Air Insulated Switchgear Market Size, Share, Trends, Industry Analysis, and Forecast (2025 – 2031)

Air Insulated Switchgear Market Size

The global air insulated switchgearmarket size was valued at $10.79 billion in 2025 and is projected to reach $18.10 billion by 2031, growing at a CAGR of 9.0% during the forecast period.

Air Insulated Switchgear Market Overview

Air Insulated Switchgear (AIS) is an essential component in the electrical power distribution and transmission system, providing a reliable and efficient means to manage and protect electrical circuits from overloads and faults. AIS operates in open air, utilizing air as the insulating medium, which makes it particularly advantageous for applications requiring high voltage and robust safety features.

Companies can benefit significantly from AIS through its ability to enhance grid reliability and resilience, especially in the context of increasing electricity demand and the integration of renewable energy sources. The growing trend towards smart grid technologies further amplifies these benefits by enabling real-time monitoring and automation, which reduces maintenance costs and improves operational efficiency. Additionally, as governments worldwide prioritize infrastructure upgrades and renewable energy projects, the demand for AIS is expected to rise, providing companies with lucrative opportunities for growth. The market for AIS is projected to expand at a compound annual growth rate (CAGR) of over 8% from 2024 to 2032, driven by these trends, which underscores the strategic importance of investing in advanced switchgear solutions for companies operating within the energy sector.

Air Insulated Switchgear Market Dynamics

The air insulated switchgearmarket is expected to witness significant growth in the future due to the increasing demand for electricity, aging electrical infrastructure, and rising investments in rural electrification and power transmission projects. However, the high initial costs, maintenance challenges leading to increased operational expenses, and slow technological innovation hindering the adoption of advanced systems are restraining the growth of the market.

Furthermore, growth in smart grid initiatives enhances the demand for reliable power distribution, significant investments in renewable energy integration, particularly solar and wind, and expansion of micro-grid networks facilitating localized energy solutions are the key trends propelling the air insulated switchgearmarket.

Increasing Demand for Electricity is Driving the Air Insulated Switchgear Market

The increasing demand for electricity is significantly impacting the air insulated switchgearmarket, by rapid urbanization and industrial expansion, which necessitates robust electrical infrastructure, thereby increasing the demand for AIS solutions.

In response to this growing demand, companies are launching innovative products.

• For example, ABB introduced the UniGear ZS1 switchgear in 2023, designed for medium-voltage applications in space-constrained environments, which enhances energy distribution efficiency while minimizing environmental impact through the use of recyclable materials.
• Additionally, Siemens expanded its sustainable offerings with a new 24kV primary distribution system in October 2023, aimed at improving energy efficiency and reliability in power distribution networks.

Government initiatives also play a crucial role; many nations are investing heavily in upgrading their electrical grids to support renewable energy integration and meet rising electricity demands. For instance, the U.S. market alone is expected to surpass USD 2.5 billion by 2032, driven by infrastructure modernization efforts and the transition towards renewable energy sources. These developments collectively illustrate how the increasing demand for electricity is positively influencing the AIS market through enhanced product offerings and strategic government investments.

By Application, the Transmission and Distribution Segment is projected to be the Largest Segment in the Air Insulated Switchgear Market

Transmission and Distribution is the largest segment in the air insulated switchgearmarket, driven by the need for reliable and efficient electrical infrastructure to support growing electricity consumption.

• As of 2023, the transmission and distribution market accounted for approximately 35.6% of the AIS market share, reflecting the critical role that AIS plays in ensuring safe power distribution from generation sources to end-users.
• For example, in 2023, Siemens launched its new 8DJH 12 switchgear, designed specifically for medium-voltage applications in urban environments, which enhances operational efficiency while integrating renewable energy sources into existing grids.
• Similarly, ABB has been actively involved in modernizing electrical infrastructure; in 2024, they announced a partnership with the Indian government to upgrade transmission networks, focusing on integrating renewable energy projects that require robust switchgear solutions.

Additionally, the Asia-Pacific region is witnessing substantial investments in electrification, with countries like India planning to invest over USD 20 billion by 2025 to enhance their power distribution systems. This trend is further supported by government initiatives aimed at promoting smart grid technologies, which are essential for managing increased electricity loads and integrating various energy sources effectively. The combination of these factors illustrates how the rising demand for electricity is propelling growth in the AIS market within the transmission and distribution sector.

By Geography, North America Holds the Largest Share in the Market Revenue

North America holds the largest share of the air insulated switchgearmarket, driven by several factors, including the need for modernization of aging electrical infrastructure and the integration of renewable energy sources into the grid.

• For instance in November 2021, The U.S. government has been proactive in supporting infrastructure upgrades, with initiatives like the Infrastructure Investment and Jobs Act, which allocates USD 65 billion to enhance the nation’s power infrastructure, including transmission and distribution systems.

This funding is essential for utilities to replace outdated equipment with advanced technologies like AIS, which provide improved safety and reliability.

• Companies such as Schneider Electric have responded by launching innovative products tailored for this market; in 2023, they introduced the EcoStruxure Power solution, which integrates AIS into smart grid applications to optimize energy management.
• Additionally, Siemens has made significant strides in this sector, announcing a partnership with various state governments in 2022 to deploy their latest 8DJH switchgear, designed for urban environments and capable of supporting increased electricity loads from distributed generation sources.

Furthermore, the growing emphasis on sustainability and energy efficiency is prompting utilities across North America to adopt AIS solutions that not only meet current demand but also facilitate the transition to cleaner energy sources. This combination of government support, corporate innovation, and rising electricity needs underscores the robust demand for AIS in North America’s transmission and distribution segment.

Key Target Audience:

• Government Utility Providers
• Independent Power Producers
• Air Insulated Switchgear Manufacturers
• Consulting Companies in the Energy & Power Sector
• Distribution Utilities
• Government and Research Organizations

List of the Key Players Profiled in the Report Includes:

• ABB
• General Electric
• Siemens
• Schneider Electric
• Eaton Corporation
• Larsen & Toubro
• Toshiba
• Alfanar Group

Recent Developments:

• In October 2023, GE announced the launch of its new Grid Solutions portfolio, which includes advanced air-insulated switchgear designed to enhance grid reliability and support renewable energy integration. This launch is part of GE's commitment to modernizing electrical infrastructure across North America.
• In August 2023, Siemens introduced its new 8DJH 12 air-insulated switchgear for medium-voltage applications, emphasizing its compact design and enhanced safety features. This product aims to meet the growing demand for efficient power distribution in urban settings.
• In September 2023, Schneider Electric launched its latest EcoStruxure Power solution, which integrates air-insulated switchgear with digital monitoring capabilities. This innovation is aimed at improving energy management and operational efficiency for industrial applications.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Installation:

• Indoor
• Outdoor

Market by, Voltage:

• Low
• Medium
• High

Market by, Application:

• Commercial
• Transmission & Distribution Utilities
• Industrial
• Residential
• Transportation
• Other Applications

Market by, Geography:

The air insulated switchgearmarket report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.