Gas Insulated Switchgear Market Analysis

Global Gas Insulated Switchgear Market Overview

Gas Insulated Switchgear Market Size was valued at USD 29.95 Billion in 2023. The Gas Insulated Switchgear Market industry is projected to grow from USD 30.99 Billion in 2024 to USD 54.85 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.60% during the forecast period (2024 - 2032). Gas Insulated Switchgear (GIS) is unit that houses circuits in a single gas tank with a compact space.

Gas-insulated switchgear components are becoming more and more important because of their promising properties. Inert, non-flammable SF6 provides insulation three times stronger than air; therefore, it is used as an insulating medium, which can reduce the size and location of high voltage switchgear components. For added safety, a shock-proof grounding device and a circuit breaker to prevent electric shocks from lightning are also included. However, factors such as the renewal of the transmission and distribution network, the spread of renewable energy and the transformation of the electricity market in other respects should have a positive impact on the global market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gas Insulated Switchgear Market Trends

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  Commercial, Industrial & Government investments in Renewable Energy to boost demand for Gas Insulated Switchgears

  
  

With several governments focusing to provide adequate power infrastructure, power sector is expected to reflect strong growth in future. Particularly, in under developed countries with inadequate or nonexistent infrastructure, renewable power generation has become much less expensive than diesel-fired generating. As a result, the demand for distributed generation from renewable sources in the industrial and commercial sectors has significantly increased. For renewable energy systems and substations that demand higher capacity and performance as well as big current-carrying and high short-circuit capacity, a gas-insulated switchgear is appropriate. It also consists of all the equipment used to protect the power system and control power supply. Gas-insulated switchgears clear faults in the system, thereby ensuring a reliable power supply.

In addition, global concerns regarding increasing carbon emissions and subsequent measures to control these emissions through policy mandates are few factors driving the development of the renewable power sector in many nations. Schemes like Clean Energy Programs are the prime pillars which are expected to spur the overall renewable sector. Medium voltage GIS is ideal for land-based solar projects with limited space or floating solar projects or other renewable energy projects where the main goal is to reduce large land use. GIS also reduces the time required to install AIS substations for large solar PV projects or other renewable energy projects. This ensures the growth of the gas-insulated switchgear market.

Gas Insulated Switchgear Market Segment Insights

Gas Insulated Switchgear Market by Installation Insights

Based on installation, the Gas Insulated Switchgear Market has been classified into outdoor, and indoor. The indoor segment dominated the Gas Insulated Switchgear Market with a value of USD 14,590.1 million in 2022; with an expected CAGR of 10.1% during the forecast period. GIS is installed indoors due to strict fuel consumption standards and offers the best solutions for different areas such as indoor and underground. In addition, air-insulated cubicles are preferred for outdoor substations, and users choose GIS for indoor substations. However, the high voltage gas insulated switchgear can withstand an altitude of ≤ 3000m, temperature between +55°C and -40°C and wind speed/wind pressure up to 34m/s. These units are also suitable for use in outdoor environments exposed to various climates. However, most indoor gas generators are used to guarantee stable power in commercial and industrial applications.

Therefore, uninterruptible power supply is the main factor driving gas fired indoor heating demand. In addition, the widespread use of GIS in small areas and low voltage in the energy sector also contributed to the growth of the indoor segment.

Gas Insulated Switchgear Market by Voltage Insights

Based on the voltage, the Gas Insulated Switchgear Market has been classified into upto 27 kV, 27 kV to 36 kV, 36 kV to 72.5 kV, 72.5 kV to 145 kV and Above 145 kV. The 72.5 kV to 145 kV segment dominated the Gas Insulated Switchgear Market with a value of USD 8,579.4 million in 2022 with expected CAGR of 10.3% during the forecast period. 72.5 kV-145kV are mainly used in all types of utilities and industries. Also, the review of the product is very good due to the high and ultra-high voltage. Also due to the diversity of applications in the transmission of electricity, the integration of renewable energy into the grid and the use of various industries. Therefore, the demand for gas-fired power plants is increasing all over the world due to the widespread use of communication and distribution and the increase in investments in energy transmission.

Gas Insulated Switchgear Market by Insulation Type Insights

Based on the insulation type, the Gas Insulated Switchgear Market has been classified into SF6 and SF6 free. The SF6 segment dominated the Gas Insulated Switchgear Market with a value of USD 12,878.4 million in 2022; with an expected CAGR of 9.4% during the forecast period. SF6 gas is the most widely used gas in switchgear, especially in high voltage switchgear, accounting for 63% of the total market capacity by 2021. Using an SF6 gas insulated cell means that conductors and contacts can be brought closer together, reducing the cell size compared to an air insulated cell. However, the global warming potential of sulfur hexafluoride is about 25,200 times that of carbon dioxide. However, as the world moves towards cleaner, more efficient technology, transformer manufacturers are increasingly offering SF6-free transformers.

Gas Insulated Switchgear Market by Application Insights

Based on the application, the Gas Insulated Switchgear Market has been classified into power generation, steel plants, refineries, large industrial plants, railways and others. The power generation segment dominated the Gas Insulated Switchgear Market with a value of USD 6,409.8 million in 2022; with an expected CAGR of 10.5% during the forecast period. The segment accounted for 30% of the overall revenue. The majority share by power generation applications is attributed to the rise in the global energy demand due to industrial activity and advances in both developing and developed countries.

February 2021Eaton Corporation has acquired Royal Power Solutions, a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. The portfolio addition positions Eaton gas insulated switch gears for power generation applications in the foreseen period.

Gas Insulated Switchgear Market Regional Insights

Region-wise Gas Insulated Switchgear Market has been divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia-Pacific held the largest market valued at USD 7,126.5 million in 2022 and is expected to exhibit a CAGR of 10.5%. China is the largest contributor to the gas-insulated switchgear market. China is a fast-growing economy with the main sectors powering the economy such as manufacturing, mining, construction, and others. In addition, with the population growth and urbanization of the region, China's electricity generation power is accelerating, which will increase the demand for electricity exchange in China. Recently in 2021, ABB and its partners and suppliers have developed an electric generator system that can pass all the tests of the State Grid Corporation of China (SGCC). your grid. To build and install 1,100 kV GIS, ABB and China's largest GIS provider, Xi'an Shikai, have created a joint project called "ELK-5".

In addition, India is the second most populous country in the world, after China, with a population of over 1.3 billion. In India, there is a high demand for gas-fired power stations in cities and urban areas.

July 2022Toshiba Energy Systems & Solutions Corporation has a joint venture with TEPCO Power Grid, Inc. The joint venture is expected to drive the demand for both the companies enriching their presence across the globe.

July 2022Hyundai 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 based in Saudi Arabia.

Gas Insulated Switchgear Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the gas insulated switchgear market grow even more. The market’s competitive landscape is highly evolving owing to changing demand from the utility sector. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the gas insulated switchgear market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

Hitachi Energy, GE, Siemens Energy, Schneider Electric, Toshiba Energy Systems & Solutions Corporation Co. Ltd, and Mitsubishi Electric are among a few of the players offering a wide range of gas insulation switchgear. The vendors compete based on cost, product quality, reliability, and aftermarket services. The vendors must provide high-quality systems & solutions to sustain their presence in an intensely competitive market environment. These companies continuously focus on innovating products to provide environmentally sustainable, flexible, economically sound, and efficient customer solutions. The companies are focusing to expand their brand values in the market through acquisitions and mergers. For instance, in July 2021, Hitachi has acquired of a majority stake of 80.1% in ABB Power Grids worth up to $7.8 billion. This makes Hitachi one of the largest global grid equipment and service providers, drastically expanding its access to the utility segment in all regions. In such as similar instance, Eaton Corporation has acquired Royal Power Solutions, a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial, and mobility markets. The portfolio addition positions Eaton to capitalize on electrification trends across multiple high-growth markets. Apart from inorganic growth strategies, companies are also focusing on developing dual fuel engines due to growing environmental concerns about the use of SF gas. Major players such as GE and Siemens have also launched SF6-free product lines in the marketplace.

Hitachi EnergyHitachi Energy is a major manufacturer of gas-insulated switchgear. It provides a complete range of products for all ratings and applications from 72.5 kV to 1200 kV matching current and future requirements for modern switchgear. The company operates around four global business units and has local offices and research centers spanning 90 countries. With the acquisition of ABB’s Power Grid business, the company formed Hitachi ABB Power Grids, the behemoth joint venture firm which is known as “Hitachi Energy” starting in October 2021.

Siemens AGSiemens AG Energy Sector is a world’s leading supplier of gas-insulated switchgear. Siemens Energy AG is an energy company formed by the spin-off of the former Gas and Power division of Siemens Group and includes a 67% share of Siemens Gamesa. The company has a Switchgear Plant in Berlin, where Siemens Energy designs and builds high-voltage switchgear and systems entirely free of SF6 and other potent greenhouse gases. Siemens has also set-up a manufacturing plant for switchgear outside Germany, in China and India. In 2021, the company announced that it will deliver digitalized Gas Insulated Switchgear to three Steel manufacturers in Jalna, Maharashtra, namely, Icon Steel, Geetai Steels, and Gajkesari Steels & Alloys. Siemens is installing 11 bays of 132 Kilovolts (KV) Gas Insulated Switchgears (GIS) at each of the three plants.

Key Companies in the Gas Insulated Switchgear Market includes

• Hitachi Energy, GE, (Switzerland)


• Siemens Energy (Germany)


• Schneider Electric (France)


• General Electric (US)


• Eaton Corporation (Ireland)


• Mitsubishi Electric (Japan)


• Hyundai Electric & Energy Systems (South Korea)


• Larsen & Toubro (India)


• Crompton Greaves (India)


• Hyosung Heavy Industries Corporation (Hong Kong)


• Toshiba Energy Systems & Solutions Corporation (Japan)


• CHINT Electric (Germany)


• Powell Industries (Texas)


• Meidensha Corporation (Japan)


• Nissin Electric Co., Ltd (Japan)

Gas Insulated Switchgear Industry Developments

July 2020Hitachi Energy has acquired of a majority stake of 80.1% in ABB Power Grids worth up to USD 7.8 billion. This makes Hitachi one of the largest global grid equipment and service providers, drastically expanding its access to the utility segment in all regions.

February 2021Eaton Corporation has acquired Royal Power Solutions, a U.S.-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. The portfolio addition positions Eaton to capitalize on electrification trends across multiple high-growth markets.

January 2019Mitsubishi Electric developed two technologies for gas-insulated switchgears: an arc-cooling technology that achieves a 25 percent improvement in the interruption of electrical current in sulfur-fluoride (SF6) gas-insulated switchgears used in high-voltage power systems.

Gas Insulated Switchgear Market Segmentation

Gas Insulated Switchgear Market Installation Outlook

• Outdoor


• Indoor

Gas Insulated Switchgear Market Voltage Outlook

• Upto 27 kV


• 27 kV to 36 kV


• 36 kV to 72.5 kV


• 5 kV to 145 kV


• Above 145 kV

Gas Insulated Switchgear Market Insulation Type Outlook

• SF6


• SF6 free

Gas Insulated Switchgear Market Application Outlook

• Power Generation


• Steel Plants


• Refineries


• Large Industrial Plants


• Railways


• Others

Gas Insulated Switchgear Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Middle East & Africa

  
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


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  South America

  
  
  
  
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    Brazil

    
    
  
  
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    Argentina

    
    
  
  
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    Rest of South America