Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa region. The market in the Asia Pacific is projected to grow at the highest CAGR over the forecast period owing to the growth of many smart cities in the countries of the region which require AI-based electrical switchgear infrastructure on roads and buildings on a large scale. Furthermore, in 2021, the market in North America is evaluated to occupy the largest share in terms of revenue, owing to the increasing investments in commercial and industrial sector, accompanied by the early adoption of advanced technologies. Along with this, North America also leads in terms of favourable regulatory environment for approval of AI-based technological solutions, which is also expected to contribute to the market growth in the region.
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The global AI-based electrical switchgear market is further classified on the basis of region as follows:
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Our in-depth analysis of the global AI-based electrical switchgear market includes the following segments:
March 2020: Signify announced that it has successfully acquired Cooper Lighting Solutions from Eaton. The acquisition would help Signify to strengthen its offerings in North America.
October 2019: Havells India Limited lunched a smart switchgear range “STADx” which includes MCB and distribution board to address the need for providing smart solutions in non-industrial segment such as hotels, office premises, and residences.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The increasing adoption of smart grid technologies and the growing demand for AI-based power distribution and energy monitoring systems are the key factors driving market growth.
Ans: The market is anticipated to attain a moderate CAGR over the forecast period, i.e., 2022-2030.
Ans: The high costs of AI-based electrical switchgear and privacy & security concerns of AI-based controls are estimated to hamper market growth.
Ans: The market in Asia Pacific region will provide ample growth opportunities owing to the growth of many smart cities in the countries of the region which require AI-based electrical switchgear infrastructure on roads and buildings on a large scale.
Ans: The major players dominating the AI-based electrical switchgear market are ABB Ltd, Schneider Electric, Siemens AG, Lutron Electronics Company, and Mitsubishi Electric among others.
Ans: The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by installation, end-user, and by region.
Ans: With respect to end-user, the transmission & distribution utilities segment is anticipated to hold the largest market share owing to the increasing use of AI-based electrical switchgear in the transmission & distribution utilities.