Global Transfer Switches Market to Reach $1.7 Billion by 2024

A transfer switch is an electrical device designed to switch the load between power sources. The power source can be a utility power source or generator power source. A quick transition between these power sources, using a transfer switch, allows for uninterrupted supply of power in the event of power loss. As a cost-effective and easy method for transferring power supply from the grid to generator and vice versa, transfer switch simplifies the switching process and provides higher safety level compared to the other methods of plug-in-and-go. Amid the COVID-19 crisis, the global market for Transfer Switches is projected to reach US$1.7 Billion by 2024, registering a compounded annual growth rate (CAGR) of 7.1% over the analysis period. The United States represents the largest regional market for Transfer Switches, accounting for an estimated 24.8% share of the global total. The market is projected to reach US$416 Million by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 9.4% over the analysis period.

Growth in the global market is set to be spurred by regulations and guidelines for buildings and electrical networks. At the global level, the growing trend of smart grid technology adoption and increasing demand for uninterrupted power would provide strong opportunities for market growth. The switches have been experiencing significant growth from the industrial segment mainly because of the increase in investments in large scale integration of renewable capacity recently. Another growth promoting factor for the market for transfer switches would be the growing need for a safe and reliable working environment across many industries. Governments are also implementing more stringent rules for operational safety in industrial environments. Transfer switches which ensure uninterrupted supply of power would make operating environments safer for employees and therefore would be deployed increasingly to adhere to the governmental regulations. Demand for transfer switches in Asia-Pacific region is influenced by the urgent need to improve power distribution infrastructure at grid level as well as in industrial and commercial environments. Energy consumption has emerged as a prime focus area for industrial entities in the US and other developed nations, against the backdrop of rising governmental initiatives to minimize carbon emissions from various sources including factories and plants. Such governmental programs have wielded huge impact on energy management in industrial enterprises across the board, while generating substantial opportunities for transfer switches.