Global Gas-Insulated Switchgear Market (2020 to 2025) - Adoption of HVDC Technology Presents Opportunities - ResearchAndMarkets.com

DUBLIN--()--The "Gas-Insulated Switchgear Market by Voltage Rating, Insulation Type, Installation (Indoor, Outdoor), End User (Transmission Utility, Distribution Utility, Generation Utility, Railways & Metros, Industry & OEM), and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The gas-insulated switchgear market is projected to grow from USD 16,879 million in 2020 to USD 26,535 million by 2025, at a CAGR of 9.5%.

The factors driving the growth for gas-insulated switchgear are the growing investments in renewable energy and government initiatives to reduce carbon emissions along with the expansion of electrical grids due to the growing industrialization and urbanization.

The SF6 segment is expected to dominate the gas-insulated switchgear market during the forecast period

The SF6 segment is anticipated to constitute the majority of the gas-insulated switchgear market share. A gas-insulated switchgear uses the dielectric gas sulfur hexafluoride, also known as SF6, at moderate pressure for phase-to-phase and phase-to-ground insulation. High-voltage conductors, interrupters, circuit breakers, switches, voltage transformers, and current transformers are in SF6 inside a metal enclosure. A global increase in the demand for electricity is expected to drive the demand for gas-insulated switchgears across various sectors, such as the power distribution utility, power transmission utility, and power generation utility. Thus, the growing demand for power will boost the demand for gas-insulated switchgears during the forecast period. However, COVID-19 is expected to delay the ongoing projects, which will negatively impact the demand for gas-insulated switchgear in the next 2 years.

SF6-free is expected to grow at the highest rate during the forecast period.

SF6 gas has been used as the standard gas inside high-voltage electrical equipment as an arc-quenching and insulating medium; however, it is not environmentally friendly. SF6 is also listed by the Kyoto Protocol as an extremely potent greenhouse gas, with 23,500 times the comparative global warming potential of CO2. Due to this, manufacturers were trying to find a potential replacement for it in power equipment; to this end, Siemens and ABB launched an environment-friendly dielectric gas.

For instance, Siemens developed an SF6-free gas-insulated switchgear for the 170-kV voltage level that uses treated air, known as Clean Air made up of nitrogen (80%) and oxygen (20%), as an alternative to SF6 as the insulating medium. Also, ABB developed AirPlus, a gas-insulated switchgear which uses a gas mixture with 99.99% lower global warming potential. Thus, growing environmental concerns are likely to enhance the demand for SF6-free gas-insulated switchgears.

APAC is expected to grow at the highest rate during the forecast period

APAC is currently the fastest-growing gas-insulated switchgear market, followed by North America and Europe. An increase in the consumption and production of electricity in APAC countries, such as China and India, is expected. The growing demand for electricity due to a growing population will lead to an increase in the transmission and distribution system, which is expected to boost the demand for gas-insulated switchgear. COVID-19 is drastically affecting both the service and manufacturing sectors alike.

With more and more countries resorting to nationwide lockdowns to prevent a further spike in the spread of disease, the Asian economy has slowed down due to a high number of COVID-19 cases in countries such as China and India; this is expected to affect the regional gas-insulated switchgear market.

Market Dynamics

Drivers

  • Growing Investments in Renewable Energy and Government Initiatives in Reducing Carbon Emissions
  • Increasing Developments in T&D and Smart Infrastructure
  • Rising Energy Demand and Limitation of Space Availability in Densely Populated Urban Areas
  • Surging Government Initiatives to Improve Electricity Access in Rural Areas

Restraints

  • Competition from Unorganized or Fragmented Switchgear Markets
  • Stringent Environmental & Safety Regulations along with High-Cost Equipment

Opportunities

  • Development of an Environmental-Friendly Alternative to Sf6 Gas
  • Adoption of Hvdc Technology

Challenges

  • Delays in Grid Expansion Projects
  • COVID-19

Companies Profiled

  • ABB
  • Siemens
  • Schneider Electric
  • General Electric
  • Eaton Corporation
  • Mitsubishi Electric
  • Hitachi
  • Hyundai Electric & Energy Systems
  • Fuji Electric
  • Crompton Greaves Power and Industrial Solutions
  • Larsen & Toubro
  • Nissin Electric
  • Meidensha Corporation
  • Powell Industries
  • Elecktrobudowa SA
  • Iljin Electric
  • Hyosung
  • Chint
  • Toshiba Energy Systems & Solutions Corporation
  • Sel S.P.A

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900