Switchgear Is Becoming The Next Critical Bottleneck in The Supply Chain - News

Grid spending keeps going up around the world, but money does not always mean equipment shows up on time. Switchgear-the part that stayed out of the spotlight while everyone worried about transformers-is now getting noticed as the next place where the power supply chain gets stuck.

The Pressure Moves Down the Line

For a couple of years, transformers were the main story. Lead times for big units once hit five years. That is a problem when AI data centers are going up in less than 18 months. Now that transformer output is slowly catching up, the strain is moving to the next item. High-voltage breaker lead times reached 125 weeks in the second half of 2025. Back in 2023, it was 77 weeks. Medium-voltage switchgear is not much better. Big suppliers say the average wait is around 76 weeks. Metal-clad air-insulated gear takes 80 to 110 weeks. Gas-insulated distribution equipment can take 90 to 130 weeks.

It Is Not Only About Factory Space

Switchgear is not the same as a transformer. You can fix a transformer shortage by building more plants or adding lines. Switchgear is limited by something harder to scale-precision manufacturing skills and access to key parts. Protective relays and switchgear are also competing for the same limited supply of semiconductors and copper. That makes lead times even longer.

Demand is not slowing down. AI data center racks used to draw tens of kilowatts. Now they draw hundreds. One project needs far more switchgear than before. Some forecasts say data centers could make up 40% of the power equipment market by 2030. In 2020, it was under 2%. On top of that, about 40% of Europe's distribution lines are over 40 years old. Replacement demand is stacking up with new-build demand.

Buyers Are Changing How They Work

Utilities are adjusting. Some used to order equipment a year ahead. Now they book large substation gear five years out. Refurbished units and stock inventory have gone from backup choices to regular channels. Buyers will pay 60% to 70% more if it saves them 9 to 14 months on a project.

The switchgear shortage comes down to a timing problem. Grid modernization is moving faster than manufacturing capacity can keep up. That gap will not close in 2026. It will keep setting the pace for power project delivery for years to come.