Global Gas Insulated Transformer Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Global Gas Insulated Transformer Market Growth

A gas-insulated transformer, also known as gas-insulated switchgear, utilises a gas, typically sulphur hexachloride (SF6), as an insulation medium to protect the components of the transformer. Its components are sealed in a metal enclosure, which is filled with insulation gas to reduce any environmental hazard and risk.

The gas insulated transformer market dynamics and trends are influenced by the increasing need for compact transformers in densely populated urban areas. Additionally, gas-insulated transformers are ideal for installation in challenging environments, such as mountainous, underground, or extreme weather areas, due to their resilience to harsh conditions.

Global Gas Insulated Transformer Market Analysis

Sustainability is becoming an important metric in utility operations; hence several market players are testing out sustainable alternatives to sulphur hexachloride (SF6) gases such as AirPlus, g3 compound, Nuventura, and clean air with natural constituents, among others, that have lower environmental impact. They are also forming joint ventures to create scalable and eco-friendly solutions for gas-insulated transformers, which is driving demand in the gas insulated transformer market.

The integration of advanced technologies like artificial intelligence, smart sensors, data analytics, and cloud connectivity for optimizing and monitoring gas, reducing operational risks, and improving power transmission efficiency is also driving growth in the gas insulated transformer industry.

Gas Insulated Transformer Industry Outlook

As per the International Renewable Energy Agency, the global renewable energy capacity saw a notable increase from 3,089,984 MW in 2021 to 3,381,758 MW in 2022, reflecting a growth of approximately 9.5%. Africa’s renewable energy landscape also expanded, with total capacity rising from 56,123 MW to 58,796 MW, marking a 4.8% increase. Egypt maintained its leadership with a slight rise to 6,322 MW from 6,258 MW, while Ethiopia demonstrated significant growth with a 17.4% increase, reaching 5,589 MW from 4,759 MW, driven largely by hydropower projects. Angola and Kenya continued to expand their capacities, with increases to 4,066 MW and 2,649 MW, respectively. Notably, smaller nations like Benin, and Burkina Faso also made significant progress, with Benin jumping from 3 MW to 28 MW, and Burkina Faso’s capacity rose to 122 MW from 92 MW. Morocco’s capacity rose to 3,725 MW up from 3,638 MW. In contrast, some countries like Cameroon and Djibouti showed stable capacities at 827 MW and 20 MW indicating a potential focus on maintaining existing infrastructure. This increase in renewable energy capacity bolsters the growth of gas insulated transformer industry revenue, as gas-insulated transformers are preferred in renewable energy projects due to their compact design and high efficiency.

As per BP Energy, in 2019, electricity generation in Austria rose to 74.2 terawatt-hours (TWh) in 2019, reflecting a slight increase from 68.6 TWh in 2018. Belgium also showed an increase, generating 93.7 TWh in 2019, up from 75.1 TWh in 2018. Italy maintained its substantial role in Europe's electricity production, generating 293.9 TWh in 2019, up slightly from 289.7 TWh in 2018. The rise in electricity generation across Europe boosts the demand for reliable and efficient gas-insulated transformers, driving the gas insulated transformer industry revenue. This supports market growth as countries aim to upgrade power infrastructure and address rising energy needs.

Gas-insulated transformers (GITs) offer a smaller footprint compared to conventional transformers, making them ideal for space-constrained environments.

• They are highly reliable with minimal maintenance needs due to their sealed construction, which protects against environmental factors.

The initial cost of GITs is higher than traditional transformers, which can be a barrier to adoption.

• Their advanced technology and construction can lead to complex installation and servicing requirements.
• GITs may offer less flexibility in terms of customization and modifications compared to conventional transformers.

Increasing urbanisation and space constraints create a demand for compact and efficient GIT solutions.

• The expansion of renewable energy sources necessitates reliable and space-efficient transformer solutions like GITs.
• Ongoing advancements in gas insulation technology could enhance performance and reduce costs, driving the gas insulated transformer industry growth.

Economic downturns can impact investment in infrastructure projects, affecting GIT demand.

• Stringent regulations and standards related to gas handling and safety may pose challenges for manufacturers.
• Intense competition from alternative transformer technologies and manufacturers may impact gas insulated transformer market opportunities.

Key Players in the Global Gas Insulated Transformer Market and Their Key Initiatives

Toshiba Corp.

• Recently activated seven gas-insulated transformers.
• Installed underground GITs for Toronto Hydro in North America.

Siemens AG

• Collaborated with Iljin Electric to capture the gas insulated transformer market opportunities. 
• Invested 100 million euros to expand its Frankfurt switchgear plant.

Mitsubishi Electric Corporation

• Launched an 84kV dry air insulated switchgear.
• Partnered with Siemens Energy to develop SF6-free high-voltage switching solutions.

Arteche Lantegi Elkartea SA

• Formed a joint venture with Hitachi Energy to meet the growing demand of the gas insulated transformer market. 
• Focused on increasing production capacity for gas-insulated transformers.

Global Gas Insulated Transformer Industry Segmentation

“Global Gas Insulated Transformer Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Installation

• Indoor
• Outdoor

Market Breakup by Voltage 

• High Voltage (Above 220 KV)
• Medium Voltage (72.5 KV - 220 KV)
• Low Voltage (Up to 72.5 KV)

Market Breakup by End Use 

• Industrial
• Commercial
• Utility

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Gas Insulated Transformer Market Share

As per the global gas insulated transformer market analysis, the utility sector occupies a significant share of the market due to the increased demand for electricity in residential and commercial areas of urban regions. These regions are densely populated, which bolsters the deployment of compact transformers that can be suitable for the limited space. Moreover, the utility sector is also employing gas-insulated transformers in disaster-prone areas and areas with extreme weather conditions due to their strong resilience and durability.

The Asia Pacific accounts for a substantial portion of the gas insulated transformer market share owing to the growth in industrialisation, coupled with the rise in urbanisation, in the region. The rapid surge in demand for electricity fuels the construction of smaller substations with compact-sized transformers that require low completion time.

The gas insulated transformer industry growth is driven by the increased integration of renewable energy sources like solar and wind into regional transmission and distribution systems. This trend enhances the need for upgrading and retrofitting outdated grid infrastructure, creating opportunities for the adoption of gas-insulated transformers.

Leading Companies in the Gas Insulated Transformer Market

The companies provide a wide range of solutions ranging from building, energy systems, digital, retail and printing to infrastructure systems, among others.

• Toshiba Corp.  
• Siemens AG   
• Mitsubishi Electric Corporation 
• NISSIN ELECTRIC Co., Ltd.  
• Arteche Lantegi Elkartea SA  
• Hyosung Heavy Industries  
• Takaoka Toko Co., Ltd.  
• Meidensha Corporation 
• Shihlin Electric & Engineering Corporation