Strategic Analysis of the Gulf Cooperation Council Medium-Voltage Switchgear Market
This Frost & Sullivan research service titled Strategic Analysis of the Gulf Cooperation Council Medium-Voltage Switchgear Market provides detailed analysis and insights of market dynamics, trends, market shares, and forecasts for the three medium voltage (MV) switchgear product segments: indoor switchgears, outdoor switchgears and ring main units. In this research, Frost & Sullivan's expert analysts thoroughly examine the following geographical markets: The Kingdom of Saudi Arabia, The United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
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Higher Investments in the Power Industry Bodes Well for the MV Switchgear Market in the GCC
Infrastructure Development to Provide Further Impetus to Market Growth
The MV switchgear market in Gulf Cooperation Council (GCC) has evolved over the years with the emergence of local participants. Although the traditional global players still hold the majority of market share, local manufacturers have gained technological expertise to surface as important regional suppliers. It was only a matter of time before domestic companies came under the spotlight, considering the double digit growth in the demand for electricity from in almost all GCC countries. As there is no sign of let up in demand, GCC countries are aggressively spending on their power sector to improve their generation capacity. This will infuse funds into the transmission and distribution (T&D) segment, which, in turn, will increase the adoption of MV switchgears.
Further, the GCC grid interconnection project and continued expansion of the oil & gas sector are also expected to indirectly drive the MV switchgears market. “Infrastructure development and continuous investment in industries will ensure that this market continues to grow at a healthy rate,” says the analyst of this research. “Further, the upcoming 2022 FIFA World Cup in Qatar will attract investors to infrastructure and construction, which will directly propel the market.”
However, despite the market potential, suppliers’ margins have narrowed due to the rise in raw material (metals) costs and stiff competition among manufacturers. Delays in the execution stages, which result in a long gestation periods during the equipment supply stage, and high lead time for sub-components have also restrained the growth of the market to some extent. As the sub-suppliers are usually overbooked with orders, manufacturers are hard pressed to reduce lead times. “To reduce costs and lead time, many multinational companies are trying to source their products from sourcing opportunity areas such as Eastern Europe and Asia,” notes the analyst. “Many have also signed joint ventures with local panel manufacturers to reduce their production costs and make the most of the opportunities in the GCC MV switchgear market.”
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Indoor switchgears
- Outdoor switchgears
- Ring main units
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