The Global Automatic Transfer Switch Market size is expected to reach $1.5 billion by 2030, rising at a market growth of 10.2% CAGR during the forecast period.
The International Trade Administration (ITA) says that Canada is one of the best places in the world to use clean, renewable energy. In 2019, about 65% of all the power made came from hydro, wind, solar, and other sources like biomass, geothermal, and marine/tidal wave energy. Therefore, the North America region would acquire 1/5th revenue in 2030. Many businesses and factories also have backup power systems if the main power goes out. The market may also proliferate because of the growth of ICT (information and communication technology), which needs a steady power source. Many more automated factories and smart buildings with built-in automation systems are being used in this region. These systems include AT switches and other related goods like PLCs, sensors, actuators, controllers, etc. Some of the factors impacting the market are continuous growth of uninterrupted power applications, growing usage of microgrid networks, and impact of regulatory standards on ATS designs.
Many countries have power outages because power grids are stressed due to rising population, rising energy demand, and old power equipment. Power outages hurt end users, making it harder for utilities to make money and widening the gap between supply and demand. Unexpected power blackouts and brownouts have made people want backup power sources like generators and UPS systems that work well and are reliable. Additionally, one of the main things driving the rise of the market is the rising popularity of microgrids. There are also more commercial and residential units in rural places, which puts more stress on the utility. A lot of different loads can get stable and long-lasting power from microgrids. In turn, this will help the demand for es grow. Therefore, the increasing popularity of microgrids is positively affecting the growth of automatic transfer switches.
However, Various international and regional electrical commissions regulate the market, and all ATS products that enter the market are subjected to stringent regulations. As the technical and manufacturing standards vary from country to country, it spells additional costs for the manufacturers in designing different architecture based on the country's requirements. Every automatic transfer switch must have a short circuit withstand and close-on rating (WCR). Certification delays can slow product development and time-to-market, making it difficult for manufacturers to respond quickly to changing customer needs and market demands. Therefore, such factors will impede the market's growth during the forecast period.
Based on the end-use, the market is categorized into residential, commercial, and industrial. In 2022, the residential segment gained the maximum revenue share in the market. The segment is growing due to improvements in domestic transfer switches, which include many smart, intelligent, and easy-to-use features. A transfer switch can be used for just a few circuits or the whole house for homes with backup generators. The delay function, as well as generator signal input, also set the stage for smart handling of the generator when it is used as a backup power source. Another thing that the fire safety signal input of ATS does is meet the requirements for fireproof home buildings.
On the basis of transition mode, the market is segmented into open, soft load, closed, and delayed. In 2022, the closed segment gained the highest revenue share in the market. In this mode, the switch will stay in touch with both power sources (grid and generator) until a stable link is made. The connection is usually kept for about a tenth of a second, so there is no real risk of backfeeding or dangerous overlap. Businesses that can't risk a short power outage often use these instead of open-transfer switches because they don't stop the power. Large companies, hospitals, data centers, and similar places fall into this category.
Based on the switching mechanism, the market is divided into contractor and circuit. The circuit segment acquired a noteworthy revenue share in the market in 2022. Circuit switching mechanisms are known for their reliability in providing a stable and uninterrupted power supply. By automating the transfer process, ATS helps prevent power disruptions that could affect sensitive equipment and critical processes in various industries. Many ATS systems with circuit switching mechanisms are designed to integrate with advanced monitoring and control systems. This integration allows for real-time monitoring of power conditions and facilitates proactive measures to address potential issues before they lead to power failures.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 691.7 Million |
| Market size forecast in 2030 | USD 1.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 10.2% from 2023 to 2030 |
| Number of Pages | 240 |
| Number of Table | 350 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Switching Mechanism, Transition Mode, End-Use, Region |
| Country scope |
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| Companies Included | General Electric Company, Siemens AG, Generac Holdings, Inc., ABB LTD., Kohler Co., Schneider Electric SE, Caterpillar, Inc., Cummins, Inc., Eaton Corporation PLC, Vertiv Holdings Co. |
| Growth Drivers |
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| Restraints |
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On the basis of region, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region gained the highest revenue share in the market. The Asia-Pacific region became the biggest player in the market for automatic transfer switches, bringing in a lot of money and likely to stay there for a while longer. The Asia-Pacific market has a lot of room for growth in the ATS business. This is because new markets like China, India, and Southeast Asian countries are growing their economies very quickly. Also, more money is being put into renewable energy sources in the region. This will open up new possibilities for the market.
Free Valuable Insights: Global Automatic Transfer Switch Market size to reach USD 1.5 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Electric Company, Siemens AG, Generac Holdings, Inc., ABB LTD., Kohler Co., Schneider Electric SE, Caterpillar, Inc., Cummins, Inc., Eaton Corporation PLC, Vertiv Holdings Co.
By Switching Mechanism
By End-Use
By Transition Mode
By Geography
This Market size is expected to reach $1.5 billion by 2030.
Continuous growth of uninterrupted power applications are driving the Market in coming years, however, Impact of regulatory standards on ATS designs restraints the growth of the Market.
General Electric Company, Siemens AG, Generac Holdings, Inc., ABB LTD., Kohler Co., Schneider Electric SE, Caterpillar, Inc., Cummins, Inc., Eaton Corporation PLC, Vertiv Holdings Co.
The expected CAGR of this Market is 10.2% from 2023 to 2030.
The Contactor segment is leading the Market by Switching Mechanism in 2022; thereby, achieving a market value of $1.3 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022 and would continue to be a dominant market till 2030; thereby, achieving a market value of $575 Million by 2030.
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