India’s Power Surge: Switchgear Market Poised for Double-Digit Growth

NEW DELHI, INDIA – November 17, 2025 – India’s low voltage (LV) switchgear market is experiencing a period of robust growth, fueled by ambitious infrastructure projects, government initiatives aimed at modernizing the nation’s power grid, and a rapidly expanding economy. Forecasts predict the market will reach $5.98 billion by 2033, exhibiting a compound annual growth rate (CAGR) of approximately 8.96% from 2024. While opportunities abound, the sector faces challenges related to a skilled labor shortage and the presence of a significant unorganized market segment.

Infrastructure Investment Drives Demand

The surge in demand for LV switchgear is inextricably linked to India’s aggressive infrastructure development program. Massive investments in smart cities, transportation networks, and power modernization are creating a substantial need for reliable and efficient electrical infrastructure. The Smart Cities Mission, in particular, is accelerating the deployment of smart grids and automated systems, requiring advanced switchgear with capabilities like remote monitoring and control. “The demand is definitely there, and it’s not just about new construction,” explained an industry analyst. “Existing infrastructure also needs to be upgraded and modernized to accommodate the increasing energy demands and improve grid stability.”

The government’s ‘Power for All’ scheme and rural electrification initiatives are further bolstering the market. These programs aim to provide 24/7 electricity access to all households, necessitating the expansion and strengthening of distribution networks and increasing the need for LV switchgear. Moreover, significant investments in the renewable energy sector—estimated at over $220 billion since 2014—are also driving demand, as integrating renewable sources into the grid requires robust and reliable electrical infrastructure. The Revamped Distribution Sector Scheme (RDSS) and planned transmission investments exceeding $109 billion by 2032 will further cement the growth trajectory.

Competitive Landscape: Global Giants and Local Players

The Indian LV switchgear market is a dynamic battleground for both established international players and emerging domestic manufacturers. Key global players like ABB, Siemens, and Schneider Electric are leveraging their technological expertise and extensive distribution networks to capture market share. Simultaneously, Indian companies such as Larsen & Toubro, Havells, and HPL Electric are demonstrating strong growth through localized manufacturing, tailored product lines, and a deep understanding of the domestic market. “There’s a healthy competition between the global giants and the local manufacturers,” stated a market research expert. “The international players bring in advanced technology and innovation, while the Indian companies excel in cost-effectiveness and localization.”

This competition is manifested in the diverse range of products available, from traditional circuit breakers and distribution boards to advanced smart switchgear with integrated automation and data analytics capabilities. Several other companies, including Legrand, C&S Electric, and Kirloskar Electric, are also making significant contributions to the market. The presence of a large number of players ensures competitive pricing and a continuous flow of innovation.

Addressing the Skills Gap and Unorganized Sector

Despite the positive outlook, the Indian LV switchgear market faces significant challenges. A critical skills gap is hindering the industry’s ability to meet the growing demand for qualified technicians and engineers. According to industry reports, the electronics sector—including electrical components like switchgear—faces a shortfall of over 10 million skilled workers. This scarcity of skilled labor not only increases production costs but also poses a risk to the quality and reliability of electrical installations. The lack of formal training and certification programs exacerbates the problem. Companies like L&T are actively addressing this through initiatives such as Switchgear Training Centres, but broader systemic solutions are needed.

Another significant challenge is the presence of a substantial unorganized sector. While precise data is difficult to obtain, industry analysts estimate that a significant portion of the market is comprised of unregistered manufacturers and distributors. This unorganized sector often operates outside of regulatory frameworks, resulting in substandard products, non-compliance with safety standards, and unfair competition. “The unorganized sector poses a real threat to the growth of the organized segment,” explained an industry insider. “They undercut prices and compromise on quality, creating an uneven playing field.” Strengthening regulatory enforcement and promoting formalization within the sector are crucial steps toward ensuring sustainable growth and maintaining product quality. Addressing these challenges is critical for unlocking the full potential of the Indian LV switchgear market and ensuring a reliable and sustainable power infrastructure for the future.