Air Insulated Switchgear Market Research Report - Forecast to 2030

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

The spread of the COVID-19 pandemic has negatively impacted the global air-insulated switchgear market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. Air-insulated switchgear (AIS) is an equipment that uses air as an insulation medium. The air-insulated switchgear is more cost-effective as compared to gas-insulated switchgear. But it requires more space and maintenance as compared to gas-insulated switchgear. The AIS does not need specific cable termination, as normal cable termination can be used. AIS can be used in both indoor and outdoor applications. The air-insulated switchgear includes live tank circuit breakers, dead tank circuit breakers, and disconnectors, among other components. Transmission & distribution is the primary application of air-insulated switchgear. The rising demand for electricity is expected to drive the growth of the global air-insulated switchgear market. The demand for these products has been interrupted due to the temporary shutting down of businesses in recent months. However, several countries’ efforts to restore their economic conditions, coupled with the numerous advantages offered by these products are anticipated to boost product demand in the coming years.

FIGURE: ELECTRICITY GENERATION, 2010-2018 (TWh)

The key drivers of the air-insulated switchgear market are the rising investments in transmission & distribution, low capital investment, and rising power generation capacity additions. Global T&D investments are expected to reach USD 351 billion per year by 2026 due to the rising demand for energy, new power generation capacity additions, and aging assets. China and India will be the leading countries with the largest new T&D investments over the decade. Also, the cost of AIS is 30–40% less as compared to GIS at medium voltage. All these factors are going to drive the growth of the air-insulated switchgear market. Increasing access to electricity in developing countries is expected to propel the growth of AISs in the next few years. Governments around the globe are taking initiatives to develop smart cities for conserving energy, which is also expected to drive the market growth. According to Bloomberg NEF, the global electricity demand is likely to reach around 38,700 terawatt-hours by 2050 from 25,000 terawatt-hours in 2017, driving new investments in the power sector, which would increase the need for electrical devices such as AISs.

Source: Primary Experts, Secondary Sources, and MRFR Analysis

Source: Secondary Sources