AI-Based Electrical Switchgear Market size was valued at USD 25.06 billion in 2023 and is expected to exceed USD 55.45 billion by 2036, expanding at over 6.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of AI-based electrical switchgear is assessed at USD 26.32 billion. The increasing adoption of smart grid technologies, along with the growing demand for AI-based power distribution and energy monitoring systems, are expected to fuel the progress of this market. AI-based grids use the inbuilt computer technology to perform various functions like running system diagnostics, electric power fire, and demand predictions. Moreover, the AI-based electrical switchgear is expected to grow owing to its relative benefits like avoiding blackouts and failure of the equipment. The growth of the market can also be attributed to factors such as the ability to provide improved control, protection and continuous & reliable electricity supply. According to the data collected from International Energy Agency (IEA), the total energy production between 1990 and 2018 increased in the U.S. from 3200 TWh to 4430 TWh and in China from 621.27 TWh to 7150 TWh. Also, China is the world’s largest power-consuming country, followed by U.S. and India. The expansion of critical sectors like telecom, railways, airports, and ports, is projected to increase the power demand, thereby contributing to the AI-based electrical switchgear market growth.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
6.3% |
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Base Year Market Size (2023) |
USD 25.06 billion |
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Forecast Year Market Size (2036) |
USD 55.45 billion |
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Regional Scope |
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The AI-based electrical switchgear market is segmented on the basis of installation into indoor, and outdoor, out of which, the outdoor segment is anticipated to grab the largest share by the end of 2021, on account of the high rate of adoption of AI-based electrical switchgear in the transmission & sub-transmission sector. Moreover, there has been a significant growth of transmission & distribution utility sector in developing countries, which is also projected to contribute to the growth of the segment during the forecast period.
On the basis of end-user, the transmission & distribution utilities segment in the market is projected to grow with a significant CAGR over the forecast period. The growth of the segment can be attributed to the increasing use of AI-based electrical switchgear in the transmission & distribution utilities for power generation, transmission, and distribution, on a global level.
Our in-depth analysis of the global market includes the following segments:
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Installation |
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End-User |
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Geographically, the AI-based electrical switchgear market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa region. The market in the Asia Pacific is poised to hold largest revenue share by 2036, owing to growth of many smart cities in the countries of the region which require AI-based electrical switchgear infrastructure on roads and buildings on a large scale. Furthermore, in 2021, the market in North America is evaluated to occupy the largest share in terms of revenue, owing to the increasing investments in commercial and industrial sector, accompanied by the early adoption of advanced technologies. Along with this, North America also leads in terms of favourable regulatory environment for approval of AI-based technological solutions, which is also expected to contribute to the AI-based electrical switchgear market growth in the region.
March 2020: Signify announced that it has successfully acquired Cooper Lighting Solutions from Eaton. The acquisition would help Signify to strengthen its offerings in North America.
Author Credits: Abhishek Verma
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