Data Center Transfer Switches and Switchgears Market | 2031

Report Description

Data Center Transfer Switches and Switchgears Market Outlook 2031

The global data center transfer switches and switchgears market size was USD 2.9 Billion in 2022 and is likely to reach USD 5.5 Billion by 2031, expanding at a CAGR of 8.22% during 2023–2031. The market growth is attributed to the rising number of data centers and the importance of transfer switches and switchgear.

Increasing importance of transfer switches and switchgear is expected to drive the data center transfer switches and switchgears market. Switchgear and transfer switches are critical components of a power distribution system in data centers. They control, regulate, and switch circuits on and off in an electrical system. Transfer switches reroute power from the utility to backup power sources to minimize or prevent downtime. On the other hand, switchgear provides short-circuit protection and is used to build a higher level of redundancy in data centers than is needed for the average commercial building.

• In January 2023, Generac Industrial Power, a North America-based key supplier of power generation equipment and a part of Generac Power Systems, expanded its line of TX series transfer switches. This includes the 600A, 800A, and 1000A service and non-service entrance transfer switches with high resistance and termination ratings.

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The market report finds that the COVID-19 pandemic hindered the data center transfer switches and switchgears market, due to the strict regulations imposed by the government. The electronic industry faced a significant reduction in production, owing to the supply chain disruption and price fluctuations, which affected the market.

Data Center Transfer Switches and Switchgears Market Dynamics

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Major Drivers

Rising need to control the electricity supply in the data centers is expected to boost the data center transfer switches and switchgears market. Data centers consume a significant amount of energy and it is essential to manage their energy consumption efficiently. However, using an uninterruptible power supply (UPS) system and power distribution units (PDUs) is an efficient way to control the electricity supply in data centers. These units regulate the electricity that flows into delicate IT equipment. Power controlling and backup devices, such as switchgear, circuit breakers, fuses, and electric detach switches, are used in protecting, preventing, and isolating electrical equipment. Thus, the rising requirement to control the flow of electricity supply in the data centers is fueling the market.

• In June 2022, Vertiv launched a range of UPS solutions, including Vertiv Liebert EXM2 and Vertiv Liebert ITA2 – 30 kVA, in Vertiv Xpress Power Drive, a roadshow that showcases the company’s important solutions complete stack of critical infrastructure solutions to its end-users across India.

Existing Restraints

Strict environmental and safety regulations are expected to restrain the data center transfer switches and switchgears market. Transfer switches and switchgear devices are dangerous for workers if they are not installed or maintained properly and reliably. If a transfer switch fails to operate efficiently during a power outage, it results in serious injury or death. Thus, proper installment of switchgear devices is required in data centers to prevent accidents and downtime while ensuring that these expensive pieces of equipment last as long as possible.

Emerging Opportunities

Increasing electricity costs is expected to create lucrative opportunities for the players competing in the market. The electricity cost has increased the importance of the power supply management systems in the operations of data centers. Transfer switches and switchgear are induced with advanced features that predict the power demand and help in managing the power distribution effectively. These features are expected to reduce the power loss, thereby driving the market.

Scope of Data Center Transfer Switches and Switchgears Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Data Center Transfer Switches and Switchgears Market Segment Insights

Transfer Switch Type Segment Analysis

Based on transfer switch type, the data center transfer switches and switchgears market is divided into static transfer switches, bypass isolation transfer switches, automatic transfer switches, and others. The automatic transfer switches segment is expected to expand at a considerable CAGR during the projection period. An automatic transfer switch (ATS) is an electrical device that automatically switches the power supply between two sources without human intervention. It ensures continuous delivery of electrical power from power sources to a connected load circuit. ATS plays a key role in connecting the standby generator to the main electrical system of the home, thereby boosting the segment.

• In August 2022, Zonit launched the Z-ATS industrial, the foremost ATS for digitally controlled commercial and industrial equipment. The Z-ATS industrial is a small form factor ATS that is ready out of the box and fits in control panels and other small spaces. It quickly converts from the primary transfer switch to the backup source as needed.

Switchgear Type Segment Analysis

On the basis of switchgear type, the global market is bifurcated into medium voltage and low voltage. The low voltage segment is expected to register a robust growth rate during the forecast period, as it is easy to install, has superior dynamic stability, and provides protection and breaking capacity. Low voltage (LV) switchgear is a three-phase distribution product designed to achieve an efficient, safe, and reliable supply of electric power of up to 1000 volts. This LV switchgear is installed on the secondary side of a power distribution transformer.

• In May 2023, Schneider Electric introduced its new low-voltage switchboard FlexSeT, a cutting-edge solution, that offers a simplified, modular service model for switchboard design, installation, sourcing, and maintenance. It is designed to help electrical professionals to reduce project risk and surge construction efficiency.

Regional Analysis

In terms of region, the global data center transfer switches and switchgears market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the increasing number of data centers and rising technological advancements for their products. Increasing investments in the construction of advanced hyper-scale data centers by tech companies, such as Facebook Inc. and Google Inc., which is expected to boost the market. The regional market growth is further attributed to the high demand for 24x7 hours of IT support from data centers and the rising need to control electricity consumption from data centers.

The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, due to the increasing adoption of power backup devices. The increasing number of data centers coupled with the rising adoption of backup and utility systems, the rising penetration of mobile phones, and the availability of the Internet have increased the volume of data to be processed and stored, thus, fueling the market in the region.

• In September 2023, GLP Pte Ltd launched Ada Infrastructure, a new global data center business founded on a commitment to being a positive force for technology, the planet, and people. Ada infrastructure launched with 850 megawatts of secure IT capacity across Japan, Brazil, and the UK, and nearly 1.5 gigawatts of total future capacity, serving the digital infrastructure needs of hyperscale companies and large enterprises across the globe.

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