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

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.