Gas-Insulated Substation (GIS) Market Size & Share, by Voltage Type (Medium, High, Extra High); Installation (Indoor, Outdoor); Application (Power Transmission, Distribution Utility, Generation Utility); End-user (Utility, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4044
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.


Gas-Insulated Substation Market
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Gas-Insulated Substation Sector: Growth Drivers and Challenges

Growth Drivers

  • Higher Safety Provided by Gas-insulated Substations – Gas-insulated substation comes with a variety of advantages. However, one of the most significant advantages and growth driver is that it offers is high safety. As GIS is full of insulating gas such as sulfur hexafluoride, it experiences less explosion as compared to AIS. As a result, there are fewer chances of explosion with GIS and it is safer as compared to AIS. According to a National Renewable Energy Laboratory (NREL) report, GIS systems are more reliable and available than air-insulated substations (AIS). According to the report, GIS systems have a failure rate of 0.1% per year, while AIS systems have a failure rate of 0.6% per year. 
  • Growing Development of Smart Cities – Rising development of smart cities all over the world has promoted the installation of gas-insulated substations owing to their properties being small and efficient. According to a report, the number of smart city projects worldwide grew from 170 in 2013 to 1,000 in 2020. 
  • Rising Demand for Electricity Globally – The demand for electricity all over the world is rising day by day owing to the growing industrial sector, urbanization, and increasing spent by key market players and government on better power supply, in turn, is raising the demand for the gas-insulated substation. The electricity consumption in the United States was 4 trillion kWh in 2019, owing to the growing industrial sector.
  • Rising Focus on Renewable Energy - Governments all around the world are putting more and more effort into lowering their carbon footprint and encouraging the usage of renewable energy sources like wind and solar energy. The requirement for effective transmission and distribution infrastructure has increased as a result, which has increased the necessity for gas-insulated substations. For the wind farm cluster in the Baltic Sea, Siemens Energy was awarded a contract in 2021 to provide two onshore high-voltage direct currents (HVDC) systems. Gas-insulated switchgear technology will be used in the project, which is anticipated to be finished by 2029, to guarantee dependable and effective power transmission.

Challenges

  • Lack of Awareness Regarding the Modification of Energy Infrastructure in Developing Countries 
  • High Initial Cost – Installing a gas-insulated substation often costs more than installing air-insulated substations (AIS). This is caused in part by the price of the insulating gas as well as the requirement for specific equipment to manage it. As a result, some utilities and project developers might find GIS less appealing.
  • Technical Complexity Associated with GIS

Gas-Insulated Substation Market: Key Insights

Base Year

2022

Forecast Year

2023 – 2035

CAGR

~10%

Base Year Market Size (2022)

~USD 28 billion

Forecast Year Market Size (2035)

~USD 50 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Gas-Insulated Substation Segmentation

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:

        By Voltage Type

  • Medium

  • High

  • Extra High

        By Installation

  • Outdoor

  • Indoor

        By Application

  • Power Transmission

  •  Distribution Utility

  •  Generation Utility

  •  Others

        By End User

  • Utility

  • Industrial

  • Others

 


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Gas-Insulated Substation Market - Regional Synopsis

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. 

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Gas-Insulated Substation Market Size
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Companies Dominating the Gas-Insulated Substation Landscape

top-features-companies
    • General Electric Company
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Toshiba Corporation
    • Hitachi, Ltd.
    • Siemens AG
    • ABB Ltd.
    • Johnson Controls International plc
    • Honeywell International Inc.
    • Energate, Inc
    • Yokogawa Electric Corporation
    • Schneider Electric

In the News

  • Hitachi Energy Ltd. to launch OceaniQ, an innovative solution for the offshore environment in Europe. It will majorly focus on the deployment of wind energy generation in the region. 
  • ABB Ltd. announced the launch of its first digital grids at the CIRED in Madrid, Spain. ABB also demonstrated its complete portfolio of safe, efficient, and digital product offerings.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 4044
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing electricity consumption and demand across the globe are estimated to boost market growth.

The market size of the gas-insulated substation is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2023-2035.

Lack of awareness and slow adoption process of grid infrastructure is estimated to hamper the market growth.

Asia Pacific is estimated to create notable growth opportunities for market growth over the forecast period.

The major players in the market are ABB Ltd., Johnson Controls International plc, Honeywell International Inc., Energate, Inc, Yokogawa Electric Corporation, Schneider Electric, and Others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by application, voltage type, end user, installation, and by region.

The high segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Gas-Insulated Substation Market Report Scope
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