Electrical Switch Market Trends

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 150^th 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.