Transfer Switches Market

Transfer Switches Market Outlook (2023 to 2033)

Global transfer switch sales are valued at around US$ 1.6 billion in 2023. The global transfer switches market is predicted to increase rapidly at 7% CAGR and top a valuation of US$ 3.1 billion by the end of 2033.

A transfer switch is an electromechanical tool that can be used mechanically or electronically to transition the load between two power sources. For a continuous supply of power, it offers a quick switch between several power sources.

Transfer switches are segmented into automatic transfer switches and manual transfer switches. Sales of automatic transfer switches (ATS) are expected to increase at a CAGR of 7.5% from 2023 to 2033.

In the event of a power outage, automatic transfer switches can switch over directly to generating units without the need for external inputs. Automatic transfer switches are more cost-effective, safer, and reliable. They also function with less risk.

In industrial and commercial sectors including factories, hospitals, warehouses, data centers, and colleges where a constant power supply is required, automatic transfer switches are widely used. Between primary and backup electrical power sources, important load connections can be safely transferred using low-voltage automatic transfer switch assemblies.

• Demand for manual transfer switches is predicted to evolve at a CAGR of 5% during the next 10 years. Manual transfer switches are widely used in residential applications.

Circuits in the house's electrical system are linked to the generator by a manual transfer switch. You can use it to turn on the power backup if there is an electrical outage. Until the electricity is restored, any connected appliances will operate on backup power. Both indoor and outdoor installations are possible for the manual transfer switches.

Depending on the generator's output, numerous circuits may connect via manual transfer. The primary electrical circuit panels are linked to the manual transfer switch.

• High investments by key players in the transfer switches market are triggering product sales growth. The PowerCommand X-Series transfer switches were unveiled in May 2021 by Cummins Inc. for use in mission-critical and life-saving applications.
• A newly developed high endurance mechanism (HEM) is incorporated into the PowerCommand X-Series transfer switches. This HEM is designed to support very large current loads for protracted periods without failing or losing control.

Report Attributes	Details
Transfer Switches Market Size (2023E)	US$ 1.6 Billion
Forecasted Market Value (2033F)	US$ 3.1 Billion
Global Market Growth Rate (2023 to 2033)	7% CAGR
China Market Growth Rate (2023 to 2033)	9% CAGR
Japan Market Growth Rate (2023 to 2033)	4.5% CAGR
Germany Market Growth Rate (2023 to 2033)	5% CAGR
Canada Market Growth Rate (2023 to 2033)	5% CAGR
Key Companies Profiled	Belkin International, Inc. Cummins, Inc. Kohler Co. APC by Schneider Electric GE Grid Solutions Raritan Americas, Inc. Generac Power Systems, Inc. Luminous Power Technologies Pvt., Ltd. Connecticut Electric, Inc. Camsco Electric Co., Ltd. Kohler Power Group Lex Products ASCO Power Technologies Meiji Electric Philippines, Inc. Atomic Group

What’s Generating Potential Opportunities in the Transfer Switches Market?

“Rapidly Developing Data Centers across Regions”

Rapid industrialization and urbanization across the globe are boosting the growth of the transfer switches market. High innovations and digitalization in the manufacturing sector are also boosting sales growth.

It is also projected that the manufacturing sector would see a significant increase in the adoption of artificial intelligence, robotics, the Internet of Things (IoT), and other technologies. To handle the increasing data traffic, this factor is supporting the construction of data centers in remote areas.

Data center operators can reduce data loss during power outages and help assure systematic management of the power requirement by using critical components such as power distribution units (PDUs) and uninterruptible power supplies (UPSs). So, the use of backup power solutions with advanced automatic transfer switches is increasing as data center networks are growing.

“High Use of Generator Transfer Switches in Hospitals”

Rising prevalence of chronic disorders and infectious diseases is increasing the demand for advanced hospital services and systems. Healthcare delivery services are being transformed at an unprecedented rate by the Internet of Things (IoT). Advanced connected medical technologies are improving patient safety and effectiveness. A healthcare organization becomes a ‘Smart Hospital’ when such technologies are integrated throughout the entire work system.

Hospitals today are being compelled to use advanced technologies due to their falling cost and the rapidly emerging use cases that demonstrate the value of digital connectivity solutions. Through digitizing workforce management, asset management, and scheduling for greater operational efficiency, hospital management works effectively. Thus, for the smooth working of technologies in hospitals without any electricity disturbance, power generators with automatic transfer switches are employed, which is boosting the growth of the market for transfer switches.

What Obstacles May Hamper the Sales of Transfer Switches?

“Associated Risks with Improper Use & Maintenance”

Despite numerous advancements, transfer switches are still prone to various risks if not used properly and with safety procedures. Some of the dangers that transfer switches can produce include mechanical risks, heat buildup, fire and explosions, electrical shock and burns, and heat.

Country-wise Analysis

Which Factors are Driving the Demand for Transfer Switches in the United States?

“Increasing Demand for Cloud & Digital Services across Several Industries”

The United States is gaining traction in the field of data centers due to rapid industrialization. Numerous major data collection companies are present in the United States.

Several businesses have formed partnerships with data center colocation space operators for the efficient and skilled management of their IT infrastructure to handle the volume of company data.

• Google and Equinix Inc. collaborated to provide colocation services.

The scope of the B2B cloud computing service sector is being expanded by the increasing acceptance of cloud and internet services across several end-user industries, which also has implications for the managed data center and colocation service sectors.

As businesses in the United States experience high information generation across sectors such as IT, BFSI, healthcare, telecom, government, and defense, big data and IoT technology will increase expenditures in the data center industry. Thus, the rapidly increasing industrialization sector is boosting demand for transfer switches.

What’s Benefitting Suppliers of Transfer Switches in Germany?

“Rapidly Developing Healthcare Facilities”

Germany has one of the most well-established healthcare systems in the European region. Germany is also home to numerous pharma and biotech companies. The presence of advanced healthcare technologies is attracting several care seekers to Germany, which is boosting medical tourism in the country.

Hospitals are prominent healthcare institutions. For proper and effective treatment procedures they should have smooth and advanced power systems, which are further boosting sales of transfer switches.

Generator transfer switches are widely used in hospitals for even power supply. Demand for transfer switch devices in Germany is expected to progress at a CAGR of 5% during the next 10 years.

Why are Asia Pacific Transfer Switch Sales Increasing at a Rapid Pace?

“High Growth in Use of Home Appliances”

Asia Pacific is the region with the fastest-growing electricity consumption. Indonesia (26%), Vietnam (22%), Thailand (19%), and Malaysia (15%) account for more than 80% of the overall demand in the southeast area, mostly driven by the rising ownership of home appliances and air conditioners. (SOURCE: IEA 2020 regional focus: Southeast Asia)

Transfer switch innovations for residential applications now include various high-tech, intuitive, and user-friendly features. With the remote test signal input and one-button access test mode, acceptance or maintenance issues are avoided.

The delay function and generator signal input also prepare the ground for intelligent control of the generator as the backup power supply side. Also, the mandatory specifications of fireproof residential buildings are met by the fire safety signal input.

• Hoymiles, a producer of solar storage, urged more people in Japan to install solar panels on their rooftops by pointing out that these systems can help homeowners achieve energy security and have more control over their energy. This move is increasing the sales of transfer switches in the country.
• After the Sihai series, the TransferPacT WATSN series transfer switch was introduced by the Schneider Wingoal R&D Center in collaboration with Shanghai Zhangjiang R&D Center. The former's ‘TransferPacT WATSN series automatic transfer switches’ just received the 2021 Red Dot Design Award.

Category-wise Analysis

In Which Sector are Transfer Switches Widely Used?

“High Use of Transfer Switches in Industrial Applications”

Industrial, commercial, and residential establishments all use transfer switches. Transfer switches are extensively utilised in industrial applications. Thus, growing industrial activities are boosting demand for transfer switches. Transfer switches are more in demand in developing countries because of the imperfect infrastructure for electricity distribution.

Sales of transfer switches are rising due to the increasing investments made by electric utilities in the maintenance and deterioration of the existing electrical infrastructure. Sales growth is anticipated to be fueled by the construction of new industrial facilities, such as power plants, institutions, government offices, and other commercial buildings, as well as their restoration.

Competitive Landscape

Fact.MR, a market research and competitive intelligence provider, reveals detailed marketing strategies of leading companies in the transfer switches market. Some of the key market players are Belkin International, Inc., Cummins, Inc., Kohler Co., APC by Schneider Electric, GE Grid Solutions, and Raritan Americas, Inc.

Major market participants are investing highly in developing advanced transfer switches. This move is expected to increase their revenue growth and increase market position.

• Schneider Electric's Next-generation TransferPacT Automatic Transfer Switching Equipment (ATSE), which is a line of elevated, small, modular intelligent automatic transfer switches, was revealed in October 2021. It offers a steady power backup with increased scalability and dependability. TransferPacT Automatic provides straightforward settings and an intuitive user interface, whereas TransferPacT Active Automatic offers more options and can be connected to an external HMI.

Key Segments of Transfer Switches Industry Research

• By Switch Type :

  • Automatic Transfer Switches
  • Manual Transfer Switches

• By Ampere Rating :

  • 0 to 300A
  • 301 to 1600A
  • 1601 to 4000A

• By Transition Mode :

  • Soft Load
  • Closed
  • Delayed
  • Open

• By Application :

  • Industrial
  • Commercial
  • Residential

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA