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Transition Toward Smart Grids Is Fueling The Growth Of The Market Due To Rising Demand For Efficient Energy Management: Transformative Forces Shaping the Data Center Transfer Switches And Switchgears Market Landscape in 2025
Data Center Transfer Switches And Switchgears
Data Center Transfer Switches And Switchgears Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market for data center transfer switches and switchgears has experienced significant growth in the recent past. The market, which was at $3.00 billion in 2024 is projected to reach $3.32 billion in 2025, representing a compound annual growth rate (CAGR) of 10.4%. The growth witnessed in the past is due to factors such as an increased dependence on cloud services, the construction of more hyperscale data centers, growing demand for backup power solutions, amplified IT spending by enterprises, and rising internet usage and digitalization.
Data Center Transfer Switches And Switchgears Market Size Forecast: What's the Projected Valuation by 2029?
The market for data center transfer switches and switchgears is projected to experience significant expansion in the coming years, with an expected growth to $4.86 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 10.0%. Factors contributing to the growth during this period include the increasing workloads related to artificial intelligence (AI) and machine learning, a stronger focus on integrating green energy, stricter energy efficiency regulations, larger investments in hyperscale facilities, and a heightened demand for incessant power supply. The period is also expected to see new trends like the development of smart and IoT-enabled switchgear, modern modular and scalable architectures, breakthroughs in AI-powered power management systems, the merging of renewable energy with transfer switches, and improved real-time monitoring and predictive maintenance systems.
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What Are the Drivers Transforming the Data Center Transfer Switches And Switchgears Market?
The increasing shift towards smart grids is promoting market growth because of the growing need for efficient energy management.
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What Are the Key Trends Driving Data Center Transfer Switches And Switchgears Market Growth?
Leading corporations involved in the data center transfer switches and switchgears market are prioritizing the creation of progressive technologies such as the high endurance mechanism (HEM) with patented blow-on technology. The focus is to offer robust and reliable solutions that promote steady power transfer, elevate system security, and facilitate continuous operations in data centers critical to mission ventures. HEM with patented blow-on technology represents a state-of-the-art switch design that leverages electromagnetic forces to quickly and safely close contacts under severe fault current situations, consequently boosting durability and reliability. For instance, in March 2023, Cummins Inc., an American power technology firm, introduced the UL1008-certified transfer switches with a unified Bypass Isolation Transfer Switch solution. These high-end switches cater to the escalating need for resilient backup power in data centers and healthcare facilities by ensuring elevated reliability and simplified maintenance for vital power systems. This inventive development signifies Cummins' venture into next-generation power transfer solutions. The aim of this product is to establish new safety and uptime benchmarks in the industry while cutting down on maintenance downtime by 50% as compared to traditional transfer switches.
Which Segments in the Data Center Transfer Switches And Switchgears Market Offer the Most Profit Potential?
The data center transfer switches and switchgears market covered in this report is segmented
1) By Type: Transfer Switch Type, Switchgear Type
2) By Component: Enclosures, Contacts, Control Systems, Relays And Circuit Breakers, Metering Units, Transformers
3) By Application: Colocation Data Centers, Hyperscale Data Centers, Edge Data Centers, Other Applications
4) By End-User: Information Technology (IT) And Telecommunications, Energy And Power, Healthcare, Manufacturing, Retail, Education
Subsegments:
1) By Transfer Switch Type: Automatic Transfer Switch, Manual Transfer Switch, Static Transfer Switch
2) By Switchgear Type: Low Voltage Switchgear, Medium Voltage Switchgear, High Voltage Switchgear
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Which Firms Dominate the Data Center Transfer Switches And Switchgears Market by Market Share and Revenue in 2025?
Major companies operating in the data center transfer switches and switchgears market are Tescom Elektronik Anonim Sirketi, Siemens AG, General Electric Grid Solutions LLC, Caterpillar Inc., Socomec Group, Schneider Electric SE, ABB Ltd., Cummins Inc., Eaton Corporation Plc, Emerson Electric Co., Legrand SA, Vertiv Group Corp., Langley Holdings Plc, NHP Electrical Engineering Products Pty. Ltd., Helios Power Solutions Inc., Powell Industries Inc., Cyber Power Systems Inc., LayerZero Power Systems Inc., Delta Power Solutions Inc., and Rittal GmbH & Co. KG.
Which Regions Offer the Highest Growth Potential in the Data Center Transfer Switches And Switchgears Market?
North America was the largest region in the data center transfer switches and switchgears market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data center transfer switches and switchgears report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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