Gas Insulated Substation Market

Gas Insulated Substation Market - An Overview

A gas insulated substation is a substation in which important conducting structures are placed within a closed environment with a dielectric gas serving as an insulating medium.

Innovations in switchgear technologies and a growing trend of grid modernization in both developed and developing countries have proven to be important growth drivers for the gas insulated substation market.

Many gas insulated substations are becoming popular with utilities and industries around the world. Due to their environmental-friendly nature, gas insulated substations are getting preference over air-insulated substations, specifically in regions where space is not easily available.

Their installation numbers have been on a rise in urban areas where space is generally compact. The gas insulated substation market manufacturers are relying on commercializing products that have an advanced sealing system.

Europe has emerged as the leader in the global gas insulated substation market, the reason being the presence of large revenue streams in countries such as the UK, Germany, and France, in this region. Manufacturers are providing environmentally friendly solutions as well as viable design configurations to meet the expansive range of needs of businesses in end-use industries.

North America is another gas insulated substation market with high revenue potential. The increase in uptake of solutions in the gas insulated substation market is the result of the giant measures taken to replace old power transmission and distribution infrastructures in countries such as the US and Canada.

These countries have become lucrative growth opportunities for the gas insulated substation market. As far as the rest of the world is concerned, Brazil and economies part of Gulf Corporation Council have emerged as potentially profitable regions for the gas insulated substation market.

The gas insulated substation market has several players, who have substantial control over the demand and supply forces. As a result, the gas insulated substation market is becoming increasingly fragmented and has become highly competitive in recent years.

Gas Insulated Substation Market: Overview

Gas insulated substations (GIS) are increasingly attracting attention of utilities and industries worldwide as environmentally friendly solutions. They are being preferred over air-insulated substations particularly in areas where the space is at premium, thereby making conventional grid systems costly. Thus, their installation has grown in busy urban spaces where there is need for housing various electricity transmission components in compact spaces. Advancements in switchgear technologies and emerging trend of grid modernization in both developed and developing economies are shaping the growth contours of the gas insulated substations market.

OEMs and distributors in the power transmission industry have benefitted from the availability of digitally monitoring systems that enable smart supervision of the performance of encapsulated switchgear components. Manufacturers in the gas insulated substations market are leaning on commercializing products with advanced sealing system and adopting low weight gases including non SF6 gas in recent times. The features make them suitable for artic or desert locations.

The gas insulated substation market is projected to expand at a CAGR of 10.31% during the forecast period of 2015 to 2024. The valuation is estimated to touch the mark of US$35.8 bn by 2024.

Compact Designs and Lower CO2 Emissions Fuels Preference of GIS in High Voltage Substations

The study by TMR segments the gas insulated substation (GIS) market based on voltage into medium (≤ 72.5 KV) and high (>72.5 KV) voltage substations. Of the two, the high voltage substations segment is projected to see higher growth in opportunities, propelled by potentially higher demand among customers. In many applications, the segment is characterized by solutions that can meet eco-friendly switchgear components. These are attractive in cases where conventional grid infrastructure may not be economically viable or has high carbon emissions. Furthermore, the compact designing makes the products in the segment highly lucrative for urban areas where renewables also need to be integrated into the power transmission framework.

Advancements made in grid infrastructure have been expanding the horizon for switchgears with low carbon footprint.

Demand for Low Carbon Footprint Transmission & Distribution Infrastructure Makes Asia Pacific Potentially Lucrative Market

The report segments the global gas insulated substation market based on geography into North America, Asia Pacific, Europe, and Rest of the World (RoW). Of these, Asia pacific held major market share in 2015. The demand in the regional market has thrived on the back of growing efforts to boost access to electricity in urban as well as rural areas, especially in China, India, and Japan. The sheer pace of urbanization has lent a remarkable momentum to the growth of the Asia Pacific gas insulated substation market.

Uptake in North America and Europe Markets Propelling Global Sales

The Europe gas insulated substation market has emerged as the second contender in the global landscape. Potentially vast revenue stream is found in Germany, the U.K., and France. Manufacturers and other market players are offering environmentally friendly solutions and compact design configurations to meet wide range of needs of businesses in end-use industries.

North America is another gas insulated substation market with incredible revenue potential. The rise in uptake of solutions in the gas insulated substations market has stemmed from the massive initiatives to replace the aging power transmission and distribution infrastructures in the U.S. and Canada. The countries have become hotbed of opportunities in the past few years for players in the North America gas insulated substation market.

In the RoW segment, Brazil and GCC countries are emerging to the forefront as potentially lucrative regions in the global gas insulated substation market.

The presence of several players who exercise significant hold over the forces of demand and supply in the gas insulated substation market renders the landscape increasingly fragmented. The landscape is also characterized by high degree of competition in the recent years.

Some of the key players in the global gas insulated substation market are Mitsubishi Electric Corporation, Industrial Solutions Ltd, CG Power, Nissin Electric Co. Ltd., Hyosung Corporation, and Toshiba Corporation.