Air Insulated Switchgear Market Size, Share & Industry Analysis, By Installation (Indoor and Outdoor), By Voltage (Low, Medium, and High), By End-User (Transmission & Distribution Utility, Industrial, and Commercial & Residential), and Regional Forecast, 2024-2032

The global air insulated switchgear market size was valued at USD 25.66 billion in 2023. The market is projected to grow from USD 27.26 billion in 2024 to USD 46.10 billion by 2032, exhibiting a CAGR of 6.79% during the forecast period.

Air Insulated Switchgear (AIS) is a type of electrical device used to regulate and protect electrical distribution systems in various applications. It utilizes air as the insulating medium, making it suitable for a variety of end-users, including power substations, distribution, and industrial facilities. AIS is favored for its robustness, lower maintenance needs, and adaptability to various environments. The demand for high voltage air-insulated switchgear share is increasing due to the rising emphasis on renewable energy integration and the urbanization of electrical grids.

MARKET DYNAMICS

Market Drivers

Enormous Investments in Power Infrastructure to Fuel Market Growth

Energy & power is one of the focused segments for the various government and private bodies globally. The growing demand for electrification is the key driver of high investment in power infrastructure. This is directly influencing the switchgear market as it is becoming an essential device for various applications such as transmission lines, grid technology, and industrial operations.

In 2024, the U.S. administration launched a series of initiatives and investments aimed at consolidating the onshore electric grid and restructuring federal permitting of transmission line projects. This project will add more than 2 GW of grid capacity throughout the Western US.

Shift toward Renewable Sources to Boost Market Development

Many countries have been more inclined toward the use of renewable sources in recent years. This is driven by energy sources such as wind and solar that have a positive impact on the environment. European countries, with their ambitious aim of achieving around 40% renewable electricity by the end of 2030, are accelerating efforts to modernize their grids, including the adoption of adaptable air-insulated switchgear systems. Such initiatives on the country level will help the switchgear share to boost in the forecast years.

Market Restraints

Installation Space is a Significant Restrictive Factor for the Air-Insulated Switchgear

As urban areas are expanding, the demand for compact solutions becomes essential for residential and commercial purposes. Air insulated switchgear needs more physical space for installation compared to alternatives such as gas-insulated switchgear, which can lead to challenges in densely populated countries. Moreover, with the growing push for renewable energy, many new installations are integrating into existing infrastructures to avoid new development. Therefore, this limitation may hinder market growth as utilities and developers increasingly pursue more space-efficient technologies.

Market Opportunities

Push for Decarbonization Will Unlock New Potentials for the Industry

Decarbonization is a serious objective in the fight against climate change, as greenhouse gas emissions are warming the global climate. To reduce carbon emissions, companies are focusing on decarbonization activities, such as renewable energy, electric vehicles, and grid technology. Switchgear plays a crucial role in the renewable transmission line, hence there is an increasing focus on technological development to reduce gas emissions.

As part of this effort, Europe has banned gas-insulated switchgear products as it produces SF6 technology, which is considered harmful to the climate. Hence, the requirement for air insulated switchgear is high.

Market Challenges

Availability of Alternative Switchgear Creates Hurdle for Market Development

There are multiple switchgear types available in the market that may become a challenge to air-insulated switchgear sales. Others, such as gas-insulated, oil-insulated, and vacuum-insulated switchgear, hold an ample amount of share in the global switchgear market. This factor can become challenging to the growth of air insulated switchgear. Gas- insulated switchgear is a high- voltage substation in which major electrical equipment is placed; hence, as the demand for high-substations grows, this segment can be challenging to air insulated switchgear market share.

AIR INSULATED SWITCHGEAR MARKET TRENDS

Increasing Modern Power Distribution is Backing Air Insulated Switchgear Market

Air Insulated Switchgear (AIS) plays a crucial role in modern power distribution that enhances the reliability and efficiency of electrical networks. The growing demand for the consumption of energy in rural areas is backing modern power distribution products, such as switchgear.

Air insulated switchgear systems are designed to manage high-voltage electricity while minimizing operational risks and maintenance needs. Hence, it holds the maximum share in the infrastructure development and power distribution network.

• For instance, manufacturers such as ABB have come up with smart switchgear for modern infrastructure, which requires fewer cables and connectivity to deliver power.

As companies focus on modern requirements, they are delivering such products that are efficient and cost-effective. This development will boost the air insulated switchgear market share in the forecast years.

Impact of COVID-19

Industrial shutdowns Amid COVID-19 Pandemic Deterred Market Growth

The COVID-19 pandemic negatively impacted the global air insulated switchgear growth. This is owing to the pause in the industrial sectors, such as manufacturing, which led to high demand and lower supply. In addition, the inaccessibility of raw materials, the shutdown of the import and export of goods, and the closure of the borders hindered market growth.

SEGMENTATION ANALYSIS

By Installation

Outdoor Installation Dominates Due to its Rising Utility in Rural and Semi-Urban Areas

Based on installation, the market is segmented into indoor and outdoor. The outdoor segment is dominating the market, driven by its wide use in transmission and distribution lines, mainly in rural and semi-urban areas where space is less of a worry. The governments of various countries are expanding their projects that use air insulated switchgear products on a wide level. Moreover, the growth in sales of electrical products is leading to technological advancement driving the outdoor segment.

Indoor installation is used in urban and commercial settings, where space constraints are critical. The growing demand for modern infrastructure is driving the indoor segment.

By Voltage

Medium Voltage is Highly Preferred Owing to its Application in Commercial and Utility Sector

Based on voltage, the market is segmented into low, medium, and high.

Medium voltage air insulated switchgear is the dominating segment driven by its application in utility and transmission systems. It simplifies the safe and efficient distribution of electricity at voltage levels between 1 kV and 36 kV. Moreover, air-insulated switchgear delivers vital functionalities such as load management, fault protection, and system monitoring.

High voltage is the fastest-growing segment due to growing installation in substations, power plants, and distribution networks.

By End-User

Transmission & Distribution are Major End-Users Due to Expansion of T&D Line

Based on end-user, the market is segmented into transmission & distribution utility, industrial, and commercial & residential.

Transmission & distribution utility is the dominating segment driven by the expansion of the transmission & distribution line in rural areas. For instance, in July 2024, Toshiba India decided to expand its manufacturing capacity for power transformers and distribution transformers over the next three years, with an investment of Japanese Yen (JPY) 10 billion (USD 0.065 billion). This expansion is due to the increasing requirement for power products in the transmission line.

Industrial is one of the fastest growing segments driven by the developments in the industrial areas. The renewable industry is rapidly growing, and hence the switchgear share, as it is one of the essential products to deliver power accordingly.

Commercial and & residential sectors are also expanding globally. However, the market in these sectors is facing slow growth owing to the restricted space for installation.

AIR INSULATED SWITCHGEAR MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America

North America air-insulated switchgear market size is witnessing substantial growth, owing to the focus on grid resilience and reliability. In addition, regulatory frameworks, corporate sustainability initiatives, and technological advancements in the product line are driving market growth.

The U.S. is the dominating country in North America, backed by investments in renewable, transmission lines, and distribution networks where switchgear plays a crucial role in applications. For instance, investment in renewable power technologies in the U.S. reached USD 92.9 billion in 2023, in comparison to USD 29.1 billion in 2013.

Moreover, the U.S. expansion is largely fueled by the increasing adoption of energy-efficient and reliable solutions, such as medium voltage air insulated switchgear systems.

Europe

The European air-insulated switchgear market has been growing rapidly owing to the technological advancements in the product series. In addition, leading European manufacturers are delivering smart products to end-users. For instance, in April 2021, Siemens Smart Infrastructure launched the 8DJH 24 switchgear, a ring main unit (RMU) for voltages up to 24kV. Such developments are backing modern solutions for several problems, such as climate change. Germany is considered one of the dominating countries in Europe driven by the presence of major air insulated switchgear manufacturers, which drives demand for these products.

Asia Pacific

Asia Pacific is the dominant region, driven by rapid urbanization and industrialization. The region's dense population and high consumption of electricity, further contribute to the air insulated switchgear market growth. China is leading the market in Asia Pacific due to a focus on electrification and energy efficiency at a domestic level. Chinese government initiatives such as Global Energy Interconnection (GEI)        aims to connect renewable energy sources to global consumption centers and is also backing power generation and its products. China’s investment in low-emission electricity for 2023-2024 is around USD 377 billion, with grid and storage investments amounting to around USD 106 billion. Such investments in the power sector are driving the switchgear market size.

Latin America

Latin American countries are actively working on transmission and distribution lines owing to the high energy demand where switchgear products are heavily used. For instance, in 2023, Hitachi Energy was awarded the contract to upgrade the world-record high-voltage direct current transmission system in Zurich, Brazil. Brazil and Mexico are key contributors to the Latin American air insulated switchgear market. Brazil is dominating the market in the region, driven by energy consumption. Moreover, high rates of electricity access in Brazil presents noteworthy opportunities for switchgear manufacturers.

Middle East & Africa

The Middle East & Africa is witnessing robust growth in the market, propelled by a focus on energy-efficient products such as the switchgear product line. GCC countries are leading the growth backed by the interest in technological advancement in power products. For instance, in September 2023, ABB unveiled its latest in air-insulated medium-voltage switchgear technology, a 500 mm panel version of the UniGear ZS1, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023. This highlights the region’s commitment to adopting advanced power solutions.

COMPETITIVE LANDSCAPE

Key Industry Players

Leading Manufacturers are Introducing Innovative Products to Fight Climate Challenges

The global market is highly fragmented, with key players in the global and some medium-scale regional companies focusing on delivering a wider focus on switchgear products. Manufacturers are increasingly required to demonstrate their technology advancements, which help countries meet regulatory requirements, while also addressing electrification needs and climate challenges.

For instance, in 2021, ABB launched its 420 kV high-voltage hybrid switchgear. The new product is part of ABB’s PASS (Plug and Switch System) series, designed to provide a more efficient solution for hybrid high-voltage switchgear applications.

List of Key Air Insulated Switchgear Companies:

• ABB (Switzerland)


• Schneider Electric (France)


• Hitachi (Japan)


• Kirloskar Electric Co. Ltd. (India)


• Mitsubishi Electric (Japan)


• Siemens Energy (Germany)


• Hubbell Incorporated (U.S.)


• Toshiba International Corporation (Japan)


• Hyosung Corporation (South Korea)


• Fuji Electric Co., LTD. (Japan)


• L&T Electrical & Automation (India)


• HYUNDAI ELECTRIC & ENERGY SYSTEMS CO., LTD. (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• May 2024: L&T Switchgear (L&T Electrical and Automation), one of India's dominating electrical and automation manufacturers and part of Schneider Electric Group, unveiled its new brand name, 'Lauritz Knudsen Electrical and Automation.’


• May 2024: The Global Gateway energy flagship project was launched in Nepal with the induction of a 28 km extension of the Chilime-Trishuli 220 kV double circuit electricity transmission line and sub-stations that allow the supply of electricity from hydropower.


• October 2023: ABB introduced the latest and narrowest AIS MV switchgear product designed with higher sustainability targets offering a game-changing solution for industries with space constraints.


• June 2021: Mitsubishi Electric Siemens Energy signed a Memorandum of Understanding (MoU) to conduct a feasibility study on the joint expansion of high-voltage switching solutions with zero Global-Warming Potential (GWP) by replacing greenhouse gases with clean air for insulation.


• June 2021: S&C Electric Company, a global leader in power reliability and grid innovations, launched a new version of its Vista Underground Distribution Switchgear. A sulfur hexafluoride (SF6) gas-free switchgear alternative to traditional switchgear uses a mixture of carbon dioxide (CO2) and 3M™ Novec™ 4710 Insulating Gas. This offers more than a 97% reduction in CO2e (carbon dioxide equivalent) versus SF6 gas.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product process, competitive landscape, and leading source of the battery. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 6.79% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Installation Indoor Outdoor
By Voltage Low Medium High
By End-User Transmission & Distribution Utility Industrial Commercial & Residential
By Region North America (By Installation, Voltage, End-User, and Country) U.S. (By End-User) Canada (By End-User) Europe (By Installation, Voltage, End-User, and Country) U.K. (By End-User) Germany (By End-User) France (By End-User) Italy (By End-User) Spain (By End-User) Rest of Europe (By End-User) Asia Pacific (By Installation, Voltage, End-User, and Country) Japan (By End-User) India (By End-User) China (By End-User) Australia (By End-User) Southeast Asia (By End-User) Rest of Asia Pacific (By End-User) Latin America (By Installation, Voltage, End-User, and Country) Brazil (By End-User) Mexico (By End-User) Rest of Latin America (By End-User) Middle East & Africa (By Installation, Voltage, End-User, and Country) GCC (By End-User) South Africa (By End-User) Rest of the Middle East & Africa (By End-User)