Gas Insulated Switchgear Market Research Report ‚Äď Forecast to 2030

Gas Insulated Switchgear Market Research Report Information by Voltage (Up to 36 kV and >36 kV), Installation (Indoor and Outdoor), End-User (Transmission & Distribution, Manufacturing, Infrastructure & Transportation), and Region - Global Forecast till 2030

ID: MRFR/E&P/0602-HCR | 111 Pages | Published By Chitranshi Jaiswal on March 2023         

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Gas Insulated Switchgear Market Overview

According to the latest research report, the Gas Insulated Switchgear Market size is estimated to reach USD 30.21 Billion, at an 10.50% CAGR during forecast period 2022-2030.

Gas-insulated medium voltage switchgear is used in wind power plants. Medium voltage switchgear of up to 35 kVA is used to protect wind generators installed at remote locations. Wind farm installation is on the rise globally due to a shift toward renewable energy sources and cheaper costs than other sources of renewable energy. Since the early 2000s, renewable power generation has become significantly cheaper than diesel-fired, particularly in isolated areas with poor or non-existent infrastructure. It has led to significant growth in the demand for distributed generation through renewable sources in the industrial and commercial sectors. According to the International Energy Agency (IEA), in 2018, it was stated that the total electricity generated by renewable sources accounted for 25% of the global electricity generation. Factors such as the power industry's transformation in terms of upgrading transmission and distribution networks, rising adoption of renewable energy-based power plants, etc. However, high equipment cost compared to air-insulated switchgear, along with stringent environmental and safety regulations related to GIS, is likely to restrain the market growth during the forecast period.

The global Gas Insulated Switchgear market is anticipated to develop significantly during the forecast period, owing to increased investment in transmission and distribution infrastructure and a rise in renewable power generation. According to the OECD, worldwide energy transmission and distribution (T&D) infrastructure would expand from USD 282 billion in 2016 to USD 351 billion in 2026, with a compounded annual growth rate of 2.2 percent. This investment is being driven by rising energy consumption and capacity increases, particularly in growing economies that require electricity generating. China, Japan, and India are investing in grid expansion projects to improve distribution system dependability. China is an export-oriented economy that has seen a rapid increase in energy consumption over the last few decades, fuelled by industrialization and infrastructure expansion. Furthermore, India, China, and Indonesia are aggressively investing in hydroelectric power projects. This has resulted in increased expenditures in the transmission and distribution sectors by linking renewable energy sources to the grid, which are likely to fuel the growth of the Asia Pacific gas-insulated switchgear market outlook.

This report contains all the information on the global Gas Insulated Switchgear market trends and  strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the Gas Insulated Switchgear market forecast for 2027 is also included in the report.

Gas Insulated Switchgear Market Covid 19 Analysis

COVID-19 will have a negative impact since production facilities and current projects have been shut down as a result of the lockdown; this is likely to have a negative influence on demand for gas-insulated switchgear market value. Manufacturers are unable to generate SF6 as a result of COVID-19, further delaying the production of gas-insulated switchgear. The epidemic has resulted in a global lockdown to prevent it from spreading further. This has put a halt to all active projects, and any delays in completion will hurt the gas-insulated switchgear industry.

Gas Insulated Switchgear Market Competitive Landscape

The power sector is investing heavily in T&D infrastructure, with a total expenditure of USD 3.2 trillion planned for the next decade. Growing electricity consumption, aging infrastructure, and planned power production projects, including an emphasis on renewable energy, necessitate more investment in T&D. Global players are substantially investing in T&D equipment, particularly gas-insulated switchgear, in response to rising demand for electronic systems. All of these reasons are expected to increase demand for the gas insulated switchgear industry.

Gas Insulated Switchgear Market Major Key Players   

  • Siemens (Germany)

  • ABB (Switzerland)

  • Toshiba (Japan)

  • Larsen &Toubro (India)

  • General Electric (US)

  • CG Power (India)

  • Fuji Electric (Japan)

  • Nisin Electric (Japan)

  • Hyosung (China)

  • Mitsubishi Electric (Japan)

  • others.  

Recent Developments in Gas Insulated Switchgear Market

Enertrag AG signed a corporate power purchase agreement tied to Poland's 36-MW wind farm project. The wind farm will be functional in the upcoming years. Furthermore, wind power plants and other kinds of renewable energy power plants are in various stages of construction globally. The installed plants employ medium-voltage gas-insulated switchgear. It results in the demand which will expand in the future. Besides that, rail-based mass transit systems are being rapidly developed globally, which are primarily powered by electricity, further shooting up the demand for medium voltage gas-insulated switch gears. For instance, in India, approximately 717.15 km of the metro rail system is operational, and a further 2000 km in various construction stages will require medium-voltage gas-insulated switch gears.

Gas Insulated Switchgear Market Dynamic

  • Drivers

The growing adoption of smart grids and smart metering technologies and rising global energy consumption are the primary drivers driving gas-insulated switchgear market growth. Furthermore, due to a variety of advantages such as safety, high dependability, minimal space requirements, cheap maintenance, and environmental compatibility, GIS is rapidly gaining market acceptance. Furthermore, a considerable increase in power consumption in emerging nations is a result of various electrification initiatives in assisting market expansion.

  • Opportunities

Increased expenditures in smart grids and energy systems, as well as the extension or replacement of outdated switchgear at substations in developed countries, are projected to provide several opportunities in the GIS industry.

  • Restraints

Factors such as high equipment costs and rigorous government rules enforced on environmental and safety standards would hurt the market.

  •  Challenges

The worldwide gas-insulated switchgear market is anticipated to face challenges as a result of stringent government laws enforcing environmental and safety requirements.

Gas Insulated Switchgear Market Cumulative Growth Analysis

In wind farm generators, gas-insulated medium-voltage switchgear is commonly utilized. At the distant sites, medium voltage switchgear of up to 35 kVA SF6 gas-insulated is placed, specifically for the safety of wind turbines. According to State Grid Business of China (SGCC), China's largest state-owned utility corporation, the country's energy consumption in 2030 is anticipated to reach 10 Petawatt hours (PWH). As a result, the existing electric power network must be expanded, which is projected to boost demand for the medium voltage gas-insulated switchgear market in the nation.

The Power Grid Company of Bangladesh Limited invited international competitive tenders in September 2019 for the design, supply, installation, testing, and designing of a 400 kV outdoor gas insulated switchgear (GIS) substation at Bogura (West) and Rahanpur, as well as the turnkey upgrade/extension of the Gopalganj and Chapainawabganj (old) substations. As a result, the growing use of smart grid technologies is projected to benefit the medium voltage switchgear market over the forecast period.

Gas Insulated Switchgear Market Value Chain Analysis

The global Gas Insulated Switchgear market has been divided into voltage, installation, end-user, and region segments. The market is divided into four segments based on end-user: transmission & distribution, manufacturing & processing, infrastructure & transportation, and others. The T&D network is constantly expanding, primarily due to the addition of transmission lines, which leads to the addition of high voltage substations, where gas sealed switchgear plays an important role in grid protection, efficient energy flow, as well as transmitting circuit protection and transmitting.

The market is divided into voltage types: distribution voltage, sub-transmission voltage, high-voltage transmission, extra-high voltage transmission, and ultra-high voltage transmission. During the projection period, the extra-high-voltage transmission segment is predicted to expand the most. The market is divided into four segments based on end-user type: power transmission utilities, power distribution utilities, power generation utilities, infrastructure & transportation, and industries & OEMs. The electricity distribution utility category is anticipated to expand the most during the next five years.

Gas Insulated Switchgear Market Segmentation Overview

The market is segmented based on voltage, installation, end-user, and region segments. The global Gas Insulated Switchgear market is expected to witness decent growth during the forecast period.

By Application

The market is segmented into distribution voltage, sub-transmission voltage, high-voltage transmission, extra-high voltage transmission, and ultra-high voltage transmission based on the application.

By end-users

Based on the propulsion types, the market is segmented into power transmission utilities, power distribution utilities, power generation utilities, infrastructure & transportation, and industries & OEMs.

Gas Insulated Switchgear Market Regional Analysis

According to the reports, based on regions, the global gas insulated switchgear market is divided into the Asia Pacific, North America, Europe, Middle East & Africa, and South America. During the projected period, Asia-Pacific is predicted to have the largest growth in the gas-insulated switchgear market. China South Korea, Japan, and India are the region's development engines. The market is being pushed by rising power demand, government measures to promote energy efficiency, and the adding the region's outdated utility infrastructure. During the projected period, North America and Europe are also likely to provide significant growth potential in the gas insulated switchgear market share.

Gas Insulated Switchgear Market Report Overview

The following report comprises of –

  • Market overview 

  • Covid 19 Analysis

  • Market Dynamic

  • Drivers

  • Opportunities

  • Restraints 

  • Challenges

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segmentation Overview 

  • By Application 

  • By End-Users

  • Regional Analysis

  • Competitive landscape

Recent Developments in Gas Insulated Switchgear Market

  • El Sewedy Electric T&D awarded ABB a contract in March 2020 to produce high-voltage gas-insulated switchgears as well as shunt reactors to ensure dependable power supply.

  • Svenska kraftnät awarded ABB a contract in October 2019 to provide 400-kV gas-insulated switchgear for the upgrade of the latter's substation and the extension of the energy transmission infrastructure in Stockholm.

  • Siemens bought C&S Electric, one of India's leading switchgear and power equipment firms, in January 2020. C&S Electric's main operations include switchgear, busbar, and metering devices. The purchase will assist the firm in becoming one of India's major switchgear manufacturers.

Market Segments:

By Insulation Type:

  • SF6

  • SF6-free

By Installation:

  • Indoor

  • Outdoor

By Voltage Rating:

  • Up to 36 kV

  • Between 36 kV and 72.5 kV

  • Between 72.5 kV and 220 kV

  • Above 220 kV

By End User:

  • Power Transmission Utility

  • Power Generation Utility

  • Power Distribution Utility

  • Railways & Metros

  • Industries & OEM

  • Commercial

By Region:

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Indonesia

    • Others

  • Europe

    • Germany

    • France

    • United Kingdom

    • Italy

    • Spain

    • Russia

    • Others

  • North America

    • United States

    • Canada

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Columbia

    • Chile

    • Peru

    • Others

  • Middle East and Africa

    • Turkey

    • Saudi Arabia

    • Iran

    • United Arab Emirates

    • Others

Report Scope:

Report Attribute/Metric Details
  Market Size USD 30.21 Billion 2030 : Significant value
  CAGR   10.50% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022 to 2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Voltage, Installation, End-User
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Siemens (Germany), ABB (Switzerland), Toshiba (Japan), Larsen &Toubro (India), General Electric (US), CG Power (India), Fuji Electric (Japan), Nisin Electric (Japan), Hyosung (China), Mitsubishi Electric (Japan)
  Key Market Opportunities   Increase the power demand and improve the electricity distribution network
  Key Market Drivers Growing power consumption globally across the developed countries Increasing adoption of electricity-based equipment

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Frequently Asked Questions (FAQ) :

The market can attain a growth rate of 10.50% in the following years.

High capital investments being made by the players and mounting energy demand ensure that the market size can burgeon considerably by 2027.

The renowned vendors in the global market are General Electric (US), Toshiba (Japan), Hyosung (China), CG Power (India), Siemens (Germany), Nisin Electric (Japan), Fuji Electric (Japan), ABB (Switzerland), Mitsubishi Electric (Japan), Larsen &Toubro (India), and others.

Countries like Japan, India and China in the APAC market are making sizeable investments in their grid expansion projects to elevate the distribution grid reliability.

Depending on end-user, the market segments include manufacturing & processing, transmission & distribution, and infrastructure & transportation.