U.S. Gas-Insulated Switchgear Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Gas-Insulated Switchgear Market Size

U.S. Gas-Insulated Switchgear Market Trends & Growth Drivers

GIS, as Part of Compact T&D Infrastructure, Is Trending in Cities

• With over 80% of its population living in cities, the U.S. is among the most-urbanized countries in the world.
• American cities are characterized by densely packed buildings, where the space is not always adequate.
• This is driving a shift from the traditional air-insulated switchgear, which occupies a lot of space, to the compact GIS.
• One reason behind this is the better insulative properties of Sulphur hexafluoride (SF6) gas than merely air.
• As a result, a lot less SF6 than air is needed in such switchgear, making the equipment compact and ideal for urban areas.
• This equipment is also more resilient to dust and pollution, which is driving its adoption in cities and highly industrialized areas.
• Another feature that propels its preference in urban areas is its lower risk of catching fire, which is crucial in tight spaces, characteristic of cities.
• The compact and sealed nature of GIS also makes it perfect for underground installation in areas where overhead powerlines and AIS Are unfeasible.

Initiatives for Grid Expansion and Modernization Drive Market

• The biggest driver for the U.S. gas-insulated switchgear market is the government initiatives to expand and modernize the national grid.
• Most of the T&D infrastructure in the country dates from the 1960s and 1970s, when the country’s population was slightly over 200 million.
• Now, it stands at 337.5 million, as per the U.S. Census Bureau and is growing continuously.
• By 2054, it is set to cross 383 million, according to the Congressional Budget Office.
• This is leading to a continuous increase in electricity demand across the country.
• As per the EIA, 4.07 trillion kWh of electricity was consumed in the country in 2022, which was 14 times more than in 1950.
• Moreover, in 2024, the North American Electric Reliability Corporation forecasts a 78-GW growth in the peak winter electricity demand till 2034, revising its two-year-old growth forecast of 40 GW.
• The inevitable inability of the existing T&D infrastructure to handle the surging load has prompted the government at the federal and state levels to take initiatives to expand and modernize it.
• In August 2023, the Department of Energy awarded USD 39 million worth of projects under its Grid Modernization Initiative.
• Projects related to medium-voltage (4.16−34.5 kV) distributed energy resource T&D, EV charging, cybersecurity, connected grid, quantum computing, equitable power supply and climate resilience of T&D.
• The Grid Resilience Innovative Partnership (GRIP) Program of 2022, which envisions a total funding of USD 10.5 billion is another initiative in this regard.

Environmental Concerns Could Restraint Growth of Market

• The biggest concern for GIS providers is the environmental concerns associated with it.
• SF6, which is the main insulating medium in such machines, has a Global Warming Potential (GWP) 24,300 times more than CO2.
• Further, once released, it stays in the atmosphere for more than 3,000 years, thus possessing the potential to cause significant harm to the environment.
• The power sector contributes 25% of the country’s greenhouse gas (GHG) emissions, according to the Environmental Protection Agency (EPA).
• Regional Greenhouse Gas Initiative (RGGI) has been enforced to reduce GHG emissions in participating states, and within it, states have implemented specific policies on SF6 emissions.
• California is aiming to phase this gas out in switchgear by 2025, while the 310 CMR 7.72 rule of Massachusetts allows a maximum of 1% leakage rate from GIS installed after 2015.
• The State of New York has proposed SF6 phaseout, emission limits and reporting mandates for suppliers of this and other fluorinated gases.
• This is forcing GIS manufacturers to invest in R&D to look for alternative insulating media. This could make this equipment costly in the short run and restrict its adoption to a degree.

U.S. Gas-Insulated Switchgear Market Analysis

Installation Type Insights

The outdoor category dominates the market with 55% share in 2024. This is credited to the massive electricity requirement of the country, which creates the need for high-voltage T&D. Outdoor GIS installations, especially those with a voltage rating exceeding 66 kilovolts (kV), are ideal for this purpose. Their robustness makes them resilient to harsh weather conditions without extensive maintenance. GIS is also easier to installed outdoors, which is why it is widely used in large substations.

The indoor bifurcation is expected to undergo the faster growth during the forecast period. This will be because of the rampant urbanization in the country, which limits the space for large pieces of electrical T&D equipment. Therefore, indoor GIS is widely installed within buildings or underground, specifically in densely packed urban pockets. GIS designed for indoor usage is also being technologically advanced to offer cost-effectiveness and comply with environmental and noise regulations.

Two installation types are included in this report:

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

Insulation Type Insights

SF6 is the larger category in the market, primarily on account of the high insulation provided by this gas. Additionally, its high dielectric strength enables the system to keep working under high voltages. Further, its arc quenching ability suppresses the electrical arcs that emerge with high-voltage circuits are opened or closed, thus reducing the risk of fire.

The SF6-free bifurcation has the higher CAGR during the forecast period, of 7.3%, driven by the high GWP potential of this gas. To achieve their climate goals, several states in the country have announced stringent limits on SF6 and its plans to phase it out within this decade. In response to these announcements, equipment manufacturers and material science companies are researching other gases that do not cause environmental harm, yet offer the same degree of insulation. For instance, 3M Company offers C4 and C5 as alternative insulating media to SF6 in switchgear.

This segment is divided into two categories:

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

Voltage Insights

The above 220 kV category dominates the market in 2024 with around 35% share. Switchgear with such a high voltage rating is widely used in the country for long-distance T&D at low current ratings, which reduces resistive losses. Further, the interconnection of regional grids into one national grid is made possible by high-voltage GIS. Above-200-kW GIS isolates faults and enables the reconfiguration of the grid to keep it stable. These systems are also resilient to adverse weather events, which makes them ideal for areas prone to hurricanes, snow blizzards and tornadoes.

The up to 36 kW category is growing the fastest in the market, majorly due to the worsening space constraints in cities. Additionally, up-to-36-kV GIS is extensively used for medium-voltage applications in buildings and underground substations. It also offers higher safety in critical places, such as data centers, hospitals and offices. GIS with this voltage rating is also rising popularity for its efficiency in integrating clean sources of electricity into the grid and its importance in EV charging stations. It is also used to switch high voltages down at the substation, for use at commercial and residential buildings. This switchgear is also often modular, which enables it to be scaled up or down in response to the power demand.

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 largest share in this segment is held by the compact category, which will also witness the highest CAGR, of 7.1%. The high degree of urbanization is the primary driver for the demand for compact GIS as cities have limited space. Compact GIS is also designed to be reliable and robust, so that the power supply remains stable without much maintenance.

This is why these systems are used in hospitals, data centers and other critical facilities where electricity cuts can have disastrous consequences. Here, the encapsulated design of such systems proves advantageous, by reducing the chances of fire and electrocution. Moreover, amidst the environmental concerns, the usage of less SF6 in compact GIS makes it popular, especially in urban areas.

This segment is comprised of four categories:

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

End User Insights

Power utilities dominate the market with around 40% revenue, and they are also the fastest-growing category. T&D companies use GIS as an essential piece of equipment to distribute high voltages of power reliably and safely over long distances. Since the U.S. witnessed frequent snow storms, hurricanes, wildfires and tornadoes, GIS becomes essential to prevent outages. GIS is also enclosed, which reduces the risk of insulating gas leakage into the atmosphere. The U.S. already has more than 163,000 miles of T&D lines and 15,000 substations, which transmit electricity at up to 230 kV. Moreover, in May 2024, the DoE proposed the laying of 3,500 miles of additional transmission lines across the country.

These end users have been analyzed:

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

Regional Analysis

The western region leads the market, generating 35% of the nationwide revenue in 2024. This is attributed to the extensive adoption of wind and solar energy technologies in this region. As per studies, from October 2023 to September 2024, California, Colorado, Nevada and New Mexico produced 44,737 GWh, 22,320 GWh, 16,386 GWh and 18,402 GWh of renewable electricity, respectively. Further, the highly urbanized cities of Los Angeles, San Francisco and Seattle require compact yet reliable T&D systems.

The southern region will witness the highest CAGR during the forecast period. This is attributed to the large population in the southern states, which continues to witness growth. As per the U.S. Census Bureau, the south is the most-populated region, home to 38.4% of all the people in the U.S. The agency also reports that this region is witnessing the fastest population growth in the country, accounting for 87% of the rise in 2023. These states are also witnessing rapid industrialization, and they are the ones most affected by hurricanes, which drives the demand for GIS for grid reliability.

These regions have been studied:

• West (Largest Regional Market)
• Northeast
• South (Fastest-Growing Regional Market)
• Midwest

U.S. Gas-Insulated Switchgear Marke Share

• The market is fragmented as a large number of global and regional players operate in it.
• GIS is a basic piece of equipment, not technically or financially challenging to develop, which allows even small players to register appreciable sales.
• Moreover, GIS ranges widely in voltage ratings and designs, with different companies possessing expertise and lead in different parameters.
• Additionally, with the changing end-use requirements, companies have begun tailoring the equipment for specific purposes, further fragmenting the market.

U.S. Gas-Insulated Switchgear Market Company News

• In November 2024, Eaton Corporation plc announced a collaboration with Treehouse to enable code-compliant and cost-effective electrification projects for the residential sector. Under the collaboration, Treehouse will integrate its AI software into Eaton’s digitally enabled electrical systems.
• In October 2024, Mitsubishi Electric Corporation announced its intention invest USD 86 million (JPY 12 billion) in power electronics and switchgear production in the U.S.
• In September 2024, Hitachi Ltd. announced plans to invest USD 60 million to expand its Mount Pleasant, Pennsylvania high-voltage switchgear and breaker factory, USD 25 million to augment power, distribution, and traction transformer production in South Boston, Virginia; and USD 70 million for a distribution transformer plant in Mexico.
• In April 2023, Toshiba Corporation introduced a 72.5-kV SF6-free GIS under the brand AEROXIA.