Data Center Transfer Switches and Switchgears Market Report 2025

The data center transfer switches and switchgears market size has grown rapidly in recent years. It will grow from $3.0 billion in 2024 to $3.32 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. During the historical period, expansion was driven by greater adoption of cloud computing, rapid development of hyperscale data centers, higher demand for backup power systems, increased IT investments by enterprises, and the broader spread of internet access and digital technologies.

The data center transfer switches and switchgears market size is expected to see rapid growth in the next few years. It will grow to $4.86 billion in 2029 at a compound annual growth rate (CAGR) of 10%. In the forecast period, growth is expected to be driven by the increasing demand for AI and machine learning workloads, a stronger focus on sustainable energy integration, heightened regulatory attention to energy efficiency, rising investments in large-scale data center facilities, and the ongoing need for reliable power supply. Key trends anticipated during this period include the development of IoT-enabled and smart switchgear, adoption of modular and scalable system designs, innovations in AI-powered power management solutions, incorporation of renewable energy with transfer switches, and enhanced real-time monitoring coupled with predictive maintenance technologies.

The growing shift toward smart grids is expected to drive the growth of the data center transfer switches and switchgears market. Smart grids are advanced electricity networks that incorporate digital communication, automation, and real-time monitoring to improve the efficiency, reliability, security, and sustainability of power generation, transmission, and distribution. The increase in smart grids is driven by rising demand for efficient energy management, as they allow real-time monitoring and optimization of electricity usage. Data center transfer switches and switchgears facilitate smart grid operations by enabling reliable and secure data exchange between devices, systems, and control centers. For example, in May 2023, Gov.uk reported that 32.4 million smart and advanced meters were in operation in Great Britain, representing 57% of all meters.

Companies in the data center transfer switches and switchgears market are developing advanced technologies such as high endurance mechanisms (HEM) with patented blow-on technology to enhance reliability and safety in critical power systems. HEM with blow-on technology uses electromagnetic forces to close contacts rapidly and securely under extreme fault currents, improving durability and system performance. For instance, in March 2023, Cummins Inc., a US-based power technology company, introduced UL1008-certified transfer switches with integrated Bypass Isolation Transfer Switch solutions. These switches offer improved reliability, easier maintenance, and aim to reduce downtime by 50% compared to conventional transfer switches, meeting the growing demand for resilient backup power in data centers and healthcare facilities.

In June 2024, Betoule Legrand & Co., a France-based electrical and digital building infrastructure provider, acquired Davenham Switchgear Limited. This acquisition allows Legrand to expand its data center infrastructure offerings across both white and grey space. Davenham Switchgear Limited is an Ireland-based manufacturer of data center transfer switches and switchgears.

Major players in the data center transfer switches and switchgears market are Tescom Elektronik Anonim Şirketi, 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.

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. The countries covered in the data center transfer switches and switchgears market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

Transfer switches and switchgears play a vital role in data centers by regulating how electrical power is distributed. They help maintain an uninterrupted power flow by automatically toggling between main and backup sources during power interruptions or fluctuations. These devices safeguard critical equipment, enhance system reliability, and optimize energy management in demanding operational settings.

The main product of data center transfer switches and switchgears include transfer switches and switchgears. A transfer switch is designed to move electrical loads safely between two power sources, such as the main utility line and a backup generator. It typically incorporates components such as enclosures, contacts, control mechanisms, relays, circuit breakers, metering units, and transformers. These devices are commonly employed in colocation, hyperscale, and edge data centers, serving industries such as IT and telecommunications, energy, healthcare, manufacturing, retail, and education.

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

The data center transfer switches and switchgears market consists of sales of automatic transfer switches, static transfer switches, power distribution units, busways, and circuit breakers. 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.

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