Gas-Insulated Substation Market size is estimated to reach USD 50 billion by the end of 2035, growing at a CAGR of 10% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of gas-insulated substation was USD 28 billion. The growth of this market can be attributed to the growing demand for compact, low-maintenance power systems by the end of 2035. Gas-insulated substations are generally more reliable and efficient than air-insulated substations. Increasing per-hectare land values is also expected to provide lucrative growth opportunities for the market as the gas-insulated substation consumes space as compared to its equivalents. This substation consumes up to 90% less space than a typical power plant this factor is expected to drive the growth of this market in the forecast period. The main advantage of GIS is that it takes only 10% area of normal substations.
Moreover, rise in the renewable power generation, increasing funds for distribution and transmission infrastructure, the growth in energy demand and restriction of space availability in densely populated urban areas, and also government programs towards electricity accessibility are a few significant factors anticipated to propel the growth of market in the forecast period. The growing investment by the government has also led to the increasing construction of gas-insulated substations globally. ABB was awarded a contract for over USD 100 million in 2021 to provide a substation for the UK's transmission network to incorporate electricity from the Hinkley Point C nuclear power facility. Gas-insulated switchgear will be used in the substation to ensure excellent reliability and efficiency.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023 – 2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~USD 28 billion |
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Forecast Year Market Size (2035) |
~USD 50 billion |
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Regional Scope |
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Voltage Type (Medium, High, Extra High)
The gas-insulated substation market is segmented and analyzed for demand and supply by voltage type into medium, high, and extra high. Out of these, the high voltage segment is anticipated to hold the largest market share by the end of 2035. The growth of the market can be attributed to its reliability and protection for grid infrastructure. They are majorly used in the case of critical switchyards of large power generation plants. Mostly gas-insulated substations with high voltage transmission grids are indoor type. However, the high voltage segment is driven by the refurbishment of old power transmission infrastructure in developed regions such as Europe and North America. In Canada, the federal government has launched a USD 2.75 billion program to refurbish and modernize the country's aging electricity grid, with a focus on improving the reliability and resiliency of the power supply. This program includes upgrades to transmission and distribution infrastructure, as well as investments in renewable energy sources and energy storage.
Installation (Indoor, Outdoor)
The global market is segmented and analyzed for demand and supply by installation outdoors and indoors. Out of these, the outdoor segment is anticipated to hold the largest market share in the forecast period. The outdoor gas-insulated substations offer dependable operations in high and medium-voltage transmission and are preferred for the transmission and distribution of electricity over long distances. Also, it can bare and withstand harsh weather conditions which are necessary for efficient operations which is its most significant characteristic.
Our in-depth analysis of the global market includes the following segments:
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By Voltage Type |
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By Installation |
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By Application |
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By End User |
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APAC Market Statistics
The market in the Asia Pacific region is estimated to witness the highest growth by the end of 2035. This can be attributed to the back of evolving energy infrastructure, and increasing energy consumption, backed by the growing industrialization in developing countries. In 2019, China was the largest consumer of electricity, with a total final consumption of 6523 TWh, according to a report by the IEA. Other APAC countries, including India, Japan, and South Korea were among the top 10 highest electricity-consuming countries. Southeast Asia is another significant and dynamic market for energy consumption that has raised the energy demand by 60% in the last 15 years. The growing generation connection in the Asia Pacific region is another major driver for the rising investment in the distribution and transmission network. Additionally, factors such as updates in aging hydropower plants, rising investment by the government in improving grid infrastructure, and growing power consumption are significant factors expected to drive the growth of this market in the Asia Pacific region during the forecast period.
North American Market Forecast
The market in the North American region is anticipated to gain the largest market share by the end of 2035. This can be attributed owing to the growing adoption of smart grids in the region and rising industrial development, along with increasing demand for electricity in developing countries. Moreover, the growing demand for renewable sources of energy in the region along with the need to update the aging power grids is another significant factor that is anticipated to drive the growth of gas insulated substation market in the North American region during the forecast period. United States holds the largest market share in terms of the GIS market from the North American region. The U.S. government has announced plans to invest in upgrading the country's aging power infrastructure, including its transmission and distribution system, to improve the reliability and resilience of the grid.
Europe Market Forecast
The market in the Europe region is anticipated to hold a significant market share by the end of 2035. This can be attributed owing to the rising focus on modernizing aging power grids and increasing the use of renewable energy sources. The UK, Germany, France, and Italy are expected to be the most important markets for gas insulated substation market in Europe.
Author Credits: Payel Roy, Dhruv Bhatia
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