Air Insulated Switchgear Market By Power Rating, Deployment and Geography - Forecast and Analysis 2023-2027

Air Insulated Switchgear Market Analysis Report 2023-2027:

The Global Air Insulated Switchgear Market size is estimated to grow at a CAGR of 7.38% between 2022 and 2027 and the size of the market is forecast to increase by USD 21,734.94 million. The growth of the market depends on several factors, growing renewable power generation, increasing global power demand, and increasing application of air-insulated switchgear in industrial settings.

This report extensively covers market segmentation by power rating (low voltage, medium voltage, and high voltage), deployment (indoor and outdoor), and geography (APAC, North America, Europe, the Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Air Insulated Switchgear Market During the Forecast Period?

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Technavio’s Exclusive Air Insulated Switchgear Market Customer Landscape

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 2022 to 2027. 

Global Air Insulated Switchgear Market Customer Landscape

Key Drivers, Trends, and Challenges

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.    

Key Air Insulated Switchgear Market Driver

Growing renewable power generation is the key driver for the growth of the global air-insulated switchgear market. The rising production and demand for renewable energy provide significant growth opportunities for market players in the global air-insulated switchgear 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, including air-insulated 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 for switchgear such as air-insulated switchgear, which in turn is expected to boost the growth of the market in focus during the forecast period.

Significant Air Insulated Switchgear Market Trends

The growth of smart electricity grid infrastructure is the primary trend in the global air-insulated switchgear 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 for smart air-insulated switchgear. As many countries across the world are planning to invest in smart grids to improve grid efficiency, the demand for air-insulated switchgear 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 air-insulated switchgear which in turn is expected to boost the growth of the market in focus during the forecast period.

Major Air Insulated Switchgear Market Challenge

Intense competition from local and regional vendors is the major challenge for the growth of the global air-insulated switchgear market. Owing to the presence of several large and diversified vendors, the global air-insulated switchgear market is highly competitive. This causes price and profit margin loss for vendors because local players usually sell their equipment at lower prices. Due to the limited manufacturing capabilities of small and medium-sized vendors, the number of vendors in the medium-voltage air-insulated switchgear segment is significantly higher than those in the high-voltage air-insulated switchgear segment.

Moreover, the significant competition poses a risk for consumers as well. Several small vendors have limited procedures for quality testing and use the lowest quality materials, as they must keep their costs low compared to the major vendors. In addition, consumers in price-sensitive regions, such as APAC, mostly prefer low-cost products. Hence, the rising competition from local and regional vendors is expected to hamper the growth of the global air-insulated switchgear market during the forecast period. 

Who are the Major Air Insulated Switchgear Market Vendors?

Vendors 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 vendors, including:

• 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
• ZPUE S.A.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Air-Insulated Switchgear Market Segmentation by Power Rating Analysis

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 global air-insulated switchgear 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 air-insulated switchgear market. Application of low voltage air-insulated switchgear includes distribution of power to residential, commercial, and industrial sectors.

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The low voltage segment was valued at USD 24,567.90 million in 2017 and continued to grow until 2021.? Some manufacturers and market players are offering low-voltage air-insulated switchgear solutions worldwide, such as ABB, Schneider Electric, Siemens, GE Co., and Eaton, among others. In addition, the demand for low-voltage air-insulated switchgear is rising owing to its advantages over traditional switchgear. 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.

Air-Insulated Switchgear Market Segmentation by Deployment Analysis: 

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 global air-insulated switchgear 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 switchgear installations include power distribution centers, control panels, and substations. In addition, switch rooms are dedicated rooms within industrial facilities that house switchgear units for distributing and controlling electrical power.  The indoor segment of the global air-insulated switchgear market 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 global air-insulated switchgear market during

Air-Insulated Switchgear Market Segmentation by Regional Analysis

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APAC is estimated to contribute 50% to the growth by 2027. 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 vendors, 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 vendors 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 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.  

COVID Recovery Analysis:

The outbreak of COVID-19 negatively affected the growth of the air-insulated switchgear market in the region during 2020 and early 2021. However, due to the large-scale vaccination drives and the ease in lockdown restrictions, various industries have gradually reopened their operations from Q4 2020, with a limited capacity while maintaining social distancing norms. raised demand for air-insulated electricity in emerging economies such as India and China, the rising adoption of renewable energy sources, and the need for upgraded power infrastructure, which will be expected to boost the growth of the regional air-insulated switchgear market during the forecast period.

Segment Overview

The air insulated switchgear market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Power Rating Outlook (USD Million, 2017 - 2027)
  • Low voltage
  • Medium voltage
  • High voltage

• Application Outlook (USD Million, 2017 - 2027)
  • Indoor
  • Outdoor

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Air Insulated Switchgear Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.38%
Market growth 2023-2027	USD 21,734.94 million
Market structure	Fragmented
YoY growth 2022-2023(%)	7.12
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 50%
Key countries	US, Canada, China, Japan, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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, Fast-growing and slow-growing segment analysis, 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.

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What are the Key Data Covered in this Air Insulated Switchgear Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the air Insulated switchgear market  between 2023 and 2027
• Precise estimation of the air-insulated switchgear market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of air insulated switchgear market vendors

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