North America Air Insulated Switchgear Market, 2025-2035
The North America Air Insulated Switchgear (AIS) market is poised for strong growth through 2035, driven by modernization of grid infrastructure, rapid urbanization, and increasing integration of digital technologies. AIS solutions, which use air as an insulating medium for electrical switchgear, are preferred for their safety, ease of maintenance, and cost-effectiveness in various voltage ranges. The market is segmented by voltage type (Low, Medium, High, Extra High, Ultra High), applications (Commercial, Industrial, Utilities, Infrastructure, Residential), technology (Conventional, Digital, Smart, Hybrid), distribution channels, and organization size. As the region continues to invest in renewable energy and smart grid solutions, AIS adoption is expanding, particularly across industrial and utility sectors, creating robust opportunities for innovation and growth.
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Latest Market Dynamics
Key Drivers
- Grid Modernization Initiatives: The accelerated investment into upgrading the aging grid infrastructure across the US and Canada is propelling demand for air insulated switchgear solutions. For example, Siemens has expanded its North American portfolio with digital-ready AIS products tailored for utility modernization projects as of 2025.
- Renewable Energy Integration: The proliferation of renewable energy projects, including wind and solar, necessitates reliable and efficient switchgear solutions. ABB's delivery of compact AIS for Canadian solar farms in early 2025 highlights this trend.
Key Trends
- Shift Towards Digitalization: Companies like Schneider Electric are introducing digital AIS solutions with real-time monitoring features, aligning with the broader industry move towards smart grids in 2025.
- Rising Adoption in Data Centers: The surging construction of data centers across North America is driving demand for reliable medium and high voltage AIS. Eaton reported a double-digit uptick in AIS orders from leading tech firms in Q2 2025.
Key Opportunities
- Smart Grid Expansion: The region's growing push for digital grids provides a lucrative opportunity for vendors offering smart and modular AIS solutions. GE recently partnered with US utilities to implement smart AIS in urban centers.
- Demand from EV Infrastructure: The rapid growth of electric vehicle charging networks is fueling increased installations of compact AIS in commercial and public spaces, as evidenced by Mitsubishi Electric’s deployment for a US highway EV corridor in May 2025.
Key Challenges
- Technological Complexity: Some utilities face skill gaps in deploying and maintaining advanced digital AIS systems, with companies like Lucy Electric enhancing training programs to address this challenge in 2025.
- Supply Chain Disruptions: Ongoing electronic component shortages have delayed AIS project timelines, with Powell Industries reporting minor shipment lags in certain North American regions as of April 2025.
Key Restraints
- High Initial Investments: Despite long-term cost savings, the upfront capital required for AIS system upgrades can deter small-scale utilities and commercial buyers, with Myers Power Products noting deal delays in low-margin sectors.
- Space Constraints in Urban Areas: Large AIS installations are sometimes unsuitable for space-constrained urban environments, leading to slower adoption in central cities, especially compared to more compact GIS options reported by Ormazabal in their June 2025 urban project review.
AIS Market Share by Type, 2025
Medium voltage air insulated switchgear is projected to command the largest market share in North America in 2025, driven by its prevalence in commercial and industrial facilities, as well as grid modernization projects. High voltage AIS holds a significant portion due to utility modernization and renewable integration, while low voltage and extra/ultra high voltage types round out the market mainly servicing specialized industrial or infrastructure applications. The chart below highlights the dominance of medium voltage, reflecting ongoing investments and upgrades in existing infrastructure.
AIS Market Share by Application, 2025
The utilities sector leads AIS adoption in North America, accounting for the highest share in 2025 as grid upgrades and expansion projects remain a top national priority. Industrial applications represent the next largest segment, closely followed by commercial installations. The rapid rise of distributed energy, data centers, and EV charging infrastructure is spurring AIS demand in infrastructure and commercial sectors. Utilities maintain a dominant share reflecting sustained investments in both transmission and distribution networks.
AIS Market Revenue (USD Million), 2020-2035
The North America AIS market was valued at USD 3,850 million in 2020 and is projected to reach USD 8,900 million by 2035, exhibiting a steady compound annual growth rate (CAGR) of approximately 6.4% over the forecast period. Growth is robust between 2025 and 2030, underpinned by major investments in renewables and electrification across the region. The market's upward trajectory demonstrates consistent demand across key end-user segments, with the strongest gains anticipated in the utilities and industrial sectors.
AIS Market Year-On-Year (%) Growth, 2020-2035
Growth rates in the North America AIS market are projected to peak at 8.2% in 2025, driven by government funding for energy infrastructure upgrades and the push for grid digitalization. YOY growth is expected to moderate in later years as the market matures and the majority of urban grid modernization projects are completed, stabilizing at just above 5% by 2035. The market remains resilient, displaying a favorable long-term outlook.
AIS Market Share by Region, 2025
The United States is anticipated to capture the lion’s share of AIS demand in North America through 2025, attributed to the scale of ongoing grid modernization and the rapid pace of commercial infrastructure development. Canada is forecasted to contribute a substantial portion, mainly through renewable integration, while Mexico’s market is expanding with investments in telecom and industrial projects. The US remains the clear leader in market share.
AIS Market Share by Key Players, 2025
Major players in the North American AIS market are ABB, Siemens, Schneider Electric, Eaton, and General Electric, collectively commanding over 60% of the market due to their diverse product portfolios, extensive regional presence, and significant R&D investments. These global vendors are constantly delivering innovative solutions tailored to smart grid deployments, sustainability, and digitalization, thus maintaining their competitive edge.
AIS Market Share by Buyer Segment, 2025
Utility companies represent the largest buyer segment in the North American AIS market, fueled by extensive investment in grid resilience and expansion. Large industrial companies, including manufacturing and mining, follow closely, while commercial real estate developers are increasingly adopting AIS for infrastructure projects. Utilities are the undisputed leader, while the growing share of commercial and industrial buyers highlight diversified end-user adoption.
Study Coverage
| Metrics | Details |
|---|
| Years | 2020-2035 |
| Base Year | 2025 |
| Market Size | Revenue (USD Million) |
| Regions | United States, Canada, Mexico |
| Segments | By Type (Low Voltage, Medium Voltage, High Voltage, Extra High Voltage, Ultra High Voltage, Others), By Application (Commercial, Industrial, Utilities, Infrastructure, Residential, Others) |
| Players | ABB, Siemens, Schneider Electric, Eaton, General Electric, Mitsubishi Electric, Toshiba, Powell Industries, CG Power and Industrial Solutions, Hyosung Heavy Industries, Hyundai Electric & Energy Systems, Larsen & Toubro, Lucy Electric, Ormazabal, Myers Power Products |
Key Recent Developments
- June 2024: Siemens introduces a new range of digital-ready medium voltage AIS for North American utilities, focusing on real-time grid monitoring and predictive maintenance.
- July 2024: Schneider Electric launches EcoStruxure Digital Switchgear in the US, targeting commercial and industrial sector upgrades.
- August 2024: ABB completes turnkey supply of modular AIS systems for a major Canadian solar farm project.
- September 2024: Eaton partners with a leading US data center operator to provide compact AIS systems enhancing uptime and scalability.
- October 2024: General Electric secures a contract to deploy smart AIS in metropolitan substations in Mexico, boosting grid digitalization.
