$31 Billion Gas Insulated Switchgear Markets: Emerging Smart Technologies and Digitalization & Increasing Investment in Industrial Production - Global Forecasts to 2027 - ResearchAndMarkets.com

The "Gas Insulated Switchgear Market by Installation (Indoor, Outdoor), Insulation Type (SF6, SF6 free), Voltage Rating (Up to 36 kV, 37 to 73 kV, 74 to 220 kV, Above 220 kV), Configuration, End-User and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The global gas insulated switchgear market is expected to reach USD 31.3 billion by 2027 from an estimated USD 23.1 billion in 2022, at a CAGR of 6.3% from 2022 to 2027.

The growth of the gas insulated switchgear market is proportional to the global energy demand has been increasing gradually due to an increase in energy consumption in recent years, which are the primary drivers of growth in the electricity demand. The industrial sector was the main driver of increased demand, although the commercial, service, and residential sectors all played a significant role.

As a result of the strong demand for energy resources, variations in supply and demand are what cause price volatility in the energy market. The main causes of price volatility are a combination of better economic conditions, availability of energy resources, and rising power consumption.

Additionally, managing energy has taken a high focus with the introduction of loT for home automation and building automation reasons. Hence, these factors drive the need for gas-insulated switchgear to monitor and optimize energy consumption.

Sulfur hexafluoride (SF6) gas is pumped inside gas-tight metallic casings that serve as the insulating and arc-quenching medium for all current-carrying components in GIS substations. SF6 is not flammable and does not degrade because it is a dry inert gas.

Furthermore, SF6 is one of the fluorinated gases, a class of chemicals, and is designated as a ""greenhouse gas"" (GHG). It has the highest potential to cause global warming of any GHG. Since SF6 emissions have significantly decreased, the Environmental Protection Agency's (EPA) investigation of the substance in the US will be affected.

This might result in even more stringent limitations on the usage of SF6. Most rules that could potentially apply to the usage of SF6 relate to the family of fluorinated gases known as F-gases, which are chemically related. F-gas regulations will affect SF6 more as they tighten, which will affect the gas-insulated switchgear market.

Up to 36 kV segment, by voltage rating, to be fastest growing market from 2022 to 2027

Four types of subgroups are used for the gas insulated switchgear up to 36 kV, 37 to 73 kV, 74 to 220 kV, and above 220 kV. The up to 36 kV is a subgroup of voltage rating revolution that is mostly used at all end user segments use mostly gas insulated switchgear up to 36 kV, with the manufacturing and process industries, T&D utilities, and railway systems being the main exceptions.

It is primarily utilized in T&D substations for the protection of industrial equipment, including HVAC and air-conditioning, motors, compressors, heating, and lighting systems, overload current protection, and electric arc protection. The industrial sector has grown overall due to the expansion in the manufacturing sector, which is anticipated to boost the demand for up to 36 kV gas insulated switchgear.

The market for GIS for up to 36 kV voltage rating segment is projected to increase as a result of the rising investments in renewable energy and the expanding industrial and commercial sector, which includes enormous malls, hospitals, and hotels. The demand for power from industrial and commercial enterprises, which make up the majority of users, has significantly decreased.

SF6 segment, by insulation type, to be largest market from 2022 to 2027

The insulation type segments have two types including SF6 and SF6 Free. A new generation of medium voltage switchgear is an SF6 gas insulated switchgear. High-voltage parts such as busbars, circuit breakers, and disconnectors were completely sealed in the SF6 gas tank at 1.4 bar pressure to achieve IP67 protection.

Compared to air-insulated switchgear, SF6-filled gas switchgear can be 10 times smaller. An inert, non-toxic, tasteless, odorless, colorless, and inflammable gas with the chemical formula Sulfur Hexafluoride. It consists of a sulfur atom securely bound to and surrounded by six fluorine atoms.

At the same pressure, it is two to three times more insulating than air and around 100 times more effective at interrupting arcs than air as the market for SF6-based gas insulated switchgear is expected to be driven by rising investments in renewable energy that lead to a need for upgrading current substations or installing new ones.

Asia Pacific to be largest and fastest growing region in gas insulated switchgear market

Asia Pacific is expected to dominate the global gas insulated switchgear market and projected to grow at the highest CAGR between 2022 and 2027. The rapid development and progress of Asia Pacific area are being driven by the expansion of all Asian nations' major economies.

Power transmission utilities, power generation utilities, power distribution utilities, commercial sectors, and railways and metros are some of the region's primary end-users of gas insulated switchgear. Due to the lower capital and labor costs, the manufacturing sector in the area is projected to have continued market growth.

With the growing population in Asian countries such as China and India, electricity generation demand is also rising. To effectively fulfill the region's expanding energy needs, clean energy is widely adopted. These countries are trying to modernize their outdated infrastructure to make integrating renewable energy sources into the national grid easier.

The demand for GIS to regulate electricity and offer fault protection will significantly increase, raising the market for gas insulated switchgear in Asia Pacific.

Competitive landscape

Major globally established players dominate the gas insulated switchgear market. The leading players in the gas insulated switchgear market are ABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Eaton (Ireland), Mitsubishi Electric (Japan), Nissin Electric (Japan), CG Power And Industrial Solutions (India), Fuji Electric (Japan), Powell Industries (US), Hyundai Electric & Energy Systems (South Korea), Hitachi (Japan), and others.

Premium Insights

  • Adoption of Renewable Energy Technologies to Drive Gas-Insulated Switchgear Market Between 2022 and 2027
  • Asia-Pacific Market to Exhibit Highest CAGR During Forecast Period
  • By Installation, Outdoor Segment Accounted for Larger Share of Asia-Pacific Gas-Insulated Switchgear Market in 2021
  • Outdoor Segment Estimated to Account for Larger Market Share Than Indoor Segment by 2027
  • Sf6 Segment Estimated to Account for Larger Market Share Than Sf6 Free Segment by 2027
  • Above 220 Kv Segment Estimated to Account for Largest Market Share by 2027
  • Hybrid Segment Estimated to Account for Largest Market Share by 2027
  • Power Transmission Utilities Segment to Lead Gas-Insulated Switchgear Market by 2027

Market Dynamics

Drivers

  • Rising Global Energy Consumption
  • Increase in Renewable Energy-Based Capacity Addition
  • Low Maintenance and Minimal Space Requirement of Gis
  • Arc-Resistant Design of Gis

Restraints

  • Stringent Regulations Restricting Sf6 Gas Emissions

Opportunities

  • Aging Power Distribution Infrastructure
  • Emerging Smart Technologies and Digitalization
  • Increasing Investment in Industrial Production

Challenges

  • High Cost of Gis Compared with Conventional or Air-Insulated Switchgear
  • Trends/Disruptions Impacting Customers' Businesses
  • Revenue Shift and New Revenue Pockets for Gas-Insulated Switchgear Providers

Value Chain Analysis

  • Raw Material Providers/Suppliers
  • Component Manufacturers
  • Gas-Insulated Switchgear Manufacturers/Assemblers
  • Distributors
  • End-users
  • Post-Sales Services

Technology Analysis

  • Ai-Detection Gas-Insulated Switchgear
  • IoT-Connected Gas-Insulated Switchgear
  • Sf6 Free Gas-Insulated Switchgear

Case Study Analysis

  • Northern Powergrid Company Decided to Use Abb Sf6 Free Switchgear for Its Electrical Network
  • National Grid Begins Journey to Sf6-Free Hv Substations for Its Southeast England Network

Company Profiles: Business Overview, Products/Solutions/Services Offered, Recent Developments, Analyst's View)

Key Players

  • ABB
  • Schneider Electric
  • General Electric
  • Siemens
  • Eaton Corporation
  • Mitsubishi Electric
  • Hitachi
  • Hyundai Electric
  • Fuji Electric
  • Cg Power and Industrial Solutions
  • Nissin Electric
  • Meidensha Corporation
  • Powell Industries
  • Hyosung Heavy Industries
  • Toshiba Energy Systems & Solutions Corporation

Other Players

  • Lucy Electric
  • Elektrobudowa
  • Chint
  • Sel S.P.A.
  • Iljin Electric

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