Gas Insulated Switchgear Trends and Forecast
The future of the global gas insulated switchgear market looks promising with opportunities in the industrial, commercial & institutional, electrical utility, data center, and aftermarket markets. The global gas insulated switchgear market is expected to reach an estimated $34.5 billion by 2030 with a CAGR of 6.3% from 2024 to 2030. The major drivers for this market are increasing need for a dependable and effective power supply, worldwide shift towards renewable energy sources, and rising investment in the transmission and distribution infrastructure.
• Lucintel forecasts that, within the installation category, indoor is expected to witness the higher growth over the forecast period due to dependable electricity provision.
• Within the end use category, electrical utility will remain the largest segment due to incorporation of state-of-the-art technologies such as smart grids to optimize energy distribution.
• In terms of regions, APAC is expected to witness highest growth over the forecast period due to heightened pressure on housing infrastructure, leading economies to prioritize the expansion of public housing.
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Emerging Trends in the Gas Insulated Switchgear Market
The gas-insulated switchgear (GIS) market is experiencing significant growth, attributed to the requirement for compact, efficient, and reliable electrical power systems.
Emerging trends in this GIS market focus on technological improvement, environmental protection, and enhanced security. With the enforcement of these trends, the management of electrical grids is being revolutionized, especially in cities and areas with high density. The GIS market recognizes that these trends will help grow the GIS market and tap into the global energy market in the future.
• Compactness and Space-Saving Features: Urbanization is on the rise, resulting in increased demand for architectural and space-constrained switchgear solutions. With its requirement for less space than traditional air-insulated systems, gas-insulated switchgear is recommended for applications in locations with high population density, as well as in underground substations. These factors push manufacturers to innovate and produce further compact designs while retaining top-quality performance, making GIS indispensable for many contemporary cities.
• Eco-Friendly and SF6-Free Technologies: As concerns regarding atmospheric sulfur hexafluoride (SF6), which has greenhouse properties and is widely used in GIS manufacturing, grow more intense, the development of SF6-free technologies is increasing. Many companies are now focusing on environmentally friendly insulating gases and vacuum technologies to reduce their carbon footprints. In this context, the transition toward greener switchgear aligns with countries’ pursuit of eco-friendliness and regulatory compliance, making eco-friendly GIS solutions a prominent trend in the GIS market.
• Increased Commitment to Sustainability and Energy Efficiency: There is a growing commitment to sustainability and energy efficiency in the GIS sector. Manufacturers are innovating gas-insulated switchgear (GIS) solutions that are eco-friendly, have a reduced environmental impact, and enhance energy efficiency. This trend aligns with global aspirations for sustainable practices and regulations, encouraging the use of sustainable technologies.
• Market Expansion in Urban and Space-Constrained Areas: GIS systems are gaining popularity in urban and space-constrained environments due to their size and reliability. The ability to incorporate GIS systems in areas with limited space makes them suitable for modern cities with high population density and urban buildings. This trend supports the growth of GIS technology in cities and expanding industrial areas.
• Strengthening Concerns Toward Disaster Resilience: There is a growing concern for stronger, disaster-resilient GIS systems capable of withstanding winds, floods, storms, and other severe weather conditions. Developments include improved seismic performance and enhanced rigidity against environmental hazards. This is particularly relevant in populated areas where electrical systems must be protected and proven reliable.
All these trends suggest that the gas-insulated switchgear market is evolving toward compact structures, environmentally friendly technologies, and single-line schemes. The forecast is optimistic, as these trends reshape the skyline and facilitate the adaptation of the GIS market to urban growth, ecological and green targets, as well as the integration of energy from renewable sources. As the transformation in the electrical utilities market continues, these trends will foster the development and acceptance of GIS, sustaining its relevance in the global evolution of electrical substations.
Recent Developments in the Gas Insulated Switchgear Market
The gas-insulated switchgear (GIS) market has witnessed notable advancements due to technological development, the need for environmental regulation, and improvements in energy infrastructure. Recent innovations emphasize green technologies, integration of smart grids, and regional development policies. These trends are transforming the GIS market and providing new ways to improve efficiency, sustainability, and scalability in the power distribution network on a global level.
• Introduction of SF6-Free GIS: In response to pressures to cut greenhouse gas emissions from regulators, some manufacturers have launched SF6-free GIS systems. Such systems employ dry air insulation and fluoronitrile compounds, which are more environmentally friendly than SF6. The trend toward avoiding GIS with SF6 has positively contributed to global sustainability and assisted utilities in remaining within prescribed emission ceilings, thus pushing the market toward eco-friendly solutions.
• Growth in Renewable Energy Integration: GIS has been increasingly used in renewable energy projects, particularly in offshore wind and solar power plants. The need for reliable and compact switchgear suitable for renewable energy infrastructure has fueled further development of GIS technology. With the increasing demand for renewable energy solutions and governments encouraging their use, GIS provides the support needed to ensure that the electrical energy transmitted remains stable, making it critical for incorporating clean energy into the power grid.
• Expansion of GIS in Developing Regions: The GIS market will grow faster in developing regions like Southeast Asia, Africa, and Latin America. These regions are making significant investments in enhancing their electricity systems for urban and industrial development. This is particularly evident for GIS with features suitable for high population densities and geographical isolation. As developing economies continue to expand their electrical grids at a rapid rate, the need for GIS will increase, propelling market growth.
• Advances in Digitalization and Smart Grids: With the increased use of digital technologies in GIS, capabilities for real-time monitoring, data analysis, and remote operation have improved. Network and operational costs, as well as actual power outage times, have been considerably minimized for operators through modernized distribution systems with advanced sensors and communication tools. The increasing demand for sophisticated interconnections of electric grids presupposes the need for digital GIS to enable utility companies to handle intricate electrical loads while reducing unplanned work through predictive maintenance.
• Expanded Investment in Research and Development (R&D): Industry players are strengthening their R&D efforts to develop high-performance, reliable, and more environmentally friendly next-generation GIS systems. This includes steps toward minimizing the overall footprint, increasing the level of automation, and investigating materials other than SF6 gas. The updating and refinement of ongoing R&D projects are also driving new product creation in the GIS market by meeting changing trends and utilizing existing opportunities, which helps increase the competitiveness of manufacturers globally.
The gas-insulated switchgear market is undergoing a radical transformation due to the emergence of new SF6-free technologies, digitalization, regional expansion, and other factors. These changes are making GIS more ecological, economical, and utilitarian in the perspective of tomorrowÄX%$%Xs energy landscape. Given the continuous development in R&D investments, the growth of renewable energy, and increasing GIS applications, the market is expected to evolve further to meet the modern global power structureÄX%$%Xs infrastructure requirements.
Strategic Growth Opportunities for Gas Insulated Switchgear Market
The gas insulated switchgear (GIS) market offers many strategic growth opportunities across key applications. These opportunities include enhancements in technology, an increasing need for efficient and reliable electrical distribution, and the promotion of smart grid technology integration.
• Smart Grid Integration: There are considerable opportunities for the growth of GIS systems by integrating various smart grid technologies. This integration enhances grid operations, monitoring, control, and fault detection. The improvement of grid performance and reliability is facilitated by advanced grid-wise concepts where GIS is incorporated.
• Integration of Renewable Energy: The combination of GIS systems with renewable energy technologies presents opportunities for enhancing sustainable energy infrastructure. GIS technology improves the utilization of electricity generated from renewable sources such as solar and wind energy. This integration is essential to achieving energy transition objectives while increasing renewable energy capacity.
• Urban and Infrastructure Development: The increased focus on urban and infrastructure projects has created a heightened need for GIS technology, which is compact and reliable for electrical power distribution. GIS systems are applicable in compact spaces and urban areas, aiding in the power distribution systems of current and upcoming city and infrastructure projects.
• Disaster Resilience Solutions: Regions that establish GIS systems with enhanced disaster resilience features will be prime development geographies. The performance improvement and physical protection aspects of GIS systems from environmental conditions enhance the provision of electrical infrastructure in sensitive areas.
• Environmental and Regulatory Compliance: There is a growing demand for GIS systems as stakeholders shift their focus to environmental sustainability and regulations. Companies that develop energy-efficient GIS solutions will benefit from this trend and support global sustainability and regulatory compliance.
The internal growth opportunities of gas insulated switchgear offer benefits such as green grid utilization, renewable energy integration, and urbanization progress, including disaster and environmental preparedness. Attention to these opportunities will help promote the use and growth of this technology, thus supporting the establishment of optimized, more dependable, and sustainable electricity distribution systems.
Gas Insulated Switchgear Market Driver and Challenges
The GIS industry has many drivers and challenges that impact the growth and acceptance of the gas insulated switchgear (GIS) market. These include changes in technology, economic factors, legal frameworks, and an increased need for infrastructure such as quality risk reduction.
The factors responsible for driving the gas insulated switchgear market include:
• Technology Advancement: The invention of new GIS features, such as high voltage ratings and compact designs, coupled with the use of modern insulating materials, helps to expand the market. These developments improve the operation, efficiency, and applicability of GIS systems, rendering a wider scope of application for GIS.
• Urbanization and Infrastructure Development: Due to growing urbanization and increasing construction activity, the need for smaller-sized and more reliable electrical distribution systems increases. Geographic information systems (GIS) are favorable for urban and space-limited applications and are therefore increasingly used in new construction infrastructure.
• Renewable Energy Integration: The growth of renewable energy sources, such as wind and solar, drives the need for advanced GIS systems that can efficiently manage and distribute power from these sources. GIS technology supports the integration of renewable energy into the grid, aligning with global sustainability goals.
• Government Regulations and Standards: Stringent government regulations and standards related to environmental sustainability and energy efficiency influence the GIS market. Compliance with these regulations drives the development of advanced GIS solutions that meet regulatory requirements and support sustainable practices.
Challenges in the gas insulated switchgear market include:
• High Initial Costs: The high initial costs associated with GIS systems, including technology, installation, and maintenance, pose a challenge for market adoption. Reducing these costs through technological advancements and economies of scale is crucial for making GIS systems more accessible and competitive.
• Complexity of Installation and Maintenance: The complexity of installing and maintaining GIS systems can be a barrier to adoption. Ensuring proper installation and ongoing maintenance requires specialized expertise and resources, which can impact the overall cost and feasibility of deploying GIS technology.
• Limited Hydrogen Infrastructure: The development of hydrogen infrastructure is a significant challenge for the GIS market. Building and maintaining refueling stations and production facilities requires substantial investment and coordination, impacting the overall adoption and integration of GIS systems.
Technological advancements, urbanization, renewable energy integration, government regulations, and the demand for grid reliability are driving the growth of the gas insulated switchgear market. However, high initial costs, complexity of installation and maintenance, and limited hydrogen infrastructure present significant challenges. Addressing these challenges while leveraging the drivers will be essential for expanding the adoption of GIS technology and enhancing electrical infrastructure globally.
List of Gas Insulated Switchgear Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies gas insulated switchgear companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the gas insulated switchgear companies profiled in this report include-
• ABB
• General Electric
• Siemens
• Schneider Electric
• Mitsubishi Electric
• Eaton
• Hitachi
Gas Insulated Switchgear by Segment
The study includes a forecast for the global gas insulated switchgear by installation, insulation type, configuration, end use, and region.
Gas Insulated Switchgear Market by Installation [Analysis by Value from 2018 to 2030]:
• Indoor
• Outdoor
Gas Insulated Switchgear Market by Insulation Type [Analysis by Value from 2018 to 2030]:
• SF6
• SF6- free
Gas Insulated Switchgear Market by Configuration [Analysis by Value from 2018 to 2030]:
• Hybrid
• Isolated Phase
• Integrated Three-Phase
• Compact GIS
Gas Insulated Switchgear Market by End Use [Analysis by Value from 2018 to 2030]:
• Industrial
• Commercial & Institutional
• Electrical Utilities
• Data Centers
• Aftermarket
Gas Insulated Switchgear Market by Region [Analysis by Value from 2018 to 2030]:
• In terms of regions, North America
• In terms of regions, Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Gas Insulated Switchgear Market
The gas-insulated switchgear (GIS) market is continuously evolving due to technological, economic, and regulatory changes. In particular, GIS systems are very helpful in electrical power distribution in urban areas or in places with limited space because they are compact and operate efficiently. Recent activities in the United States, China, Germany, India, and Japan emphasize this global trend, where electrical infrastructure is continuously improved to accommodate growing demand while fitting into a sustainable future narrative. Different countries are making progress in advancing GIS technology and leveraging its widespread use for new energy demands.
• United States: Aging infrastructure has spurred the need for modernization and consequently the development and use of GIS technology in the U.S. Recently, new GIS technology has been applied to diverse projects, including cities and renewable energy utilization. Attention is being given to enhancing the reliability of grid systems, while many efforts are focused on integrating renewable resources with considerable investments in smart grid systems and cutting-edge overhauls. Important projects involve the modernization of large grid systems in metropolitan areas and the expansion of intelligent grid systems, which aim to maximize energy efficiency and reliability.
• China: China remains the most active in GIS adoption, consistent with ongoing fast-paced urbanization and efforts toward smart electricity grid rebuilding. Recent expansions include massive investments in new smart cities and industrial areas. The country has also implemented numerous high-voltage GIS systems aiming to integrate into its renewable energy sector and stabilize the grid. Major initiatives include using ultra-high voltage GIS systems to support bulk power transfer over long distances and incorporating large sources of renewable energy.
• Germany: In Germany, excitement towards innovation in GIS purchasing trends is geared toward sustainability and energy efficiency. Recent developments include the implementation of GIS systems as part of the country’s energy transition policy, aimed at increasing the proportion of renewable energy and enhancing grid stability. Germany is also focusing on smart grid technologies and modern control methods to improve GIS utilization efficiencies. Ongoing projects aim to increase current generation capacity by adopting more renewable energy and enhancing grid resilience.• India: India has experienced a higher rate of growth in GIS installations in response to urban sprawl and infrastructure renewal. Other notable developments involve the installation of GIS in selected cities and industrial zones to improve power distribution efficiency. Efforts are underway to increase grid capacity and interconnect various renewable energy sources. Key infrastructure projects include smart city initiatives that promote GIS technology and advance electric grid systems.
• Japan: The healthy development of the GIS market will focus on disaster response as well as energy efficiency. Among other recent developments is the application of integrated GIS into disaster-resilient systems and improvements in standalone power network systems. The country is moving toward the development of modern GIS to transition to other forms of energy. Emerging projects focus on retrofitting existing GIS and developing new GIS systems that prioritize disaster response and energy demand management.
Features of the Global Gas Insulated Switchgear Market
Market Size Estimates: Gas insulated switchgear market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Gas insulated switchgear market size by various segments, such as by installation, insulation type, configuration, end use, and region in terms of value ($B).
Regional Analysis: Gas insulated switchgear market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different installation, insulation types, configuration, end uses, and regions for the gas insulated switchgear market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the gas insulated switchgear market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the gas insulated switchgear market size?
Answer: The global gas insulated switchgear market is expected to reach an estimated $34.5 billion by 2030.
Q2. What is the growth forecast for gas insulated switchgear market?
Answer: The global gas insulated switchgear market is expected to grow with a CAGR of 6.3% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the gas insulated switchgear market?
Answer: The major drivers for this market are increasing need for a dependable and effective power supply, worldwide shift towards renewable energy sources, and rising investment in the transmission and distribution infrastructure.
Q4. What are the major segments for gas insulated switchgear market?
Answer: The future of the global gas insulated switchgear market looks promising with opportunities in the industrial, commercial & institutional, electrical utility, data center, and aftermarket markets.
Q5. Who are the key gas insulated switchgear market companies?
Answer: Some of the key gas insulated switchgear companies are as follows:
• ABB
• General Electric
• Siemens
• Schneider Electric
• Mitsubishi Electric
• Eaton
• Hitachi
Q6. Which gas insulated switchgear market segment will be the largest in future?
Answer: Lucintel forecasts that, within the installation category, indoor is expected to witness the higher growth over the forecast period due to dependable electricity provision.
Q7. In gas insulated switchgear market, which region is expected to be the largest in next 5 years?
Answer: In terms of regions, APAC is expected to witness highest growth over the forecast period due to heightened pressure on housing infrastructure, leading economies to prioritize the expansion of public housing.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the gas insulated switchgear market by installation (indoor and outdoor), insulation type (SF6 and SF6- free), configuration (hybrid, isolated phase, integrated three-phase., and compact GIS), end use (industrial, commercial & institutional, electrical utilities, data centers, and aftermarket), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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