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Automatic Transfer Switch Market Size
The global automatic transfer switch market was valued at USD 1.7 billion in 2024 and is estimated to grow at a CAGR 5.4% from 2025 to 2034. The market is driven by growing demand for reliable power supply across residential, commercial, and industrial sectors. Rise in renewable energy integration and distributed generation systems further fuels market growth, as ATS facilitates efficient switching between grid and backup power sources.
Technological advancements including smart and programmable ATS solutions improve efficiency and enable real-time monitoring, meeting demand for automated power management. For instance, in May 2021, Cummins introduced a new line of UL1008 transfer switches, offering industry-leading withstand and closing ratings. These switches are equipped with an advanced control system to enhance reliability and performance. Moreover, rising investments in essential infrastructure, including data centers, healthcare facilities, and manufacturing plants, are driving adoption of ATS systems.
Report Attributes | Details |
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Base Year: | 2024 |
Market Size in 2024: | USD 1.7 billion |
Forecast Period: | 2025 – 2034 |
Forecast Period 2025 – 2034 CAGR: | 5.4% |
2025 – 2034 Value Projection: | USD 2.9 Billion |
Historical Data for: | 2021 – 2024 |
No. of Pages: | 100 |
Tables, Charts & Figures: | 20 |
Segments covered: | Switching Mechanism, Transition, Ampere Rating, Installation |
Growth Drivers: |
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Pitfalls & Challenges: |
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Automatic Transfer Switch Market Trends
The automatic transfer switch meter market is experiencing significant growth driven by several key factors. Shift towards smart and digital ATS solutions with improved connectivity, real-time monitoring, and predictive maintenance is driving more efficient power management, supporting demand for automation in power systems. For instance, in April 2021, Kohler Power Systems introduced a new range of electrically operated bypass-isolation transfer switches, developed in partnership with ASCO. These switches, available in standard (KAS) and programmed (KAP) transition configurations, feature single-touch controls that allow users to seamlessly transfer critical loads between power sources. These trends highlight the shifting demands for a modern, dependable, and sustainable power infrastructure.
Automatic Transfer Switch Market Analysis
The market from the circuit breaker switching mechanism is projected to surpass USD 1.6 billion by 2034, driven by demand for more efficient and reliable power transfer solutions. Hybrid solutions combining contactors and circuit breakers are gaining popularity for their balance of fast switching and strong protection, catering to critical infrastructure needs. Moreover, adoption of electronic controls in contactors and circuit breakers is increasing, fueled by the demand for smarter ATS systems with features including remote monitoring, diagnostics, and predictive maintenance. These trends highlight the growing focus on automation, greater reliability, and improved power management in the market.
The open transition market is expected to experience a robust growth rate, with a CAGR exceeding 4% through 2034. The trend is shifting towards systems with enhanced transition features, including load shedding, soft transfer, and programmable delays, to optimize energy use and ensure smoother transitions. Additionally, there is growing interest in adaptive transfer modes that can intelligently adjust based on the type of power outage, improving the efficiency and flexibility of the power transfer process. These innovations are driven by the need for higher reliability, operational continuity, and greater energy efficiency across various sectors.
The U.S. automatic transfer switch market is projected to exceed USD 540 million by 2034, driven by increasing demand for uninterrupted and reliable power supply across various sectors. Growing infrastructure development in data centers, healthcare facilities, and manufacturing plants is pushing the demand for advanced ATS systems. For instance, in October 2021, Schneider Electric introduced TransferPact automatic transfer switching equipment (ATSE) which delivers reliable backup power for critical sectors including hospitals, airports, data centers, and industrial facilities. Moreover, demand for energy efficiency and reduced downtime is driving the U.S. ATS market towards more reliable, cost-effective, and automated systems, reflecting a broader shift towards sustainability, automation, and improved power management.
In the Asia Pacific, the automatic transfer switch (ATS) market is growing rapidly due to expanding industrialization, infrastructure development, and increasing demand for reliable power in sectors like manufacturing, healthcare, and data centers. The adoption of smart ATS solutions, driven by automation and renewable energy integration, is enhancing operational efficiency and ensuring seamless power transitions across the region.
Automatic Transfer Switch Market Share
Schneider Electric holds a substantial share in the market due to its extensive product portfolio, strong global presence, and innovative solutions. The company offers advanced, energy-efficient ATS systems with smart features like real-time monitoring and predictive maintenance. Its focus on sustainability, automation, and reliability in critical applications, including data centers and healthcare, further strengthens its market leadership.
Automatic Transfer Switch Market Companies
Major players operating in the automatic transfer switch industry are:
- ABB
- AEG Power Solutions
- Briggs & Stratton
- Caterpillar
- Cummins
- Eaton
- Generac Power Systems
- General Electric
- Global Power Supply
- Kohler
- One Two Three Electric
- Schneider Electric
- Siemens
- Vertiv Group
Automatic Transfer Switch Industry News
- In April 2024, RUSSELL Electric, a Siemens business, has introduced the RTS-30 Series automatic transfer switches (ATS) designed for water and wastewater treatment facilities. These switches provide enhanced reliability and performance, ensuring a seamless power transition during outages. The RTS-30 Series meets the industry’s demand for robust, efficient power backup solutions in critical infrastructure, maintaining operational continuity.
- In March 2023, Cummins broadened its product range by launching the transfer switch “PowerCommand B-Series” across North America, available in capacities from 1200 amps to 3000 amps, and equipped with bypass-isolation features. This new offering underscores Cummins' dedication to delivering dependable, cutting-edge, and all-encompassing power solutions.
Automatic transfer switch market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million and ‘000 Units” from 2021 to 2034, for the following segments:
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Market, By Switching Mechanism
- Contactor
- Circuit breaker
Market, By Transition
- Closed
- Open
Market, By Ampere Rating
- ≤ 400 Amp
- 401 Amp to 1600 Amp
- > 1600 Amp
Market, By Application
- Emergency systems
- Legally required systems
- Critical operations power systems
- Optional standby systems
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Russia
- UK
- Italy
- Spain
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Middle East & Africa
- UAE
- South Africa
- Saudi Arabia
- Latin America
- Brazil
- Argentina
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