Global Transfer Switch Market Size, Share & Industry Trends Analysis Report By End Use (Residential, Industrial, and Commercial), By Type, By Transition Mode (Closed, Open, Soft Load, and Delayed), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Transfer Switch Market
Market Report Description
The Global Transfer Switch Market size is expected to reach $2.2 billion by 2028, rising at a market growth of 6.7% CAGR during the forecast period.
An electrical switch known as a transfer switch is utilized to switch a load between two sources. While some transfer switches are automatic and activate when they detect that one of the sources has lost or acquired power, others are manual, requiring an operator to physically flip a switch to make the transfer.
An electromechanical device, a transfer switch, is used to mechanically or electronically switch the load between two power sources. To ensure a constant supply of power, it offers a quick transition between several power sources. Manual transfer switches must be flipped manually to restore power, which requires access to a generator or other power source.
Automatic transfer switches (ATS), on the other hand, do not require an external input and may switch over quickly to generator power in the event of a power outage. These switches are more cost-effective, safer, and more reliable while also operating with less risk. These switches are widely used in commercial and industrial contexts including factories, warehouses, hospitals, and schools where a constant power source is required.
Based on the voltage being monitored on the primary supply, an automatic transfer switch may instruct the backup generator to start in addition to shifting the load to it. When the backup generator is running and producing momentary electricity, the transfer switch isolates it from the electric grid. A transfer switch's control capabilities might be either entirely manual or both manual and automatic.
A transfer switch's switch transition mode can be either Open Transition, which is the more common form, or Closed Transition. For instance, in a house with a backup generator and an ATS, the automatic transfer switch will signal the backup generator to turn on when there is an electric utility interruption. The ATS disconnects the home from the electricity company and connects the generators to the main electrical panel of the house once it determines that the generator is prepared to supply electricity.
COVID-19 Impact Analysis
The transfer switch market is projected to have financial disruptions as a result of the lack of business continuity, which has ensured major negative effects on revenues and shareholder returns. Emerging nations control the majority of both manufacturers and customers on the market. The disruption of the electronics value chain in 2019 was caused by China's curtailed supply chain activities, which had a substantial impact on businesses around the world. Additionally, the coronavirus outbreak forced governments around the world to implement lockdown measures that decreased sales and manufacturing revenue, which in turn significantly affected the economy.
Market Growth Factors
The Rapid Pace Of Industrialization And Urbanization
People are widely urbanizing in this era of fast modernization adoption. The adoption of the most cutting-edge and innovative technologies in rural or underdeveloped areas is steadily rising. A substantial number of structures, including residential buildings and commercial infrastructures, are being built over a sizable area as a result of the rapid spread of urbanization around the world. Additionally, a sizable number of individuals are moving from rural to urban areas, necessitating the installation of more residences and transfer switches across them. This is because operating these lights, lamps, and other electronic devices calls for controls.
Suitable For More Difficult-To-Reach Generators And For Switching To Generator Power Quickly
A side from the necessity of preserving a steady supply of electricity, an automatic switch provides the fastest means to transition from utilities feed to generator feed. Businesses can let the switchover happen automatically rather than looking for manual switches after the lights go out, which is the only situation that completely shields a facility from the observable impacts of a power outage and enables the business to function normally. Operating a manual switch might not be a hassle if users own a small business where the generator is in a convenient utility room.
Market Restraining Factors
Switches' Technical Issues And The Requirement For Expert Installation
It takes time to replace a fuse that blows out because of an overload or short circuit. During this moment, the circuit's power is turned off. When fuses are connected in series, it might be difficult to tell them apart unless there is a significant size difference. The lighting control technology is too intricate and complex for a layperson to utilize. Since skilled specialists are needed for effective installation, in addition to increasing the cost, this might provide significant difficulties because it may be difficult to find a specialist.
Based on Type, the Transfer Switch Market is divided into Automatic, and Manual. The automatic segment witnessed a significant revenue share in the transfer switch market in 2021. This is due to the fact that automated transfer switches offer dependable vital load connections among primary and backup electrical sources. Automatic transfer switches permit functioning without supervision.
Transition Mode Outlook
On the basis of Transition Mode, the Transfer Switch Market is classified into Soft Load, Closed, Delayed, and Open. The closed segment procured the largest revenue share in the transfer switch market in 2021. When switching from one available source to another in an emergency system that uses open transition, there is a natural brief interruption of power to the load. Most of the time, this outage is insignificant, especially if it lasts less than 1/6 of a second.
End use Outlook
By End use, the Transfer Switch Market is segmented into Industrial, Commercial, Residential. The residential segment garnered the highest revenue share in the transfer switch market in 2021. It is due to the fact that advancements in residential transfer switches now include several smart, intelligent, and user-friendly capabilities. A transfer switch may be used for the entire house or just a few circuits in homes with standby generators.
|Market size value in 2021||USD 1.4 Billion|
|Market size forecast in 2028||USD 2.2 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 6.7% from 2022 to 2028|
|Number of Pages||216|
|Number of Tables||354|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Transition Mode, End Use, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region-wise, the Transfer Switch Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment acquired the largest revenue share in the transfer switch market in 2021. It is because this nation is being driven by rapid industrialization. Additionally, China is home to some of the biggest transfer switch producers in the world. Since the majority of industrial end users depend on continuous power, the requirement for the installation of transfer switches is especially apparent in this industry.
Free Valuable Insights: Global Transfer Switch Market size to reach USD 2.2 Billion by 2028
KBV Cardinal Matrix - Transfer Switch Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Siemens AG is the forerunner in the Transfer Switch Market. Companies such as ABB Group, Schneider Electric SE and Cummins Inc. are some of the key innovators in Transfer Switch Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, Schneider Electric SE, ABB Group, General Electric (GE) Co., Generac Holdings, Inc., Cummins, Inc., Caterpillar, Inc., Emerson Electric Co., Eaton Corporation PLC, and Kohler Co.
Strategies deployed in Transfer Switch Market
» Partnerships, Collaborations and Agreements:
- Jul-2022: Siemens Smart Infrastructure came into a partnership with Esri, the global leader in geographic information systems and location intelligence. Together the companies aimed to improve their abilities for the operations, planning, and supervision of power networks at grid operators by integrating Esri’s powerful mapping and spatial analytics software and Siemens’ electrical topology expertise.
- Jun-2022: Schneider Electric came into a partnership with Hitachi Energy, a market and technology superior. Through this collaboration, the companies aimed to deliver better consumer value and boost the energy transition. Additionally, the collaboration builds on the authorized track record, international footprint, and vast experience of both these sustainable energy technology supervisors in producing projects for renewables, mining, data centers, and other enterprise segments.
» Product Launches and Product Expansions:
- Oct-2021: Schneider Electric unveiled TransferPacT, a new range of Automatic Transfer Switching Equipment. The new TransferPacT Automatic delivers comfortable installation and quick settings, specifically in building infrastructure. Moreover, the TransferPacT permits consumers the flexibility and scalability to extend functions of ATSE by just adding functional modules as per requirement.
- May-2021: Cummins introduced PowerCommand X-Series transfer switches. The new switches are developed for flexibility with current ratings from 40 amps to 3000 amps. Furthermore, PowerCommand X-Series is available as both transfer switches and service-entrance rated transfer switches, and deliver the most elevated UL1008 time-based and short-time withstand and closing ratings in the market.
- Apr-2021: Kohler Power Systems introduced a new line of electrically operated bypass-isolation transfer switches. The new product line is developed to interface with Kohler paralleling and generators switchgear. Additionally, these switches are open as standard (KAS) and programmed (KAP) transition configurations, including single-touch controls authorizing consumers to share essential loads between power bases.
- May-2020: Caterpillar launched Tech-Link, a new technical service portfolio that allows secure, remote updates of Cat switchgear software. The new Tech-Link decreases setup time and delivers flexibility for operational shifts while lowering service costs. Additionally, Cat switchgear is developed to offer power system management from controlling and monitoring standby/load control to multi-unit utility paralleling installations.
- Mar-2020: Generac introduced PWRview ATS, First-Ever Automatic Transfer Switch with combined home energy monitoring abilities. The new PWRview ATS permits any home furnished with a home standby generator to instantly access effective, money-saving wisdom about the home's energy usage.
» Acquisitions and Mergers:
- Jul-2021: Generac Holdings completed the acquisition of Deep Sea Electronics Limited, an advanced controls manufacturer and designer. With this acquisition, Generac has strengthened its engineering and management abilities which would advance and support the innovation of its products to fulfill the dynamic requirements of the growing energy technology industry and its consumers.
- Jun-2021: GE-Prolec Transformers took over Xignux, a Mexico-based private enterprise. Through this acquisition, Prolec GE’s aimed to improve its standing as a key distribution and power transformer player delivering consumers with a broad selection of products and an improved next-generation offering.
- Mar-2021-Mar Siemens took over C&S Electric, a leading manufacturer of electrical and electronic equipment in India. This acquisition would allow Siemens to manage the competitive infrastructure low-voltage industry in India while developing a manufacturing hub to head low-voltage products for export to lucrative industries internationally.
» Geographical Expansions:
- Mar-2021: Kohler Power Systems expanded its geographical footprint by establishing a manufacturing facility in Mosel, Wisconsin. This expansion aimed to sustain Kohler’s constant growth in key strategic industries mission essential and data center segments particularly.
Scope of the Study
Market Segments Covered in the Report:
By End Use
By Transition Mode
- Soft Load
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Siemens AG
- Schneider Electric SE
- ABB Group
- General Electric (GE) Co.
- Generac Holdings, Inc.
- Cummins, Inc.
- Caterpillar, Inc.
- Emerson Electric Co.
- Eaton Corporation PLC
- Kohler Co.
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