Transfer Switch Market Outlook – 2030
The global transfer switch market size was valued at $1.47 billion in 2020 and is expected to reach $2.70 billion by 2030, growing at a CAGR of 6.70% from 2021 to 2030.
A transfer switch is a device that allows safe connection or disconnection of different sources of electricity to an electric load. Many homes and businesses are equipped with a standby generator that is used in the event of a power outage. Also, many university campuses and factories have their own on-site power plants but occasionally switch to the local grid for power.
Transfer switches prevent electricity from traveling in the wrong direction, such as from a home generator into the power grid. This means they will not get a shock from someone’s home generator when they are working on overhead lines. This is one of the reasons why most electric codes mandate the use of ta transfer switch when a residential generator is connected to the home’s electrical panel.
Transfer switch provide a reliable transferring essential load connections between primary and alternate sources of electrical power. The data centers, hospitals, factories, and a wide range of other facility types that require continuous or near-continuous uptime typically utilize an emergency power source such as a generator or a backup utility feed when their normal power source becomes unavailable. These switches connect facilities to backup power without human intervention.
The global transfer switch market size is anticipated to witness significant growth during the forecast period. Factors, such as a surge in usage in power and transmission industries, favorable government policies, and the large-scale renewable integration reforms drive the transfer switch market growth. A transfer switch is a device that enables switching between various power sources which are mainly backup generators. It provides assurance, convenience,e, and hassle-free continuous and switching power supply to various industries. Thus, their surge is influenced and dependent on the power & transmission industry. However, the increase in the demand for power by many industries has led to a surge in the demand and usage of transfer switches in these industries.
However, the high costs associated with the transfer switch restrict the market growth. On the contrary, the high adoption of transfer switches in residential industries is expected to create lucrative opportunities for the market. Therefore, these factors are expected to affect the global transfer switch market during the forecast period.
By Type
Manual Transfer Switch segment will generate the highest revenue during 2021 - 2030
Segment Overview
The transfer switch market is segmented based on type, transition mode, end-use, and region. By type, the market is bifurcated into automatic transfer switch and manual transfer switch. Based on transition mode, it is segregated into soft load transition mode, closed transition mode, delayed transition mode, and open transition mode. Depending on end use, it is separated into industrial, commercial, and residential.
By Transition Mode
Closed Transition Mode segment will dominate the market during 2021 - 2030
Region-wise, the transfer switch market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is the most attractive market for transfer switches due to the rise of industrial and commercial sectors in the region, especially in countries such as China and India.
By End Use
Residential segment is expected to secure the leading position during the forecast period
Top Impacting Factors
The prominent factors that impact the transfer switch market growth are the surge in usage in power and transmission industries, favorable government policies, and large-scale renewable integration reforms. However, high costs associated with transfer switches restrict the market growth. On the contrary, the high adoption of transfer switches in residential industries is expected to create lucrative opportunities for the market. Therefore, these factors are expected to affect the global transfer switch industry during the forecast period.
By Region
Asia-Pacific region would exhibit the highest CAGR of 7.42% during 2021 - 2030
Competitive Analysis
Competitive analysis and profiles of the major transfer switch market players, such as ABB Ltd., Cummins Inc., Eaton Corporation, Kohler, Generac Power Systems, General Electric, Schneider Electric, Siemens, Russelectric, and Caterpillar are focusing their investment on technologically advanced, cost-effective, and more secure products and solutions for various applications. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
COVID-19 Impact Analysis
COVID-19 is having a huge impact on both consumers and the economy. Electronics manufacturing hubs have been temporarily shut down due to the outbreak of the virus among individuals. This has majorly affected the supply chain of the market by creating shortages of materials, components, and finished goods. Lack of business continuity has ensured significant negative impacts on revenue and shareholder returns, which are expected to create financial disruptions in the transfer switch market.
Asia-Pacific countries dominate the market in terms of the number of manufacturers and in terms of consumers. In 2019, China’s reduced supply chain operations significantly impacted companies across the globe and disrupted the electronics value chain. Moreover, the outbreak of coronavirus constrained governments across the globe to force lockdown initiatives that reduced sales and production revenue, which in turn disrupted the worldwide economy to a significant extent. Therefore, the transfer switch market size is anticipated to gain momentum by the end of 2022.
Key Benefits For Stakeholders
- This study comprises an analytical depiction of the global transfer switch market outlook along with the current trends and future estimations to depict the imminent investment pockets.
- The overall transfer switch market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and transfer switch market opportunities with a detailed impact analysis.
- The current transfer switch market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the transfer switch market share of key vendors.
- The report includes the market trends and the revenue share of key vendors.
Transfer Switch Market Report Highlights
| Aspects | Details |
 By Type |
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 By Transition Mode |
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 By End Use |
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 By Region |
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 By Key Market Players |
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Analyst Review
According to CXO perspective, the surge in usage in power and transmission industries, favorable government policies, and the large-scale renewable integration reforms is driving transfer switch market growth. However, the high costs associate with transfer switch is hampering its adoption acts as the major barrier for early adoption. Furthermore, high adoption of transfer switch in residential industry are the factors anticipated to provide lucrative opportunities for the market during the forecast period.
Asia-Pacific is the leading region in the transfer switch market. Also, Asia-Pacific has witnessed a wide-scale adoption of these switches in the recent years, owing to their increasing demand across various residential and commercial sectors. In accordance with several interviews that were conducted with top level CXOs, the demand for transfer switch has increased in residential, commercial, and industrial sector. The penetration of switches is expected to increase in the coming years and becoming popular for residential applications.
The report focuses on the growth prospects, restraints, and trends of the transfer switch market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, in the transfer switch market.
The Transfer Switch Market is estimated to grow at a CAGR of 6.70% from 2021 to 2030.
The Transfer Switch Market is projected to reach $2.70 billion by 2030.
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Surge in usage in power and transmission industries, and favorable government policies etc. boost the market growth.
The key players profiled in the report include ABB Ltd., Cummins Inc., Eaton Corporation, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Transfer Switch Market is segmented on the basis of type, transition mode, end use, and region.
The key growth strategies of Transfer Switch market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Asia-Pacific region would grow at a highest CAGR of 7.42% during the forecast period.
Closed Transition Mode segment will dominate the market during 2021 - 2030.
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