Transfer Switch Market Report 2026

The transfer switch market size has grown strongly in recent years. It will grow from $1.9 billion in 2025 to $2.05 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to increasing deployment of traditional backup power systems, expansion of commercial generator installations, growing reliance on manual transfer switches, development of early switching mechanisms, rise in industrial power continuity requirements.

The transfer switch market size is expected to see strong growth in the next few years. It will grow to $2.74 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to rising demand for automated power switching solutions, expansion of renewable energy integration in buildings, growth of smart grid modernization programs, increasing focus on power reliability for industrial applications, development of high-capacity transfer switch technologies. Major trends in the forecast period include adoption of sustainable backup power solutions, expansion of intelligent manufacturing of power switching devices, integration of IoT-connected transfer switch systems, advancement of cloud-enabled power monitoring, growth of electrification-driven backup power technologies.

The increasing demand for data centers is anticipated to drive the growth of the transfer switch market in the future. A data center is a centralized facility where organizations manage their computer systems, servers, networking equipment, data storage, and related components. Transfer switches are utilized in data centers for power distribution and management systems, ensuring an uninterrupted power supply and facilitating efficient power management and maintenance of power sources, such as generators. For example, in June 2024, CBRE Group Inc., a U.S.-based commercial real estate services and investment firm, reported a 24.4% year-over-year increase in North America's data center inventory in Q1 2024, adding 807.5 MW of capacity. Northern Virginia was the leading contributor, supplying 391.1 MW of new capacity. Similarly, the Asia-Pacific region also experienced significant growth, with data center inventory rising by 22% year-over-year to nearly 3,000 MW. Despite tighter planning constraints in Singapore, the capacity pipeline remains robust. Thus, the rising demand for data centers is driving the expansion of the transfer switch market.

Major players in the transfer switch market are launching new products to fortify their market positions. Natures Generator, a US-based provider of solar and wind generator products, exemplifies this trend with the introduction of a 12-circuit transfer switch kit in September 2023. This pre-wired kit is designed for seamless integration of a building's electrical system with clean and renewable energy sources. The 12-circuit switch kit serves as a backup power solution for electrical appliances, devices, and lighting during blackouts. Notably, it is intended for easy indoor installation, with a licensed electrician recommended for usage. These instances underscore the industry's commitment to product innovation as a strategy for staying competitive and meeting evolving market demands.

In August 2024, Trystar, a US-based manufacturer of electrical power solutions, acquired Salient for an undisclosed sum. This acquisition specifically targets the needs of the data center sector as well as other commercial and industrial markets. Salient is a US-based company that specializes in providing transfer switches.

Major companies operating in the transfer switch market are ABB Ltd., Siemens Aktiengesellschaft, Schneider Electric SE, General Electric Corporation, Cummins Inc., Caterpillar Inc., Eaton Corporation plc, Kohler Co., Socomec Group SAS, Camsco Electric Co., DynaGen Technologies Inc., Mitsubishi Electric Corporation, Emerson Electric Co., Marathon Thomson Power System LLC, Vertiv Co., Briggs & Stratton Corporation, ASCO Power Technologies, Russelectric Inc., Blue Star Power Systems Inc., Zenith Controls Inc., Thomson Power Systems, Lovato Electric SpA, Generac Power Systems Inc., Honeywell International Inc., Legrand SA.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have increased the cost of imported switchgear components, metal housings, electronic controllers, and power-transfer assemblies used in transfer switch production. Industrial, commercial, and residential users across North America, Europe, and Asia-Pacific face elevated installation costs and extended project timelines due to tariff-driven supply chain delays. However, tariffs are accelerating domestic manufacturing investments and encouraging innovation in cost-optimized, locally sourced power switching technologies.

The transfer switch market research report is one of a series of new reports that provides transfer switch market statistics including transfer switch industry global market size regional shares competitors with a transfer switch market share detailed transfer switch market segments market trends and opportunities and any further data you may need to thrive in the transfer switch industry. This transfer switch market research report delivers a complete perspective of everything you need with an in-depth analysis of the current and future scenario of the industry.

A transfer switch is a device designed to facilitate the safe switching of electrical loads between different power sources. It enables the seamless transition of an electrical load from one power source to another, commonly between a primary power source and a backup power source. These switches are utilized for transferring an electrical load between sources such as a main power supply and a backup generator, or between different generators or grid service entrances.

The primary types of transfer switches include automatic transfer switches (ATS) and manual transfer switches. An automatic transfer switch (ATS) is a self-acting device equipped with intelligent power-switching capabilities governed by dedicated control logic. It features multiple transition modes such as soft load, closed, delayed, and open. These switches find applications across industrial, commercial, and residential settings to ensure seamless power transfer and supply continuity in case of power disruptions or switching between power sources.Asia-Pacific was the largest region in the transfer switch market in 2025. The regions covered in the transfer switch market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transfer switch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The transfer switch market consists of sales of intelligent and self-acting power-switching devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.