Gas Insulated Switchgear Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Gas Insulated Switchgear Market

The global gas-insulated switchgear (GIS) market is experiencing significant growth, driven by increasing energy demand, urbanization, and the shift towards renewable energy sources. According ta report by Fortune Business Insights, the market was valued at USD 21.13 billion in 2018 and is projected treach USD 56.86 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.38% during the forecast period.

Understanding Gas-Insulated Switchgear (GIS)

GIS is a type of high-voltage substation where major electrical equipment is enclosed within a sealed environment, utilizing sulfur hexafluoride (SF₆) gas as the insulating medium. This design significantly reduces the space required for installation—approximately 10% of that needed by conventional substations. The compact nature of GIS makes it ideal for urban areas with limited space. Additionally, GIS offers high reliability and requires minimal maintenance, as the enclosed design reduces exposure tenvironmental factors and potential faults.

Key Market Drivers

1. Rising Energy Demand and Urbanization: The global population is increasingly urbanizing, leading thigher energy consumption. The United Nations reported that in 2018, about 55% of the world's population resided in urban areas, a figure projected trise t68% by 2050. This urban migration necessitates the development of efficient and compact power distribution systems, bolstering the demand for GIS.

2. Expansion of Renewable Energy Sources: There is a growing global emphasis on renewable energy, with supportive government initiatives fostering this transition. The International Energy Outlook 2019 indicated that 28% of global power generation in 2018 was derived from renewable sources, including wind, solar, and hydropower. The Energy Information Administration (EIA) forecasts that renewables will constitute nearly 49% of global electricity output by 2050. Integrating these renewable sources intexisting grids often requires advanced switchgear solutions, thereby driving the GIS market.

3. Investments in Transmission and Distribution Infrastructure: Tmeet the escalating energy demand, countries are investing heavily in the development and modernization of transmission and distribution networks. For instance, Saudi Arabia plans tinvest USD 100 billion tdouble its power generation capacity over the next decade. Such investments necessitate reliable and space-efficient solutions like GIS, which are essential components in modern power grids.

Market Segmentation

• By Voltage: The GIS market is categorized based on voltage levels intup t66 kV, 66 kV–170 kV, 170 kV–550 kV, and above 550 kV segments. The 170 kV–550 kV segment dominated the market, attributed tthe widespread expansion of transmission and distribution infrastructure. Developed nations are investing in smart grid technologies tenhance power supply reliability and monitoring capabilities, further propelling this segment's growth.
• By Installation: GIS installations are classified as indoor or outdoor. The outdoor segment holds a significant market share due tits application in long-range power transmission and large power plants. Conversely, the indoor segment is gaining traction for use in small substations and low-voltage transmission, particularly in urban settings where space is at a premium.
• By End User: End users of GIS include utilities, industrial sectors, commercial entities, and others. The utility segment is the largest consumer, utilizing GIS for transmitting and distributing various voltage levels. The commercial and industrial segments are alssignificant, driven by the need for reliable power supply in sectors such as manufacturing and services.

Regional Insights

The Asia Pacific region led the GIS market, accounting for a 32.75% share in 2018. This dominance is due tsubstantial investments in expanding transmission and distribution networks taccommodate rising electricity demand. For example, in February 2019, IndiGrid, an infrastructure investment trust in India's power sector, agreed tacquire Patran Transmission Company Limited tenhance its transmission capabilities. North America and Europe are alssignificant markets, focusing on upgrading aging infrastructure and integrating renewable energy sources inttheir grids.

Challenges and Restraints

Despite the positive outlook, the GIS market faces challenges, including the high cost of equipment compared tair-insulated switchgear (AIS). The use of SF₆ gas, a potent greenhouse gas, raises environmental concerns and has led tstringent regulations. Currently, there are nalternatives that match SF₆'s efficiency, posing a challenge for manufacturers and users aiming treduce environmental impact.

Future Outlook

The GIS market is poised for continued growth, driven by technological advancements and the global shift towards sustainable energy solutions. Manufacturers are focusing on developing eco-friendly alternatives tSF₆ gas and enhancing the efficiency and reliability of GIS systems. As urbanization and industrialization progress, the demand for compact, efficient, and reliable power distribution solutions like GIS is expected trise, solidifying its role in the future energy landscape.

ATTRIBUTE - DETAILS

Study Period - 2015-2026

Base Year - 2018

Forecast Period - 2019-2026

Historical Period - 2015-2017

Unit - Value (USD Billion)

Segmentation By Voltage

• Up t66 kV
• 66 kV - 170 kV
• 170 kV - 550 kV
• Above 550 kV

By Installation

• Indoor
• Outdoor

By End User

• Utility
• Industrial
• Commercial
• Others

By Geography

• North America (the U.S. and Canada)
• Europe (U.K., Germany, France, Italy, Spain, Russia, and the Rest of Europe)
• Asia-Pacific (China, India, Japan, Australia, Southeast Asia, and the Rest of Asia- Pacific)
• Latin America (Brazil, Mexico, and the Rest of Latin America)
• Middle East & Africa (South Africa, GCC and the Rest of Middle East & Africa)

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