Gas Insulated Switchgear Market by Installation (Indoor, Outdoor), Insulation Type (SF6, SF6 free), Voltage Rating, Configuration (Hybrid, Isolated Phase, Integrated three phase, Compact GIS), End-User and Region - Global Forecast to 2028

The global market for gas insulated switchgear is on a trajectory to reach USD 31.6 billion by 2028, a notable increase from the estimated USD 23.8 billion in 2023, with a steady CAGR of 5.8% spanning the period from 2023 to 2028. This growth in the gas insulated switchgear market is closely aligned with the incremental rise in global energy demand, driven by the escalating consumption of energy in recent years, marking the primary catalyst for the surge in electricity demand. Among the key drivers, the industrial sector has emerged as the principal force behind the heightened demand, though the commercial, service, and residential sectors have also made substantial contributions. The robust demand for energy resources gives rise to fluctuations in energy supply and demand, resulting in price volatility within the energy market. This price variability is primarily attributed to a combination of factors, including favorable economic conditions, the availability of energy resources, and the growing consumption of electrical power. Furthermore, the emphasis on energy management has taken center stage, particularly with the advent of the Internet of Things (IoT) for applications such as home automation and building automation. Consequently, these factors underscore the imperative need for gas-insulated switchgear to facilitate the monitoring and optimization of energy consumption. 

Sulfur hexafluoride (SF6) gas is introduced into gas-tight metallic enclosures, where it serves as both the insulating and arc-quenching medium for all components carrying electrical current within Gas-Insulated Switchgear (GIS) substations. It's worth noting that SF6 is non-flammable and doesn't deteriorate, as it is a dry, inert gas. However, SF6 falls into the category of fluorinated gases, which are recognized as ""greenhouse gases"" (GHGs) and have the highest potential for contributing to global warming among all GHGs. The decrease in SF6 emissions will impact the Environmental Protection Agency's (EPA) examination of SF6 in the United States. This could lead to even more stringent restrictions on SF6 usage. Most regulations that may apply to SF6 use are related to the family of chemically similar fluorinated gases known as F-gases. As F-gas regulations become stricter, they will have a greater impact on SF6 usage, ultimately influencing the gas-insulated switchgear market.     

16 to 27 kV segment, by voltage rating, to be fastest growing market from 2023 to 2028.

In the realm of electrical infrastructure, medium-voltage gas-insulated switchgear (GIS) designed for 16 to 27 kV applications has gained prominence in both distribution and industrial settings due to its compact design, reliable performance, and reduced maintenance requirements. However, growing concerns over the environmental impact of sulfur hexafluoride (SF6), the commonly used insulating gas, have led to extensive research into more sustainable and eco-friendly insulating alternatives, reflecting a broader industry shift towards environmentally conscious GIS technology. Furthermore, the year 2022 witnessed a remarkable 4.6% increase in global energy consumption, as reported by the International Energy Agency (IEA). This surge in energy demand has prompted substantial investments in transmission infrastructure, with emerging economic powerhouses like India, China, the UAE, and Argentina driving these initiatives. As a result, the gas-insulated switchgear market in this specific sector is poised for robust growth and consolidation. 

SF6 segment, by insulation type, to be the largest market from 2023 to 2028.

Gas-insulated switchgear (GIS) relies on sulfur hexafluoride (SF6), a dielectric gas at moderate pressure, for insulation between phases and to the ground. High-voltage components, including conductors, circuit breakers, switches, voltage transformers, and current transformers, are enclosed within a metal casing filled with SF6. SF6-filled GIS systems offer a substantial advantage in space-constrained environments compared to air-insulated alternatives, achieving the same insulating properties in a much smaller space. SF6 is a non-toxic, inert, colorless, tasteless, odorless, and non-flammable gas with superior insulating and arc-interrupting properties, making it the preferred choice for modern high-voltage circuit interruption, replacing older mediums like oil and air.

Asia Pacific to be largest and fastest growing region in gas insulated switchgear market.

Asia Pacific is poised to take the lead in the global gas insulated switchgear market and is expected to exhibit the highest Compound Annual Growth Rate (CAGR) between 2023 and 2028. This dominance in the region is attributed to the robust economic progress and rapid development of major Asian economies. Gas insulated switchgear finds primary use among end-users such as industrial, commercial & institutional, electrical utilities, data centers and aftermarkets in the Asia Pacific region. The area's manufacturing sector is anticipated to experience sustained market expansion, driven by lower capital and labor costs. With the increasing populations in countries like China and India, there is a growing demand for electricity generation. Clean energy sources are widely adopted to efficiently meet the region's expanding energy requirements. These nations are actively modernizing their aging infrastructure to facilitate the integration of renewable energy sources into the national grid. Consequently, the demand for gas insulated switchgear for electrical regulation and fault protection is expected to witness significant growth, elevating the gas insulated switchgear market in the Asia Pacific.

Breakdown of Primaries: 

In-depth interviews with key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, were conducted to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. 

The primary interviews were distributed as follows:

• By Company Type: Tier 1-30%, Tier 2-55%, and Tier 3-15%
• By Designation: C-Level-30%, D-Level-20%, and Others-50%
• By Region: North America-18%, Europe-8%, Asia Pacific-10%, Middle East & Africa-60%, and South America-4%

Note: “Others” include sales managers, engineers, and regional managers

The tiers of the companies are defined based on their total revenue as of 2021: Tier 1: >USD 1 billion, Tier 2: USD 500 million-1 billion, and Tier 3: <USD 500 million. 

The gas insulated switchgear market is predominantly governed by well-established global leaders. Notable players in the industrial control transformer market include ABB (Switzerland), Siemens (Germany), General Electric (US), Schneider Electric (France), Eaton (Ireland), Mitsubishi Electric (Japan), Nissin Electric (Japan), CG Power and Industrial Solutions (India), Fuji Electric (Japan), Powell Industries (US), Hyundai Electric & Energy Systems (South Korea), Hitachi (Japan), and several others.

Research Coverage:

The report provides a comprehensive definition, description, and forecast of the gas insulated switchgear market based on various parameters, including Insulation Type (SF6, SF6 Free), Installation (Indoor, Outdoor), Voltage Rating (Up to 5 kV, 6 to 15 kV, 16 to 27 kV, 28 to 40.5 kV, 40.6 to 73 kV, 74 to 220 kV, Above 220 kV), Configuration (Hybrid, Compact GIS, Integrated Three Phase, Isolated Phase), End-User (Industrial, Commercial & Institutional, Electrical Utilities, Data Centers, Aftermarket), and region (Asia Pacific, North America, Europe, Middle East and Africa, South America). The report also offers a thorough qualitative and quantitative analysis of the gas insulated switchgear market, encompassing a comprehensive examination of the key market drivers, limitations, opportunities, and challenges. Additionally, it covers critical facets of the market, such as an assessment of the competitive landscape, an analysis of market dynamics, value-based market estimates, and future trends in the gas insulated switchgear market. 

Key Benefits of Buying the Report

The report is thoughtfully designed to benefit both established industry leaders and newcomers in the gas insulated switchgear market. It provides reliable revenue forecasts for the entire market as well as its individual sub-segments. This data is a valuable resource for stakeholders, enabling them to gain a comprehensive understanding of the competitive landscape and formulate effective market strategies for their businesses. Furthermore, the report serves as a channel for stakeholders to grasp the current state of the market, providing essential insights into market drivers, limitations, challenges, and growth opportunities. By incorporating these insights, stakeholders can make well-informed decisions and stay informed about the constantly evolving dynamics of the gas insulated switchgear industry.

• Analysis of key drivers (Growing Demand for Reliable and Efficient Power Supply, Leveraging GIS to Support the Global Transition to Renewable Energy, Embracing GIS Technology for Enhanced Electrical Safety and Efficiency, ), restraints (Development and Deployment of SF6-Free GIS), opportunities (Investment in Modernizing the Power Grid to Reduce Blackouts and Improve Reliability, Smart and Emerging Switchgear Technologies to Improve Efficiency, Reliability, and Sustainability of GIS, Investment in GIS to Support the Growth of Industrial Production and Renewable Energy), and challenges (Addressing Environmental, Cost, Infrastructure, Urban, and Sustainability Challenges in the GIS Market) influencing the growth of the gas insulated switchgear market.
• Product Development/ Innovation: The gas insulated switchgear market is in a constant state of evolution, with a primary focus on product development and innovation. Leading industry players like ABB, Siemens, Schneider Electric, and General Electric are at the forefront of advancing their product offerings to address shifting demands and environmental considerations. In response to growing environmental concerns related to sulfur hexafluoride (SF6), there is a significant drive towards the development and adoption of SF6-free alternatives. These alternatives aim to retain the performance characteristics of SF6 while mitigating its environmental footprint. Furthermore, there is a notable shift towards enhancing the intelligence of gas insulated switchgear through the integration of digital technologies and the Internet of Things (IoT). This integration enables remote monitoring, diagnostics, and predictive maintenance, ultimately elevating the reliability and efficiency of the equipment. In addition to these developments, the market is witnessing the emergence of hybrid gas insulated switchgear, which combines the advantages of both gas and solid insulation. This innovative approach seeks to improve reliability while simultaneously reducing the environmental impact.
• Market Development: The gas insulated switchgear market is experiencing significant growth and development driven by various factors. The increasing demand for electricity due to global energy consumption trends, coupled with the expanding renewable energy capacity, has spurred the need for efficient and reliable power distribution solutions, with gas insulated switchgear being a preferred choice. Its compact design and reduced maintenance requirements make it a favored option, particularly in space-constrained environments. Additionally, advancements in eco-friendly insulating gases are addressing environmental concerns associated with sulfur hexafluoride (SF6). The market is further influenced by the growth of transmission infrastructure, primarily in rapidly developing economies, where power generation, distribution, and integration of clean energy sources are critical to meeting the escalating electricity needs. This market is set to witness substantial expansion, particularly in the Asia Pacific region, and remains attuned to emerging energy trends and environmental considerations.
• Market Diversification: The gas insulated switchgear market is experiencing significant diversification, driven by a multitude of factors. Market players are increasingly focusing on the development and adoption of eco-friendly and SF6-free insulation alternatives to address environmental concerns. The market is diversifying across various insulation types, including both traditional SF6 and emerging SF6-free solutions. Additionally, diversification is observed in installation options, with both indoor and outdoor GIS systems gaining traction to meet diverse application requirements. Voltage ratings are broadening, catering to a wide range of electrical infrastructure needs. Configuration choices such as hybrid, compact GIS, and isolated phase designs offer versatility to end-users. Furthermore, the market is diversifying across end-user sectors, encompassing industrial, commercial, institutional, electrical utilities, data centers, and the aftermarket, reflecting the broad utility of gas insulated switchgear across different industries. This market diversification mirrors the industry's efforts to address evolving demands, sustainability objectives, and technological advancements.
• Competitive Assessment: A comprehensive evaluation has been conducted to scrutinize the market presence, growth strategies, and service offerings of key players in the gas insulated switchgear market. These prominent companies include Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Siemens (Germany), Mitsubishi Electric (Japan), and others. This analysis provides in-depth insights into the competitive positions of these major players, their approaches to driving market growth, and the range of services they offer within the gas insulated switchgear segment.