Report Overview: Data Center Transfer Switches And Switchgears Market
The global data center transfer switches and switchgears market size was valued at USD 1.2billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 6.7% from 2021 to 2027. To avoid power disruption in the data center operations along with the need to control the electrical supply in the data centers is anticipated to drive the market over the forecast period 2021-2027. As the data centers have complex and massive systems architectures, power failure in the data centers may affect the productivity of the overall system. It may also cause the company significant financial and reputational losses. Moreover, switching devices such as transfer switches and switchgear are used in the data center architectures to control the power supply and protect the devices in case of electricity breakdown. Thus, high voltage power supply in the data centers has resulted in the adoption of switching devices, which in turn is driving the market.
However, transfer switches are devices that are used to switch the load between different power sources i.e., back up and utility systems. Meanwhile, switchgears comprise of circuit breakers, fuses, and electrical disconnect switches, used to protect, control, and isolate electrical equipment. Switching components are often the most undervalued components in any power back up and distribution system. However, the importance of these units in data centers has grown exponentially owing to the criticality and costs involved in the preservation of data, which is expected to drive the market.
A variety of transfer switches and switchgears are needed in data centers and are located at multiple places based on their utility. Medium voltage switchgears are located between the utility power source, generator, and data center. Moreover, the transfer switches along with UPS systems, and low voltage switchgears are placed before the cooling equipment and IT equipment. These devices facilitate quick switching between the utility and backup power sources during the time of power outage, thus ensuring a continuous supply of power to the data center. Furthermore, the circuit breakers in the switchgears offer protection to the data center components from power surges, short circuits, and abrupt fluctuations in the voltage. With the growing importance of redundancy in data centers, the importance of transfer switches and switchgears is also evolving, which is expected to fuel the growth of the market.
Additionally, rising electrical costs have increased the emphasis on the power supply management systems among the data center operators. Thus, companies offering transfer switches and switchgears are engaged in introducing advanced technological features in their products. Moreover, transfer switches and switchgears are being induced with features with which predictions can be made about the power demand for the future and can help in managing the power distribution effectively. However, the intelligent switchgears are loaded with a feedback mechanism that can identify and predict any fault in the system and send alerts of any possible breakdowns in advance to the user, thus facilitating corrective action. Such features are expected to reduce the power losses to a great extent and are expected to drive the market.
Transfer Switches And Switchgears Type Insights
Automatic transfer switches lead the market with a share of 86.5% in 2019. This high share is attributable to benefits offered by automatic transfer switches such as continuously monitoring the power supply and sensing any fluctuations in power source before switching to the secondary power source. The power from the grid cannot be always relied on given the increased frequency of power outages. Therefore, the adoption of these switches has risen owing to its safe operating and better synchronization characteristics with primary and secondary sources of power.
Based on the type of switchgear, the data center transfer switches and switchgears market has been segregated into low voltage switchgear and medium voltage switchgear. The low voltage switchgear held a substantial part of the market share in 2019 and is anticipated to witness a CAGR of more than 8.0% during the forecast period. The low voltage switchgears are deployed at multiple points in a data center for the distribution of power. For instance, in small size data centers, it is the main service switchgear, and in large data centers it is deployed at input and output of UPS systems. The growth of this segment is attributed to the multiple usage characteristics and a high rate of adoption.
Regional Insights: Data Center Transfer Switches And Switchgears Market
North America lead the market with a revenue share of 38.0% in 2019. The growth is attributable to the presence of some major players in the region such as Eaton; Emerson Electric Co.; Cummins Inc.; and General Electric. These companies are engaged in making continuous product developments and adding new technologically advanced features to their products. Moreover, the increasing investment in the construction of new hyperscale data centers in the region from companies like Google Inc.; Microsoft; Facebook; and Amazon.com has further driven the growth of the market in this region.
Asia Pacific is the fastest-growing region, with a CAGR of over 8.9%. The frequency of power outages in the data centers has added to the demand of back up devices, which in turn, has increased the adoption of transfer switches and switchgears in this region. Furthermore, the high penetration of smartphones and internet availability has increased the volume of data to be stored and processed. This has increased the concentration of data centers and is expected to increase the demand for transfer switches and switchgears in this region.
Key Companies & Market Share Insights: Data Center Transfer Switches And Switchgears Market
Key companies are engaged in making strategic investments and are focused on mergers and acquisitions. For instance, in April 2019, Eaton completed the acquisition of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S., which is a Turkish manufacturer of medium voltage equipment. This acquisition will help Eaton to capture new markets across Eastern Europe.
Similarly, several market players are also engaged in product developments for making the transfer switches and switchgears more efficient and advanced. For instance, in March 2019, Siemens introduced new medium voltage switchgear, which uses clean air as a medium for insulation and is completely eco-friendly as it is manufactured from fully recyclable material. Some of the prominent players in the data center transfer switches and switchgears market include:
Key companies Profiled: Data Center Transfer Switches And Switchgears Market Report
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global data center transfer switches and switchgears market report based on transfer switches type, switchgears type, and region.
- Caterpillar, Inc.
- Cummins, Inc.
- Delta Electronics, Inc.
- Emerson Electric Co.
Transfer Switches Type Outlook (Revenue, USD Million, 2016 - 2027)
- Automatic Transfer Switch
- Static Transfer Switch
Switchgears Type Outlook (Revenue, USD Million, 2016 - 2027)
- Low Voltage
- Medium Voltage