India Gas Insulated Switchgear Market - Growth, Trends, Covid-19 Impact and Forecasts (2022 - 2027)

India Gas Insulated Switchgear Market - Growth, Trends, Covid-19 Impact and Forecasts (2022 - 2027)

The India Gas Insulated Switchgear market is expected to grow at a CAGR of greater than 10% during the forecast period.

The market was moderately affected by the Covid-19 pandemic, as several large-scale transmission and distribution projects were delayed due to a fall in energy demand and the economic effects of the pandemic. The market is expected to reach its pre-pandemic levels during the forecast period.

Key Highlights

• As India expands its electrical grid infrastructure with several long-distance Transmission and Distribution (T&D) projects, the demand for gas-insulated substations is expected to grow, driving the market during the forecast period.
• However, as long-distance T&D projects often traverse ecologically sensitive zones, concerns about the environmental impact of gas leakage from gas insulated switchgears and substations is expected to restrain the market during the forecast period.
• The development and commercialisation of SF6-free environmental-friendly gas insulated switchgears is expected to be a significant growth opportunity for the market during the forecast period.

Key Market TrendsLong-distance Transmission and Distribution Projects driving the market

• India is one of the fastest-growing renewable energy markets globally. As of 2021, e country was ranked fourth in wind power, fifth in solar energy, and fourth in renewable power installed capacity globally. As the grid integration of renewable energy generation has risen, the requirement for grid upgradation for the transmission of renewable energy and providing grid stability has grown immensely. Additionally, as India tries to improve electrification rates, the country has witnessed massive investments in large T&D projects, which are expected to drive the demand for gas-insulated switchgear during the forecast period.
• For instance, in December 2021, Global investment manager AMP Capital established a 50/50 partnership with Sterlite Power Transmission Limited (Sterlite Power) to develop energy transmission projects in India. ​AMP Capital and Sterlite Power plan to invest an initial amount of about USD 150 million in developing four power transmission projects and have put in place debt financing, representing a total capital outlay of around USD 1 billion. The projects have a circuit length of about 1800 kilometres of transmission lines across India's Western, Southern and Northeastern regions. It is likely to provide the critical infrastructure required for evacuating power from multiple renewable energy generation projects and thus provide a vital opportunity for the gas-insulated switchgear players in India.​
• Furthermore, in July 2021, Godrej & Boyce, the flagship company of the Godrej Group, announced that business Godrej Electricals & Electronics, the group's Power Infrastructure and Renewable Energy (PIRE) arm, secured an order for one of Mumbai's power transmission projects. The project is worth around INR 100 crore to construct a greenfield 400kV Gas Insulated Switchgear (GIS) Substation in Vikhroli and a 400kV bay extension in Kharghar. Hence, such projects are expected to see considerable developments in the coming years.​
• Such large developments and investments in the Indian Transmission and Distribution sector are expected to drive the demand for gas-insulated substations in the country during the forecast period.

High-voltage segment to dominate the market

• The high-voltage segment, which consists primarily of HVDC substation equipment, is expected to grow steadily, dominating the market during the forecast period. As HVDC projects are generally long-distance projects which often cross ecologically sensitive areas, the smaller size of gas-insulated substations reduces environmental impact.
• Moreover, long-distance HVDC links allow power transmission from large utility-scale assets in remote areas to demand centres far away. As India invests in new utility-scale renewable energy projects, investments are also pouring into new HVDC projects, and the demand for substations is expected to grow steadily during the forecast period.
• For instance, in July 2022, Hitachi Energy won a contract from Adani Electricity Mumbai Infra to provide a direct high-voltage current (HVDC) transmission system that links Kudus to Mumbai. The new HVDC link will supply up to 1,000 MW of electricity, increasing power from outside the city by almost 50%.
• Similarly, in February 2021, PowerGrid Corporation of India commissioned it's 2GW-320kV, 165km long Pugalur–Thrissur High Voltage Direct Current (HVDC) line, which was built at USD 700 million. Further, in December 2020, the Indian state of Maharashtra unveiled plans to build a USD 1.08 billion 800 kV underground HVDC project to supply an additional 1 GW of electricity to Mumbai. These projects require significant high-voltage components, including GIS, and this is expected to drive the high voltage segment of India's GIS market during the forecast period.

Competitive Landscape

The India Gas Insulated substation market is moderately fragmented. Some of the major players in the market (in no particular order) include Hitachi Ltd, Schneider Electric SE, General Electric Company, Powell Industries Inc., and Eaton Corporation PLC, among others.

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