Two-phase flow widely exists in many industries. Understanding local characteristics of two-phase flow under different flow conditions in piping systems is important to design and optimize the industrial process for higher productivity and lower cost. Air–water two-phase flow experiments were conducted with a 16x16 conductivity wire-mesh sensor (WMS) in a horizontal pipe of a multiphase flow facility. The cross-sectional void fraction time series was analysed by the probability density function (PDF), which described the void fraction fluctuation at different flow conditions. The changes and causes of PDFs during a flow regime transition were analysed. The local structure and flow behaviour were characterized by the local flow spectrum energy analysis and the local void fraction distribution (horizontal, vertical and radial direction) analysis. Finally, three-dimensional transient flow fluctuation energy evolution and characteristic scale distribution based on wavelet analysis of air–water two-phase flow were presented, which revealed the structural features of each phase in two-phase flow.