Utility Air Insulated Power Distribution Component Market Size - By Product, By Configuration, By Voltage Rating, Analysis, Share, Growth Forecast, 2024 – 2032

Utility Air Insulated Power Distribution Component Market Size

The global utility air insulated power distribution component market size was valued at USD 6.6 billion in 2023 and is projected to grow at a CAGR of 7.1% from 2024 to 2032. Aging power infrastructure and increasing electricity demand are the major market driving factors. Many utilities are focusing on upgrading aging power grids and distribution networks where air-insulated switchgear (AIS) systems are preferred for their cost-effectiveness. The growing global population, urbanization, and increased reliance on electricity-intensive industries have heightened electricity demand. This has led utilities to expand and upgrade distribution networks, fuelling the demand for air-insulated components.
 

Key companies in the market are emphasizing product innovations, particularly in digitalization and smart grid integration, to fulfil customer energy requirements. For instance, in October 2023, Delixi launched a new range of air-insulated switchgear, designed to enhance power distribution efficiency and safety. Additionally, the industry is experiencing increased adoption of the power distribution components, driven by more stringent safety and reliability regulations.
 

Utility Air Insulated Power Distribution Component Market Trends

Continuous & exponential renewable energy integration coupled with increasing rural electrification projects across developing economies are creating a favourable scenario for the market growth across the globe.
 

For instance, in May 2024, in China, the State Grid Qinghai Provincial Electric Power Company, a subsidiary of SGCC, has announced an annual investment of over USD 350 million for 2024 to strengthen rural and pastoral power grid infrastructure in Qinghai Province. Government-led initiatives aimed at rural electrification are pushing for the installation of reliable and cost-efficient distribution systems. As a result, air-insulated power components are favoured for these projects due to their simpler maintenance needs and affordability.
 

Utility Air Insulated Power Distribution Component Market Analysis

Based on product, the market is categorized into switchboard, distribution panel, motor control panels, and other components. Switchgear holds the largest market share and is expected to surpass USD 5 billion by 2032. These components play a crucial role in managing voltage levels and reducing power losses, ensuring safe and efficient electricity transmission. The increasing demand for a stable power supply, combined with the cost-effectiveness of these electrical systems, is driving product demand.
 

Based on voltage rating, the utility air insulated power distribution component market is divided into ≤ 11 kV, > 11 kV to ≤ 33 kV, > 33 kV to ≤ 66 kV, > 66 kV to ≤ 132 kV. The ≤ 11 kV industry is projected to grow at a CAGR of over 8% by 2032, driven by product deployment in office buildings, shopping malls, and hospitals, where reliable power distribution components are essential for lighting, HVAC, and critical operations.
 

The U.S. utility air insulated power distribution component market will surpass USD 1.1 billion by 2032. This growth is underpinned by the country’s increasing stringent environmental regulations along with rising technological advancements in power distribution components. Stricter environmental standards are motivating utilities to adopt eco-friendly solutions. AIS systems, which use air as an insulator rather than greenhouse gases like SF6, are seen as environmentally sustainable, further boosting their adoption.
 

The Asia Pacific region's swift industrialization, urbanization, and infrastructural advancements, particularly in its emerging economies is flourishing the market landscape in the region. In addition, with a persistent economic upswing and a heightened emphasis on robust power distribution, the Asia Pacific region is poised to sustain its commanding position on the global stage.
 

Utility Air Insulated Power Distribution Component Market Share

Major players in the utility air insulated power distribution component industry include industry leaders such as ABB, Siemens, Schneider Electric, Eaton Corporation, and General Electric. These companies dominate the market, supported by strong brand recognition, advanced technology, reliability, and high customer satisfaction, cementing their position as top suppliers.
 

Utility Air Insulated Power Distribution Component Market Companies

Some of the key market players operating across the utility air insulated power distribution component industry are:

• ABB
• ALSTOM
• CG Power & Industrial Solutions Ltd.
• Eaton
• GE Grid Solutions
• G&W Electric
• Hitachi Energy
• Lucy Group Ltd.
• L&T Electrical & Automation
• Meiden Europe
• Ormazabal
• Powell Industries
• Schneider Electric
• Siemens
• Toshiba Energy Systems & Solutions Corporation
   

Utility Air Insulated Power Distribution Component Industry News

• In September 2024, the U.S. government announced over USD 7.3 billion in financing for rural electric cooperatives to develop clean energy for rural communities under the Empowering Rural America (New ERA) program. This investment is expected to boost demand for electrical infrastructure products including air insulated power distribution component, thereby positively impacting market dynamics.
   
• In September 2023, ABB at ADIPEC 2023, introduced the 500 mm panel variant of UniGear ZS1, an air-insulated medium-voltage switchgear. This launch underscores ABB's dedication to delivering intelligent, secure, and eco-conscious solutions for energy and asset health management.
   

This utility air insulated power distribution component market research report includes an in–depth coverage of the industry with estimates & forecast in terms of volume in ‘000 units’ and revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:

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Market, By Product

• Switchgear
• Switchboard
• Distribution Panel
• Motor Control Panels

Market, By Configuration

• Fixed Mounting
• Plug-in
• Withdrawable

Market, By Voltage Rating

• ≤ 11 kV
• > 11 kV to ≤ 33 kV
• > 33 kV to ≤ 66 kV
• > 66 kV to ≤ 132 kV

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Spain
  • Italy
  • UK
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Peru