Transfer switch: Key market research findings
- Increasing use of integrated systems
- Smart grid developments fueling market demand
Technavio has released a new market research report on the global transfer switch market, which is expected to grow at a CAGR of 7% between 2016 and 2020. Transfer switches form an essential component of the electrical systems in facilities requiring a continuous power supply. Growing need for continuous power supply across industries has led to increased use of backup power, which requires the use of transfer switches to shift from the main supply to backup power. APAC leads the global transfer switch market, and is expected to occupy 41% of the total market share over the next four years. Much of this region’s growth comes from the end-users sectors including telecom, banking, healthcare, and data centers.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the major trends gaining traction in the market is the increase in the use of integrated systems. Many vendors use transfer switches along with PDUs, resulting in increased space saving. Besides saving space, these types of integrated systems reduce installation time and cost. This is because conventional systems have a large number of interconnected components, leading to unnecessary complexity. For example, Solar Balance has introduced DESS, an integrated three-phase energy storage power solution employs a fast AC transfer switch that facilitates smooth operation of sensitive loads, such as computers,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research
The rising demand for electricity in APAC and GCC has compelled the countries in these regions to invest in smart grid technology, and this will have a significant effect on the transfer switch market during the forecast period. In smart grids, transfer switches are used to protect critical loads against power loss. The transfer switch connects the load to the main power supply or generator. In the case of a power outage, it connects the grid’s internal load to the generator, and when the grid’s main supply is restored, it transfers the load back to the main power supply.
The key vendors in the global transfer switches market include ABB, Cummins, Eaton, Emerson Electric and GE. Intense competition prevails in the market due to the presence of many global vendors. The key players are facing tough competition from local players in terms of price and supply chains and distribution systems.
A more detailed analysis is available in the Technavio report, Global Transfer Switch Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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