Low Voltage (LV) and Medium Voltage (MV) Switchgear Market Plying for Significant Growth During 2024
The
global low voltage (LV) and medium voltage (MV) switchgear market is
characterized by intense price-based competition. As per a new study
by Transparency Market Research (TMR), competition is expected to
intensify further as local players aim for a larger presence in
developed markets by providing affordable and efficient LV and MV
switchgear. In Asia Pacific, which is an attractive market for LV and
MV switchgear, Schneider Electric SE held a dominant share of 16.1%
in terms of value in 2015, reports TMR. The top three players in Asia
Pacific cumulatively held more than 37% of the market.
Report
Overview :
“Owing
to the prevalence of intense price-based competition, the bottom line
growth of enterprises will remain more or less stagnant despite them
witnessing persistent top line growth at an individual level,” says
a lead analyst at TMR.
Urban
Sprawl Augurs Well for LV and MV Switchgear Sales
The
rising demand for enhanced protection in electricity distribution
systems makes the deployment of advanced LV and MV switchgear
imperative. Besides this, the demand for switchgear is also expected
to increase in response to the rapid urbanization and infrastructural
development witnessed worldwide. “With governments of emerging
nations such as Indonesia, India, and China increasingly investing in
rural development and urbanization, the construction of electricity
transmission and distribution networks and upgrades on existing ones
are on the cards. This will stimulate the demand for LV and MV
switchgear in the short term,” added an analyst at TMR.
Across
several nations worldwide, obsolete transmission and distribution
networks have emerged as a major concern. Policy makers are thus
compelled to focus on renewing the old transmission networks for
better performance. This in turn boosts opportunities for the LV and
MV switchgear market.
Increasing
Price-based Competition Puts Pressure on Revenue Stream
Despite
the growth witnessed by the market being largely positive, the
prevalence of intense price-based competition between local and
established players creates a major bottleneck. This is particularly
true in case of emerging economies, where local players give tough
competition to their established counterparts by providing quality
products at affordable price. The prevalence of such intense
competition is likely to negatively influence the trajectory of the
switchgear market.
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