Air Insulated Switchgear Market size was valued at USD 67.84 billion in 2024 and is likely to reach USD 124.79 billion by the end of 2037, registering around 4.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of air insulated switchgear is assessed at USD 70.45 billion.
The growing accentuation on energy effectiveness is the primary driver that will mainly help to grow the air insulated switchgear market in its expected CAGR. In 2023, international momentum will focus on doubling the rate of effectiveness advancement to a 4% accumulated pace, which could cut today’s energy bills in developed countries by one-third and make up 50% of CO2 cutbacks by 2030.
Another factor that will substantially drive the expansion of the air insulated switchgear market in the forecast period is the excessive demand for electricity in developed countries. For instance, China is hoping to record usage of both power and gas in the winter of 2023/24, but supplies should be sufficient, with only localized deficiencies, as an outcome of major fuel gathering over the summer months. According to the National Energy Administration (NEA) prediction on October 31, 2023, the maximum electricity demand may rise by as much as 140 million kilowatts (12%) related to winter 2022/23. Despite huge increases in the amount of wind and solar capacity installed since the start of the year, coal-fired power plants have still played a critical role in meeting growth in electricity consumption. Total generation rose by 5% or 375 billion kilowatt hours (kWh) in the first ten months of the year related to the same period in 2022. But more than three-quarters of the advancement was met by thermal generators (289 billion kWh), most of which burning coal.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
∼4.8% |
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Base Year Market Size (2024) |
∼USD 67.84 Billion |
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Forecast Year Market Size (2037) |
∼USD 124.79 Billion |
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Regional Scope |
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Voltage (Medium {> 3 kV to ≤ 36 kV}, High {> 36 kV}, Low { 1 (kV)})
The medium {> 3 kV to ≤ 36 kV} segment is projected to account for 40% share of the global air insulated switchgear market during the forecast period owing to its usage in different fields. As this medium voltage can maintain a secure voltage all the time this segment of air insulated switchgear is being used widely in different sectors. For instance, Siemens NXAirS 550 + air insulated switchgear is broadly used in areas that have high demands for low space-taking installations, like data centers, marine and harbor, buildings, etc. Its receptive blend with Siemens classical NXAirS Series switchgear can better match the rising demands of varied switchgear typicals and extensibility. Moreover, Siemens NXAirS air insulated switchgear includes a busbar, switching device, link, and low-voltage compartment. The switchgear’s structure and compartments are metallic sealed. Shutters and divisions are earthed. Every compartment is metal-clad in a pressure-immune pattern to enhance the operator’s protection. Moreover, the usage of Medium voltage switchgear is diversified.
Application (Residential, Commercial & Industrial, Utility)
The residential air insulated switchgear market is estimated to hold around 42% of the revenue share by the end of 2037. This growth will primarily be propelled by the excessive use of substations in the residential areas. AIS residential substations fit for smaller substations and mainly H-type single-line diagrams can be understood in a very affordable manner. A h-type single-line diagram is very usual for larger towns or smaller cities where the substation is part of a ring, with a voltage of about 145 kV, across the town. With all 145 kV basic contacts embedded and the entire switchgear placed indoors, an arc is very unlikely to emerge but cannot be outruled. 145 kV switchgear room is thus armed with hatches that will open in case of an arc.
Our in-depth analysis of the global air insulated switchgear market includes the following segments:
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Voltage |
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Application |
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End-User |
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APAC Market Statistics
The air insulated switchgear market in the Asia Pacific region is projected to encounter the highest growth during the forecast period. It will hold almost 38% revenue share owing to the rising concentration on conserving and making nonstop power supply. For instance, on February 28, 2020, at the time of the Huawei Industrial Digital Transformation Conference 2020, Huawei formally released its all-new UPS （Uninterruptible Power Supply) power module internationally. The product offers the power density of a single module to touch 100 kW/3 U, twice that of industry standards. Increasing prevalence throughout countries like China of more responsive electronic products which are lightly hampered by power outages, spikes, and other power differences is increasing the nonstop power supply in the APAC region.
North American Market Analysis
The North America air insulated switchgear market is set to witness massive growth during the forecast period and holds the second position with a revenue share of almost 25% owing to their increasing investment in energy infrastructure. To illustrate, on January 30, 2023, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack exclaimed that the Department is spending USD 2.7 billion to assist 64 electric communes and utilities (PDF, 175 KB) in growing and updating the nation’s rural electric grid and enhance grid protection. Moreover, the loans comprise USD 613 million to assist rural utilities and communes in installing and modernizing smart grid technologies. A smart grid can be a motivation for broadband and other telecommunications services in disfavoured and underserved rural places in addition to modifying grid protection and trustworthiness.
Author Credits: Abhishek Verma
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