Market Insights
“The data center switchgear market size was US$ 4.8 billion in 2024 and is likely to grow at a robust CAGR of 16.1% in the long run to reach US$ 13.6 billion in 2031.”
Market Dynamics
Introduction
Switchgear in data centers refers to electrical disconnect switches, circuit breakers, and protective devices used to control, protect, and isolate electrical equipment. It ensures a reliable and uninterrupted power supply by managing power distribution and safeguarding critical infrastructure from electrical faults. Data centers require a highly reliable and efficient power distribution system to ensure continuous operations. Switchgear is crucial in maintaining power integrity by enabling safe power switching, fault isolation, and load distribution. It is designed to handle high voltage and current levels while protecting against short circuits, overloads, and other electrical anomalies.
Modern data center switchgear solutions are often integrated with automation, monitoring, and remote-control features to enhance operational efficiency and minimize downtime. They can be classified into low-voltage, medium-voltage, and high-voltage switchgear based on their application and power handling capacity. Choosing the right switchgear is essential for improving energy efficiency, maintaining uptime, and ensuring the safety of critical IT infrastructure in data centers.
Market Drivers
The switchgear market for data centers is evolving rapidly, driven by the outburst of data generation, the increasing demand for AI-driven workloads, and the expansion of hyperscale and colocation facilities. With an impressive CAGR of approximately 18%, the data center industry ranks among one of the fastest-growing global industries. Advanced technologies such as AI-based automation, IoT-enabled smart switchgear, and energy-efficient solutions are revolutionizing power distribution infrastructure. These innovations enhance efficiency and reliability while supporting the growing demand for sustainable and intelligent power management systems.
Despite these advancements, the industry faces challenges, including high costs and compatibility issues with existing infrastructure. However, the need for scalable and highly reliable power solutions in cloud computing and AI-based data centers presents lucrative growth opportunities. As businesses accelerate their digital transformation initiatives, sustainability and technological innovation will drive market expansion. The increasing emphasis on green energy solutions and automation is expected to shape the future of data center power management, ensuring efficiency and resilience.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In 2023, Siemens and Compass Data Centers entered a multi-year agreement to supply 1500 pre-fabricated medium-voltage power skids incorporating transformers and switchgear.
- In 2022, Legrand acquired French power firm Voltadis, aiming to strengthen its portfolio in data center electrical systems.
- In November 2021, Vertiv acquired E&I Engineering for US$ 1.8 Billion. At the time of acquisition, E&I ranked 5th in the data center switchgear market. This acquisition expanded Vertiv’s capabilities in switchgear, busway, and transfer switches.
Recent Product Development:
- In October 2024, Schneider Electric launched Ringmaster AirSeT, a next-generation SF6-free (sulfur hexafluoride) digital medium voltage (MV) switchgear, which is critical to the development of smarter, more sustainable electricity grids.
- July 2024, Vertiv introduced the MegaMod™ CoolChip, a high-density prefabricated modular data center power system equipped with UPS, PDUs, and Switchgear with liquid cooling.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Data Center-Type Analysis
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Hyperscale, Colocation, and Enterprise Data Centers
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Colocation Data Center generates more than half of the net switchgear sales. Whereas, the Hyperscale Data Center is the fastest-growing sub-segment.
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Voltage-Type Analysis
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Low-voltage Switchgear, Medium-voltage Switchgear [Metal Enclosed Switchgear and Metal Clad Switchgear].
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Low-voltage Switchgear is the most dominant, whereas Medium-voltage Switchgear is the faster-growing category. In MV-Switchgear metal-enclosed switchgear holds a bigger share than metal-clad switchgear.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World.
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North America is estimated to hold the biggest share of the data center switchgear market. Asia-Pacific is the fastest-growing region.
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By Data Center Type
“Colocation data centers are expected to remain dominant, whereas hyperscale data centers will be the fastest-growing data center for switchgear sales.”
The data center switchgear market is segmented into hyperscale, colocation, and enterprise based on the type of data center. Colocation data centers are expected to remain dominant during the forecast period. Colocation data center facilitates diverse client needs. For this, it requires robust power distribution systems and switchgear to ensure safety and reliability. A large proportion of the data centers around the world are colocation data centers, generating most of the demand for switchgear in data centers.
Hyperscale data centers will be the fastest-growing data center type in the market during the forecast period. With the advent of artificial intelligence, the demand for large hyperscale data centers surged drastically. The global data center capacity for hyperscale grew by 28% from 2019 to 2024. It justifies the exponential growth in demand for switchgear in hyperscale data centers.
By Voltage Type
“Low-voltage switchgear is expected to remain most dominant, whereas demand for medium-voltage switchgear is likely to grow faster during the mentioned period.”
The market is segmented into low-voltage and medium-voltage switchgear. The prevalence of low-voltage switchgear in data centers is attributable to its importance in the power distribution of IT loads, server racks, and other critical facilities. Colocation and enterprise data centers target low-voltage systems significantly because of their low-cost nature and ease of installation. Furthermore, the continuous need for edge computing and distributed IT systems increases the use of low-voltage switchgear. Taking into account medium voltage switchgear, low voltage solutions are better adapted to the needs of most of the power demands of data center facilities, which consolidates its market leadership.
Demand for medium-voltage switchgear is rising, mostly as a result of its use in hyperscale data centers. Metal-enclosed switchgear dominates the medium voltage switchgear market due to its small size, low cost, and suitability for data center applications. Metal-enclosed switchgear is widely used in colocation and hyperscale data centers due to its space-saving design, ease of maintenance, and smooth integration with modular power distribution systems.
Regional Analysis
“The North American region is expected to continue being the largest demand generator for data center switchgear, whereas Asia-Pacific is exhibiting the fastest growth during the forecasted period.”
Asia Pacific is likely to be the fastest-growing region for data center switchgear over the forecast period. Countries like China, India, Australia, and Japan are investing heavily in localizing data storage facilities. Asia-Pacific is making giant leaps toward innovations associated with AI and Cloud computing, generating an obvious need for data centers. Recently, India’s Reliance Industries announced its plans to build the world’s largest data center in the world. Partnerships among some major players like NVIDIA & Reliance, Tata Electronics & Powerchip Semiconductor Manufacturing Corporation are expected to boost investments in data centers, thereby increasing the demand for switchgear and busways.
Key Players
The market is highly consolidated, with 5-6 players dominating more than 80% of the market. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the data center switchgear market. Some of the major players provide a complete range of services.
Here is the list of the Top Players (Based on Dominance)
- Schneider Electric SE
- ABB Company
- Vertiv Holdings Co.
- Eaton Corporation PLC
- Siemens AG
- Legrand Group
- Cummins Inc.
- Mitsubishi Electric Company
- S&C Electric Company Inc.
- Delta Electronics Inc.
Note: The above list does not necessarily include all the top players in the market.
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global data center switchgear market is segmented into the following categories.
Data Center Switchgear Market, by Data Center Type
- Hyperscale (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Colocation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Data Center Switchgear Market by Voltage Type
- Low-voltage Switchgear (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Medium-voltage Switchgear
- (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- (Medium-voltage Switchgear Type Analysis: Metal Enclosed Switchgear and Metal Clad Switchgear)
Data Center Switchgear Market by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe)
- Asia-Pacific (Country Analysis: China, Australia, Japan, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Africa, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center switchgear market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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Company Profiling
- Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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