Global Electrical Switch Market Trends, Forecast Report 2025-2037
Electrical Switch Market size is poised to expand from USD 16.89 billion to USD 53.03 billion, reflecting a CAGR of more than 9.2% during the forecast timeline, from 2025 to 2037. In the year 2025, the industry size of electrical switch is estimated at USD 18.13 billion.
The global market is rapidly expanding as governments across the globe are focused on developing smart cities to cater to rising population and expansion of areas. This requires the integration of advanced technologies for efficient energy use, connectivity, and infrastructure management. Smart cities require automation-friendly electrical products such as IoT-enabled and energy-efficient switches. Electrical switches are key components of smart cities that help manage energy consumption and distribution. Here is a table depicting smart city initiatives in different countries:
Smart City Initiatives Across the Globe
|
City/Country |
Initiatives |
|
Barcelona, Spain |
Superblocks- to reduce traffic congestion and improve air quality |
|
Singapore |
Integrated transport system- to reduce traffic congestion and carbon emission |
Several key players are investing in R&D activities to develop advanced electrical switches and components to support the initiatives for smart cities and homes. For instance, Schneider Electric launched Miluz Lara, a broad range of switches and sockets for modern Indian homes and buildings in August 2024. Along with this, the rising number of commercial buildings such as office complexes and shopping malls has resulted in growing demand for high-quality switches complying with energy management and regulatory standards.
Electrical Switch Sector: Growth Drivers and Challenges
Growth Drivers
- Rising urbanization across the globe: The urban population is rapidly growing and cities require expanded infrastructure to support residential, commercial, and industrial needs. According to the data of the World Bank, more than 50% of the world's population currently inhabits cities and the number is projected to rise more than double to 6 billion by 2045. This requires modern electrical systems, boosting demand for electrical switches to meet contemporary safety, efficiency, and design safety.
- Increasing production of electrical switches to cater to growing demand: The growing awareness about energy conservation and sustainability along with rising trends of smart homes and automation buildings have encouraged key manufacturers to increase their production. According to a 2022 survey by the Observatory of Economic Complexity (OEC), electrical switches were the world’s 150th most traded product totaling USD 22.1 billion. China, Germany, the U.S., and Japan were the top exporters of electrical switches.
Challenges
- Fluctuating raw material prices: Fluctuations in the cost of materials such as copper, plastics, and steel may affect the overall pricing strategies of manufacturers. This can limit the adoption among price-sensitive consumers. Moreover, geopolitical tensions and disruptions can impact the global supply chain, affecting market growth going ahead.
Electrical Switch Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.2% |
|
Base Year Market Size (2024) |
USD 16.89 billion |
|
Forecast Year Market Size (2037) |
USD 53.03 billion |
|
Regional Scope |
|
Electrical Switch Segmentation
Type (Traditional Electric Switch, Smart Electrical Switch)
The smart electrical switch market is expected to account for largest revenue share between 2025 and 2037 owing to rising number of smart buildings and homes across the globe and growing awareness about energy saving and home security improvement. Companies in the market are focused on exploring the applications of smart switches. For instance, in September 2023, Finolex Cables came up with its innovative WiFi-smart switches for home automation. This novel product can seamlessly integrate with existing electrical setups.
End user (Commercial, Residential)
The commercial segment in the electrical switch market is likely to register rapid revenue growth during the forecast period. This growth can be attributed to the rapidly expanding commercial sector and rising initiatives by the government to support the expansion of smart city projects. Electrical switches and products are rapidly gaining traction in office spaces, malls, hospitals, and other commercial settings due to durability, longevity, enhanced safety and compliance, aesthetics, and energy efficiency.
Our in-depth analysis of the global electrical switch market includes the following segments:
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Type |
|
|
System |
|
|
Contact |
|
|
End use |
|
|
Distribution Channel |
|
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Customize this ReportElectrical Switch Industry - Regional Synopsis
Asia Pacific Market Forecast
The Asia Pacific electrical switch market is expected to account for a revenue share of 40% during the forecast period. Rapidly growing urban populations in China, India, and Japan and large-scale investments in smart cities, industrial parks, and transportation hubs drive the demand for modern and advanced electrical systems, creating significant opportunities for electrical switch manufacturers. In addition, government initiatives supporting housing development and presence of leading companies are expected to fuel market growth in the region.
In India, government initiatives like Housing for All by 2024 supporting residential construction has resulted in growing demand for electrical products, including electrical switches. Moreover, large-scale commercial infrastructure projects such as metros, malls, airports, and rising adoption of smart technology are expected to boost the sales of electrical switches in the country.
North America Market
North America electrical switch market is likely to register rapid revenue growth throughout the projected timeframe owing to rapid urbanization and infrastructure developments in the U.S. and Canada and growing adoption of smart homes equipped with IoT-enabled systems and smart lighting controls. Moreover, government regulations focused on promoting energy efficiency and green building trends in the region are expected to increase the demand for advanced electrical switches. Several industry giants are also investing in developing smart electrical products, including electrical switches.
The adoption of electrical switches in the U.S. has significantly increased in recent years owing to rising adoption of smart homes and rising renovation and remolding activities in many parts of the country. Moreover, high focus on green building trends and sustainable solutions, presence of tech-savvy consumers, and rising investments in developing innovative, safer and aesthetic electrical switches are expected to boost market growth in the U.S. going ahead.
Companies Dominating the Electrical Switch Landscape
- Havells India Limited
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Panasonic Holdings Corporation
- ABB Limited
- Salzer Electronics Limited
- Schneider Electric SE
- General Electric Company (GE)
- Opple Lighting Co., Ltd.
- Delixi Electric Ltd.
- Zhejiang Chint Electrics Co., Ltd
- Simon S.A.U.
The global market is highly competitive, driven by factors such as technological innovations, changing consumer preferences, and compliance with regulatory standards. Major companies are focused on offering a wide range of products catering to diverse residential, commercial, and industrial applications. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
In the News
- In July 2024, ABB Vietnam announced the launch of new electrical switches and sockets for commercial and residential buildings. These products are expected to provide enhanced safety and user experience.
- In November 2022, Panasonic Life Solutions India launched Tiona, a new range of mid-modular switch range, available in different fits and finishes. According to the company, the product has zero carbon deposition and IP20 protection along with a child safety shutter for all outlets.
Author Credits: Abhishek Verma
- Report ID: 316
- Published Date: Jan 29, 2025
- Report Format: PDF, PPT
