Delhi, NCR, Dec. 07, 2021 (GLOBE NEWSWIRE) -- The global gas-insulated switchgear market is growing due to an increase in investments in electric transmission system projects, the increasing adoption rate of electric vehicles, and upcoming smart city projects like Neom. Furthermore, the rising demand for electricity in emerging regions is driving demand for power maintenance systems, such as gas-insulated switchgear, indicating that the global gas-insulated switchgear market has a lot more potential in the coming years….
According to a recent analysis by strategic consulting and market research firm, BlueWeave Consulting, the market of global gas insulated switchgear market was worth USD 12,800.0 million in 2020. According to the analysis, the market will grow at a CAGR of 7.7%, generating revenue of USD 21,413.8 million by the end of 2027. Growing demand for more energy-efficient equipment with insulation capabilities, as well as favorable government measures promoting the use of renewable energy across the power utility sector, are contributing to the growth of the global gas-insulated switchgear market. Furthermore, advanced transmission and the growing number of electricity distribution equipment manufacturers in North America are driving demand for gas-insulated switchgear market.
Increasing demand for electric vehicles is anticipated to propel the growth of global gas-insulated switchgear market
The market for electric vehicles is growing at a rapid pace. Moreover, governments throughout the world are taking steps to improve the infrastructure of their respective countries in order to meet the rising demand for electric vehicles. For example, the government of India announced the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme in 2015 to promote and adopt electric and hybrid vehicles across the country.
Electric vehicles offer myriad advantages. In addition to reducing carbon emissions, such vehicles ease the transition from fossil fuels to renewable and unconventional energy sources. The Global EV Outlook Report of 2021 reveals that despite the COVID-19 pandemic, 2020 was a record-breaking year for EV sales, resulting in a 43% increase in the stock of EVs compared to 2019. Fuel-driven ICE (internal combustion engines) are causing a lot of environmental pollution; thus, people are now looking for energy-efficient alternatives. Thus, with the increase in demand for electric vehicles and Electric Vehicle Infrastructure, demand for Gas Insulated Switchgear is expected to grow during the forecast period.
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The increasing number of smart city projects propel the demand for gas-insulated switchgear
Smart city projects have been launched in many countries, including Dubai, China, Australia, Singapore, India, and Saudi Arabia. As part of the ongoing construction of "Neom," the most advanced city in the world, the Saudi government has committed USD 500 billion. The Indian government has also announced 5151 proposed smart city projects for a total of USD 27.40 billion, with a total investment of USD 27.40 billion. According to Forbes, Singapore is the top smart city investor, followed by Tokyo, New York, and London. Forbes also states that the United States, Western Europe, and China account for more than 70% of global smart city spending, with Latin America and Japan seeing the fastest growth in smart city investment. Gas insulated switchgear takes up less space, requires less maintenance, and is less likely to cause a power outage. As a result, the growing number of smart city initiatives around the world creates a lucrative potential for the global gas-insulated switchgear market to flourish.
COVID-19 impact on global gas insulated switchgear market
Globally, the Coronavirus outbreak slowed the growth of the gas-insulated switchgear industry significantly. Not only did the pandemic impact individuals, but it also worsened the situation for businesses already facing the consequences of a weak supply chain. The governments of different countries had to impose business closure orders that led to the closure of factories and other non-essential industries. The measures had a significant negative impact on the global market for gas-insulated switchgear.
The pandemic had the greatest influence on the supply side of the market, resulting in a considerable drop in the production and procurement of critical raw materials, such as copper, aluminum, iron, cobalt, phosphate, alloys, steel, and others, needed in the development of gas-insulated switchgear. Nevertheless, the growing number of vaccinations rollouts across Europe, North America, Asia-Pacific, and the Middle East indicate that the economies are on the verge of a new normal. However, the disruption of the global supply chain still remains a significant problem for the industries.
The indoor gas-insulated switchgear installation garners the larger share in the global gas-insulated switchgear market.
Based on insulation, the global gas insulated switchgear market is divided into two categories: SF6 and SF6-Free. The SF6 segment gathered the highest market share in the global gas-insulated switchgear market in 2020. SF6-Free technology, on the other hand, is expected to expand at the fastest CAGR during the projected period. As per the European Commission, the European Union is investing USD 134.8 million to 32 innovative initiatives that will be implemented throughout 14 EU member states, Iceland and Norway. The investment grants are meant to show the government's support for low-carbon technology like SF6–Free gas-insulated switchgear, which is projected to witness increased demand in the coming years.
North America accounted for the largest share in the global gas insulated switchgear market.
North America, Europe, Asia-Pacific, Latin America, and the Middle East, & Africa make up the global gas insulated switchgear market. In 2020, the Asia Pacific region accounted for the largest share of the global gas-insulated switchgear market. North America, on the other hand, is also catching up with an amazing growth rate. The U.S. Energy Information Administration data shows a significant increase in expenditures on electric transmission systems. These investments include both maintenance and operations. Furthermore, expenditures on developing electric transmission systems increased by roughly 3% from 2018 to 2019, reaching USD 40.1 billion. A rise in demand for highly efficient transformers is likely to lead to an increase in electricity demand. As switchgear protects the unaffected components by insulating them and providing a constant power supply, the demand for such equipment is increasing, thereby positively affecting the global gas insulated switchgear market.
Global Gas Insulated Switchgear Market - Competitive Landscape
The major companies in the global gas insulated switchgear market are Siemens AG, Schneider Electric SE, Mitsubishi Electric Corporation, Huayi Electric Co., Ltd., Fuji Electric Co., Ltd., Meidensha Corporation, Eaton Corporation Plc, General Electric Company, Hitachi Ltd., Toshiba Corporation, ABB Ltd., Henan Pinggao Electric Co., Ltd., CG Power and Industrial Solutions Limited, Hyundai Heavy Industries, Nissin Electric Co. Ltd., Hyosung Heavy Industries Co. Ltd., Entec Electric & Electronic Co., Ltd., Switchgear Company, LS Electric Co. Ltd., BGR Energy Systems Limited, Sieyuan Electric Co. Ltd. and other prominent players.
The global gas-insulated switchgear market is consolidated as it is highly regulated, limiting the entry of newer players to establish themselves. As end-users prefer more prominent players in the operational and maintenance services market, the latter maintain a greater level of influence in the global gas-insulated switchgear market. Additionally, the market players use key marketing strategies like new launches, collaborations, and partnerships to expand their customer reach. For instance, in June 2021, The Toshiba Energy Systems & Solutions Corporation and Meidensha Corporation announced they are collaborating on the development of gas-insulated switchgear for 72kV and 84kV. Also, Siemens Energy and Mitsubishi Electric signed a Memorandum of Understanding (MoU) in August 2021 to perform a feasibility study on the development of zero-GWP high-voltage switching systems that use clean air for insulation rather than greenhouse gases.
The report's in-depth analysis provides information about growth potential, upcoming trends, and statistics of the global gas-insulated switchgear market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global gas-insulated switchgear market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the market's growth drivers, challenges, and competitive dynamics.
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