The Air Insulated Switchgear Market is to Touch $89.1 Billion by 2030; advancements in smart grid infrastructure and increasing investments in renewable energy integration propel market growth.

The Air Insulated Switchgear Market size is estimated to reach $89.1 billion by 2030, growing at a CAGR of 5.4% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Air Insulated Switchgear Market – By Installation (Indoor, Outdoor), By Voltage (Low Voltage, Medium Voltage, High Voltage), By Application (Transmission & Distribution, Manufacturing & Processing, Infrastructure & Transportation, Industrial Plants and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Growing demand for reliable energy distribution systems and rising urbanization driving infrastructure development are fueling the growth of the Air Insulated Switchgear industry during the forecast period.

Asia-Pacific emerged as the dominant region in the Air Insulated Switchgear (AIS) market in 2023 due to the extensive deployment of AIS systems in large-scale infrastructure and energy projects. The region’s emphasis on strengthening its electricity distribution networks supported this dominance. Several countries in APAC made strategic investments to enhance the reliability of their grid systems, ensuring minimal energy loss during transmission. The region also benefitted from the early adoption of AIS technology in renewable energy installations, particularly for solar and wind projects. Additionally, the presence of leading AIS manufacturers in countries such as China and Japan provided cost advantages and faster delivery times, giving APAC a competitive edge. These factors collectively positioned APAC as the market leader in 2023.

Rising global electricity demand and rapid urbanization are key drivers of the Air Insulated Switchgear (AIS) market. Urban population growth fuels the need for reliable power distribution networks, with AIS serving critical roles in circuit protection, switching, and control. Infrastructure projects for residential, commercial, and industrial facilities require robust AIS solutions for uninterrupted electricity supply. Developing regions, especially in Asia-Pacific and Africa, are experiencing significant urban expansion, spurring investments in grid modernization and AIS deployment. Additionally, the rise of smart cities and grid technologies enhances AIS adoption, ensuring optimized energy management and grid resilience. As urbanization accelerates and electricity consumption patterns evolve, AIS will remain essential for sustainable energy infrastructure.

The shift toward renewable energy integration and grid modernization is a key growth driver for the AIS market. Renewable sources like wind and solar require upgraded grid infrastructure to accommodate variable power generation and ensure stability. AIS systems provide reliable switching and protection capabilities critical for renewable energy integration in high and medium voltage applications. In 2021, global electricity demand surged by 4.5%, driven by emerging economies and industrial growth in regions like China, where electricity consumption rose by 10%. As governments worldwide prioritize decarbonization and clean energy targets, AIS solutions are increasingly deployed to enhance grid reliability and operational efficiency. These trends position AIS as a cornerstone of the energy sector's transformation. 

• In April 2024, Schneider Electric launched the EasySet MV air-insulated indoor switchgear, a compact, modular solution for medium voltage primary distribution. Featuring vacuum circuit breaker technology, it offers enhanced performance, easy operation, and reliable monitoring. The switchgear emphasizes sustainability, efficiency, and digital connectivity for optimized maintenance and minimal downtime.

• In October 2023, ABB unveiled the 500mm panel version of its UniGear ZS1 air-insulated MV switchgear at ADIPEC 2023. Designed for space-constrained environments, this sustainable solution incorporates asset health monitoring, enhances energy efficiency, and reduces carbon emissions, reflecting ABB’s commitment to safety, reliability, and the global energy transition.

Key companies profiled in the Air Insulated Switchgear Market are ABB Group, GE Grid Solutions, LLC, Siemens AG, Schneider Electric, Mitsubishi Electric Corporation, Eaton corporation, Toshiba, Hitachi Energy Ltd., Alfanar Group, Larsen & Toubro Limited and others.