Gas Insulated Switchgear Market Size, Trends, Applications, and Industry Strategies

Market Overview

The global gas-insulated switchgear (GIS) market is projected to generate approximately USD 25.1 billion in revenue by 2024, with a CAGR of 6.8% from 2024 to 2030, reaching USD 37.4 billion. This growth is driven by extensive infrastructure development, increasing electricity demand, and the adoption of advanced technologies.

GIS systems offer benefits such as reliability, efficiency, and a compact design, making them ideal for urban and industrial settings, particularly as cities expand. Rapid urbanization in countries like India and China is pushing the need for robust electricity infrastructure, supported by significant government investments to enhance grid systems.

The rising global urban population intensifies the demand for efficient utility infrastructure in densely populated areas, especially in the Asia-Pacific region. As urbanization continues, around 80% of Southeast Asia's GDP will stem from urban areas by 2025. Moreover, the urgent need to modernize aging electrical infrastructure is a key driver for the GIS market, as outdated system’s hinder reliability and efficiency.

For instance, 30% of the EU's grid is over 40 years old, and much of the U.S. grid dates back to the 1960s and 70s. Governments are prioritizing investments in modern technologies, with initiatives underway in the U.S. and Europe to enhance grid reliability. Saudi Arabia is also embarking on comprehensive upgrades to its power infrastructure to improve energy access and reliability, with GIS playing a crucial role in these advancements.

Key Insights

• Indoor GIS is the fastest-growing category, with a CAGR of 7.0% from 2024 to 2030.
• Growth is driven by urbanization and increased demand for power distribution in space-limited cities.
• Indoor GIS is compact and can be installed in buildings or underground, making it ideal for urban environments.
• Advancements in technology are making indoor GIS more affordable and efficient.
• Environmental concerns and noise reduction needs are further promoting indoor GIS adoption.
• Outdoor GIS holds a 55.0% market share in 2024 and will continue to dominate the market.
• Outdoor GIS can handle higher voltages, essential for long-distance electricity transmission.
• Installations above 66 kV are preferred outdoors due to robust design and environmental resilience.
• The SF6 category captures 70.0% market share in 2024 due to its chemical stability and electrical insulation properties.
• SF6 gas effectively extinguishes electrical discharges in enclosed GIS spaces.
• SF6-free GIS is expected to grow at a higher CAGR of 7.2% from 2024 to 2030 due to environmental concerns.
• SF6 is a potent greenhouse gas, raising regulatory pressures to reduce emissions.
• The compact category dominates with over 35.0% market share in 2024 and is also the fastest-growing segment.
• Compact GIS offers advantages in space utilization and installation flexibility in urban settings.
• The rise of renewable energy integration increases demand for compact GIS without sacrificing functionality.
• Power utilities lead the market with around 45% share in 2023 and are the fastest-growing category.
• Power utilities prioritize GIS for reliable electricity distribution and management.
• GIS's compact footprint, safety, and reliability are crucial in densely populated urban areas.
• GIS requires minimal maintenance, ensuring continuous power supply in the utility sector.
• APAC is the largest region with around 40% market share in 2024 and the fastest-growing due to high electricity demand.

Source: P&S Intelligence