AC Industrial Switchgears

Global AC Industrial Switchgears Market to Reach US$37.1 Billion by 2030

The global market for AC Industrial Switchgears estimated at US$26.3 Billion in the year 2024, is expected to reach US$37.1 Billion by 2030, growing at a CAGR of 5.9% over the analysis period 2024-2030. Low Voltage, one of the segments analyzed in the report, is expected to record a 6.7% CAGR and reach US$19.2 Billion by the end of the analysis period. Growth in the Medium Voltage segment is estimated at 5.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.2 Billion While China is Forecast to Grow at 9.4% CAGR

The AC Industrial Switchgears market in the U.S. is estimated at US$7.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.6 Billion by the year 2030 trailing a CAGR of 9.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.8% and 5.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.9% CAGR.

Global AC Industrial Switchgears Market - Key Trends & Drivers Summarized

Why Is Demand for AC Industrial Switchgears Growing Across Various Industries?

The global AC industrial switchgear market is experiencing steady growth, driven by increasing industrialization, expanding power distribution networks, and the demand for reliable electrical infrastructure. AC switchgears play a critical role in controlling, protecting, and isolating electrical circuits in industrial environments, ensuring smooth power distribution and system safety. With industries ranging from manufacturing and oil & gas to utilities and data centers requiring high-performance switchgear solutions, the market is witnessing heightened demand for both low-voltage (LV), medium-voltage (MV), and high-voltage (HV) AC switchgear systems.

One of the key market trends is the transition toward eco-friendly and smart switchgear solutions. Traditional switchgear, which often relies on sulfur hexafluoride (SF6) gas as an insulating medium, is being replaced with alternatives due to SF6’s high global warming potential. Market players are actively developing SF6-free switchgear that utilizes vacuum or solid dielectric insulation technologies, aligning with global sustainability goals. Additionally, the adoption of smart switchgear with integrated monitoring and diagnostics is increasing, enabling predictive maintenance and real-time operational insights. These advancements are optimizing energy efficiency, reducing operational costs, and enhancing grid resilience in industrial applications.

How Are Technological Advancements Reshaping AC Industrial Switchgear?

The AC industrial switchgear landscape is evolving rapidly due to advancements in automation, digitalization, and material innovations. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) is revolutionizing switchgear operations, allowing for remote monitoring, predictive maintenance, and self-healing grid capabilities. IoT-enabled switchgear can detect anomalies such as overheating, voltage fluctuations, and insulation failures in real time, preventing potential system failures and costly downtime. AI-powered analytics further enhance operational efficiency by predicting failures before they occur, ensuring proactive maintenance strategies.

Another major technological shift is the growing adoption of hybrid and solid-state switchgear systems. Hybrid switchgear combines the benefits of both air-insulated and gas-insulated switchgear (GIS), offering compact designs with enhanced safety and efficiency. Solid-state switchgear, on the other hand, eliminates the need for mechanical components, reducing maintenance requirements and improving response times in fault conditions. Furthermore, advancements in arc-flash mitigation technology are enhancing switchgear safety by reducing the risk of electrical hazards in high-voltage industrial environments. These technological innovations are redefining the way industrial facilities manage power distribution and protection.

Which End-Use Industries Are Driving Switchgear Deployment?

The deployment of AC industrial switchgear spans a wide range of industries, each with unique requirements for power management and safety. The manufacturing sector is one of the largest consumers of switchgear, as factories and processing plants require reliable power distribution to operate heavy machinery and automation systems. The increasing adoption of Industry 4.0 technologies, such as robotics and smart manufacturing, is further fueling demand for advanced switchgear solutions with real-time monitoring and control capabilities.

The energy and utilities sector is another key growth area, with power generation plants, substations, and renewable energy installations integrating modern switchgear for grid stability and protection. The expansion of renewable energy sources such as wind and solar is driving the need for switchgear that can handle variable loads and ensure grid reliability. Additionally, industries such as oil & gas, mining, and chemical processing rely on explosion-proof and ruggedized switchgear solutions to operate safely in hazardous environments. Data centers and telecom infrastructure also represent a growing market, as the increasing demand for cloud computing and 5G networks requires uninterrupted power supply and fault-tolerant switchgear systems.

What’s Driving the Growth of the AC Industrial Switchgear Market?

The growth in the AC industrial switchgear market is driven by several factors, including increasing industrial automation, renewable energy integration, and the rising demand for smart electrical distribution systems. One of the primary growth drivers is the expansion of industrial and commercial infrastructure, particularly in emerging economies where urbanization and electrification projects are accelerating. Governments and private investors are investing heavily in power transmission and distribution networks, creating a robust demand for reliable switchgear solutions.

The push towards energy efficiency and sustainability is also a major factor fueling market expansion. With industries and utilities aiming to reduce carbon footprints, the adoption of energy-efficient switchgear systems with minimal environmental impact is rising. The transition towards SF6-free and solid-state switchgear technologies aligns with global regulations targeting greenhouse gas emissions reduction. Additionally, the integration of smart grids and digital substations is propelling the need for intelligent switchgear that can enable real-time monitoring, remote diagnostics, and automated fault detection.

Another significant growth driver is the increasing frequency of power outages and grid instability due to climate change and aging electrical infrastructure. Industrial facilities are investing in resilient switchgear solutions to prevent downtime and maintain operational continuity. The rise of decentralized energy systems, microgrids, and distributed power generation is further boosting the demand for advanced switchgear capable of managing complex power flows. As technology continues to evolve and regulatory frameworks support modernized power systems, the AC industrial switchgear market is poised for sustained growth, playing a pivotal role in ensuring safe and efficient electrical distribution across industries.

 

SCOPE OF STUDY:

The report analyzes the AC Industrial Switchgears market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Voltage (Low Voltage, Medium Voltage, High Voltage); Insulation Type (Air Insulation, Gas Insulation, Vacuum Insulation, Other Insulation Types)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 48 Featured) -

• ABB Ltd.
• CG Power & Industrial Solutions Ltd.
• CNC Electric Group Co., Ltd.
• Eaton Corporation
• Fuji Electric Co., Ltd.
• HD Hyundai Electric Co. Ltd.
• Hitachi Energy Ltd.
• Hyosung Heavy Industries
• Lucy Electric Ltd.
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Secheron SA
• Siemens AG
• Toshiba Corporation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

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INDIA
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