The market for gas insulated switchgear is expected to grow at a CAGR of more than 5% during the forecast period of 2020 - 2025. The gas insulated switchgear (GIS) are metal enclosed switchgears that are more environment-friendly, more reliable, and more flexible when compared to air-insulated switchgears (AIS). Due to its space optimization, low maintenance, and protection against external elements the demand for gas insulated switchgear market is expected to rise in the coming years. Transformation of power industry is expected to drive the demand for gas insulated switchgears market during the forecast period as GIS type switchgears are preferred for transmission line renovation projects. Factors such as high equipment cost when compared to AIS along with stringent environmental and safety regulations related to GIS are hindering the market growth.
- Gas insulated medium voltage switchgear (GIS) is anticipated to witness significant demand over the forecast period as they offer numerous advantages, such as less field construction work (i.e. quick installation time), flexible designs, and minimal maintenance etc.
- Growing investments in smart grids and energy systems, extension or replacement of old switchgears at substations in developed regions is expected to create an ample amount of opportunities in GIS market.
- Asia-Pacific is expected to dominate the market with majority of the demand coming from the countries such as the India and China.
Key Market Trends
Medium Voltage GIS to Witness Significant Demand
- Medium voltage gas insulated switchgear segment is expected to witness significant demand over the forecast period due to the rapid improvement in the power distribution sector through the implementation of smart grid and smart meter technology.
- Gas insulated medium voltage switchgears are widely used in the wind farm generators. Medium voltage switchgear of up to 35 kVA SF6 gas insulated, specially used for the protection of wind generators, are installed at the remote locations.
- According to China's largest state-owned utility corporation, State Grid Corporation of China (SGCC), the country's energy demand in 2030 is expected to exceed 10 Petawatt hour (PWH). As a result, there is a need for the expansion of the existing power transmission network, which is expected to drive the demand for medium voltage gas insulated switchgear in the country.
- In September 2019, the Power Grid Company of Bangladesh Limited has invited international competitive bids for the design, supply, installation, testing and commissioning of a 400 kV outdoor gas insulated switchgear (GIS) substation at Bogura (West) and Rahanpur, along with the upgradation/extension of the Gopalganj and Chapainawabganj (old) substations on a turnkey basis.
- Therefore, rising adoption of smart grid technology is expected to have a positive impact on medium voltage switchgear market, during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the gas insulated switchgear market as the region witnesses a high demand for electricity. Countries such as China, Japan, and India are investing in their grid expansion projects to increase distribution grid reliability.
- Due to the unprecedented growth of the economy, coupled with factors, such as rapid industrialization and urbanization, China witnessed high demand for electricity, over the years.
- As the power generation capacity increases, majority of the emerging countries are unable to fulfil the domestic electricity demand. Therefore, new power plants are being built in this region.
- Moreover, to connect the growing number of power plants and to supply electricity to consumers, the region is witnessing a large number of transmission and distribution (T&D) network construction projects, which, in turn, is driving the demand for switchgears, including gas insulated switchgears, in the utility sector.
- Therefore, the trend is expected to continue during the forecast period as well, which in turn, is expected to drive the gas insulated switchgears market in the region.
The gas insulated switchgear market is moderately fragmented. Some of the key companies in the market include ABB Ltd., Schneider Electric SE, General Electric Company, Eaton Corporation PLC, and Toshiba International Corporation.
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