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The Air Insulated Switchgear Market size is estimated to increase by USD 25.88 billion, growing at a CAGR of 8.09% between 2023 and 2028. Renewable power generation is on the rise as the world shifts towards sustainable energy sources to meet increasing global power demand. One essential component in the transmission and distribution of this clean energy is air insulated switchgear. This equipment plays a crucial role in industrial settings, ensuring the safe and efficient transfer of electrical power. Air insulation offers several advantages, including lower cost, easier installation, and a smaller environmental footprint compared to oil-filled switchgear. Moreover, air insulated switchgear is highly reliable and can withstand extreme temperatures, making it an ideal solution for renewable energy applications. As the renewable energy sector continues to expand, the demand for air insulated switchgear is expected to grow significantly, providing opportunities for businesses in this sector.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2023 to 2028.
Global Market Customer Landscape
The low voltage segment will account for a major share of the market's growth during the forecast period. The low voltage segment in the market refers to switchgear that operates at a voltage of up to 1 kilovolt (kV). Owing to its wide range of applications in various industries this segment is a critical part of the market. Application of low voltage air-insulated ones includes distribution of power to residential, commercial, and industrial sectors.
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The low voltage segment was valued at USD 26.27 billion in 2018 and continued to grow until 2022.? Some manufacturers and market players are offering low-voltage solutions worldwide, such as ABB, Schneider Electric, Siemens, GE Co., and Eaton, among others. In addition, the demand for low-voltage air-insulated products is rising owing to its advantages over traditional products. The growth of renewable energy, solar, and wind power, and the rising demand for advanced power distribution technologies in emerging markets such as India, are expected to drive the rapid growth of the low-voltage segment of the global air-insulated switchgear market during the forecast period.
Based on deployment, the market has been segmented into indoor and outdoor. The indoor segment will account for the largest share of this segment.? The indoor segment is a main part of the market which is designed for various applications with a wide range of products in commercial, industrial, and residential buildings. Some common types of indoor air-insulated products installations include power distribution centers, control panels, and substations. In addition, switch rooms are dedicated rooms within industrial facilities that house products units for distributing and controlling electrical power. The indoor segment is expected to show significant growth due to the demand for electricity rising and more buildings and infrastructure projects being constructed, which is expected to boost the growth of the indoor segment of the global air-insulated switchgear market during the forecast period.
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APAC is estimated to contribute 48% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Factors such as the presence of key companies, rapid urbanization, new product launches, and the growth in construction activities in the region will drive the demand for air-insulated switchgear in APAC during the forecast period. The rising demand for switchgear, such as air-insulated switchgear in APAC is forcing companies to launch new air-insulated switchgear solutions in this region. Although, switchgear equipment is responsible for greenhouse gas (GHG) emissions that mainly contribute to global warming.
In addition, growing investments in the construction sectors and renewable energy in APAC are also driving market growth. Rapid urbanization and enhanced living standards have improved electricity consumption in many major countries in the region, such as India and China. In India, government initiatives to provide citizens with electricity through various schemes such as the Reform Programme and Rajiv Gandhi Grameen Vidyutikaran Yojana, and the Restructured Accelerated Power Development will cheer investments at the distribution level, thereby boosting the demand for switchgear such as air-insulated switchgear in this region. Hence, such factors are driving the market in APAC during the forecast period.
The market serves as a linchpin in the power utilities sector, addressing crucial needs such as electricity transmission and renewable energy integration. AIS, alongside Gas Insulated Switchgear (GIS), forms the backbone of substations and transmission line networks, ensuring reliable T&D networks. Essential components like busbars, circuit breakers, and bushings facilitate smooth operations, meeting growing electricity demand and advancing electrification rates. As industrial and commercial activities intensify, AIS technology plays a pivotal role in modernizing aging power infrastructure, enhancing grid reliability. With continuous advancements in switchgear technologies, AIS remains at the forefront, providing efficient solutions for the evolving energy landscape. Its versatility and reliability make AIS a cornerstone in driving sustainable electricity distribution and supporting the expansion of the renewable energy sector. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Growing renewable power generation is the key driver for the growth of the global market. The rising production and demand for renewable energy provide significant growth opportunities for market players in the market. As concerns regarding environmental pollution and global warming, governments around the world are expected to raise their investments in renewable power sources during the forecast period. Switchgear is used to reduce power owing to overload due to the addition of renewable energy capacity, expected to expand power grids during the forecast period.
Moreover, the consumption of renewable energy has raised in the last few years. For example, according to the OECD, the contribution of renewables to the total primary energy supply in the US increased from 5.68% in 2010 to 7.77% in 2019. Due to the regulations on controlling emissions and the use of renewable energy in some of the biggest power-generating and consuming nations, renewable energy capacity is expected to grow. Its decreasing cost is another factor supporting the increased adoption of renewable energy. India has set the target to raise its renewable energy generation capacity by 2024. The substantial investments required for meeting these targets are expected to have a positive impact on the demand, which in turn is expected to boost the growth of the market in focus during the forecast period.
The growth of smart electricity grid infrastructure is the primary trend in the global market. The development of smart grids around the world is supporting the adoption of newer metering technologies, such as more efficient appliances and better power protection and control measures. These involve the use of equipment with remote measurement and communication technologies, which allows distribution and power generation centers to rectify problems in the grid immediately. This manual operation is a time-consuming process, as the appropriate equipment must be ordered if they are not available in the inventory and then installed.
Moreover, the growth in the smart grid is positively affecting the demand. As many countries across the world are planning to invest in smart grids to improve grid efficiency, the demand for air-insulated product is expected to rise during the forecast period. Global investments in smart grid technologies are expected to increase during the forecast period. Many countries in Asia and Middle East and Africa suffer huge trade and development and aggregate technical and commercial (ATC) losses. APAC countries, such as China and India, are expected to show the fastest growth of smart grids during the forecast period. Hence, rising investment in smart grid technology is expected to drive the demand for the product which in turn is expected to boost the growth of the market in focus during the forecast period.
Intense competition from local and regional companies is the major challenge for the growth of the global market. Owing to the presence of several large and diversified companies, the global air-insulated switchgear market is highly competitive. This causes price and profit margin loss for companies because local players usually sell their equipment at lower prices. Due to the limited manufacturing capabilities of small and medium-sized companies, the number of companies in the medium-voltage air-insulated segment is significantly higher than those in the high-voltage air-insulated segment.
Moreover, the significant competition poses a risk for consumers as well. Several small companies have limited procedures for quality testing and use the lowest quality materials, as they must keep their costs low compared to the major companies. In addition, consumers in price-sensitive regions, such as APAC, mostly prefer low-cost products. Hence, the rising competition from local and regional companies is expected to hamper the growth of the market during the forecast period.
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.
Alfanar Group: The company offers air-insulated switchgear such as 12/17.5 Kv metal-clad switchgear, 15 KV metal-clad switchgear, and 17.5 KV metal-clad switchgear.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is witnessing significant growth driven by industrial and commercial activities and the rising demand for electricity. As electrification rates increase and aging power infrastructure requires upgrades, there is a growing focus on enhancing electricity transmission and distribution networks. The market caters to various sectors, including renewable energy, oil & gas, mining, and marine, offering solutions for grid resilience and smart meter adoption. Factors such as operational costs, import excise duties, and raw material prices influence market dynamics, especially for small-sized industries and commercial establishments. With rapid industrialization and the commercialization of transmission networks, the market anticipates further expansion, supported by initiatives like FDI in renewable energy and the development of rural electric grids. Substations serve as crucial nodes in the distribution of electricity, connecting transmission lines to rural electric grids. Integration of information technology optimizes their operation, ensuring efficient management of electrical equipment and safeguarding against faults like phase-to-phase and phase-to-ground, supported by reliable principal dielectric materials and fuse protection.
In the realm of transmission & distribution infrastructure, factors like electrification rate and land cost significantly influence the deployment of vital components such as substations and current transformers. The choice of voltage range and insulating materials plays a pivotal role in ensuring the reliability and safety of high-tension power networks and rural electric grids. As demands evolve, the integration of information technology and implementation of grid resilience programs become imperative, particularly in managing isolated load centers and serving the commercial & industrial segment. The market landscape depends on the Gas-insulated switchgear, Power utility segment, Hybrid switchgearbased substation, Compact substations, Smart meters, Grid resiliency, Electric infrastructure, Existing grid networks, Retrofit and refurbishment, Energy grid infrastructure, Reliable energy, Affordable energy, Economic recovery, Strong electricity. Key components like metal-encapsulated switchgear and electrical disconnect switches are crucial for safeguarding high-voltage parts and ensuring smooth power generation capacity. The adoption of modern technologies and robust manufacturing & processing techniques further enhances the efficiency and sustainability of infrastructure & transportation networks, supporting the ever-growing energy demand and advancing the electrification journey.
Moreover, the market is a vital component of the power utilities sector, especially in facilitating power transmission and distribution networks. Leveraging switchgear technologies like AIS and Gas Insulated Switchgear (GIS), it ensures efficient electrification rates and integration of renewable energy sources into the grid. Essential components such as busbars, circuit breakers, and bushings play a crucial role in maintaining grid reliability and resilience. As T&D investments increase, AIS technology provides cost-effective solutions for transmission line networks and rural electric grids. With advancements in materials like aluminum, steel, and resins, AIS offers pollution-free operation and location flexibility, meeting peak load demand while enhancing grid security. Integrated with information technology, AIS enables seamless renewable integration and supports energy storage initiatives, ensuring robust electrical infrastructure for both commercial & industrial and rural areas.
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 forecasting, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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
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