Air Insulated Switchgear Market Size, Share, Growth, Analysis

[224 Pages Report] The global air insulated switchgear market is projected to reach USD 85.9 billion by 2029 from an estimated USD 67.3 billion in 2024, at a CAGR of 5.0% during the forecast period. The dominant force in the market is the Asia Pacific region, followed by Europe and North America. A surge in infrastructure development demand, attributed to factors such as rising population, industrialization, and urbanization, has been significant. The infrastructure development industry offers promising prospects for air-insulated switchgear (AIS) owing to escalating electricity demand and robust financial backing for expanding power plants. The infrastructure & transportation segment is projected to grow rapidly in the global air insulated switchgear market due to the presence of expanding power plants and the need for efficient and reliable power distribution systems. Infrastructure development projects and transportation systems require resilient and highly reliable electrical networks, making AIS a crucial component for these applications.

The Asia Pacific region is experiencing a rapid development phase, particularly in major economies, driving growth across various sectors including power transmission, distribution, industries, commercial and residential applications, and transportation. With escalating power generation demand, aligned with population growth, significant strides are being taken towards adopting clean energy sources. Ambitious targets for natural gas and renewable power generation in countries like China, Japan, and India underscore this transition. Furthermore, the robust marine industry concentrated in Japan, South Korea, and China is fueling demand for air insulated switchgear, crucial for safeguarding electrical equipment aboard marine vessels.

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Air Insulated Switchgear Market Dynamics

Driver: Modernization of power distribution infrastructure

New regulations have emerged to reduce power blackouts and enhance power distribution networks. To mitigate power blackouts and improve power distribution networks, new regulations have been introduced, leading to a rapid expansion in the market for power equipment, especially monitoring solutions and advanced AIS. These technologies enable maintenance teams to access real-time data, identify aging or stressed equipment, proactively prevent failures, and enhance grid efficiency. Investing in these solutions is essential to guarantee a dependable and robust electricity supply amidst rising demand and changing climate conditions.

Restraints: Challenges of Spacing Requirements in Air Insulated Switchgear

Air Air-insulated switchgear (AIS) is a type of electrical switchgear that uses air as the primary insulating medium. It consists of various components such as circuit breakers, disconnect switches, and busbars, which are arranged in open-air compartments. The use of air as the insulation medium between its electrical components is the traditional approach to switchgear design. One of the key considerations when selecting AIS is the spacing requirements. Due to the use of air as the insulator, AIS requires larger spacing between components to prevent arcing and ensure safety. This is a significant restraint as it can lead to a larger physical footprint compared to other types of switchgear such as Gas Insulated Switchgear (GIS).

Opportunities: Air-Insulated Switchgear Adoption in Infrastructure Development

The infrastructure development industry offers promising prospects for air-insulated switchgear (AIS) owing to escalating electricity demand and robust financial backing for expanding power plants. The infrastructure & transportation segment is projected to grow rapidly in the global air-insulated switchgear market due to the presence of expanding power plants and the need for efficient and reliable power distribution systems. Infrastructure development projects and transportation systems require resilient and highly reliable electrical networks, making AIS a crucial component for these applications. AIS is suitable for smaller installations, making it a suitable option for residential areas and other applications where smaller substations are needed.

Challenges: Operational Hurdles in High-Voltage Air Insulated Switchgear Systems

Air insulated switchgear (AIS) components, particularly in high-voltage systems, demand regular inspections and maintenance to uphold peak performance. This involves scrutinizing for indications of deterioration, loose connections, and any other issues that might compromise the reliability of the switchgear. Routine testing of AIS, such as insulation resistance checks and circuit breaker tests, is crucial for detecting potential faults and averting unforeseen breakdowns. Managing AIS, particularly in large setups, can be laborious due to the substantial electrical power they handle, necessitating specialized components for insulation, arc interruption, and system reliability in high-voltage environments.

Air Insulated Switchgear Market Ecosystem

The market for AIS is marked by the participation of leading companies that are firmly established, financially robust, and possess substantial expertise in the production of AIS and related components. These companies hold a significant market presence and provide a wide array of product offerings. They harness advanced technologies and maintain extensive global sales and marketing networks. Among the notable players in this market are Eaton (Ireland), ABB (Switzerland), Siemens (Germany), General Electric (US), and Schneider Electric (France).

Medium voltage segment, by voltage, to grow at highest CAGR from 2024 to 2029.

AIS with a voltage rating of 2-36 kV are classified as medium-voltage switchgears. Widely employed across various end-user sectors, especially in manufacturing, process industries, and Transmission & Distribution (T&D) utilities, these switchgear encompass equipment like circuit breakers, paralleling switchgear, AIS (Air-Insulated Switchgear), main ring units, motor control centers, railway & marine switchgear, and surge arresters. Their role involves safeguarding industrial equipment such as generators, motors, compressors, HVAC & air conditioning systems, heating & lighting equipment, providing overload current protection, and supporting T&D sub-stations. Medium-voltage switchgear are integral to railway AC & DC traction power supply substations. The railway sector is witnessing a shift from diesel-electric locomotives to electric or battery-electric ones to curb emissions, particularly notable in the Asia Pacific region, thereby stimulating the growth of the medium-voltage (2-36 kV) AIS market.

Transmission and distribution segment, by application, to emerge as largest segment of air insulated switchgear market.

In 2023, the transmission and distribution segment dominated the air insulated switchgear market with a 35.6% share. Air insulated switchgear (AIS) is a crucial component in the transmission and distribution of electrical energy. It is an auxiliary distribution unit that disperses the electrical energy of the main transmission unit fed by a large distribution transformer. The AIS adopts air as the insulation media, with a designed voltage ranging from 11KV to 36KV for medium voltage power distribution systems. It plays a controlling and protecting role in the power system, ensuring the safe and reliable distribution of electrical energy. The AIS is a secondary power distribution device and is a medium voltage switchgear that redistributes the power of a primary power distribution device that is powered by a high voltage distribution transformer. It is widely used in power distribution stations and compact substations in load centers such as residential areas, high-rise buildings, large public buildings, and factory enterprises.

The Middle East & Africa Air Insulated Switchgear market is poised to achieve the second-highest CAGR throughout the forecast period.

In 2024, the Middle East & Africa region secured the second-highest market share of the air insulated switchgear market, with Saudi Arabia taking the lead, succeeded by UAE. The Middle East air insulated switchgear market has been further segmented based on country into GCC countries like Saudi Arabia, U.A.E., and Rest of GCC countries, South Africa, and Rest of the Middle East. The region is the fourth largest market for air insulated switchgear, and is expected to grow at the second fastest rate, after Asia-Pacific, owing to industrialization. The demand for air insulated switchgear in the Middle Eastern countries is rising, owing to increased infrastructural developments and rising oil & gas production activities. Also, the countries in the region have plans to restructure their power sectors, thereby, encouraging the private sector to invest in this industry, which is expected to decrease the financial burden to construct utility projects. The major applications of air insulated switchgear in the region include T&D and infrastructure, among others.

Key Market Players

Key players in the air insulated switchgear market, including ABB (Switzerland), General Electric (US), Siemens (Germany), Schneider Electric (France), Eaton Corporation (Ireland), Larsen & Toubro (India), Toshiba (Japan), Alfanar Group (Saudi Arabia), leveraging their strong brands, diverse product portfolios, and effective distribution networks.

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Scope of the Report

The air insulated switchgear (AIS) market is classified in this research report based on installation, voltage, application, and region.

Based on installation, the AIS market has been segmented as follows:

• Indoor
• Outdoor

Based on voltage, the AIS market has been segmented as follows:

• Low
• Medium
• High

Based on application, the AIS market has been segmented as follows:

• Transmission & Distribution Utilities
• Industrial
• Commercial & Residential
• Transportation
• Others

Based on regions, the AIS market has been segmented as follows:

• North America
• Asia Pacific
• South America
• Europe
• Middle East and Africa

Recent Developments

• In August 2023, ABB expanded its partnership with Northvolt to electrify the world’s largest battery recycling facility, Revolt Ett, established by Northvolt in Skellefteå, northern Sweden.
• In April 2023, Siemens Energy and Spain's Dragados Offshore has signed a framework agreement with German-Dutch transmission system operator TenneT to supply high-voltage direct current (HVDC) transmission technology for three grid connections in the German North Sea.
• In April 2023, Eaton announced it has completed the acquisition of a 49% stake in Jiangsu Ryan Electrical Co. Ltd. (Ryan), a manufacturer of power distribution and sub-transmission transformers in China.

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