The air-insulated switchgear market size is projected to reach approximately USD 8,512 million by 2030, at a CAGR of 4.6% from 2022 to 2030.
To safeguard, regulate, and isolate electrical equipment, air-insulated switchgear is a small, metal-encapsulated switchgear made up of high-voltage parts, including eleactrical disconnect switches, fuses, and circuit breakers. It insulates phase to phase and phase to the ground using air as the principal dielectric. The air-insulated switchgear market growth is anticipated to experience growth throughout the forecast period, partly because of the extensive usage of this electrical switchgear in rural areas where issues with space, weather, and the environment are nonexistent. Due to the increasing energy demand, the installation of new power generation capacity, and the aging of assets, it is anticipated that T&D investment will reach USD 351 billion annually by 2026. Over the next ten years, China and India will have the highest levels of new T&D investment. Air insulated switchgear has several advantages, including dependability, pollution-free operation, simplicity, and location flexibility. The air-insulated switchgear market is probably going to benefit from these opportunities in a big way.
The pandemic was a significant disruptor for the industry, posing problems and opportunities. The effects of COVID-19 have also brought attention to the necessity of improved risk management, increased readiness, and resilience. electrical switchgear manufacturers continue to face significant supply chain challenges, notably in the areas of basic metals (copper, aluminum, and steel), plastics, electronics, and transportation services. The COVID-19 pandemic's effects, along with measures taken by organizations and governments to contain the virus, led to a considerable reduction in manufacturing and industrial activity, directly affecting the switchgear market since it is predominantly used in these sectors of the economy.
During the forecast period, factors like rising power demand in developed nations, a electrification rate, and expanding electricity transmission and distribution infrastructure are anticipated to fuel the market for air insulated switchgear. As a result of major advancements in renewable energy generation and rising investments in electrical networks, the market for air insulated switchgear is expected to expand over the forecast period. Additionally, it is anticipated that the building of transmission and distribution networks in isolated and rural areas would further accelerate market growth.
Government backing continues in more than 130 countries, strong net-zero targets have been set by countries representing 90% of the world's GDP, and the cost-competitiveness of wind and solar PV has grown. A further 290 gigawatts (GW) of installed renewable energy capacity was added in 2021, a 3% increase over the already impressive rise in 2020. Following wind and hydropower in 2021, solar PV accounted for more than half of the expansion of renewable energy worldwide. The trajectory of renewable capacity growth from 2021 to 2026 indicates that the expansion of renewable power in the European Union is expected to exceed that projected for 2030 under the present National Energy and Climate Plans (NECPs). The worldwide switching devices sector will profit from this scenario as demand for green and clean energy increases.
Managing energy has become a significant priority with the development of IoT for home automation and building automation applications. Therefore, air insulated switchgear is required to track and optimize energy use. The primary reasons propelling the market's expansion are the growing use of smart grids and smart meters and the rising need for energy. Additionally, GIS is quickly gaining popularity in the market due to a wide range of advantages, including safety, high dependability, minimal space requirements, low maintenance, and environmental compatibility. The industrial sector was the main driver of demand, although the commercial, service, and residential sectors also made substantial contributions.
To meet the rising electricity demand, nations are investing in constructing transmission and distribution infrastructure. For instance, Saudi Arabia intends to spend a significant amount of USD 100 billion to increase its electricity generation from 40,000 MW to 80,000 MW over the coming years. The largest state-owned utility firm in China, State Grid Corporation of China (SGCC), announced its intention to invest USD 33.7 billion in constructing 12 electrical transmission lines. The demand for air insulated switchgear would rise due to these T&D expansion projects, becoming an essential part of the power grid network.
The air-insulated switchgear market segmentation, based on voltage, is Up To 36 kV and >36 kV. The market was dominated by low voltage switching devices or upto 36kV switchgear in 2021 as a result of the massive growth of the transmission and distribution infrastructure. Developed nations are investing in smart grid technologies to aid load control, electricity supply, and fault monitoring. Due to the many benefits of air insulated switchgear equipment in the sub-transmission and distribution industry, the low-voltage switchgear category dominates the market. The above 36 kV category or medium voltage switchgear showd the fastest growth in worldwide market in 2021 due to various uses in power transmission, incorporating renewable energy sources into the grid, and many industrial applications. So, the demand for air insulated switchgear is developing due to expanding transmission and distribution networks and rising investments in renewable energy.
The air-insulated switchgear market segmentation, based on installation, is indoor and outdoor. The outdoor segment dominated the market in 2021 due to the vast range of outside applications, including long-distance power transmission, very large power plants, and ultra-high voltage transmission. The outdoor portion of the market is dominated by significant long-term expenditures in transmission and distribution systems. The indoor segment also showed significant market share in 2021 due to the widespread use of switching devices in tiny substations and low-voltage transmission in the power industry. Therefore, during the anticipated period, grid development projects and investments for its expansion are expected to support the growth of the outdoor segment.
The air-insulated switchgear market research segmentation, based on end user, is transmission & distribution, manufacturing & processing and infrastructure & transportation. In 2021, the largest end-user segment was transmission & distribution. To meet the demand for power, transmission and distribution utilities use both renewable and non-renewable energy sources. The need to modernize the existing infrastructure to facilitate the simple integration of electricity generated from renewable sources is driven by the growing adoption of renewable energy sources for power generation. Due to the growing adoption of air insulated switchgear in retail spaces, healthcare facilities, financial institutions, and other applications, the infrastructure sector currently held the second-largest market share in 2021.
Global Air-insulated Switchgear Market Share by Region, 2021 (%)
Air-insulated Switchgear Market Overview, by Region
By region, The air-insulated switchgear market report has been divided into Europe, Asia-Pacific, North America, and Rest of the World. Asia-Pacific accounted for the most extensive market share. Europe is projected to exhibit the highest CAGR during the review period.
Asia-Pacific held the most extensive air-insulated switchgear market share in 2021. A lot of Asia-Pacific nations have insufficient electrical distribution systems. The lack of T&D networks is most prevalent in rural and remote places. The nations in the region are making significant investments in constructing transmission line networks to electrify these areas. Additionally, it is anticipated that Southeast Asia, one of the regions with the fastest-growing energy consumption in recent decades, will resume its previous growth rates by increasing demand by 5.4% in 2021 compared to 2020. As a result, during the projection period, factors like the region's aging grid infrastructure and rising energy demand are predicted to increase demand for air insulated switchgear in the Asia-Pacific.
Europe had the fastest growth rate in 2021 due to growing energy demand, modernizing aging hydropower facilities, and government attempts to upgrade grid infrastructure. The European Energy Industry Investments report from 2017 estimates that from USD 58.37 billion in 2011-2020 to USD 86.73 billion in 2021-2030, transmission and distribution infrastructure investments would increase. As a result, increasing transmission and distribution infrastructure investments will present profitable growth prospects during the projection period.
The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Companies such as ABB Ltd. (Switzerland), Schneider Electric SE (France), and Siemens (Germany) dominate the air-insulated switchgear market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, product introduction, joint ventures, and partnerships, to strengthen their market position and capture an extensive customer base.
For instance, in August 2021, Schneider Electric introduced GenieEvo Connected, a comprehensive, dependable switchgear line with unrivaled connectivity for asset health monitoring. GenieEvo linked, establishing a new standard for primary air insulated switchgear cloud-based for efficient maintenance. Furthermore, in January 2020, Siemens Ltd acquired New Delhi-based switchgear and power equipment company C&S Electric Limited for approximately Rs 2,100 crore. The acquisition includes C&S Electric's Indian operations for low-voltage switching devices components and panels, low and medium-voltage power busbars, and protection and metering devices.
Prominent players in the air-insulated switchgear market include ABB Ltd. (Switzerland), Schneider Electric SE (France), Eaton Corporation PLC (Ireland), Siemens AG (Germany), General Electric Company (U.S.), Larsen & Toubro Limited (India), Toshiba Corporation (Japan), Crompton Greaves Ltd. (India), Ormazabal (Brazil), C&S Electric (India), Lucy Electric (UK), TEPCO Group (Japan), and Alfanar Group (Saudi Arabia)
The study's goals are outlined in five stages. They are listed below:
To identify and estimate the worldwide air-insulated switchgear market size, by voltage, by installation, and by end-use, in terms of value (in U.S. dollars). To comprehend how consumer demand would affect the air-insulated switchgear industry between 2020 and 2030,
To recognize and extrapolate the market's drivers, constraints, opportunities, and difficulties
To ascertain the elements influencing customer purchases of air insulated switchgear
To recognize and comprehend the numerous elements in the pandemic-affected worldwide air-insulated switchgear market
To offer a thorough understanding of the key businesses active in the sector. The company's financial performance over the last two to three years will be profiled, along with regional and segmental revenue breakdowns, product offerings, current advancements, SWOT analyses, and important business initiatives.
| Report Attribute/Metric | Details |
| Market Size | 2030: USD 8,512 Million |
| CAGR | 4.6% CAGR (2022-2030) |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Historical Data | 2019 & 2020 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Competitive Landscape, Revenue Forecast, Growth Factors, and Trends |
| Segments Covered | Voltage, Installation, and End-Use |
| Geographies Covered | Europe, Asia-Pacific, North America, and Rest of the World (RoW) |
| Key Vendors | ABB Ltd. (Switzerland), Schneider Electric SE (France), and Siemens (Germany) |
| Key Market Opportunities | Increasing transmission & distribution infrastructure investments to support demand for air-insulated switchgear market |
| Key Market Drivers | Expansion of renewable energy-based capacity to drive the market for air-insulated switchgear |
Switchgear Market Highlights:
Frequently Asked Questions (FAQ) :
The worldwide air-insulated switchgear market is being studied from 2020 to 2030
Over the next 10 years, the market for air-insulated switchgear is expected to increase at a CAGR of 4.6%.
The greatest CAGR is anticipated to be recorded in Europe. during 2022 - 2030
In 2021, Asia Pacific accounted for the biggest proportion
ABB Ltd. (Switzerland), Schneider Electric SE (France), and Siemens (Germany) are the major companies operating in the air-insulated switchgear market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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