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2023

Automatic Transfer Switch Market

Automatic Transfer Switch Market Size, Share, Competitive Landscape and Trend Analysis Report, by Switching Mechanism, by Transition Mode, by End-Use : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Marpu Vinod | Eswara Prasad
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Automatic Transfer Switch Market Research, 2032

The global automatic transfer switch market was valued at $0.7 billion in 2022, and is projected to reach $1.8 billion by 2032, growing at a CAGR of 10.1% from 2023 to 2032.

Automatic Transfer Switch Market

Automatic transfer switches are devices that allow 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. In addition, many university campuses and factories have their own on-site power plants but occasionally switch to the local grid for power.

Automatic transfer switches prevent electricity from traveling in the wrong direction, such as from a home generator into the power grid. This means users will not get a shock from someone’s home generator when installation engineers are working on overhead lines. This is one of the reasons why most electric codes mandate the use of a transfer switch when a residential generator is connected to the home’s electrical panel.

The automatic transfer switch industry is driven by several factors, including the surge in usage in power and transmission industries, favorable government policies, and an increase in renewable energy integration reforms. The market growth is driven by the increase in demand for power, frequent power outages, uncertain weather conditions, voltage fluctuations, and blackouts. Government policies also contribute to the market growth, as require permits for installation. Renewable energy integration reforms, such as the EU's revised directive 2009/28/EC, have also boosted the market. However, high costs and technical complexities, as well as cybersecurity concerns, maintenance, and service costs, pose challenges to the automatic transfer switch market growth.

However, opportunities for growth include the high adoption of automatic transfer switches in the residential industry, which offers sophisticated, user-friendly features and uninterrupted power supply. Additionally, the rise in investments in the real estate sector and refurbishment demand for existing infrastructure in developed economies can further boost the automatic transfer switch market share. Digital twin technology and advanced control algorithms can further optimize the operation of ATS systems, making them more robust and efficient.

The automatic transfer switch market scope is segmented on the basis of switching mechanism, transition mode, end use, and region. By switching mechanism, the market is bifurcated into contactor and circuit. On the basis of transition mode, it is segregated into soft load, closed, delayed, and open. Depending on end use, it is separated into residential, commercial, and industrial.

Automatic Transfer Switch Market by Switching Mechanism

In 2022, the contactor segment emerged as the dominant player in the automatic transfer switch market, capturing the majority of global market revenue. This segment accounted for a significant share due to heightened demand driven primarily by the rapid expansion of industrial sectors, notably manufacturing plants, which necessitated the reliable operation of high-voltage processes through ATS systems.

In the foreseeable future, the circuit segment is poised for noteworthy growth, anticipated to demonstrate a substantial CAGR from 2023 to 2032 in automatic transfer switch market forecast report. This shift can be attributed to the growing utilization of the Internet of Things (IoT) across various residential applications, rendering circuit-based switching mechanisms increasingly pertinent within the ATS market landscape.

Automatic Transfer Switch Market by Transition Mode

In 2022, the closed transition mode led the global automatic transfer switch (ATS) market, accounting for the largest market share. It is expected to maintain this dominant position in the foreseeable future. Closed transition transfers, which occur within 5 electrical degrees, are passive and do not require control of the engine generator set, reducing the need for additional control wire installations between the ATS and generator set governor.

On the other hand, the open transition segment is anticipated to experience substantial growth from 2023 to 2032. Open transition involves disconnecting the load from one source before connecting it to an alternate source. Although most transfer switches perform this sequence rapidly, a brief power interruption may be perceptible to building occupants and can affect sensitive electronic equipment.

Automatic Transfer Switch Market by End-Use

In 2022, the residential sector took the top spot in the automatic transfer switch market, maintaining its lead in the foreseeable future. This is primarily due to the rising dependence on consumer electronics for enhanced comfort, creating demand for effective power management. Conversely, the commercial segment is poised for significant growth from 2023 to 2032. This expansion is driven by the construction of commercial and corporate buildings, where automatic transfer switches play a pivotal role in ensuring reliable power supply and control.

Automatic Transfer Switch Market by Region

Region-wise, the automatic 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).

In 2022, the Asia-Pacific region emerged as the dominant force in the automatic transfer switch market, contributing significantly to overall revenue and poised to maintain its leadership in the coming years. Moreover, this region is expected to witness the highest CAGR from 2023 to 2032. The Asia-Pacific market presents substantial growth potential within the ATS industry, driven by the rapid industrial expansion in emerging markets like India, China, and Southeast Asian countries. Furthermore, the growing investment in renewable energy sources in the region is set to create fresh opportunities for the automatic transfer switch market in the Asia-Pacific, bolstering its growth prospects throughout the forecast period.

Competitive analysis and profiles of the major automatic transfer switch market players, such as ABB Ltd., Cummins Inc., Eaton Corporation, Kohler, Generac Power Systems, General Electric, Schneider Electric, Siemens, Vertiv Group Corp., and Caterpillar are focusing their investment on technologically advanced, cost-effective, and more secure products and solutions for various applications. 

Furthermore, ASCO Power Technologies, Russelectric, Inc., Blue Star Power Systems, Inc., Zenith Controls, Thomson Power Systems, Emerson Network Power, Lovato Electric, Eltek, Camsco Electric Co., Ltd., and Onan Corporation are some of the companies that are not profiled in the report. Nevertheless, these companies also play a significant role in the automatic transfer switch market.

Historical Market Growth of Automatic Transfer Switch Market:

2014-2016: During this period, the ATS market experienced moderate growth driven by factors such as increasing industrialization, growing data center infrastructure, and a rising need for uninterrupted power supply. The market began to gain momentum as awareness of the importance of backup power systems increased.

2016-2018: Growth continued to accelerate as various industries, including healthcare, telecommunications, and manufacturing, increasingly adopted ATS solutions to safeguard against power interruptions. Emerging economies in Asia-Pacific and Africa became key growth markets.

2018-2020: The market growth remained robust during this period due to factors like the digitization of industries, the proliferation of renewable energy sources, and an emphasis on disaster recovery planning. The rise of smart buildings and increased investments in critical infrastructure further boosted the demand for ATS.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automatic transfer switch market analysis from 2022 to 2032 to identify the prevailing automatic transfer switch market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the automatic transfer switch market size, segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global automatic transfer switch market trends, key players, market segments, application areas, and market growth strategies.

Automatic Transfer Switch Market Report Highlights

Aspects Details
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Market Size By 2032

USD 1.8 billion

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Growth Rate

CAGR of 10.1%

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Forecast period

2022 - 2032

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Report Pages

265

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By Switching Mechanism
  • Contactor
  • Circuit
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By Transition Mode
  • Soft Load
  • Closed
  • Delayed
  • Open
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By End-Use
  • Residential
  • Commercial
  • Industrial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
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Key Market Players

Caterpillar, Siemens AG, ABB Ltd., Eaton Corporation plc, Vertiv Group Corp., Kohler, General Electric, Cummins Inc., Generac Power Systems, Schneider Electric

Analyst Review

According to CXO's perspective, the surge in usage in power and transmission industries, favorable government policies, and large-scale renewable integration reforms drive the automatic transfer switch market growth. However, the high costs associated with transfer switches are hampering their adoption. Furthermore, the high adoption of transfer switches in residential industry is another factor anticipated to provide lucrative opportunities for the automatic transfer switch market during the forecast period.

According to several interviews conducted with top-level CXOs, the demand for transfer switches has increased in the residential, commercial, and industrial sectors. The penetration of switches is expected to increase in the coming years and is becoming popular for residential applications.

The report focuses on the automatic transfer switch market analysis, growth prospects, restraints, and trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, in the automatic transfer switch market.

Among the analyzed regions, Asia-Pacific accounted for the highest revenue in the global market in 2022. However, LAMEA is expected to grow at a higher rate, predicting lucrative opportunities for the key players operating in the automatic transfer switch market.

Author Name(s) : Marpu Vinod | Eswara Prasad
Frequently Asked Questions?

$1.8 billion is the estimated industry size of Automatic Transfer Switch.

Smart ATS systems, integration with IoT and automation, increased demand for remote monitoring, growing adoption in data centers, and rise of microgrids and decentralized energy are the upcoming trends of Automatic Transfer Switch Market in the world.

Residential end-use is the leading application of Automatic Transfer Switch Market.

Asia-Pacific is the largest regional market for Automatic Transfer Switch

ABB Ltd., Cummins Inc., Eaton Corporation, Kohler, Generac Power Systems, General Electric, Schneider Electric, Siemens, Vertiv Group Corp., and Caterpillar are the top companies to hold the market share in Automatic Transfer Switch.

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Automatic Transfer Switch Market

Global Opportunity Analysis and Industry Forecast, 2023-2032