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.
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.
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.
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.
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.
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.
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.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 1.4 Billion |
| Market size forecast in 2028 | USD 2.2 Billion |
| Base Year | 2021 |
| 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 |
| Growth Drivers |
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| Restraints |
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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
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.
By End Use
By Type
By Transition Mode
By Geography
The Transfer Switch Market size is projected to reach USD 2.2 billion by 2028.
The Rapid Pace Of Industrialization And Urbanization are driving the market in coming years, however, Switches' Technical Issues And The Requirement For Expert Installation restraints the growth of the market.
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.
The expected CAGR of the Transfer Switch Market is 6.7% from 2022 to 2028.
The Manual segment acquired maximum revenue share in the Global Transfer Switch Market by Type in 2021 thereby, achieving a market value of $1.3 billion by 2028.
The Asia Pacific market dominated the Global Transfer Switch Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $818.7 million by 2028.
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