Procurement Market Intelligence Report
Switchgear Systems
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Switchgear Systems Global Overview
Definition
Summary
A switchgear system controls the flow of electricity to various systems and circuits in a facility or area. These systems can also isolate circuits to prevent damage in case of electrical faults. Switchgear systems are made of many electronic components, such as switches, circuit breakers, and fuses. Common buyers include utility companies, construction companies, and operators in the transportation sector.
This Report Includes:
- Open Air Switchgear Systems
- Metal Enclosed Switchgear Systems
- Metal-Clad Switchgear Systems
- Gas-Insulated Switchgear Systems
- Low, Medium & High Voltage Switchgear Systems
Not in this Report:
- Circuit Breakers
- Surge Suppressors
- Electrical Enclosures
Global Switchgear Systems Procurement Trends
Discover the top international trends affecting procurement in the global Switchgear Systems market.
Warning Trends
Tariffs to negatively impact the electrical systems and lighting components sector
- The United States imposed a blanket 10.0% tariff on all countries and additional country-specific tariffs; for example, China faces a base tariff of 30.0%, down from 145.0% after the agreement announced on May 12th, and Canada and Mexico face a 25.0% tariff. The United States also imposed a 25.0% tariff on steel and aluminum, which will impact electrical system and lighting component pricing.
- As lighting companies, such as Signify, commonly operate factories in Mexico and import components from China, indicating that higher tariffs will increase operating costs for suppliers as they seek to mitigate tariff impacts. US manufacturers are expected to face higher costs for imported components without an alternative domestic supply, and suppliers typically pass on these costs to buyers.
- As many electrical systems and components, such as electrical transformers and switchgear systems, are already facing shortages and price increases, the increase in tariff rates is expected to drive up prices. Electrical transformer prices have already risen 70.0% to 100.0% since 2020, and higher tariffs are expected to push up prices further as Mexico, Canada, and China supply 80.0% of the transformers used in the United States.
- The United States is reliant on many major lighting components from foreign countries; according to the Department of Energy, 94.0% of all LED imports to the United States were manufactured in China. The high tariff on imports of Chinese can increase the risk of supply chain delays due to the additional trade regulations.
- Many electrical systems, such as electrical conduits, electrical enclosures, switchgear systems, panelboards, circuit breakers, electrical transformers, electrical safety devices, and steel utility poles, have high steel and aluminum content, exposing many suppliers to higher costs. Mexico and Canada account for 39.3% of all steel mill product imports in the United States, so tariffs can increase costs for manufacturers.
United States announces new tariffs on all imported steel
- In February 2025, the United States announced 25.0% tariffs on all imported steel with no exemptions or exceptions. The tariffs took effect on March 12, 2025. However, on May 8th the US announced an agreement with the United Kingdom to remove all levies on steel exported from the UK.
- Previously, countries such as Canada, Mexico, and Brazil, the top exporters of steel to the United States, had exemptions from tariffs. These have now been removed and all imported steel, regardless of origin, will be subject to the 25.0% tariff.
- When tariffs on steel imports were introduced in March 2018, they contributed to an increase in the price of steel and steel products. According to the Bureau of Labor Statistics, the price of steel-milled products increased by 10.2% in the year after the tariffs were implemented. This market heavily relies on steel as an input and may be impacted by this policy.
- ProcurementIQ will continue to monitor developments on this policy and will update analysis accordingly.
Global Switchgear Systems Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1China | 3,125 |
| #2Europe | 2,570 |
| #3India | 1,450 |
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Geography Drilldown - US
Average Cost of Switchgear Systems
United States
2025 Market Pricing$5,000.00 to $XXX,XXX.XX
per systemAverage Price
Prices in the Switchgear Systems market range from $5,000.00 to $XXX,XXX.XX, depending on Voltage, Application, Operation Method and Condition. For example, lower prices are associated with Medium voltage ($9,100 to $99,500 per system) and Low voltage ($5,000 to $26,350 per system), whereas higher prices are associated with High voltage ($44,100 to $500,000 per system).
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Switchgear Systems Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Switchgear Systems market, prices in the US have declined -2.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
-2.6%
Compound Annual Growth RateUnited States (2025-2028)
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Switchgear Systems
Total cost of ownership is Medium in the Switchgear Systems market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Financing
Installation
Billed During
Depreciation
Inspections
Maintenance
Unforeseen
Downtime
Emergencies
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -0.9 in the United States. Buyer power is most positively impacted by Switching Costs. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Circuit Board & Electronic Component Manufacturers
- Wire & Cable Manufacturers
- Iron & Steel Manufacturers
2nd
Tier Suppliers
- Plastic Product Miscellaneous Manufacturers
- Copper, Nickel, Lead & Zinc Miners
- Iron Ore Miners
Biggest Switchgear Systems Suppliers in the US by Revenue
The largest Switchgear Systems vendors by revenue in the US are Fuji Electric Company Ltd., CG Global and Powell Industries. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Hitachi Ltd. | Global | Tokyo, JPN | >10,001 | 20-25 | ||||
| Mitsubishi Electric Corp | Global | Tokyo, JP | >10,001 | 5-10 | ||||
| Siemens Ag | Global | Munich , DE | >10,001 | 5-10 | ||||
| Schneider Electric Se | Global | Paris, FR | >10,001 | 5-10 | ||||
| Abb Ltd | Global | Zurich | >10,000 | 5-10 | ||||
| Eaton Corporation Plc | Global | DUBLIN | >10,000 | 5-10 | ||||
| Hyosung Corporation | Global | Seoul, KR | >10,001 | < 5 | ||||
| Toshiba Corporation | Global | Tokyo, JP | >10,001 | < 5 | ||||
| Emerson Electric Co. | Global | ST LOUIS, MO | >10,000 | < 5 | ||||
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Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Switchgear Systems market is 5.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Buyer power is severely constricted by the high level of supply chain risk in the switchgear systems market. The high level of risk stems from the dependence on various raw materials, which are used directly by manufacturers or their suppliers to make the electrical components in switchgear production.
The market is moderately concentrated, with the suppliers commanding some pricing control. Reputable suppliers have the most pricing power since buyers will pay more for a higher-quality product from a well-established supplier.
Small suppliers, which vastly outnumber large manufacturers, are typically more exposed to supply chain risks and more reliant on one or more key buyers or buying industries for revenue, which increases their financial risk. Alternatively, large manufacturers sell to diverse buying markets, meaning that when demand from one buying market falters, they can still rely on demand from other markets.
The average risk of bankruptcy in the market is moderate and reflects the strong competition among the market’s many small- and midsize suppliers. These suppliers are typically more exposed to supply chain risks and more reliant on one or more key buyers or buying industries for revenue.
Buying lead times for switchgear systems have increased significantly due to continuing issues with electrical component supplies, such as switchboards, distribution panels, and heavy-duty circuit breakers.
The United States is a net importer of switchgear systems, meaning imports of switchgear systems are greater than exports. While imports open up access to a broader range of products and innovations from global suppliers, buyers should consider global supply chain disruptions, which could negatively impact pricing and availability.
Supplier Information
Hitachi Ltd.
Hitachi Ltd. is a public company operating globally in the manufacturing and wholesale trade sectors. The company's offerings include forestry & logging equipment, front-end loaders, bulldozers, excavators, building demolition machinery & equipment. Founded in 1910, the company is currently headquartered Subscribe to learn more
Eaton Corporation Plc
Eaton Corporation Plc is a public company operating globally in the manufacturing sector. The company's offerings include electric vehicle charging station construction & maintenance, electric vehicle charging stations, electric ac motors, electric dc motors, hydraulic motors. Founded in 2018, the company... Subscribe to learn more
Abb Ltd
ABB Ltd. is a global technology company that offers comprehensive electrification, robotics, automation, and motion solutions, primarily serving the distribution utilities, renewables, and transport & infrastructure markets. It organizes its business into four segments: the Electrification segment, which Subscribe to learn more
Schneider Electric Se
Schneider Electric Se is a public company operating globally in the manufacturing, information, finance and insurance and professional, scientific and technical services sectors. The company's offerings include dampers, power supply units, power adapters & inverters, uninterruptible power supply systems, Subscribe to learn more
Siemens Ag
Siemens Ag is a public company operating globally in the manufacturing, information, real estate and rental and leasing, professional, scientific and technical services, administration, business support and waste management services and other services (except public administration) sectors. The company's Subscribe to learn more
Mitsubishi Electric Corp
Mitsubishi Electric Corp is a public company operating globally in the construction, manufacturing and professional, scientific and technical services sectors. The company's offerings include packaging machines, elevators, escalators, once-through steam generators, auxiliary generators. Founded in 1921, the... Subscribe to learn more
Industrial Electric Mfg Inc.
Industrial Electric Mfg Inc. is a private company operating globally in the manufacturing sector. The company's offerings include panelboards and switchgear systems. Founded in 1950, the company is currently headquartered in Fremont, California, United States of America with an estimated 175 employees. Subscribe to learn more
CG Global
CG Global is a private company operating in the manufacturing sector. The company's offerings include switchgear systems.. Subscribe to learn more
Fuji Electric Company Ltd.
Fuji Electric Company Ltd. is a private company operating in the manufacturing sector. The company's offerings include switchgear systems. Founded in 2018, the company is currently headquartered in United States of America. Subscribe to learn more
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Procurement Management KPIs for the Switchgear Systems Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Concentration. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Availability and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time | Total resolution time Number of resolved tickets | The average resolution time represents the average amount of time it takes to resolve a support ticket. The average resolution time can be used to determine a company’s support responsiveness. | |
| Customer Concentration | Revenue per customer (RPC) Total revenue | Customer concentration represents the amount of revenue associated with a single customer. Customer concentration can be used to determine the need to diversify client portfolios. It is recommended that the customer concentration remains at or below 10.0%. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Quality Control
What advantage can be obtained from having sensors in switchgear systems?
Which aspects of the switchgear's operations are monitored? Which aspects are manually controlled?
Service & Maintenance
How much training is required to safely perform maintenance on a switchgear system?
How frequently do inspections need to be performed?
Reliability
How do you test the effectiveness of your switchgear systems?
How often do your switchgear systems not isolate circuits fast enough, or accidentally isolate them when it is unnecessary?
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Switchgear Systems RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization, including size, location and type of business.
Buyers should detail the facilities the switchgear system will protect and control.
Statement Of Need
Buyers should detail the application of the switchgear system (e.g., inside or outside).
Buyers should state the specifications of the switchgear system they require, including the voltage rating, dimensions, internal components, and operation capabilities (manual or automatic).
Project Budget
Buyers should specify their budgets for the switchgear system and any desired related services and goods.
Buyers should indicate when payment will occur, such as upon award of the contract or over a period of time.
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- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
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