North American Transfer Switch Market

This Frost & Sullivan research service titled North American Transfer Switch Market provides market forecasts, future market trends, market drivers and restraints, and the major industry challenges. This research service covers the North American transfer switch market and the two product segments - automatic transfer switch (ATS) and manual transfer switch (MTS). In this research, Frost & Sullivan's expert analysts thoroughly examine the following applications: institutions, industrial, communication, residential, and commercial.

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Market Overview

Increasing Consumer Awareness about the Importance of Reliable Power Drives Growth in the North American Transfer Switch Market

The North American transfer switch market continues to grow despite its maturity due to the rising need for reliable and continuous power. As the need for backup power increases, transfer switch vendors will sense an opportunity because transfer switch is needed while installing an auxiliary power source to ensure power transfer between loads. The selection of a MTS or an ATS will mainly depend on the applications involved along with the gravity of the activities. "The quality of power delivered to the load, the effectiveness of periodic system testing, and the ability to diagnose outages and disturbances in the electrical system are issues with serious implications for critical facilities," says the analyst of this research. "Facility managers are installing generator backup systems and other similar backup sources, as they are identifying more significant loads."

The need for continuous real-time flow of information is increasing thus making power outages extremely detrimental to businesses. Healthcare facilities, data centers, telecommunications, financial institutions, industrial applications, and transportation infrastructure, among other critical applications, are sectors that cannot afford a power outage. This has resulted in companies relying on reliable backup power thus making a case stronger for transfer switches. The demand for transfer switches is likely to increase as the existing utility grids are incapable of supporting the growing load requirements of the end users.

In order to serve the diversity of end-user segments and expand their customer base, manufacturers should be capable of providing multiple types of transfer switches. Additionally, as a mean to revert the trend toward commoditization of transfer switches, manufacturers are focusing in developing and incorporating advanced features in their products. "As this market matures, reversing the commoditization process would pave the way for companies to attract new business, as well as add functionality to attract customers," concludes the analyst. More value-added functions in the switch such as built-in surge suppressors, test switches, and monitoring capabilities among others are likely to increase the demand for transfer switch.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Product Segment:

• Manual transfer switches
• Automatic transfer switches

By Application:

• Institutions
• Industrial applications
• Communication
• Residential
• Commercial