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Air Insulated Switchgear (AIS) Market Size, Share, and Analysis, By Installation (Outdoor AIS and Indoor AIS), By Voltage (High Voltage, Medium Voltage, and Low Voltage), By Application (Manufacturing & Processing, Commercial, Residential, and Transmission & distribution), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
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.
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 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.
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
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.
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.
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
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.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 6.3% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Installation |
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By Voltage |
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By Application |
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By Region |
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Air Insulated Switchgear Market size was valued at USD 25.7 billion in 2023 and is projected to reach the value of USD 50.3 billion in 2034, exhibiting a CAGR of 6.3% during the forecast period.
The air-insulated switchgear market refers to the global industry involved in the production, distribution, and sales of switchgear equipment that uses air as an insulation medium.
The transmission & Distribution segment and the Medium Voltage segment accounted for the largest Air Insulated Switchgear Market share.
Key players in the Air Insulated Switchgear Market include 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. and Other Prominent Players.
The rise in industrialization, along with being economical and eco-friendly are the factors that are driving the Air Insulated Switchgear Market.
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