Automatic Transfer Switch Market Size was valued at USD 0.8 Billion in 2023. The Automatic Transfer Switch Market industry is projected to grow from USD 0.9 Billion in 2024 to USD 1.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.60% during the forecast period (2024 - 2032). Increasing demand for continuous and stable power supply, as well as increased adoption of smart grid technology, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Rapid industrialization and urbanization are driving the market CAGR for transfer switches. People are urbanizing at a tremendous pace in this era of rapid technological development. The adoption of cutting-edge and creative technologies is growing in rural and disadvantaged places.
As a result of the rapid growth of urbanization around the world, a great number of structures, including residential buildings and commercial infrastructures, are being built across a wide area. Furthermore, many people are moving from rural to urban regions, necessitating the building of new homes and transfer switches. This is owing to the fact that turning on these lights, lamps, and other electronic devices requires the use of controllers.
Aside from the need for a steady source of energy, an automatic switch is the easiest way to convert from utilities to generator feed. Businesses can allow the switchover to occur automatically rather than looking for manual switches after the lights go out, which is the only condition that completely protects a facility from the visual impacts of a power outage while yet allowing the business to operate normally. If users run a small business and the generator is located in a convenient utility room, employing a manual switch may be acceptable.
However, during major power outages, automatic transfer switches are used to convert electricity from the utility feed to the onsite backup generator. As a result, unexpected power outages and brownouts have increased demand for stable and efficient backup power sources like generators and UPS systems, which will boost the automated transfer switches market during the forecast period.
For instance, Generac introduced an Automatic Transfer Switch with integrated home energy monitoring. The introduction of the PWRview ATS highlights the switch's Home Energy Monitoring System (HEMS). It allows a home with a backup generator to acquire significant and rapid cost-saving insights on its energy consumption. Thus, driving the Automatic Transfer Switch Market revenue.
The Automatic Transfer Switch Market segmentation, based on the Switching Mechanism, includes the Contactor and Circuit. In 2023, the contactor category dominated the automatic transfer switch market, accounting for the vast majority of worldwide revenue. This segment accounted for a large proportion due to increased demand, primarily from the increasing expansion of industrial sectors, particularly manufacturing plants, which required the reliable functioning of high-voltage operations via ATS systems.
The Automatic Transfer Switch Market is segmented by Transition Mode, including Soft Load, Closed, Delayed, and Open. During the projection period, closed segments will account for the largest market share. A closed transition automatic transfer switch employs a "make before break" function based on recent electrical technology improvements. These systems reduce or eliminate the momentary power stutter that open systems cause by allowing the utility and generator/backup to overlap briefly. Such advantages help to drive market expansion.
The Automatic Transfer Switch Market segmentation, based on End-Use, includes Residential, Commercial, and Industrial. In 2023, the residential segment dominated the transfer switch market in terms of revenue. Residential transfer switches have evolved to offer a variety of clever, intelligent, and user-friendly features. A transfer switch can be utilized for the entire house or just a few circuits in homes equipped with standby generators.
Figure 1: Automatic Transfer Switch Market, by End-Use, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. In 2023, North America dominated the market, accounting for 45.80%. The North America region is predicted to develop significantly at a CAGR of 5.5% over the forecast period. Due to the growing need to replace existing grid infrastructure, the United States accounted for more than 70% of the transfer switch market in North America.
The business environment will profit from the increasing use of customized products and smart control-switching technology. In order to ensure the integration of a sustainable electrical network across the country, the Department of Energy reinstated the Building America program in 2022. The market landscape will now benefit from ongoing regulatory changes, as well as the widespread acceptance of developing switching technologies.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: Automatic Transfer Switch Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automatic Transfer Switch Market accounts for the second-largest market share. The region's expanding expenditures in smart cities and data centers provide tremendous opportunities for automatic transfer switch vendors. Further, the German Automatic Transfer Switch Market held the largest market share, and the UK Automatic Transfer Switch Market was the fastest-growing market in the European region.
The Asia-Pacific Automatic Transfer Switch Market is expected to grow at the fastest CAGR from 2024 to 2032 because this country is undergoing tremendous industrialization. Moreover, China’s Automatic Transfer Switch Market held the largest market share, and the Indian Automatic Transfer Switch Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their Switching Mechanism lines, which will help the Automatic Transfer Switch Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new Switching Mechanism launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automatic Transfer Switch industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automatic Transfer Switch industry to benefit clients and increase the market sector. In recent years, the Automatic Transfer Switch industry has offered some of the most significant advantages to medicine.
Major players in the Automatic Transfer Switch Market, including Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., Kohler, and others, are attempting to increase market demand by investing in research and development operations.
General Electric Company (GE) was an American global business founded in 1892, incorporated in New York, and headquartered in Boston. The company's segments included aircraft, energy, healthcare, and finance. In August 2022, General Electric announced a collaboration with Sulzer EMS to deliver 20% more power capacity using synchronous motors.
ABB Ltd. is a Swedish-Swiss multinational enterprise based in Västerås, Sweden, and Zürich, Switzerland. It trades on the SIX Swiss Exchange in Zurich, the Nasdaq Nordic Exchange in Sweden, and the OTC Markets Group's pink sheets in the United States. It was rated 340th on the 2020 Fortune Global 500 list and has been a global Fortune 500 firm for 24 years. In August 2022, ABB announced the acquisition of Siemens' low voltage NEMA motor business in order to increase its product line, strengthen supply chain partnerships, and better serve its North American customers.
In May 2022,Generac Power Systems released two new Powermate dual-fuel capable portable generators: the Powermate 4500-Watt Dual Fuel Portable Generator and the Powermate 7500-Watt Dual Fuel Portable Generator.
In August 2022,General Electric and EY formed a collaboration to assist firms in enhancing productivity through data-driven manufacturing.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 0.8 Billion |
| Market Size 2024 | USD 0.9 Billion |
| Market Size 2032 | USD 1.8 Billion |
| Compound Annual Growth Rate (CAGR) | 10.60% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Switching Mechanism, Transition Mode, End-use and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., Kohler, Generac Power Systems, General Electric, Vertiv Group Corp., Eaton Corporation plc |
| Key Market Opportunities | · Growing Adoption of Microgrids |
| Key Market Dynamics | · Increasing need for HVAC networks in various sectors. |
Frequently Asked Questions (FAQ) :
The Automatic Transfer Switch Market size was valued at USD 0.8 Billion in 2023.
The global market is projected to grow at a CAGR of 10.60% from 2024 to 2032.
North America had the largest share of the global market.
The key players in the market are Siemens AG, Cummins Inc., Caterpillar, Schneider Electric, ABB Ltd., and Kohler, among others.
The contactor category dominated the market in 2023.
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