Global Gas-Insulated Transformer Market Worth USD 3.75 Billion by 2031 With a CAGR of 5%

Introduction

Gas-insulated transformers (GIS) are used when non-flammable, non-polluting transformers are required. They are employed, for instance, in locations where an oil leak from a conventional transformer would be harmful to the environment, such as in structures, close to bodies of water, and densely populated areas. These transformers are also installed where oil leaks into environmentally sensitive areas are prohibited. These consist of hydroelectric power plants and water treatment facilities. Gas-insulated transformers are designed to be less environmentally harmful and pose fewer fire risks.

Market Dynamics

Investments in Infrastructure for Transmission and Distribution Drives the Global Market

Power consumption in developing economies has significantly increased recently. Governments and power companies implemented reforms to lower power losses in the transmission and distribution infrastructure and use energy-efficient and environmentally friendly equipment to build T&D networks and related infrastructure. Gas-insulated transformers (GITs) are widely used, particularly for gas-insulated substations. Direct connections between GITs and gas-insulated switchgear (GIS) can be made, eliminating the need for a separate transformer room. This arrangement produces a gas-insulated substation (GIS), a typical configuration for inner-city applications and structures.

According to the European Network of Transmission System Operators, up until 2030, there will be a need for annual transmission spending of about USD 10 billion. Investments in Europe remained stable at close to USD 50 billion, with increases in expenditures on modernizing and refurbishing the existing grid, even as variable renewables and electrification increased significantly in the region.

Growing Interest in Offshore Wind Power in Emerging EconomiesCreates Tremendous Opportunities

Gas-insulated transformers (GITs) are widely used in developed nations to eliminate the need for a sizable transformer room and safety concerns. The GITs can be used as an alternative to traditional transformers in offshore substations for wind farms to address the issue of limited space. According to the Global Wind Energy Council, Vietnam has offshore wind projects totaling more than 1.5 GW (GWEC). The government's ambitious plans will probably result in significant developments for the nation's offshore wind market in the upcoming years.

As a result, gas-insulated transformers (GITs) in offshore wind substations underwent substantial changes. To ensure efficient, equitable, and transparent auctions and to support the growth of the required electricity network and sector-specific skills, the government is also thinking about centralizing planning for offshore wind projects. Gas-insulated transformers (GITs) are anticipated to soon benefit significantly from the government's long-term objective, upcoming offshore wind projects, and growing interest in offshore wind power in emerging nations.

Regional Analysis

Asia-Pacific is the most significant revenue contributor andone of the world's most densely populated areas. Due to the area's quick industrialization and urbanization over the past few years, electricity demand has significantly risen. As a result, infrastructure investments for transmission and distribution (T&D) have increased dramatically during the same time frame. As long-distance T&D projects work to be more environmentally friendly by minimizing their adverse environmental effects and improving safety by building underground networks and smaller substations, gas-insulated transformers are becoming increasingly popular. The use of renewable energy is also expanding at the fastest rate in the Asia-Pacific region, driven by industry giants like China and India. In countries where grid integration of renewable energy is high, grid stability has become a significant concern, necessitating the modernization of deteriorating T&D infrastructure. Because renewable energy generated from solar and wind has variable power output, outdated transmission and distribution systems must be upgraded or retrofitted with smart grid technologies.

North America is the second-largest electricity market in the world in terms of electricity generation. Electricity in the area is produced, transmitted, distributed, and used in ways that are drastically changing. Modern technologies like gas-insulated transformers are in greater demand due to the significant restructuring of the electricity markets, particularly in the transmission and distribution networks. Rising electricity demand and an aging power grid are expected to be the main forces behind the transmission and distribution sector development, which will support the local expansion of gas-insulated transformers.

Key Highlights

• The global gas-insulated transformer market size was valued at USD 2,421.54 million in 2022. It is expected to reach USD 3,756.6 million by 2031, growing at a CAGR of 5% during the forecast period (2023–2031).

• Based on voltage, the global gas-insulated transformer market is bifurcated into low voltage (up to 72.5 kV), medium voltage (72.5 kV - 220 kV), and high voltage (above 220 kV).

• Based on the installation, the global gas-insulated transformer market is bifurcated indoors and outdoors.

• Based on the end-user, the global gas-insulated transformer market is bifurcated into industrial, commercial, and utility.

Competitive Players

Competitive Players

The global gas insulated transformer market’s major key players are Nissin Electric Co., Ltd, Arteche Group, Hyosung Heavy Industries Corp., Meidensha Corp., Mitsubishi Electric Corporation, Trench Group, Chint Group, Toshiba Corp, Takaoka Toko Co., Ltd, and Shihlin Electric and Engineering Corp.

Recent Developments

Market News

• In September 2022, Meidensha Corporation (Meiden) entered into a contract for a sustainability-linked loan (SLL) with Sumitomo Mitsui Banking Corporation (SMBC).

• In August 2022- Hitachi Energy releaseda new EconiQ 420kV circuit breaker.

Segmentation

Global Gas-Insulated Transformer Market: Segmentation

By Voltage

• Low Voltage (Up To 72.5 kV)

• Medium Voltage (72.5 kV - 220 kV)

• High Voltage (Above 220 kV)

By Installation

• Indoor

• Outdoor

By End-User

• Industrial

• Commercial

• Utility

By Regions

• North America

• Europe

• Asia-Pacific

• South America

• The Middle East and Africa