USD 55.6 Billion
Air Insulated Switchgear Market Size, Share, Growth Analysis, By Voltage (Low, High), By Installation (Outdoor, Indoor), By Application (Commercial, Transmission & Utilities), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20D2257 |
Region:
Global |
Published Date: May, 2024
Pages:
202
|Tables:
60
|Figures:
76
Air Insulated Switchgear Market Insights
Global Air Insulated Switchgear Market size was valued at USD 55.6 Billion in 2022 and is poised to grow from USD 58.49 Billion in 2023 to USD 87.74 Billion by 2031, at a CAGR of 5.20% during the forecast period (2024-2031).
The global air insulated switchgear market has seen a rise in demand due to several factors, such as increasing demand for electricity in developed countries, increasing electrification rates globally, and increasing electricity transmission and distribution. Air-insulated switchgear is widely used in power distribution stations and compact substations in load centers, such as residential areas, high-rise buildings, etc. These are also extensively used in rural areas, where issues with space, weather, and environment do not exist. Additionally, there is a growing focus on renewable energy sources such as wind and solar power, which is also driving the need for reliable switchgear solutions to integrate these sources into the grid efficiently.
The rise in urbanization and industrialization is also contributing to market growth, as it necessitates the expansion and modernization of electrical distribution networks. Owing to an increasing focus on conserving and ensuring uninterrupted power supply, power utilities are focusing on substation and switchgear technologies that require less space and have reduced outages. There is also a trend of opting for a hybrid switchgear-based substation, which is a mix of AIS (air insulated) and GIS (gas insulated) technologies, although most existing substations are outdoor air-insulated substations.
Stringent regulations and standards regarding safety and environmental protection are pushing industries to invest in modern switchgear solutions that comply with these requirements. As a result, the global air-insulated switchgear market is poised for substantial growth in the coming years, driven by increasing electricity demand, renewable energy integration, urbanization, technological advancements, and regulatory mandates.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Low Voltage
Fastest Growth
Medium Voltage
Growth Rate
5.20% CAGR
Global Air Insulated Switchgear Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Air Insulated Switchgear Market Segmental Analysis
Global Air Insulated Switchgear Market is segmented by Installation, by Voltage, by application and by Region. Based on Installation, the market is segmented into Indoor, and Outdoor. Based on Voltage, the market is segmented into Low, Medium, and High. Based on Application, the market is segmented into Commercial, Transmission & Utilities, Industrial, Residential, Transportation, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis By Voltage Level
The air insulated switchgear market has been dominated by the low-voltage segment due to massive growth in transmission and distribution infrastructure. Developed countries are extensively investing in smart grid technologies, which use low-voltage air-insulated switching devices, to assist in load control, electric supply, and fault monitoring.
The medium voltage switchgear is the fastest-growing segment in the air insulated switchgear market, due to its various applications in power transmission, incorporation of renewable energy sources in the grid, etc. The increasing demand for electricity, particularly in urban and industrial areas, and the rise in renewable energy integration and electrification projects boost the demand for medium-voltage switchgear. Their versatility, compact design, and ability to handle medium voltage applications make them essential components in modern electrical infrastructure, contributing to their rapid adoption and growth in the market.
Analysis By Installation
The outdoor segment of the air-insulated switchgear market dominates this industry. Most of the applications of switchgear are outside, for example, long-distance power transmission, large power plants, and high-voltage transmissions. Outdoor installations offer flexibility in terms of space utilization and ease of installation, particularly in areas with limited indoor space or harsh environmental conditions. Additionally, outdoor switchgear installations minimize the risk of fire hazards and provide easy maintenance and servicing. Moreover, outdoor installations are less costly compared to indoor installations, as they eliminate the need for additional building infrastructure.
The fastest-growing segment is the Indoor segment in the air insulated switchgear industry. This popularity can be mostly attributed to the widespread use of switching devices in small substations and low-voltage transmission in the power industry. The increasing emphasis on space optimization and urbanization is driving the demand for compact indoor switchgear solutions, especially in densely populated areas. Additionally, grid development projects are driving the rapid growth of this segment Indoor installations offer protection against environmental factors such as dust, moisture, and temperature fluctuations, ensuring optimal performance and longevity of switchgear components. Technological advancements have also led to the development of more efficient and reliable indoor switchgear solutions, attracting investments from industries seeking to upgrade their electrical infrastructure.
Analysis By End User
The end user segment of transmission & distribution holds the major share in the air-insulated switchgear market. To meet the worldwide power demand, the transmission & distribution sector is expanding exponentially. These utilities require reliable and efficient switchgear solutions to ensure uninterrupted electricity supply to consumers. Air insulated switchgear offers cost-effective and dynamic solutions for medium and high-voltage applications, making them ideal for transmission and distribution networks. Also, the increasing focus on grid modernization and infrastructure upgrades further drives the demand for air insulated switchgear among transmission and distribution utilities, making this segment the dominant one.
The infrastructure & transportation sector is growing rapidly in the air-insulated switchgear market. There is rising adoption of air insulated switchgears in retail markets, healthcare facilities, financial institutions, and other infrastructural applications. Increasing urbanization and industrialization are driving the demand for infrastructure development projects, including transportation networks, railways, airports, and smart cities. These projects require reliable and efficient electrical distribution systems, making air insulated switchgear an essential component. On the other hand, the rise of electric vehicles and the electrification of transportation systems contribute to the growing demand for switchgear solutions in the transportation sector.
Global Air Insulated Switchgear Market By Voltage Level
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Air Insulated Switchgear Market Regional Insights
The dominating region in air insulated switchgear market is the Asia Pacific. The expansion of market in this region can be attributed to the growing demand for electrification in developing areas. The lack in transmission and distribution network is most prevalent in rural areas. National governments are heavily investing on electrification in such areas, which drives the growth of air insulted switchgears in this region. Rapid industrialization, urbanization, and infrastructural developments across countries like China and India drive the demand for electricity and thus necessitate reliable switchgear solutions. This region also witnesses substantial investments in renewable energy projects, further boosting the demand for air insulated switchgear. Government initiatives promoting smart grid deployments and grid modernization contribute to market growth too. The presence of key manufacturers and favourable regulatory policies supporting electrical infrastructure development result in Asia Pacific's dominance in the global air insulated switchgear market.
The fastest-growing regional markets are the Middle East & Africa. Countries like Saudi Arabia and the UAE have been investing hheavily in energy infrastructure. Projects related to power generation, transmission, and distribution contribute to the demand for air insulated switchgear in this region. Increasing investments in infrastructure projects, including power generation and distribution networks, drive the demand for reliable switchgear solutions. Additionally, the region's expanding industrial sector and growing urbanization contribute to the rising need for electrical infrastructure upgrades. Governments in this region are taking initiatives aimed at enhancing energy efficiency and grid reliability, which further stimulate market growth. The presence of abundant natural resources, along with government initiatives promoting renewable energy adoption, also fuels the demand for air insulated switchgear in the Middle East & Africa region, making it the fastest-growing region in the market.
Global Air Insulated Switchgear Market By Region
- Largest
- Fastest
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Air Insulated Switchgear Market Dynamics
Drivers
Growing Electricity Demand
- Rapid urbanization and industrialization, especially in developing regions have led to increased power consumption. Additionally, ongoing infrastructure development projects, too, contribute to the demand for air insulated switchgear. These are crucial for ensuring reliable electricity distribution in urban areas and industrial complexes. The expansion of power transmission and distribution networks also requires reliable switchgear solutions. The increasing demand for electricity, driven by population growth, urbanization, and industrialization, fuels the need for reliable and efficient switchgear solutions like air-insulated switchgear.
Renewable Energy Integration
- There is a global shift towards renewable energy sources, such as solar power and wind power for generating electricity. This necessitates the development of robust electrical infrastructure. Air insulated switchgear is often used in such renewable energy projects for power distribution and grid integration.
Grid Modernization
- Many countries, especially in developed regions, are finding the need to replace aging and outdated electrical infrastructure. They are investing in grid modernization to enhance the efficiency, reliability, and flexibility of their electrical grids. Air insulated switchgears are used here as modern switchgear solutions as they help improve the grid performance and reliability of the electrical grid.
Restraints
Competition From Gas Insulated Switchgears
- Gas Insulated Switchgears use gas as an insulating medium, which is a competing alternative to air insulated switchgears. In certain applications, gas Insulated Switchgears are preferred for their compact design and are suitable for space-constrained environments. Air insulated switchgear typically requires more space compared to gas-insulated switchgear. Gas insulated switchgear is also gaining popularity for reasons such as safety, high dependability, low maintenance, and environmental compatibility.
Environmental Impact & Regulations
- The environmental impact of sulphur hexafluoride (SF6), a commonly used insulation gas in air insulated switchgear, has raised environmental concerns. SF6 gas is a potent greenhouse gas and is a contributor to climate change. Therefore, stringent regulations have been placed related to the use and emissions of SF6. This limits the adoption of air insulated switchgear and influence the choice of alternative switchgear technologies.
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Air Insulated Switchgear Market Competitive Landscape
The air insulated switchgear market has Tier I, Tier II as well as local players. Tier I & Tier II players have a widespread reach with diverse portfolios. Key market players in the air insulated switchgear market dominate the market due to product differentiation, financial stability, strategic developments, and diverse regional hold. Most market players are keen on investing in continuous research and development and obtaining patents. They are also constantly undertaking initiatives like product launches, joint ventures, collaborations, and partnerships to strengthen their position in the market. These activities have paved the way for the expansion of business and customer base. Competitors in this industry must significantly invest in innovation to overcome the constraints of air insulated switchgear, to stay relevant in the market in the coming future.
Top Player’s Company Profile
- ABB
- General Electric
- Siemens Energy
- Schneider Electric
- Toshiba
- Alfanar Group
- Eaton Corporation
- Mitsubishi Electric Corporation
- Hubbell
- Larsen & Toubro Limited
- JST Power Equipment, INC
- EPE Malaysia
- ALFANAR GROUP
- SWITCHGEAR COMPANY
- S&C ELECTRIC
- TAVRIDA ELECTRIC
Recent Developments
- In September 2023, ABB launched their latest and narrowest air-insulated (AIS) medium voltage (MV) switchgear, UniGear ZS1, 500mm panel version, offering a game-changing solution for industries with space constraints.
- In June 2023, the UK’s largest electricity distributor, UK Power Networks (UKPN) joined hands with Siemens Energy to introduce an environmentally-friendly switchgear technology. The new “clean air” Gas Insulated Switchgear (GIS) operates at a voltage of 132,000 volts and is completely SF6-free.
- In April 2023, Larsen & Toubro’s Power Transmission and Distribution business secured multiple domestic engineering, procurement, and construction (EPC) orders in India and overseas (Saudi Arabia, Malaysia and Thailand)
Air Insulated Switchgear Key Market Trends
- Adoption of Alternative Insulation Gases: Manufacturers around the world are constantly researching alternative ways to become more environment friendly. They are adopting alternative insulation gases with lower global warming potential (GWP) compared to SF6. This includes gases like dry air, nitrogen, and fluoro nitrile-based gas mixtures.
- Compact Design Innovations: Another area of research for air insulated switchgear manufacturers is to reduce its size. Compact and space-saving designs for air insulated switchgears are gaining importance, especially in urban and densely populated areas where space is limited. Innovations in design are being undertaken to reduce the footprint of air insulated switchgears installations.
- Hybrid Switchgear Solutions: A growing trend that can be seen in the switchgear industry is the adoption of hybrid switchgears, combining air insulated and gas-insulated switchgear technologies. Hybrid solutions offer a balance between the space efficiency of gas-insulated switchgears and the simplicity of air-insulated ones.
Air Insulated Switchgear Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global air insulated switchgear market analysis, there are several factors like increasing demand for electricity, worldwide electrification, and increasing transmission and distribution, which are driving the growth of this market. Low voltage air insulated switchgears dominate the market. The medium voltage air insulated switchgears constitute the fastest growing market segment. Outdoor installations hold a major share of this market, whereas the number of indoor installations is also rapidly increasing due to rising urbanization. The Transmission & Distribution sector is the major end user of the air insulated switchgear, whereas the infrastructure & transportation sector is the fastest growing market now. Asia Pacific has the largest market for air insulated switchgear, since this region is still developing, and major electrification is taking place, especially in rural areas. The Middle East & Africa region, on the other hand, is a rapidly growing market, where multiple power generation and distribution projects are underway. The landscape of this market shows very close competition between leading players, who are dedicated to developing more compact and environmentally sustainable options in the air insulated switchgear market. A key challenge faced by this market is the competition it faces from the gas-insulated switchgear. Key market players need to continuously research and develop to bring in space-saving and sustainable solutions in the market; to overcome the competition it faces in this industry.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 55.6 Billion |
| Market size value in 2031 | USD 87.74 Billion |
| Growth Rate | 5.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Air Insulated Switchgear Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Air Insulated Switchgear Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Air Insulated Switchgear Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Air Insulated Switchgear Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Air Insulated Switchgear Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Air Insulated Switchgear Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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