability of power output. PSG is meticulously designed to ensure the safe and efficient operation of these power sources by integrating protection, control, metering, and switching functionalities. These elements collaborate to effectively manage power distribution across various systems.
The primary types of paralleling switchgear include open transition systems, closed transition systems, and soft load systems. Open transition systems involve electrical switching mechanisms that briefly disconnect from one power source before connecting to another, resulting in a momentary interruption during transfer. These systems are applied across different power ratings such as low voltage (LV), medium voltage (MV), and high voltage (HV), serving purposes such as prime power, standby power, and peak shaving. They cater to end users in commercial and industrial sectors.
The paralleling switchgear research report is one of a series of new reports from The Business Research Company that provides paralleling switchgear market statistics, including the paralleling switchgear industry's global market size, regional shares, competitors with a paralleling switchgear market share, detailed paralleling switchgear market segments, market trends and opportunities, and any further data you may need to thrive in the paralleling switchgear industry. This paralleling switchgear market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The paralleling switchgear market size has grown strongly in recent years. It will grow from $1.61 billion in 2024 to $1.72 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to aging power infrastructure, increasing electricity demand, industrialization, technological advancements, regulatory mandates, urbanization, rising investments in renewable energy, grid reliability concerns, cost efficiency measures, and expanding industrial automation.
The paralleling switchgear market size is expected to see strong growth in the next few years. It will grow to $2.19 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to smart grid integration, microgrid deployments, energy storage integration, IoT in energy management, electrification of transport, renewable energy mandates, grid modernization initiatives, demand response programs, cybersecurity enhancements, and modular switchgear solutions. Major trends in the forecast period include increased adoption of digital substations, decentralized power generation, energy efficiency optimization, focus on sustainable energy solutions, the rise of energy-as-a-service models, AI and machine learning in grid management, electric vehicle charging infrastructure growth, resilience planning for extreme weather events, integration of blockchain in energy transactions, and the emergence of smart cities leveraging advanced switchgear technologies.
The paralleling switchgear market is set to experience significant growth driven by increasing demand for renewable energy sources. Renewable energy, derived from naturally replenished resources such as sunlight, wind, and others, is gaining traction due to environmental concerns, energy security objectives, and advancements in technology. Paralleling switchgear plays a crucial role in renewable energy systems by synchronizing multiple power sources such as solar arrays and wind turbines. This synchronization ensures efficient integration into the grid and optimal distribution of power. For example, the International Energy Agency reported a substantial increase in renewable electricity capacity additions in 2023, highlighting nearly a 50% rise compared to 2022. This surge underscores the driving force behind the paralleling switchgear market's growth.
Major companies in the paralleling switchgear market are developing advanced solutions, such as products featuring the highest voltage SF6-free switchgear, like the EconiQ 550 kV circuit breaker, to gain a competitive advantage. This technology eliminates the use of sulfur hexafluoride (SF6), a greenhouse gas that is 24,300 times more damaging than CO2, while maintaining the same size, performance, and reliability as traditional SF6 switchgear. For example, in August 2024, Hitachi Energy, a Switzerland-based company specializing in energy solutions, launched SF6-free switchgear. New switchgear technologies are emerging to address the environmental impact of sulfur hexafluoride (SF6), a potent greenhouse gas responsible for approximately 80% of emissions in the power sector. A key innovation is the development of alternative gas-insulated switchgear (GIS) solutions that use eco-friendly alternatives to SF6, significantly reducing emissions without sacrificing performance.
In September 2024, Siemens, a Germany-based technology company, acquired Trayer Engineering for an undisclosed amount. This acquisition is designed to strengthen Siemens' presence in the energy sector, particularly in the area of grid modernization. Trayer Engineering, a US-based company, specializes in providing automation, control systems, and electrical equipment solutions for the energy sector, focusing on grid systems and infrastructure.
Major companies operating in the paralleling switchgear market are Siemens AG, General Electric Company (GE), Caterpillar Inc., Schneider Electric SE, ABB Ltd., Cummins Inc., Eaton Corporation, Kohler Co., ASCO Power Technologies, Industrial Electric Mfg. (IEM), Thomson Power Systems, Pioneer Power Solutions Inc., Switchboard Apparatus Inc, Paramount Power Systems, Electro-Mechanical Industries, Enercon Engineering Inc., Advanced Power Technologies LLC, HiReli LLC, MTU Onsite Energy, Regal Beloit Corporation
Asia-Pacific was the largest region in the paralleling switchgear market in 2024. The regions covered in the paralleling switchgear market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the paralleling switchgear market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The paralleling switchgear market consists of sales of static transfer paralleling switchgear (PSG), manual transfer paralleling switchgear (PSG), and automatic transfer paralleling switchgear (PSG). Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Paralleling Switchgear Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on paralleling switchgear market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for paralleling switchgear ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The paralleling switchgear market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.