Gas Insulated Switchgear Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Gas-Insulated Switchgear Market Trends & Growth Drivers

Urbanization and Compact Electricity Infrastructure Are Major Trends

• Globally, the urban population is increasing continuously, thus propelling the demand for compact and efficient utility infrastructure, specifically in densely populated areas.
• APAC is continually experiencing a surge in the rate of urbanization, and its environmental impact has forced governments to implement sustainable development goals (SDGs).
• Half the population of Southeast Asia is already living in cities, and an additional 70 million urban residents will be added by 2025. Urban development is important for economic growth here as around 80% of its GDP originates from urban areas.
• MEA countries, such as Saudi Arabia and the U.A.E., invest a significant amount of money in infrastructure projects to expand their economies and support urbanization. For instance, Saudi Vision 2030 has a target to transform the country’s infrastructure and reduce the dependence on oil. This is planned to be done via massive development projects, such as NEOM, solar PV cell plant, the Red Sea Development, and King Salman Energy Park.

Modernization of Aging Electrical Infrastructure Is Boosting Growth

• The worldwide requirement for modernizing old or outdated electrical infrastructure, for fulfilling the energy demands and enhancing efficiency, is the major driver for the GIS market. Aging makes electrical systems less reliable and efficient. Consequently, governments are planning to invest in newer technologies that can increase grid reliability and reduce maintenance costs.
• Globally, numerous power transmission & distribution networks are aging and not able to fulfill the growing demand for electricity. Therefore, countries are modernizing their aging electricity infrastructure to enhance efficiency and reliability and meet the increasing demand for this critical resource.
• According to the report of Eurelectric, 30% of the EU’s grid infrastructure is over 40 years old. Similarly, according to the U.S. Department of Energy (DOE), a major portion of the U.S. electric grid dates from the 1960s and 1970s.
• According to a report published by the Grid Modernization Initiative (GMI), which works across the U.S. DOE, the country requires a modern grid for a reliable and efficient power supply.
• In the U.S., the DoE has started many projects to upgrade the aging grid of the country, for increasing power delivery and reliability. GIS is important for this upgradation since it provides advanced grid management capabilities and good fault tolerance.
• The European region is also shifting toward advanced GIS systems, which support renewable integrations and applications. Additionally, Europe is focusing on incorporating digital technologies into its power grid.
• Saudi Arabia has plans to transform its complete power generation, transmission, distribution infrastructure, by upgrading and modernizing the grid, to improve energy access and reliability.

Environmental Concerns and Regulatory Challenges Act as Challenging Factors

• The main challenge for the market is the environmental impact that is related to the usage of sulfur hexafluoride (SF6) for insulating the GIS.
• SF6 has excellent chemical stability and electrical insulation properties, which make it suitable for high-voltage switchgear applications. However, this gas is 24,300 times more dangerous to the atmosphere than CO2 and can remain in the atmosphere for up to 3,200 years. This implies that a small quantity of SF6 can have a major impact on the earth’s climate, which can include animal death, frequent and severe heatwaves, and rise in sea levels.
• These possibilities have provoked North America and Europe to create dedicated agencies and implement strict regulations to reduce SF6 emissions.
• In April 2024, the European Commission implemented two new regulations to tighten control over fluorinated greenhouse gases (F-gases) and ozone-depleting substances (ODS). The proposed F-gas regulation is likely to contribute in reducing emissions by at least 55% by 2030 and attain climate-neutrality in Europe by 2050.

Gas-Insulated Switchgear Industry In-Depth Outlook

Installation Type Insights

Indoor GIS is the fastest-growing category, at a CAGR of 7.0% from 2024 to 2030. This will be due to the rising rate of urbanization and the surging demand for power distribution in cities, where space is a major problem. Indoor GIS is compact and can be set up in buildings or underground, which is ideal for urban areas. In addition, advanced technology is making indoor GIS more affordable and efficient, which, combined with the increasing environmental concerns and the need for sound reduction in populated areas, will contribute to its adoption.

Outdoor is the larger category with a market share of 55.0% in 2024, and it will continue to dominate the market throughout the projection period. This dominance is due to the capability of outdoor GIS to handle higher voltages, which is important for long-distance electricity transmission. Outdoor GIS installations are given preference for voltage above 66 kV owing to their robust design, which can withstand environmental hurdles, and flexibility with system expansion, which is challenging indoors.

Two installation types are included in this report:

• Indoor (Faster-Growing Category)
• Outdoor (Larger Category)

Insulation Type Insights

The SF6 category holds the larger market share, of 70.0%, in 2024. This dominance is due to the chemical stability and excellent electrical insulation properties of this gas. SF6 gas is highly effective in extinguishing electrical discharges, which can take place in the enclosed space of GIS. This makes it a perfect choice for high-voltage and medium-voltage applications, where space problems and environmental conditions make the old air-insulated switchgear impractical.

The SF6-free category will register the higher CAGR, of 7.2%, from 2024 to 2030. SF6 gas is a strong greenhouse gas and more dangerous than CO2, with the ability to ruin the environment. This environmental concern is the major driver for the adoption of GIS not containing this gas for insulation. Primarily, the increasing pressure of regulatory bodies to reduce greenhouse gas emissions and a growing societal commitment to environmental sustainability contribute to this growth.

This segment is divided into two categories:

• SF6 (Larger Category)
• SF6-Free (Faster-Growing Category)

Voltage Rating Insights

Up to 36 kV is fastest-growing category, with a CAGR of 7.3% from 2024 to 2030. Globally, urbanization and infrastructure development are on the peak in growing economies, which, in turn, creates a demand for compact and secure electricity distribution solutions. GIS rate for up to 36 kV offers a space-saving design and high reliability.

Above 220 kV is the largest category with a market share of around 40% in 2024. This dominance is due to the extensive application of these high-voltage variants at power generation facilities and long-distance transmission lines, which need strong and reliable equipment for a continuous power supply.

This segment has four categories:

• Up to 36 kV (Fastest-Growing Category)
• 37 to 73 kV
• 74 to 220 kV
• Above 220 kV (Largest Category)

Configuration Insights

The compact category dominates the market with a share of more than 35.0% in 2024, and it is the fastest-growing category too. This is ascribed to the advantages offered by this configuration with respect to space utilization and installation flexibility. This configuration is helpful in urban settings or environments where physical space is an issue but demand is high for electrical power distribution. Additionally, as the integration of renewable energy into power grids rises, the demand for GIS that can be accommodated in compact spaces without compromising functionality will likely surge.

This segment is comprised of four categories:

• Hybrid
• Isolated-Phase
• Integrated Three-Phase
• Compact (Largest and Fastest-Growing Category)

End User Insights

Power utilities are the largest category, with a market share of around 45% in 2023 and it is also the fastest-growing category too. This is due to their important role in the reliable distribution and effective management of electricity in wide range of power grids. GIS is given priority by power utilities for its compact footprint, safety, and high reliability which are essential in highly populated urban areas and regions, which have geographical constraints. The strength of GIS allows for continual operation and require minimal maintenance which is important for ensuring continual power supply in the utility domain.

These end users have been analyzed:

• Power Utilities (Largest and Fastest-Growing Category)
• Railways & Metros
• Industries
• Commercial
• Others

APAC Is Largest and Fastest-Growing Region

APAC is the largest region, with a market share of around 40% in 2024, and also the fastest-growing region. This is due to the massive electricity demand in the region due to the fast urbanization and industrialization. APAC has some of the world’s largest and fastest-growing economies, where a broad range of development projects and the growing population generate a vast need for strong and efficient power distribution systems. Additionally, this region is home to high-density urban areas, which need reliable power supply systems to support development and growth. This makes compact and effective solutions, such as gas-insulated switchgear, especially valuable.

These regions and countries were analyzed in this report:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• APAC (Largest and Fastest-Growing Regional Market)
  • China (Largest and Fastest-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • U.A.E.
  • Rest of MEA

Market Concentration – Fragmented

The gas-insulated switchgear market is fragmented in nature, and established players are making high investments in research and development to expand their product portfolios. Several methods are being used by market participants to grow their footprint globally, such as mergers and acquisitions, product launches, collaborations, and contractual agreements.

Gas-Insulated Switchgear Companies News

• In June 2023, ABB’s 33-kV ZX series GIS in Gqeberha city was assembled through a partnership between Eya Bantu.
• In June 2023, Grid Solutions was awarded a contract by Larsen & Toubro to supply 380-kV T155 GIS for a utility-scale hydrogen plant.
• In May 2023, Siemens Energy, in association with Giza Systems, successfully installed four mobile substations for the state-owned Egyptian Electricity Transmission Company (EETC).
• In April 2023, 72.5-kV SF6-free GIS was introduced by Toshiba Company, under the brand AEROXIA.
• In February 2023, a new was inaugurated by ABB India in Nashik to double its primary and secondary GIS manufacturing capacity.