Air Insulated Switchgear Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Voltage (Low, Medium, High), By Application (Power Distribution Networks, Industrial Plants, Infrastructure Projects, Data Centers, Renewable Energy Integration, Others), By Region, By Competition, 2020-2030F

Market Overview

Global Air Insulated Switchgear Market was valued at USD 9.8 billion in 2024 and is expected to reach USD 16.0 billion by 2030 with a CAGR of 8.4% through 2030. Rapid urbanization and industrialization, particularly in emerging economies, are fueling the demand for stable and efficient electricity distribution systems, boosting the adoption of AIS. Governments across the globe are investing heavily in the modernization and expansion of aging grid infrastructure to improve power reliability and resilience, further supporting market growth.

Additionally, the global push toward renewable energy integration, such as solar and wind, necessitates the use of AIS to manage variable loads and ensure smooth energy flow within power grids. The rise of smart grid and microgrid developments also increases the need for advanced switchgear that can support automation, remote monitoring, and enhanced safety features. Technological advancements in AIS, including digital monitoring and diagnostics, are improving performance and reducing maintenance costs, making them more attractive to utilities and industrial users. Moreover, environmental concerns and regulatory initiatives aimed at reducing greenhouse gas emissions are encouraging the adoption of sustainable switchgear technologies, with AIS often preferred for its low environmental impact compared to gas-insulated alternatives. These drivers collectively make AIS a critical component in the future of global energy distribution.

Key Market Drivers

Rising Demand for Grid Modernization and Infrastructure Development

One of the primary drivers fueling the global Air Insulated Switchgear (AIS) market is the increasing demand for grid modernization and the development of new power infrastructure. As many countries face the challenge of aging electrical grids—particularly in North America and Europe—governments and utility companies are prioritizing infrastructure upgrades to ensure reliability, reduce outages, and enhance the efficiency of energy transmission and distribution. In parallel, developing economies in Asia-Pacific, Latin America, and Africa are witnessing a surge in industrialization, urban expansion, and rural electrification, which necessitates the construction of new substations and power transmission lines, creating a significant demand for AIS systems. In November 2024, Mitsubishi announced plans to establish an advanced air-insulated switchgear manufacturing facility in Western Pennsylvania. Renowned for its commitment to safe and environmentally friendly energy solutions, the company will invest USD 86 million in the project, which is expected to generate 200 new jobs. This significant investment is driven by the growing demand for transmission and distribution grid equipment. Spanning 160,000 square feet, the new facility will focus on the production of vacuum and gas circuit breakers, reinforcing Mitsubishi’s role in supporting the development of resilient and sustainable power infrastructure.

Air Insulated Switchgear plays a critical role in the electrical distribution chain, especially in medium-voltage applications, because of its cost-effectiveness, ease of installation, and lower maintenance requirements compared to gas-insulated alternatives. In large infrastructure projects such as metro rail systems, airports, smart cities, and industrial zones, AIS offers a scalable solution for power distribution needs. Furthermore, countries like India, China, and Indonesia are rolling out nationwide plans to expand access to electricity and improve grid reliability, which creates a favorable environment for the adoption of AIS products.

In addition, the growing deployment of distributed energy resources (DERs) such as rooftop solar systems, electric vehicles, and energy storage solutions requires a more flexible and modern power grid. AIS supports this need by allowing for the safe and efficient integration of decentralized power sources. Moreover, governments are introducing supportive policies and offering incentives to promote smart grid technologies, which rely on AIS for enhanced monitoring, control, and automation.

Another contributing factor is the increasing frequency of natural disasters and climate-induced power disruptions. Modernizing the grid with resilient and reliable AIS solutions is seen as a strategic response to minimize the impact of these disruptions. Utilities are investing in grid hardening technologies, with AIS being an essential component for building robust power systems capable of withstanding extreme weather conditions. The global investment in grid modernization, including smart grid technologies, is expected to exceed USD 1 trillion by 2030. Smart grid projects are reducing electricity losses by an estimated 10-15% globally, enhancing overall grid efficiency. The deployment of distributed energy resources (DERs) such as solar and wind, supported by smart grids, is expected to reach 500 GW globally by 2030.

Integration of Renewable Energy and the Shift Toward Sustainable Energy Solutions

Another major driver for the global Air Insulated Switchgear (AIS) market is the increasing integration of renewable energy sources and the global shift toward sustainable and clean energy solutions. As countries commit to achieving net-zero carbon emissions and reducing their dependence on fossil fuels, the share of renewables like solar, wind, hydro, and biomass in the global energy mix is growing significantly. This transition demands substantial upgrades in the power grid to manage intermittent supply, grid stability, and efficient energy distribution—all of which drive the demand for AIS.

Renewable energy systems, particularly wind and solar, are often installed in remote or geographically diverse areas. To connect these decentralized generation sources to the main power grid, robust and flexible switchgear solutions are required. AIS is preferred in such scenarios due to its cost-effectiveness, relatively simple construction, and ability to function well in outdoor and harsh environmental conditions. For example, solar farms in desert regions or wind turbines on open plains often rely on AIS for local power management and protection functions.

Moreover, as nations develop more microgrids and smart grids to support renewable energy integration, the role of AIS becomes increasingly vital. AIS enables safe and controlled switching of loads and generation units, enhancing the stability of distributed power systems. Additionally, the modular design of many AIS units supports easy scalability, allowing utilities and energy producers to expand operations as renewable capacity increases.

Another crucial aspect is the environmental advantage of AIS over alternatives like Gas Insulated Switchgear (GIS), which uses sulfur hexafluoride (SF₆)—a potent greenhouse gas. With rising environmental concerns and regulatory pressure to reduce SF₆ emissions, many utilities are turning to AIS, which operates in ambient air and presents a significantly lower environmental footprint. This makes AIS not only a technically viable option but also a more sustainable choice for eco-conscious energy providers.

Furthermore, global investment in clean energy infrastructure is at an all-time high, supported by public and private funding, as well as international collaborations like the Paris Agreement. These investments often include grid expansion and upgrade components, directly influencing the demand for AIS products. In 2023, global renewable energy capacity additions reached a record high of over 500 GW, with solar PV accounting for nearly 75% of that growth (IRENA). The total installed renewable energy capacity worldwide exceeded 3,870 GW by the end of 2023, representing a 13.9% year-on-year increase. Global investment in renewable energy reached $495 billion in 2023, with the majority directed toward solar and wind power projects.

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Key Market Challenges

Space Constraints and Limited Suitability for Compact Installations

One of the significant challenges limiting the adoption of Air Insulated Switchgear (AIS) is its larger physical footprint compared to its alternative, Gas Insulated Switchgear (GIS). AIS systems require more installation space due to the use of air as the insulating medium, which necessitates wider phase spacing and larger enclosures to ensure safety and operational efficiency. This design constraint makes AIS less suitable for high-density urban environments or compact substations where space is at a premium.

As urbanization accelerates globally—especially in cities across Asia-Pacific, Europe, and the Middle East—the need for compact and space-saving switchgear solutions is growing. In such contexts, GIS becomes a more viable option due to its compact size, enclosed design, and ability to be installed indoors or underground with minimal spatial requirements. This market trend places AIS at a disadvantage, particularly in commercial and metropolitan projects such as skyscrapers, transportation hubs, and underground substations.

Moreover, space constraints also affect installation and maintenance activities. AIS requires larger clearances and open layouts, making it more difficult to implement in areas with physical barriers or accessibility challenges. This limitation not only restricts its deployment in tight spaces but also leads to higher civil engineering and land acquisition costs in urban projects—factors that can significantly increase the total cost of ownership.

In addition, governments and utilities in countries with high population density, such as Japan, South Korea, Singapore, and parts of Western Europe, often prioritize GIS due to limited land availability. As a result, the demand for AIS in these regions is relatively subdued.

Even in industrial applications, the growing emphasis on space optimization and lean infrastructure design is prompting end users to explore more compact solutions. While AIS remains popular in rural or suburban settings where space is less constrained, this niche application range may hinder its market potential in rapidly urbanizing geographies.

Exposure to Environmental Factors and Higher Risk of Operational Interruptions

Another major challenge facing the Global Air Insulated Switchgear (AIS) market is its vulnerability to environmental conditions, which can compromise reliability, safety, and longevity. Since AIS operates using ambient air as the insulation medium, it is inherently more susceptible to external contaminants such as dust, humidity, pollution, salt spray (in coastal areas), and temperature fluctuations. These factors can degrade insulation performance, leading to partial discharges, flashovers, or even catastrophic equipment failure.

In harsh environments—such as deserts, coastal zones, and heavy industrial areas—AIS systems require frequent cleaning, inspection, and maintenance to mitigate contamination and corrosion risks. For instance, in regions with high humidity or salt content in the air, surface tracking and corrosion can impair switchgear function and necessitate costly preventive maintenance. This operational sensitivity makes AIS less attractive for deployment in areas with extreme or unpredictable weather conditions.

In contrast, Gas Insulated Switchgear (GIS), which encloses components in a sealed environment filled with SF₆ gas, offers better protection against environmental factors. GIS systems are generally more robust, have lower maintenance needs, and offer superior reliability in harsh or demanding settings. This performance advantage positions GIS as the preferred choice for mission-critical applications, such as data centers, airports, offshore oil rigs, and large manufacturing facilities.

Furthermore, the maintenance-intensive nature of AIS can lead to increased operational downtime and higher lifecycle costs. In utility-scale applications, unplanned outages due to environmental contamination can affect thousands of consumers and damage the utility provider’s reputation. For industrial customers, production losses due to power interruptions can result in significant financial penalties. This risk profile discourages risk-averse sectors from adopting AIS, especially where uninterrupted power is essential.

Additionally, as utilities and industrial users increasingly prioritize long-term reliability, predictive maintenance, and reduced downtime, AIS must compete with advanced GIS solutions that offer condition monitoring and self-diagnostic features. Without similar technological enhancements or protection mechanisms, AIS can appear outdated in a market leaning toward digitalization and intelligent grid infrastructure.

To remain competitive, AIS manufacturers must invest in innovations that enhance environmental resilience—such as advanced coatings, sealed compartments, and integrated condition-monitoring tools. However, these upgrades can increase the cost of AIS, diminishing its traditional price advantage over GIS.

In summary, AIS's environmental sensitivity and higher operational risk in extreme conditions limit its market applicability and pose a substantial challenge to widespread adoption, particularly in mission-critical and environmentally challenging sectors.

 Key Market Trends

Integration of Digital Technologies and Smart Grid Compatibility

One of the most prominent trends shaping the Global Air Insulated Switchgear (AIS) market is the growing integration of digital technologies, making AIS more compatible with smart grid applications. As electrical utilities and industries transition toward intelligent grid infrastructure, the demand for digitally enhanced switchgear is surging. AIS manufacturers are responding by incorporating sensors, IoT (Internet of Things) modules, and advanced communication interfaces that allow real-time monitoring, remote diagnostics, and predictive maintenance.

This digitization trend enables utilities to monitor the health of switchgear assets continuously, helping detect insulation degradation, contact wear, or abnormal temperature rises before they lead to failures. As a result, it enhances grid reliability while minimizing unplanned downtime and maintenance costs. These capabilities are particularly valuable in regions with aging power infrastructure where equipment failure could lead to substantial power outages or safety hazards.

Furthermore, digital AIS solutions support seamless integration with SCADA (Supervisory Control and Data Acquisition) systems and smart grid networks. Through automation and data-driven insights, utilities can perform dynamic load management, fault localization, and energy flow optimization, significantly improving operational efficiency. This trend is critical as the grid becomes more decentralized due to the proliferation of distributed energy resources (DERs) like rooftop solar and electric vehicles.

Another important aspect is cybersecurity. With digitalization comes the need to protect power infrastructure from cyber threats. Leading AIS manufacturers are embedding security protocols and secure communication layers into their devices to ensure system integrity in connected environments. As cybersecurity becomes a priority for grid operators, smart AIS solutions with robust security features are gaining preference.

Moreover, as part of sustainability goals, some utilities are adopting life-cycle assessment tools and energy-efficient components within AIS units, optimizing performance while reducing the environmental footprint. Manufacturers are also developing digital twins of AIS systems for simulation, planning, and performance optimization, thereby enhancing long-term planning and asset management.

Shift Toward Sustainable and SF₆-Free Switchgear Solutions

A major trend influencing the global Air Insulated Switchgear (AIS) market is the growing focus on sustainability and environmental compliance, particularly the shift away from sulfur hexafluoride (SF₆) in electrical equipment. SF₆, commonly used in Gas Insulated Switchgear (GIS), is an extremely potent greenhouse gas with a global warming potential thousands of times greater than carbon dioxide. Although AIS uses ambient air as its insulating medium and is traditionally seen as more environmentally friendly, regulatory pressure and sustainability initiatives are pushing AIS technologies to become even greener.

Governments and environmental agencies across Europe, North America, and parts of Asia are implementing stricter emission control regulations and promoting eco-friendly alternatives. For example, the European Union has introduced regulatory frameworks limiting SF₆ emissions and encouraging the adoption of greener technologies. This has led to a resurgence in the adoption of AIS, particularly in medium-voltage applications, due to its lower environmental footprint.

In response to this trend, leading AIS manufacturers are exploring the use of alternative insulation materials, eco-efficient designs, and recyclable components. These efforts aim to create switchgear systems that not only perform reliably but also align with circular economy principles. For instance, AIS units now increasingly feature modular designs that facilitate easier upgrades, recycling, and decommissioning at the end of their lifecycle.

Moreover, utility companies and large industrial users are adopting sustainability scorecards and carbon accounting in procurement processes. This incentivizes the use of environmentally benign technologies, with AIS often emerging as the preferred choice in new substation installations and grid extensions due to its air insulation and minimal gas containment risks.

In addition to regulatory drivers, customer awareness of environmental impacts is shaping purchase decisions. Companies looking to achieve green building certifications or meet corporate sustainability goals are choosing AIS over GIS, especially in commercial and institutional buildings.

Furthermore, manufacturers are investing in research and development to enhance the performance of AIS under varying environmental conditions without relying on SF₆. This includes improved arc-quenching technologies, corrosion-resistant materials, and low-loss conductors that boost energy efficiency and lifespan.

In summary, the shift toward sustainable, SF₆-free switchgear solutions is a major trend driving the global AIS market. As environmental regulations tighten and end-users prioritize green technologies, AIS is positioned as a key solution for achieving carbon-neutral and eco-friendly electrical distribution infrastructure.

Segmental Insights

Application Insights

Power Distribution Networks segment dominated the Air Insulated Switchgear Market in 2024 and is projected to maintain its leadership throughout the forecast period, driven by the rapid expansion and modernization of electrical infrastructure across both developed and developing nations. AIS is widely favored in distribution networks due to its cost-effectiveness, ease of maintenance, and reliable performance in medium-voltage applications. These systems are extensively used in utility substations, feeder stations, and secondary distribution systems, particularly in rural and semi-urban areas where space is not a critical limitation.

With increasing electricity demand from residential, commercial, and industrial sectors, governments and utility providers are investing heavily in upgrading aging distribution grids and expanding access to underserved regions. AIS plays a vital role in these efforts by offering a flexible and efficient solution for controlling, protecting, and isolating electrical equipment. Additionally, the global trend toward renewable energy integration is further boosting the deployment of AIS within distribution networks, as they help manage decentralized power flows and ensure grid stability.

The ability of AIS to withstand harsh environmental conditions and operate reliably over long lifespans with minimal maintenance makes it ideal for widespread use in outdoor and semi-enclosed installations. As nations focus on building smarter and more resilient power infrastructure, the Power Distribution Networks segment is expected to maintain its lead in driving AIS market growth globally.

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Regional Insights

Largest Region

North America dominated the Air Insulated Switchgear Market in 2024 and is anticipated to maintain its leadership throughout the forecast period, driven by robust investments in grid modernization, renewable energy integration, and the replacement of aging electrical infrastructure. Countries such as the United States and Canada have long relied on extensive power distribution networks, many of which are now being upgraded to enhance reliability, efficiency, and environmental performance. Air Insulated Switchgear is widely used in these efforts due to its cost-effectiveness, ease of maintenance, and suitability for medium-voltage applications across industrial, commercial, and utility sectors.

The region’s emphasis on energy efficiency and sustainability is also fueling the adoption of AIS, especially in projects focused on renewable energy, such as wind and solar farms. As utilities integrate more distributed energy resources into the grid, AIS plays a critical role in managing power distribution and ensuring system stability. Additionally, government initiatives and incentives aimed at strengthening the power grid and supporting clean energy transitions are providing a favorable environment for market growth.

North America’s strong presence of key market players, technological innovation, and well-developed regulatory frameworks contribute to its leadership in the AIS market. With increasing demand for reliable and resilient electrical infrastructure—particularly in response to climate-related disruptions and evolving energy needs—North America is expected to continue driving significant growth in the global Air Insulated Switchgear market.

Emerging Region

South America is the emerging region in the Air Insulated Switchgear Market, driven by growing investments in power infrastructure, rural electrification, and the expansion of renewable energy projects. Countries like Brazil, Argentina, Chile, and Colombia are actively upgrading their electrical distribution systems to support increasing energy demand from both urban and remote areas. AIS is becoming the preferred choice in these regions due to its cost-effectiveness, ease of installation, and suitability for medium-voltage applications in outdoor and semi-urban settings.

Governments across South America are prioritizing infrastructure development to address energy access gaps and support economic growth. This includes the modernization of aging transmission and distribution networks, which creates a strong demand for reliable and efficient switchgear solutions like AIS. Furthermore, the region’s favorable climate for solar and wind energy is driving the installation of renewable energy plants, where AIS plays a vital role in safely distributing generated power.

While South America still faces challenges such as limited funding in some countries and logistical constraints in remote areas, international partnerships and development financing are helping bridge these gaps. As utility providers and private investors focus on expanding and modernizing grid infrastructure, the adoption of AIS is expected to grow steadily, positioning South America as an emerging and important market in the global AIS landscape.

Recent Developments

• In July 2024, Mitsubishi Electric Corporation announced the development of a new 24 kV air-insulated switchgear designed to enhance both safety and reliability in electrical distribution systems. With a modern, compact design, the switchgear integrates advanced monitoring and diagnostic technologies to deliver superior performance. This innovation reflects Mitsubishi Electric’s broader commitment to building smarter, more sustainable power infrastructure and boosting overall system efficiency and reliability.
• In April 2024, Schneider Electric introduced its EasySET medium-voltage (MV) switchgear, engineered to streamline installation processes and optimize operational performance. Featuring a user-friendly interface and enhanced safety mechanisms, the EasySET switchgear is ideally suited for various power distribution applications, further reinforcing Schneider’s focus on practical and secure electrical solutions.
• In October 2023, Siemens expanded its portfolio of sustainable and digital switchgear for primary distribution up to 24 kV. The new product range emphasizes digital connectivity and incorporates gas-insulated components that help reduce greenhouse gas emissions. This expansion aligns with Siemens’ ongoing dedication to environmental sustainability and digital transformation in electrical infrastructure.  

Key Market Players

• ABB Ltd.
• Schneider Electric
• Toshiba Corporation
• Hitachi Energy
• Eaton Corporation
• Mitsubishi Electric Corporation
• Larsen & Toubro Limited
• ELATEC POWER DISTRIBUTION GmbH

Report Scope:

In this report, the Global Air Insulated Switchgear Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Air Insulated Switchgear Market, By Voltage:

o   Low

o   Medium

o   High      

• Air Insulated Switchgear Market, By Application:

o   Power Distribution Networks

o   Industrial Plants

o   Infrastructure Projects

o   Data Centers

o   Renewable Energy Integration

o   Others        

Air Insulated Switchgear Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   South America

§  Brazil

§  Colombia

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Air Insulated Switchgear Market.

Available Customizations:

Global Air Insulated Switchgear Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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