Automatic Transfer Switch Market is predicted to reach USD 1.8 billion at a CAGR of 10.60% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Automatic Transfer Switch Market”.

The Market is estimated to register a CAGR of 10.60% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Automatic Transfer Switch Market— Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., Kohler, Generac Power Systems, General Electric, Vertiv Group Corp., Eaton Corporation plc.

Automatic Transfer Switch Market Highlights

The global Automatic Transfer Switch Market is accounted to register a CAGR of 10.60% during the forecast period and is estimated to reach USD 1.8 billion by 2032.

Several causes, including increased utilization in the power and transmission industries, favorable government policies, and an increase in renewable energy integration reforms, drive the automatic transfer switch sector. However, high costs and technological complexities, as well as cybersecurity issues, maintenance, and service expenses, all represent barriers to the automatic transfer switch market's growth. On the other hand, development opportunities include the widespread use of automated transfer switches in the residential business, which provide sophisticated, user-friendly features and uninterrupted power supply.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Automatic Transfer Switch Market Trends

Segmental Analysis

The global Automatic Transfer Switch Market has been segmented based on Switching Mechanism, Transition Mode, and End-use.

The market is segmented by Switching Mechanism into Contactor and Circuit. In 2023, the contactor category dominated the automated transfer switch market, owing to rising demand, mostly from the expansion of industrial sectors, particularly manufacturing plants, which required high-voltage operations to run reliably via ATS systems.

Transition Mode has divided the worldwide Automatic Transfer Switch Market into Soft Load, Closed, Delayed, and Open. In 2023, the closed transition mode dominated the global automated transfer switch (ATS) market, accounting for the biggest proportion. Closed transition transfers, which occur within 5 electrical degrees, are passive and do not require management of the engine generator set, eliminating the requirement for additional control wire installations between the ATS and generator set governor.

The global Automatic Transfer Switch Market is divided into two segments based on End-use: Residential, Commercial, and Industrial. In 2023, the residential sector took the lead in the automatic transfer switch market, and it is expected to hold this position for the foreseeable future. This is primarily due to the growing reliance on consumer electronics for increased comfort, which creates a need for good power management.

Regional Analysis

The global Automatic Transfer Switch Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America consists of the US and Canada. The Europe Automatic Transfer Switch Market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Automatic Transfer Switch Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Automatic Transfer Switch Market comprises the Middle East, Africa, and Latin America.

North America held the biggest market share over the forecast period and has the highest proportion of the worldwide transfer switch market. In North America, there is an increasing need for transfer switches due to the need to renovate electrical grid networks. The ability to switch electricity from one circuit to another or between two circuits is becoming increasingly important. The need for transfer switches has steadily increased as a result of North America's aging infrastructure and increased awareness of these issues.

Moreover, Europe is the second-largest region. There is an increasing trend of installing transfer switches in European residential and industrial structures. Many countries, including the United Kingdom, Germany, Russia, and others, are investing in microgrid infrastructure to help renewable energy sources generate more electricity. Microgrid networks are spreading over Europe as an alternative to the outdated and inefficient electrical grid. The fast proliferation of microgrids is pushing up demand for transfer switches. These switches create a tight connection between multiple electrical sources, which is necessary to minimize blackouts or interruptions. The European Union changed its renewable energy policy in 2016.

Additionally, the Asia-Pacific region is predicted to experience the fastest development in the transfer switch market during the forecast period. The implementation of large-scale renewable integration reform has raised the demand for transfer switches in Asia-Pacific, as countries such as China and India recognize the importance of a reliable power supply to sustain their economies. The International Renewable Energy Agency (IRENA) and the China State Grid Corporation (SGCC) have signed a new Memorandum of Understanding (MoU) to improve grid performance, system flexibility, and sector coupling in China.

The rest of the world's Automatic Transfer Switch Market is segmented into three regions: the Middle East, Africa, and Latin America. This is due to the rising need for power in developing countries, which is fuelling the demand for transfer switches in the region. With rapidly increasing power demands and a power shortage, these regions are struggling to fulfill rising energy demand.

Key Findings of the Study

• The global Automatic Transfer Switch Market is expected to reach USD 1.8 billion by 2032, at a CAGR of 10.60% during the forecast period.


• The Asia-Pacific region is predicted to experience the fastest development in the transfer switch market during the forecast period. The implementation of large-scale renewable integration reform has raised the demand for transfer switches in Asia-Pacific, as countries such as China and India recognize the importance of a reliable power supply to sustain their economies.


• Based on End-use, the residential sector took the lead in the automatic transfer switch market in 2023, and it is expected to hold this position for the foreseeable future.


• Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., Kohler, Generac Power Systems, General Electric, Vertiv Group Corp., and Eaton Corporation plc are the key market players.