Gas Insulated Switchgear Market Size, Share and Industry Analysis, By Voltage (Up to 66 kV, 66 kV - 170 kV, 170 kV - 550 kV, and Above 550 kV), By Installation (Indoor and Outdoor), By End User (Utility, Industrial, Commercial, and Others), and Regional Forecast, 2019-2032

The global gas insulated switchgear market size was valued at USD 21.13 billion in 2018 and is projected to reach USD 56.86 billion by 2032, exhibiting a CAGR of 7.38% during the forecast period. The Asia Pacific dominated the gas insulated switchgear market with a share of 32.75% in 2018.

Gas-insulated switchgear or GIS is a high voltage substation in which major electrical equipment is placed in a sealed environment with sulfur hexafluoride gas (SF6) as the insulating medium. In a GIS, all the electrical switching equipment such as circuit breakers, isolators, earth switches, and busbars are completely enclosed inside modules filled with SF6 gas. The total space required by a GIS is 10% of that needed by a conventional substation. It is maintenance-free, occupies very less space, and is hence, preferred in a small area for substation. It provides less exposure to fault which reduces the frequency of power cut for end user and delivers higher reliability and feasibility in its operation.

MARKET TRENDS

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Increasing Energy Demand Fuel Market Growth

The growing population and growing rate of urbanization are likely to increase the demand for energy across the globe. According to the United Nations report in 2018, about 55% of the world’s population lives in urban areas, which is projected to increase to 68% by 2050. The extensive population shifting to cities is increasing the demand for electricity. Moreover, enormous construction activities to build commercial spaces, business parks, and housing societies are set to spike power demand. Hence, the space constraint in urban localities and growing energy demand is projected to further propel the gas insulated switchgear market growth during the forecast period.

MARKET DRIVERS

Increasing Share of Renewable Power Generation to Aid Market Growth

The increasing awareness about renewable power led to a significant adoption of renewable energy. This, coupled with supportive government initiatives for the development of renewable power are the prominent factors responsible for the growth of renewable power generation. According to the International Energy Outlook 2019 report, 28% of the global power came from renewable sources in 2018, which is majorly contributed by wind, solar, and hydropower. The Energy Information Administration (EIA) forecasts that renewables will account for almost half—49%—of the global electricity output by 2050. Hence, growth in renewable power generation is expected to help drive the demand for this market during the projected period.

Increasing Investments in Transmission & Distribution Infrastructure to Fuel Demand for GIS Market

Countries are investing in the development of transmission and distribution infrastructure to cater to the increasing demand for electricity. For instance, Saudi Arabia is planning on large-scale investment worth USD 100 billion on increasing the power generation from the current 40,000 to 80,000 MW in the next ten years. According to the World Energy Investment statistics, Investment in T&D infrastructure is expected to increase to USD 6.8 trillion between 2014 and 2035. At high voltages, gas-insulated switchgear provides various advantages, which include minimization of operation and maintenance cost, space constraint issues, and arc quenching mechanism. According to China’s largest state-owned utility corporation, the State Grid Corporation of China (SGCC) planned to build 12 electricity transmission lines, with an investment of USD 33.7 billion. These T&D expansion projects would increase the demand for gas insulated switchgear, thereby comprising of a vital component of the power grid network.

MARKET RESTRAINT

High Equipment Cost Compared to Air Insulated Switchgear (AIS), Along with Stringent Environmental and Safety Regulations May Hamper Market

The procurement cost increases in terms of capital expenditure (CAPEX), manufacturing process, and the use of expensive components, which includes transformers, switching elements, and a circuit breaker, that has to be operated inside an enclosure filled with a dielectric gas. Hence, enclosing all the equipment in one chamber led to increase in equipment cost. SF6 gas is listed as an extremely harmful GHG by the Intergovernmental Panel on Climate Change (IPCC). Presently, no nearest alternative can work as efficiently as SF6 gas. Hence, increased procurement cost, coupled with stringent policies against SF6 gas, will restrict the growth of this market during the projected period.

SEGMENTATION

By Voltage Analysis

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170 kV - 550 kV Segment Dominated the Global Market

Based on voltage, the market of gas insulated switchgear is segmented into up to 66 kV, 66 kV - 170 kV, 170 kV - 550 kV, and above 550 kV. The 170 kV - 550 kV segment is dominating the market owing to the wide expansion of transmission and distribution infrastructure. Developed countries are investing in smart grid technologies that will not only help in the power supply and load management but also ensure proper monitoring of faults. 66 kV - 170 kV segment is leading the market owing to numerous advantages of gas-insulated switchgear equipment in the sub-transmission and distribution sector. The above 550 kV segment is also increasing its share in the global market owing to a wide application in power transmission, integration of renewable power to the grid, and various industrial applications. Hence, growing expansion of transmission and distribution network and increasing investment in renewable energy is boosting the demand for gas insulated switchgear, globally.

By Installation Analysis

Outdoor Segment to Dominate Market

In terms of installation, the market is segmented into an indoor, and outdoor segment. The outdoor segment is dominating the market owing to the wide scope of application in an outdoor application, which includes long-range power transmission, very large power plants, and transmission of ultra-high voltage. Significant investments in the expansion of transmission & distribution projects over the long length, dominates the outdoor segment the market. The indoor segment is also increasing its market share due to the large deployment of GIS in small sub-stations and the transmission of low voltage in the power industry. Hence, grid development projects and investments for expansion of the same is expected to promote the growth of the outdoor segment during the projected period.

By End User Analysis

Higher Adoption of GIS by Utility Segment Will Help to Dominate the    Market

The end-user segment is further segmented into utility, industrial, commercial, and other segments. The utility segment is expected to hold the largest market share owing to the extensive application of GIS by utilities for transmission and distribution of a wide range of sub-transmission voltage, high-voltage, extra-high voltage, and ultra-high voltage. The commercial segment is holding the second largest market share for gas insulated switchgear due to the increasing deployment of GIS in shopping malls, hospitals, banks, and other applications. Additionally, the industrial segment is propelling the demand for GIS owing to the growing need for indoor substations from the industrial sector. Hence, the utility segment is projected to continue increasing its market share during the forecast period.

REGIONAL ANALYSIS

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The market of gas-insulated switchgear is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. GIS market is forecast to gain momentum in Asia Pacific owing to the increasing investment in expansion of transmission and distribution networks, which led to driving its demand. For instance, in February 2019, IndiGrid, infrastructure investment trust (InvIT) in the power sector, had signed an agreement for the acquisition of Patran Transmission Company Limited (PTCL) from Techno Electric & Engineering Company Limited worth USD 33.90 Million.

North America is investing in the enhancement of the overall performance of generation, transmission & distribution of electric power to avoid losses. Many companies are procuring their substation for reliable and efficient power transmission, which might add significant value to this market. Europe will dominate the market due to increasing power consumption, up-gradation of aging hydropower plants, and government initiative for enhancing grid infrastructure. According to the European Energy Industry Investments report published in 2017, it is estimated that there will be an increase in investment on the transmission and distribution infrastructure from USD 58.37 billion in 2011-2020 to USD 86.73 billion in 2021-2030. Hence, growing investments in transmission and distribution infrastructure will offer lucrative growth opportunities in the forecast period.

The countries in the Middle East & Africa are highly dominated by oil and gas companies, which require a reliable power supply. Companies operating in oil and gas plants are focusing on enhancing the transmission and distribution of electric power. African countries are mainly focused on increasing their grid infrastructure, that will add a positive outlook for the growth of the regional market during the projected period.

KEY INDUSTRY PLAYERS

Technological Advancement in Switchgear Industry, Propels the leading Company into the competitive market

The competitive landscape of the gas-insulated switchgear depicts significant advancement in the switchgear industry in which various equipment are placed in one chamber, delivering a more efficient, reliable, and flexible solution. The growing awareness and adoption of gas-insulated switchgear by the utilities, company leading to new developments, and upgradation of the switchgear products are prominent factors responsible for the dominance of the company.

However, regional and domestic players such as Linxon, Kanohar Electricals Ltd., and Orecco have entered the competitive market for providing SF6 gas-insulated switchgear and building solutions in the global market. This is projected to positively impact the global market as these companies are anticipated to gain significant market revenue during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• ABB


• Siemens


• Schneider Electric


• Fuji Electric


• Hyundai Electric & Energy Systems Co., Ltd.


• Mitsubishi Electric Corporation


• Eaton


• Hitachi, Ltd.


• GE


• Nissin Electric Co Ltd


• Toshiba International Corporation


• Meidensha Corporation


• Larsen & Toubro


• CHEM Group


• Bharat Heavy Electricals Limited

KEY INDUSTRY DEVELOPMENTS:

• In April 2021, Siemens has bagged a contract to deliver ten bays of sulfur hexafluoride(SF6) free gas-insulated switchgear to Finland’s transmission system operator, Fingrid. The contract has the first GIS in Finland which replaces SF6 and has represented Siemens' largest order for SF6-free GIS in Europe.


• In May 2020, Hyundai Electric was awarded two contracts worth USD 28.6 million in Saudi Arabia. The contract involves the supply of power transformers and gas-insulated switchgear to state utility company Saudi Electricity Company (SEC) and oil company Saudi Aramco.


• On June 21, 2021, Toshiba Energy Systems and Solutions has collaborated with Meidensha Corporation for the joint development of gas-insulated switchgear using natural gas containing no sulfur hexafluoride(SF6). In addition, the company has decided to accelerate the development and commercialization of gas-insulated switchgear due to the increasing demand for environment-friendly products in the market.


• In July 2020, GE Grid Solutions' business has secured its first “green gas for grid” industrial order for gas-insulated switchgear bays from Germany’s Evonik and UK’s Omexom companies. The “green gas for grid” is GE’s game-changing alternative to sulfur hexafluoride(SF6) with high performance and reliable products used in high voltage and switchgear bays.

REPORT COVERAGE

The gas insulated switchgear market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and upcoming developments of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the recent years.

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