Air-Insulated Switchgear Market

Air-Insulated Switchgear Market Research, 2034

Air Insulated Switchgear Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 6.3% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 25.7 billion and is projected to reach USD 50.3 billion by the completion of 2034.

Switchgear is an electrical device, which is used to disconnect and safeguard electrical equipment in power systems. Air-insulated switchgear (AIS) is a type that uses air as the main insulating material to isolate and protect the equipment. Additionally, air helps shield the equipment from short circuits and high voltage, along with removing heat that is regularly produced by the equipment. Moreover, switchgear consists of several parts like circuit breakers, disconnect switches, protective relays, and grounding switches which are important to safeguard the equipment from potential power failures. Besides, they are made using materials such as steel, aluminum, and polymers, which provide a strong structure to support power systems.

Market Highlights

Air Insulated Switchgear Market is anticipated to grow at a robust rate, with projections indicating an 6.3% compound annual growth rate (CAGR) between 2024 and 2034

Air Insulated Switchgear Market is expected to reach USD 50.3 billion during the forecast period, owing to the growing need for dependable power distribution systems in different industries. Air-insulated switchgear is preferred for power transmission and distribution due to its benefits like low maintenance needs and cost-effectiveness. Additionally, rising investments in upgrading old power infrastructure and the need for electricity in developing countries are responsible for boosting the adoption of air-insulated switchgear. Moreover, the integration of digital monitoring and control systems has improved the productivity of air-insulated switchgear through technological innovations. Furthermore, manufacturers are constantly creating eco-friendly and smart switchgear solutions to meet the demands of the power industry.

Source: Fatpos Global

Air-Insulated Switchgear Market Segmentation

Transmission and Distribution segment is anticipated to lead owing to its cost-effectiveness

Air-insulated switchgear market is divided based on Application into Manufacturing & Processing, Commercial, Residential, Transmission & distribution. The transmission & distribution segment is expected to lead the market, due to its cost-effectiveness for medium voltage applications. The population & industrialization across the world are constantly increasing, and as a result, the electricity demand is simultaneously rising. Therefore, to deliver electricity from power plants to users, transmission and distribution systems play a crucial role. Alongside, the inclusion of solar and wind farms, where electricity is generated and transported to the grid, requires a very strong and reliable transmission and distribution network. Therefore, it is expected that the transmission and distribution segment will continue to increase as a result of the integration of these renewable energy sources.

Medium Voltage segment will dominate the market due to its use in various sectors

Air-insulated switchgear market is classified based on Voltage into High Voltage, Medium Voltage, and Low Voltage. The medium voltage segment will dominate the air-insulated switchgear market as it is widely used across different industries. This segment includes switchgear that has a voltage rating from 3kV to 36kV. They are widely used in manufacturing, residential, and commercial sectors for their diverse operations. Moreover, the transition of the railway sector from diesel to electric locomotives is increasing the need for this medium-voltage switchgear. As a result, railway systems across the world are using 25kV voltage to operate trains, which is considered to be within the medium range. Besides, the rising demand for reliable and effective medium voltage power distribution solutions is boosting the growth within emerging industries.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Rise in Industrialization and Urbanization Will Aid the Growth of the Market

Rate of industrialization and urbanization is rapidly increasing on a global scale. With the creation of new infrastructure, there is a high demand for reliable electrical grids to fulfill the power requirements. Air-insulated switchgear is important for the operation of these networks. In addition, new rules are framed to improve power distribution systems and reduce incidents of blackouts. This has increased the need for electrical devices such as air-insulated switchgear to improve the reliability of the grid. Additionally, there is a high demand for electricity as countries continue to grow. Therefore, the main factors which is responsible for pushing the growth of air insulated switchgear market are fast infrastructural development, which requires strong electrical grids, and growing power requirements.

Economic and Environment-Friendly Will Act as a Catalyst for the Market

Air-insulated switchgear is an electrical device that uses air as its insulating medium, as opposed to gas in gas-insulated switchgear. Air-insulated switchgear has an affordable starting price as compared to gas-insulated switchgear as it uses freely available air and does not need special gases. Moreover, the maintenance of air-insulated switchgear is more affordable, and its parts are easily found, which results in its stronger demand in the market. In contrast to gas-insulated switchgear, air switchgear doesn't release SF6, a potent greenhouse gas, so it does not add to global warming. Furthermore, due to its eco-friendly nature, air-insulated switchgear is preferred as sustainability is equally important.

Restraints

Requirement of Space can Limit the Growth of the Air Insulated Switchgear Market

Air-insulated switchgear uses air to insulate its components. To avoid electrical arcing, components must be placed further apart to allow for more physical space. Therefore, there are several restrictions on the growth of air insulated switchgear market. In cities with limited land availability, the need for this kind of switchgear is less as it takes up more space. Similarly, in offshore settings such as oil rigs with limited space, the installation of air-insulated switchgear is not practical and restricts the growth of the market. As a result, the air-insulated switchgear market is impacted by the fundamental need for additional installation space.

Recent Developments

• ABB and Northvolt have formed a strategic partnership to provide electrification solutions for Revolt Ett, Scandinavia's largest battery recycling facility, with the project scheduled for completion in 2023.
• In 2023, Eaton Corporation diversified its product portfolio by acquiring a 49% stake in Jiangsu Ryan Electrical Co. Ltd., a prominent manufacturer of power distribution equipment in China.
• Schneider Electric unveiled its cutting-edge GenieEvo Connected switchgear range in 2021, featuring exceptional connectivity capabilities for enhanced asset health monitoring and predictive maintenance.
• Siemens Energy unveiled its pioneering BlueDrive electrification solution in 2022, revolutionizing the offshore oil and gas industry with an integrated approach combining advanced switchgear technology and digital monitoring capabilities.
• Mitsubishi Electric Corporation strengthened its presence in the North American market by launching its state-of-the-art AIS-63 Air-Insulated Switchgear line in 2023, designed to meet the stringent safety and reliability standards of the region's utility and industrial sectors.

Air-Insulated Switchgear Market: Key Players

• ABB Ltd
• Eaton Corporation
• General Electric Company
• Siemens AG
• Larsen & Toubro Limited
• Toshiba Corporation
• Schneider Electric
• Alfanar Group
• Lucy Electric Ltd.
• Hitachi ABB Power Grids
• Mitsubishi Electric Corporation
• Hyosung Corporation
• Chint Group
• NEMA
• Hyundai Electric & Engineering Co., Ltd.
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Air Insulated Switchgear Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia-Pacific region dominated the air-insulated switchgear market due to strong investments in improving transmission networks to support industrialization and urbanization across the region. Population growth in these countries is rising energy consumption, which is pushing the growth of electrical grids and increasing the need for air-insulated switchgear.

Simultaneously, the North American region follows closely behind due to innovations in the sector and the smooth integration of renewable energy sources into the existing infrastructure. The region's industrial ecosystem, including critical sectors such as oil and gas, and manufacturing, requires the deployment of advanced electrical infrastructure to ensure uninterrupted operations.

Source: Fatpos Global

Impact of COVID-19 on the Air-Insulated Switchgear Market

COVID-19 pandemic had a significant impact on the air-insulated switchgear market. Due to the lockdown, there was a decrease in industrial and transportation activities, which directly affected the supply chain by causing delays in obtaining the necessary raw materials and components for manufacturing. In addition, the installation and design industries faced several difficulties when working remotely. Furthermore, the pandemic led to a decrease in the demand for switchgear as numerous projects were either canceled or postponed. However, the air-insulated switchgear market will experience expansion due to a rise in electricity demand and economic growth.

Air Insulated Switchgear Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Air-Insulated Switchgear Market Scope and Segments:

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