Automatic Transfer Switch Market

A high rate of industrialization and urbanization fuels market growth

Rapid industrialization and urbanization are driving the market CAGR for transfer switches. People are urbanizing at a tremendous pace in this era of rapid technological development. The adoption of cutting-edge and creative technologies is growing in rural and disadvantaged places. 

As a result of the rapid growth of urbanization around the world, a great number of structures, including residential buildings and commercial infrastructures, are being built across a wide area. Furthermore, many people are moving from rural to urban regions, necessitating the building of new homes and transfer switches. This is owing to the fact that turning on these lights, lamps, and other electronic devices requires the use of controllers.

For instance, Generac introduced an Automatic Transfer Switch with integrated home energy monitoring. The introduction of the PWRview ATS highlights the switch's Home Energy Monitoring System (HEMS). It allows a home with a backup generator to acquire significant and rapid cost-saving insights on its energy consumption. Thus, driving the Automatic Transfer Switch Market revenue.

The increasing reliance on uninterrupted power supply across various sectors drives the Global Automatic Transfer Switch Market Industry. Industries such as healthcare, data centers, and manufacturing require consistent power to maintain operations. In 2024, the market is projected to reach 0.9 USD Billion, reflecting the urgent need for reliable power solutions. As businesses expand and the demand for energy grows, the adoption of automatic transfer switches becomes essential to ensure seamless transitions during power outages. This trend is likely to continue, with the market expected to grow significantly in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. In 2023, North America dominated the market, accounting for 45.80%. The North America region is predicted to develop significantly at a CAGR of 5.5% over the forecast period. Due to the growing need to replace existing grid infrastructure, the United States accounted for more than 70% of the transfer switch market in North America. 

The business environment will profit from the increasing use of customized products and smart control-switching technology. In order to ensure the integration of a sustainable electrical network across the country, the Department of Energy reinstated the Building America program in 2022. The market landscape will now benefit from ongoing regulatory changes, as well as the widespread acceptance of developing switching technologies.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.

Figure 2: Automatic Transfer Switch Market Share By Region 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Automatic Transfer Switch Market accounts for the second-largest market share. The region's expanding expenditures in smart cities and data centers provide tremendous opportunities for automatic transfer switch vendors.  Further, the German Automatic Transfer Switch Market held the largest market share, and the UK Automatic Transfer Switch Market was the fastest-growing market in the European region.

The Asia-Pacific Automatic Transfer Switch Market is expected to grow at the fastest CAGR from 2024 to 2032 because this country is undergoing tremendous industrialization. Moreover, China’s Automatic Transfer Switch Market held the largest market share, and the Indian Automatic Transfer Switch Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their Switching Mechanism lines, which will help the Automatic Transfer Switch Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new Switching Mechanism launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automatic Transfer Switch industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automatic Transfer Switch industry to benefit clients and increase the market sector. In recent years, the Automatic Transfer Switch industry has offered some of the most significant advantages to medicine. 

Major players in the Automatic Transfer Switch Market, including Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., Kohler, and others, are attempting to increase market demand by investing in research and development operations.

General Electric Company (GE) was an American global business founded in 1892, incorporated in New York, and headquartered in Boston. The company's segments included aircraft, energy, healthcare, and finance. In August 2022, General Electric announced a collaboration with Sulzer EMS to deliver 20% more power capacity using synchronous motors.

ABB Ltd. is a Swedish-Swiss multinational enterprise based in Västerås, Sweden, and Zürich, Switzerland. It trades on the SIX Swiss Exchange in Zurich, the Nasdaq Nordic Exchange in Sweden, and the OTC Markets Group's pink sheets in the United States. It was rated 340th on the 2020 Fortune Global 500 list and has been a global Fortune 500 firm for 24 years. In August 2022, ABB announced the acquisition of Siemens' low voltage NEMA motor business in order to increase its product line, strengthen supply chain partnerships, and better serve its North American customers.