Global Gas Insulated Substations Market Report and Forecast 2024-2032

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Gas Insulated Substations Market Growth

The High Voltage Segment to Augment the Growth of the Gas Insulated Substations Industry

Based on voltage, the high voltage segment is witnessing a significant growth and is expected to account for a major share in the industry in the forecast period. This can be attributed to the benefits provided by gas insulated substations operating on high voltage, such as protection for the grid infrastructure and improved reliability. The high voltage segment is revolutionised by the refurbishment of old power transmission infrastructure in developed countries, which, in turn, is augmenting the growth of the gas insulated substations market. Moreover, the rising demand for energy efficient power transmission systems is expected to further stimulate the market for high voltage gas insulated substations as these are much more energy efficient than traditional air insulated substations.

Gas Insulated Substations Market Trends

Escalating Demand for Energy Efficient Systems to Bolster the Growth of the Gas Insulated Substations Industry

The industry is being driven by the rising demand for energy efficient power generation systems. This can be attributed to the increasing demand for energy and the escalated usage of vehicles, electric gadgets, and appliances worldwide.  Another key trend in gas insulated substations market is that the gas insulated substations are eco-friendly, and, thus, are witnessing increased adoption in comparison to air insulated substations. The rising environmental concerns and inadequacy of land in cosmopolitan areas have significantly augmented the market growth. However, the high cost associated with gas insulated substations are likely to hamper the growth of the industry.

Over the forecast period, factors like the increasing integration of gas insulated substations in manufacturing units and processing centres and the huge investments in R&D activities to reduce their production cost are foreseen to drive the growth of the market in the coming years.

Recent Developments

As per the gas insulated substations market dynamics and trends, Karnataka Power Transmission Corporation Ltd. (KPTCL), based in India, announced in March 2024 that it aims to upgrade the existing Air Insulated Substations (AIS) to Gas Insulated Substations (GIS) to meet the growing electricity demand in Bengaluru, India.

Industry Outlook

As per the gas insulated substations industry analysis, gas insulated substations are gaining prominence in the power transmission and distribution sector of India. These substations require 35 per cent less space than air-insulated substations as they are more compact-sized, which leads to low maintenance cost and overall less capital cost in the long term.

There is a surge in investments in GIS switchgear factory to enhance its production capacity. For example, Siemens India announced in May 2024 that it aims to invest around Rs 519 crore for the expansion of its gas-insulated switchgear factory in Goa, India. The aim is to expand the facility by around 23 percent for the production of 22,000 feeders from its Ring Main Unit and 1,500 panels from its medium-voltage gas insulated switchgear manufacturing unit.

The underlying efforts by market players to enhance the capacity of substations are further boosting the growth of the gas insulated substations industry. For instance, Toshiba Energy Systems and Solutions Corporation announced in June 2024 that it has installed 7 gas-insulated transformers in the Haram 2 and Haram 3 substations in Makkah, Saudi Arabia. These transformers are expected to meet the rising demand for urban infrastructure in Meccah which serves as a holy pilgrimage for millions of travellers every year.

The Growth of the Global Gas Insulated Substations Market Driven by Urbanization and Technological Advancements

• Urbanization: Rapid urbanisation and the need for reliable power supply in urban areas drive demand for gas-insulated substations (GIS).

• Technological Advancements: Continuous innovations in GIS technology enhance efficiency, safety, and reliability.

• Space Efficiency: GIS requires less space compared to traditional substations, making it ideal for urban and industrial areas, which boosts gas insulated substations demand growth.

• Environmental Benefits: GIS has a lower environmental impact, including reduced risk of oil leaks and lower electromagnetic emissions.

• Reliability and Safety: High reliability and safety due to encapsulated design that protects from environmental factors.

Challenges Impacting the Growth of the Global Market Include High Costs and Technical Complexity

• High Costs: Significant initial investment and maintenance costs can limit adoption, especially in developing regions.

• Technical Complexity: Complexity in installation and maintenance requires skilled personnel which can affect gas insulated substations demand forecast.

• Market Awareness: Limited awareness and understanding of GIS benefits among potential users.

• Environmental Concerns: Potential environmental impact of SF6 gas, a potent greenhouse gas used in GIS.

• Supply Chain Issues: Disruptions in the supply chain for components and raw materials can affect market stability.

Opportunities in the Global Market Driven by Renewable Energy Integration and Smart Grid Development

• Renewable Energy Integration: Increasing integration of renewable energy sources requires reliable and efficient substations.

• Smart Grid Development: Growth in smart grid projects worldwide drives demand for advanced substation technologies like GIS, enhancing gas insulated substations market opportunities.

• Urban Infrastructure Development: Expansion of urban infrastructure projects, especially in emerging markets.

• Technological Innovations: Advances in materials and design to enhance performance and reduce costs.

• Public-Private Partnerships: Opportunities for collaboration between governments and private companies to develop and implement GIS projects.

Key Price Indicators in the Global Gas Insulated Substations Market Share:

• Prices of raw materials, such as metals and insulating gases, used in manufacturing GIS.

• Costs associated with energy consumption in the production and operation of GIS.

• Expenses pertaining to production encompass labour, equipment maintenance, and overhead costs.

• Logistics and transportation costs for shipping raw materials and finished GIS components.

• Expenses linked to meeting environmental and safety requirements can influence gas insulated substations demand.

• Investment in research and development for new GIS technologies and materials.

• The influence of changes in currency exchange rates on the expenses associated with purchasing imported raw materials and the income generated from exports.

• Fluctuations in demand from key sectors such as power generation, transmission, and distribution.   

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Gas Insulated Substations Industry Segmentations

Gas insulated substations (GIS) refer to a high voltage substation where the components and major structures are located in a sealed environment. In this sealed environment, sulphur hexafluoride gas (SF6) is used as an insulating medium. These systems are much more reliable, environment-friendly, and flexible than air-insulated substations (AIS).

By voltage, the market is divided into:

• Medium Voltage

• High Voltage

• Extra High Voltage

Based on application, the gas insulated substations industry can be bifurcated into:

• Indoor

• Outdoor

Based on end use, the market is divided into:

• Power Transmission and Distribution

• Power Generation and Processing

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• General Electric Company

• Hitachi, Ltd.

• Mitsubishi Electric Power Products, Inc.

• Larsen & Toubro Limited

• Others

The comprehensive EMR report provides an in-depth assessment of the gas insulated substations market based on the Porter's five forces model along with giving a SWOT analysis.

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Gas Insulated Substations Market Regional Analysis

The Asia Pacific is one of leading regions in the industry and is further expected to dominate the market in the forecast period. The demand of gas insulated substations market in the Asia Pacific is increasing due to factors like increased power consumption, growing investments in the upgradation of aging hydropower plants, and the rising demand for energy in various emerging economies like China, India, Japan, and Vietnam.

The presence of several substations producers in Japan is anticipated to further expand to countries like China and India, thus, aiding the market expansion. Moreover, North America is predicted to witness a considerable growth in the forecast period owing to the rising investments to develop power infrastructures across the region.

Key Highlights of the Report

Gas Insulated Substations Market Report Snapshots

Gas Insulated Substations Market Size

Gas Insulated Substations Market Growth

Gas Insulated Substations Market Trends

Gas Insulated Substations Companies

Gas Insulated Substations Market Regional Analysis