Air Insulated Switchgear Market 2030: The Future of Grid Modernization

Air Insulated Switchgear Market: Trends, Insights, and Forecast (2024-2030)

The global air insulated switchgear (AIS) market was valued at USD 68.26 billion in 2024 and is projected to reach USD 89.24 billion by 2030, expanding at a compound annual growth rate (CAGR) of 4.6% from 2025 to 2030. The growth of the AIS market is driven primarily by increasing investments in power infrastructure, especially in emerging economies where electrification and urbanization are rapidly accelerating.

As governments and utilities across the world focus on modernizing and expanding electricity networks, the demand for reliable, cost-effective switchgear solutions such as AIS is rising. Additionally, the growing emphasis on integrating renewable energy and modernizing grids is further enhancing the demand for AIS, particularly in regions undergoing significant infrastructure upgrades.

AIS is favored for its affordability, ease of installation, and robustness in various environmental conditions, making it an essential component in both urban and rural electrification projects. Unlike gas-insulated switchgear (GIS), AIS offers the benefit of lower initial capital costs, which is particularly attractive for budget-sensitive projects and developing markets. However, AIS's larger footprint and vulnerability to environmental factors such as pollution and moisture require innovations to improve its performance and durability, especially in challenging environments.

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Key Market Trends & Insights:

• North America's Dominance: The air insulated switchgear market in North America is experiencing strong demand, largely driven by ongoing grid modernization initiatives and the integration of renewable energy sources. The U.S. leads the market in this region.
• Outdoor Installation Growth: The outdoor installation segment of the AIS market is anticipated to grow at the fastest CAGR between 2024 and 2030. This growth can be attributed to the increasing demand for outdoor AIS solutions in large-scale infrastructure projects and renewable energy integrations.
• Transmission & Utilities Application: The transmission and utilities application segment captured the largest revenue share in the air insulated switchgear market in 2024. This is due to the critical role AIS plays in ensuring the efficient operation and reliability of power transmission and utility systems.
• High Voltage Dominance: The high voltage segment held the largest revenue share in the AIS market in 2024. High voltage switchgear is essential for power distribution and transmission networks, where reliability and safety are critical.

Market Size and Forecast:

• 2024 Market Size: USD 68.26 billion
• 2030 Projected Market Size: USD 89.24 billion
• CAGR (2025-2030): 4.6%
• Largest Market (2024): North America

Key Air Insulated Switchgear Companies:

Some of the leading players in the air insulated switchgear market include:

• Siemens: A prominent provider of AIS solutions, Siemens offers a comprehensive range of products for both indoor and outdoor applications. The company places a strong emphasis on innovation and sustainability, with a focus on developing AIS technologies tailored to modern power grid demands.
• ABB: A key player in the AIS market, ABB boasts an extensive portfolio of products and services. The company has a robust presence in emerging markets, where it leverages its expertise to support the expansion of power infrastructure.
• Schneider Electric: Known for offering innovative, efficient, and reliable solutions, Schneider Electric focuses on smart grid technologies and digitalization, which are driving the demand for advanced AIS solutions globally.

Other notable players in the market include:

• General Electric
• Toshiba
• Alfanar Group
• Hitachi Energy
• Eaton Corporation
• Mitsubishi Electric Corporation
• Hubbell
• Larsen & Toubro Limited
• ELATEC POWER DISTRIBUTION GmbH

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Conclusion:

The air insulated switchgear market is poised for steady growth, driven by the global focus on upgrading power infrastructure, the transition to renewable energy, and the modernization of electrical grids. AIS, with its affordability and ease of installation, remains a key solution, particularly in emerging markets. While challenges related to its larger footprint and environmental exposure exist, ongoing innovations are expected to enhance its performance and durability. North America remains the dominant market, and the rising demand for outdoor installations and high-voltage systems underscores the growing importance of AIS in meeting the energy demands of the future.