High voltage switchgear is engineered for distributing power transmission and electricity. It consists of fuses, circuit breakers, and disconnect switches. High voltage switchgear is a voltage ranging above 36KV. It can be applied in various areas like industrial centers or cities.
The Kingdom of Saudi Arabia High Voltage Switchgear Market size has seen a substantial growth. The top market players in the market include Alfanar Group, ABB Ltd., Al Ahelia Switchgear Co., among other players.
Based on the end-user, this market is segmented into commercial and residential. There are also industrial and utilities as the end-users. Meanwhile, based on the type, the market in KSA is segmented into gas insulated, air insulated, and others.
The Key Drivers
Saudi Arabia switchgear market trends have seen a significant development due to several factors.
- Demand for secure and reliable power distribution network
Designed to protect, isolate, and control electricity, switchgear is important in ensuring that power networks are safe and efficient through its power management. An increasing demand for circuit protection devices in KSA can drive the growth of the market.
- Saudi Arabia high voltage switchgear market installations
Driven by rapid industrialization and urbanization, there has been an expansion of high voltage switchgear installations combined with the potential need to replace the switchgear. It can further increase the demand of this market.
- Government’s support to upgrade power distribution
The government in KSA has increasingly supported and deployed initiatives to modernize power distribution. In addition, increased government investment in alternative energy sources can drive demand for the market.
GMI Research noted that under Saudi Vision 2030, KSA is estimated to reach 27.3 GW of renewable power capacity which includes 20 GW of solar PV. This will increase the use of high voltage switchgear and foster market growth.
The Challenges
However, there are some challenges that this market has to deal with to maintain its growth.
- Environmental factors
Natural conditions can be the first challenge. Environmental conditions can vary based on the locations and the climate situations. For example, in the winter season, gaining access to wind and solar sites can be risky and dangerous. Meanwhile, in the offshore wind sites, switchgear that can endure humidity, extreme temperatures, and salty sea breeze is required.
We cannot control the environment. That’s why it is important for contractors to implement risk assessments and make needed adjustments accordingly.
- Technical capabilities
As there is a modernization of the equipment, there is a rising need to keep up with the advanced installation technique. However, it is still crucial to know how to deal with older systems, since not all switchgear is replaced periodically with the more upgraded models due to budget limitations. Therefore, proper knowledge regarding older and newer technologies is required.
- Strict regulations
To ensure safety and efficiency, contractors have to comply with strict regulations. It is required to hire trained and licensed technicians when handling the switchgear. When conducting any activity on switchgear that involves handling SF6 (Sulphur hexafluoride), for example, the technician must have a fluorinated greenhouse gas handling certificate. This includes the activity when installing, conducting maintenance and repairs, and other handling activities.
Besides the major enhancement in renewable capacity and replacement of aging electrical equipment, the KSA high voltage switchgear market also has numerous opportunities ahead.
First is technological advancement. With the emergence of Artificial Intelligence, IoT, and big data analytics, it can offer a chance to digitalize this sector, especially in emerging economies. This modernization can improve the efficiency and safety of the electrical switchgear.
Connected with the AI and IoT, the switchgear market can provide predictive maintenance to identify potential failures before they actually occur. Besides, there is also anomaly detection and alarm management to detect any irregularities and provides alarm to the potential problems. This allows timely maintenance and prevents downtime.
This digitalization can also provide cybersecurity threat detection and prevention, to protect the switchgear and critical infrastructure from any cyberattack. There is also a rising need to have more environmentally friendly switchgear and equipment, as there is a rising concern regarding environmental issues.
In addition, there are promising prospects for this market as the possibilities of mergers and acquisitions among key players in this industry are looming.
