Air Insulated Switchgear Market by Installation (Indoor, Outdoor), Voltage (Low, Medium, High), Application (Transmission & Distribution Utilities, Industrial, Commercial & Residential, Transportation) and Region - Global Forecast to 2029

Air Insulated Switchgear Market by Installation (Indoor, Outdoor), Voltage (Low, Medium, High), Application (Transmission & Distribution Utilities, Industrial, Commercial & Residential, Transportation) and Region - Global Forecast to 2029

The global market for air insulated switchgear (AIS) is on a trajectory to reach USD 85.9 billion by 2029, a notable increase from the estimated USD 67.3 billion in 2024, with a steady CAGR of 5.0% spanning the period from 2024 to 2029. The global renewable energy sector is experiencing a substantial surge, with annual additions to renewable power capacity expected to average around 305 GW per year between 2021 and 2026, marking a nearly 60% increase compared to the previous five years. This growth is propelled by continuous governmental support in more than 130 countries, aggressive net-zero goals declared by nations representing nearly 90% of global GDP, and enhanced competitiveness of wind and solar PV technologies.

Renewable energy accounts for around 22% of global power generation, according to the International Energy Agency (IEA), renewable energy capacity is expected to more than double by 2030, growing by 7,300 gigawatts (GW) under countries' current policies, partly due to the rapid growth of variable renewable energy from solar photovoltaics and wind. Renewable integration is important for reducing carbon emissions and achieving a zero-carbon future, as the International Energy Agency estimates that most of the global electricity will need to be generated using renewables.

“Outdoor segment, by installation, to be fastest growing market from 2024 to 2029.”

Outdoor air insulated switchgear is a critical component of electrical power distribution systems, primarily used in transmission and sub-transmission sectors. These switchgear are designed to operate at high voltages, typically above 36kV, and are installed in outdoor substations, power plants, or along power distribution lines. Air is used as an insulating medium, which is readily available and requires no special treatment, making it a cost-effective and low-maintenance solution for outdoor applications. However, outdoor air insulated switchgear is susceptible to environmental conditions such as dust, humidity, temperature, and vibrations, which can affect its performance and lifespan.

“Low voltage segment, by voltage, to be the second-largest market from 2024 to 2029.”

Low-voltage AIS play a critical role in safeguarding against overload currents, voltage surges, insulation breakdown, and emergency switching in residential and commercial settings, protecting electrical appliances and low-voltage machinery. They are commonly deployed in large commercial buildings, hospitals, industrial processes, refineries, and oil & gas facilities, ensuring the protection of various devices like motors and equipment.

“Europe to be second-largest region in air insulated switchgear market.”

In 2023, Europe secured the second-largest position in the AIS market, holding a share of 21.7% with a market valuation of USD 14.1 billion. The European AIS market is dissected by country, including the UK, Germany, France, Italy, Spain, and the Rest of Europe.

On February 2024, the European Commission (EU) is committed to reaching ‘net zero' CO2 emissions by 2050. The Commission aims to establish a clear carbon accounting framework for utilization of captured CO2 as a resource, which would reflect the climate benefits of using CO2 as a resource in industrial processes. This helps to boost the uptake of sustainable carbon in industrial sectors. The European Union is focusing on upgrading its aging power infrastructure to accommodate more renewable energy sources such as solar and wind. As part of this modernization, there is a shift from electromechanical systems to digital air insulated switchgear. This transition is expected to increase the demand for air insulated switchgear, given the advanced maturity of Europe’s power generation, transmission, and distribution systems. Additionally, efforts are being made to enhance interconnections that will improve power trading and overall energy efficiency across the region.

Breakdown of Primaries:

In-depth interviews with key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, were conducted to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The primary interviews were distributed as follows:

By Company Type: Tier 1-30%, Tier 2-55%, and Tier 3-15%

By Designation: C-Level-30%, D-Level-20%, and Others-50%

By Region: North America–18%, Europe–8%, Asia Pacific–10%, South America–4% and

Middle East & Africa–60%.

Note: “Others” include sales managers, engineers, and regional managers

The tiers of the companies are defined based on their total revenue as of 2021: Tier 1: >USD 1 billion, Tier 2: USD 500 million–1 billion, and Tier 3:

The AIS market is predominantly governed by well-established global leaders. Notable players in the AIS market include ABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Eaton (Ireland), Mitsubishi Electric (Japan), Toshiba (Japan), and several others.

Research Coverage:

The report provides a comprehensive definition, description, and forecast of the AIS market based on various parameters, including Installation (Indoor, Outdoor), Voltage Rating (Low, Medium, High), CuApplication (Transmission & Distribution Utilities, Industrial, Commercial & Residential, Transportation, and Others), and region (Asia Pacific, North America, Europe, Middle East and Africa, South America). The report also offers a thorough qualitative and quantitative analysis of the AIS market, encompassing a comprehensive examination of the key market drivers, limitations, opportunities, and challenges. Additionally, it covers critical facets of the market, such as an assessment of the competitive landscape, an analysis of market dynamics, value-based market estimates, and future trends in the AIS market.

Key Benefits of Buying the Report

The report is thoughtfully designed to benefit both established industry leaders and newcomers in the AIS market. It provides reliable revenue forecasts for the entire market as well as its individual sub-segments. This data is a valuable resource for stakeholders, enabling them to gain a comprehensive understanding of the competitive landscape and formulate effective market strategies for their businesses. Furthermore, the report serves as a channel for stakeholders to grasp the current state of the market, providing essential insights into market drivers, limitations, challenges, and growth opportunities. By incorporating these insights, stakeholders can make well-informed decisions and stay informed about the constantly evolving dynamics of the switchgear industry.

Analysis of key drivers: (modernization of power distribution infrastructure worldwide, rapid growth in renewable energy-based capacity expansion), restraints (Challenges of Spacing Requirements in Air Insulated Switchgear), opportunities (High capabilities of handling high voltages of HVDC system, Air-Insulated Switchgear Adoption in Infrastructure Development), and challenges (Operational Hurdles in High-Voltage Air Insulated Switchgear Systems, Intense competition from unorganized sector) influencing the growth of the AIS market.

Product Development/ Innovation: The AIS market is in a constant state of evolution, with a primary focus on product development and innovation. Leading industry players like ABB, Siemens, Schneider Electric, and General Electric are at the forefront of advancing their product offerings to address shifting demands and environmental considerations. There is a notable shift towards enhancing the intelligence of AIS.

Market Development: The AIS market is experiencing significant growth and development driven by various factors. the growing demand for integrating renewable energy sources is driving the expansion of the HVDC market, consequently increasing the demand for AIS. With wind and solar energy sources becoming more widespread, there is a growing need for efficient and reliable power transmission systems. HVDC systems offer a suitable solution by efficiently transmitting large amounts of power over long distances with minimal energy losses, thereby facilitating the integration of renewable energy sources into the grid. Additionally, the development of innovative technologies such as hybrid switchgear, which combines the strengths of AIS and GIS (Gas Insulated Switchgear), is expected to drive the expansion of the AIS market. Hybrid switchgear combines the advantages of both AIS and GIS, including increased reliability, modular substation design, space efficiency, improved performance, easy installation, and reduced switching components. This technological advancement is particularly significant in renewable energy applications, where space utilization and reliability are critical factors.

Market Diversification: The AIS market is experiencing significant diversification, driven by a multitude of factors. The increasing focus on renewable energy sources and the modernization of power distribution systems also present opportunities for AIS in the infrastructure development industry. The aging grid infrastructure and the need for upgrades, replacements, or augmentations of existing, aging substations highlight the need for many new substations, where AIS is expected to represent a significant portion of these new substations.

Competitive Assessment: A comprehensive evaluation has been conducted to scrutinize the market presence, growth strategies, and service offerings of key players in the AIS market. These prominent companies include Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Siemens (Germany), General Electric (US), and others. This analysis provides in-depth insights into the competitive positions of these major players, their approaches to driving market growth, and the range of services they offer within the AIS segment.