Enjoy complimentary customisation on priority with our Enterprise License!
The air insulated switchgear market size is forecast to increase by USD 25.88 billion at a CAGR of 8.09% between 2023 and 2028. The Air Insulated Switchgear (AIS) market is witnessing significant growth due to the commercialization of renewable energy and the rapid industrialization in various sectors. The increasing demand for fire-resistant, reliable, and secure equipment in clean energy plants is driving the market. Advanced and energy-efficient switchgear systems are becoming increasingly important to ensure grid security and reliability, particularly in the USDA and rural electric grid sectors. Intense competition from local and regional companies is intensifying, necessitating continuous innovation and improvement in technology and design. The growth of smart electricity grid infrastructure is also providing new opportunities for market expansion. Overall, the AIS market is expected to experience strong growth in the coming years as the demand for reliable and advanced switchgear solutions continues to increase.
Air-insulated switchgear (AIS) plays a crucial role in the commercial activities of the electricity sector, particularly in power distribution and transmission. The increasing electricity demand and the need for grid resilience have led to the growth of the air-insulated switchgear market. The power utility segment is a major consumer of AIS, as it is used extensively in power transmission and distribution networks. The aging power infrastructure in existing grid networks necessitates the need for retrofit and refurbishment, leading to an increase in demand for AIS. The integration of renewable energy sources into the energy grid infrastructure is also driving the market for AIS, as it is used in hybrid switchgear-based substations.
Furthermore, AIS consists of various components such as circuit breakers, bushings, and current transformers. Compact substations using AIS are gaining popularity due to their smaller footprint and lower operational costs. The energy sector's focus on grid resilience and security is also boosting the demand for AIS. Import excise duties and peak load demand are some of the challenges facing the AIS market. However, the adoption of smart meters and the integration of AIS with gas-insulated switchgear (GIS) are expected to mitigate these challenges. In conclusion, the air-insulated switchgear market is poised for growth due to the increasing electricity demand, aging power infrastructure, and the need for grid resilience and security in the energy sector.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The low voltage segment is estimated to witness significant growth during the forecast period. The market caters to the power distribution requirements in various industries through compact substations and load centers. In the global arena, the low voltage segment of the AIS market holds significant importance, with applications extending up to 1 kilovolt (kV). This segment is essential due to its broad usage in residential, commercial, and industrial sectors, as well as infrastructure and transportation projects. Notable applications of low voltage AIS include data centers, hospitals, malls, airports, and petrochemical and manufacturing industries. companies ae among the numerous providers offering low-voltage AIS solutions worldwide.
Furthermore, the construction sector, particularly in developing economies, is a significant consumer of AIS due to the extensive use of iron, steel, metals, cement, and cooling systems in T&D networks. Furthermore, the expansion of power grids to rural areas necessitates the installation of AIS to ensure efficient power distribution.
Get a glance at the market share of various segments Request Free Sample
The low voltage segment was valued at USD 26.26 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The market in the Asia Pacific (APAC) region is projected to experience significant growth in the coming years. Factors such as the increasing demand for power distribution in urban areas, the expansion of T&D networks, and the development of compact substations as load centers in both urban and rural regions are driving the market's growth. Furthermore, the ongoing construction activities in APAC, particularly in developing economies, provide a favorable environment for the AIS market's expansion. Key companies are responding to this demand by launching new, technologically advanced, and eco-friendly AIS solutions. However, it is essential to note that the production and use of switchgear equipment contribute to greenhouse gas (GHG) emissions, which contribute to global warming.
As a result, companies are focusing on developing more sustainable and energy-efficient AIS solutions to mitigate the environmental impact of their products. The construction sector, which is a significant consumer of AIS, also utilizes materials such as iron, steel, metals, and cement, which have a considerable carbon footprint. Therefore, the development of more sustainable and eco-friendly AIS solutions is crucial for reducing the overall carbon footprint of power distribution networks in APAC.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing renewable power generation is the key driver of the market. The global air insulated switchgear (AIS) market is witnessing significant growth due to the increasing electricity demand and the expansion of power grids, driven by the integration of renewable energy sources into commercial activities. With governments worldwide prioritizing investments in renewable power generation to address environmental concerns and energy security, the market for AIS is poised for substantial growth during the forecast period. AIS is a crucial component of power systems, used to control and protect electrical circuits from overloads and faults. The power utility segment, including power generation, transmission, and distribution, is the primary consumer of AIS. Moreover, the energy sector's aging infrastructure necessitates upgrades and modernization, providing further opportunities for AIS companies.
Furthermore, hybrid switchgear-based substations, combining air-insulated and gas-insulated switchgear (GIS), are gaining popularity due to their advantages, such as increased efficiency, reliability, and reduced maintenance requirements. The market for AIS comprises various components, including circuit breakers, bushings, and current transformers. As the electricity demand continues to rise and the energy mix shifts towards renewable sources, the market for AIS is expected to grow steadily.
The growth of smart electricity grid infrastructure is the upcoming trend in the market. The market is witnessing significant growth due to the increasing electricity demand and the need to upgrade aging power infrastructure in the power utility segment of the energy sector. AIS, a key component of electrical power systems, plays a crucial role in the commercial activities of power generation and distribution. While Air-insulated switchgear has been the traditional choice for power utilities, the trend is shifting towards hybrid switchgear-based substations that combine the benefits of Air-insulated and Gas-insulated switchgear (GIS). The development of smart grids worldwide is driving the adoption of advanced technologies in power systems, including more efficient circuit breakers, bushings, and current transformers.
Furthermore, in contrast to conventional power grids, smart grids enable real-time monitoring and control of power distribution, reducing the need for manual replacement of switchgear components during breakdowns. However, the process of procuring and installing new equipment in conventional power grids can be time-consuming and costly. Therefore, the integration of advanced technologies in Air-insulated switchgear is essential to enhance its performance and efficiency, making it a cost-effective solution for power utilities.
The intense competition from local and regional companies is a key challenge affecting the market growth. The market is characterized by a high level of competition, driven by the involvement of numerous large and diversified companies as well as a substantial number of regional players. This intense competition results in price and margin pressure for manufacturers, particularly in the medium voltage AIS segment, where a larger pool of companies exists due to the more accessible manufacturing requirements.
However, despite this, the AIS market continues to experience significant demand, driven by the electricity sector's ongoing expansion and the need to address aging power infrastructure. Furthermore, the increasing adoption of hybrid switchgear-based substations, which combine Air-Insulated and Gas-Insulated Switchgear (GIS) technologies, is expected to create new opportunities for market participants. Key components of AIS systems, such as circuit breakers, bushings, and current transformers, are also experiencing increased demand as part of this growth trend.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd.: The company offers air-insulated switchgear such as BreakMaster, and BreakMaster V.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Air-insulated switchgear (AIS) is a vital component of power distribution networks, providing reliable and efficient electricity transmission and distribution. The global market for air-insulated switchgear is witnessing significant growth due to the increasing electricity demand in various sectors, including power utilities and commercial establishments. The energy sector's aging infrastructure, particularly in developing economies, is driving the need for the upgradation and retrofit of existing grid networks. The power utility segment is the largest consumer of AIS, accounting for a significant market share. AIS finds extensive applications in circuit breakers, bushings, current transformers, and other switchgear systems. The trend towards compact substations, hybrid switchgear-based substations, and smart grids is expected to boost the market's growth.
Furthermore, the market's growth is also influenced by factors such as the paradigm shift towards clean energy, energy storage, and renewable integration. The demand for advanced, energy-efficient, fire-resistant, and secure equipment is increasing, driving the market's growth. The market's growth is, however, challenged by factors such as import excise duties, raw material prices, and supply chain disruptions due to climate-neutral insulation, natural components, and ambient air insulation. Infrastructural developments, including transmission line networks and cooling systems, and favorable regulatory policies, are expected to provide opportunities for market growth. The market's future outlook is promising, with a focus on grid resilience, grid security, and economic recovery, particularly in rural areas and developing economies. The market's growth is also expected to be influenced by the integration of advanced technologies, such as smart meters, clean air technology, and natural components, into switchgear systems.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 25.88 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
China, US, Japan, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., alfanar Group, C and S Electric Ltd., CG Power and Industrial Solutions Ltd., Eaton Corp. Plc, ELATEC POWER DISTRIBUTION GmbH, EPE Switchgear M Sdn. Bhd., General Electric Co., Larsen and Toubro Ltd., Lucy Group Ltd., Mitsubishi Electric Corp., Schneider Electric SE, Siemens AG, Sumitomo Electric Industries Ltd., Tavrida Electric GmbH, Tokyo Electric Power Co. Holdings Inc., Toshiba Corp., UNISUN ELECTRIC, VELATIA S.L, and ZPUE S.A. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Power Rating
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.