Air Insulated Switchgear Market: Current Analysis and Forecast (2021-2027)

The air insulated switchgear is a secondary power distribution device that redistributes the power of a primary power distribution device that is powered by a high voltage distribution transformer. The global air insulated switchgear market is expected to grow at a CAGR of ~5% from 2021 to 2027. Increasing expenditure in electrical networks and low capital investment of switchgear are major factors driving the market. In addition, power utilities are focusing on substation and switchgear technologies that require less space and have a lower outage due to an increased emphasis on conserving and ensuring uninterrupted power supply. Thus, creating demand for advance air insulated switchgear.

Moreover, surging consumption of electricity in developing countries are escalating the adoption smart grid coupled with increasing need to upgrade existing infrastructure has positively influenced the market growth. In 2021, China witnessed an increase in electricity demand of 10%. This was mainly led by industrial sector such as cement, and construction, steel and other metals, among others.

Based on voltage level, the market is bifurcated into Low Voltage, Medium Voltage, and High Voltage. Among these, high voltage category to witness fastest-growth during the forecast period owing to expansion of power transmission and distribution (T&D) infrastructure in order to achieve high rates of electricity access in both developing and underdeveloped nations.

Based on end-user, the market is categorizes into Power Utilities, Industrial, and Commercial and Residential. In 2020, Power utilities category accounted for the majority share in the market. The growth of the category is mainly due to the growing regulations towards energy efficiency, upgradation & modernization of aging infrastructure for safe & secure electrical distribution systems, and increasing rate of industrialization and urbanization.

For a better understanding of the market adoption of Air Insulated Switchgear, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia Pacific constitutes the largest market for the industry and generated revenue of USD XX billion in 2020. Countries such as China and India are among the major countries considered as the main manufacturing hub for switchgears. Increasing electricity generation and consumption, along with the changing power generation industry dynamics, are expected to be the major drivers for the T&D network growth, which, in turn, is expected to drive the air insulated switchgear market, during the forecast period. Furthermore, growing investments in the renewable energy sector and the aging power infrastructure are expected to offer huge business opportunities for the market players in the coming years.

Some of the major players operating in the market include ABB Ltd., Siemens AG, Schneider Electric SE, Larsen & Toubro Limited, Alfanar Group, Eaton Corporation PLC, Wenzhou Unisun Electric Co. Ltd., Mitsubishi Electric Corporation, Elatec Power Distribution GmbH, and Tavrida Electric.