Globalization of markets is a key challenge faced by the manufacturers of switches for commercial applications as they cater to emerging markets all over the world. Adopting optimized supply chain solutions and strategies with strong localization is likely to aid the manufacturers in meeting these geographically diverse challenges. Additionally, switch manufacturers may need to design distribution networks and production facilities in accordance with existing infrastructure in the developing economies. However, language and cultural barriers pose a significant challenge in terms of providing efficient customer service and timely deliveries as well as promotion of products.

This Frost & Sullivan research offers a comprehensive analysis of the world switch market for commercial applications. The market is sub-divided into following types of switches - rocker and toggle, pushbutton, and snap-action. In addition to detailed insights into market drivers and industry challenges, this study provides strategic growth recommendations to vendors.

Increase in Bargaining Powers of Resellers a Significant Challenge

In the replacement markets for switches, resellers significantly influence buying decisions of customers. This offers resellers high bargaining powers and challenges manufacturers in terms of gaining visibility. "The growing bargaining power and geographic reach of the resellers can hamper the growth of the manufacturers that cannot offer bigger profit margins in order to gain more shelf space," explains the analyst of this research.

Growth of Sealed Switches Likely to Boost Market Revenues

Increase in percentage of sealed switches in the total standard switch market is poised to propel revenues as original equipment manufacturers (OEMs) strive to deliver value-added products to their customers. Environmental sealing elongates life of switches by minimizing breakdowns caused by environmental degradation. This significantly reduces the cost of ownership of customers by lowering replacement costs. Both OEMs and manufacturers for replacement market are likely to benefit from this trend. "The pent-up demand for sealed switches - owing to many benefits attached to them - is expected to drive up profit margins," notes the analyst.