Gas Insulated Transformer Market Analysis

Global Gas Insulated Transformer Market Overview:

Global Gas Insulated Transformer Market Size was valued at USD 2.63 Billion in 2023. The gas insulated transformer market industry is projected to grow from USD 2.77 Billion in 2024 to USD 3.96 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.58% during the forecast period (2024 - 2032). The main market drivers focus on integrating renewable energy sources, technical improvements, and developing power grid infrastructure. Demand for small and dependable transformers is rising. The market does, however, present potential for developing infrastructure in emerging nations, expanding the renewable energy sector, loT and data analytics, and electrification.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gas Insulated Transformer Market Trends

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  Expansion of power transmission and distribution (T&D) is driving the market growth

  
  

The gas insulated transformer market is seeing changes driven by the expansion of power transmission and distribution (T&D). APAC is one of the most significant areas seeing many changes in the target market. Industrial growth directly impacts urbanization since it leads to more people building homes and businesses. Due to its rapidly expanding population and rising disposable income, India has one of the highest rates of urbanization in the world. China is likewise seeing comparable urbanization tendencies. Among the other regions of the world, South America, particularly Brazil, one of the top developing nations, are undergoing enormous economic changes. Despite being under construction and rapidly urbanizing, the manufacturing sector in these places has tremendous expansion potential.

However, these nations will develop into major hubs for manufacturing automobiles and other goods, which will raise the demand for power. The beginning of planned capacity expansion projects by industry and government power companies in several places has been made possible by activity. These initiatives demonstrate the rising rate of electricity usage. Due to its strong safety properties, sulfur hexafluoride (SF6) is added to gas insulated transformers to increase its acceptance in power distribution. These elements will propel the gas insulated transformer market CAGR expansion during the forecast timeframe.

The market for gas-insulated transformers is anticipated to rise in the future due to an increase in government initiatives. Governments worldwide are investing in various energy plant programs to help fulfill the growing energy demand. For instance, the Indian government built a new gas-insulated substation in Maharashtra, India, according to the Power Transformer News Report published in January 2022. Three different sources and channels support the substation, which has a 300MW capacity that could be increased to 700MW. Therefore, the market for gas-insulated transformers is being driven by rising efforts to develop gas and power plants.

The market for gas insulated transformers is primarily characterized by growing vendor strategic alliances. Market players have been collaborating and signing agreements for gas insulated transformers to diversify their product offerings. For example, Toshiba and Meshaiden Corporation have been collaborating since 2020 on the joint development of gas insulated switchgear for 72 kV and 84 kV using natural gas without SF6. Due to the market's rising need for environmentally friendly products, businesses agreed to hasten the development and commercialization of this gas-insulated switchgear in June 2021. Furthermore, Siemens and Mitsubishi signed a Memorandum of Understanding in June 2021 to perform a feasibility study on developing high voltage switches with low global warming potential (GWP), which employ clean air rather than greenhouse gases for insulation. Both organizations will research ways to increase the clean-air insulation technology's application at greater voltages. Thus, during the projected period, the market under consideration will benefit from such techniques employed by the industry's vendors. Thus, driving the gas insulated transformer market revenue.

Gas Insulated Transformer Market Segment Insights:

Gas Insulated Transformer Voltage Rating Insights

The global gas insulated transformer market segmentation, based on voltage rating includes Medium, High and Extra High. The medium segment dominated the market. Transformers for medium voltage with gas insulation and distribution capabilities can reach 72.5 kV. SF6 gas, an SF6 gas sleeve, a transformer on-load voltage regulation switch, a gas temperature gauge, a sudden pressure relay, a plate radiator, a pressure monitoring device, an airflow indicator, a winding temperature gauge, a cooling system intelligent control box, a gas circulation pump, and a blowing device are among the components of medium voltage gas insulated transformers.

Gas Insulated Transformer End-Use Insights

The global gas insulated transformer market segmentation, based on end-use, includes Utility, Industrial and Commercial. The utility category generated the most income. The trend of relocating massive substations underground in overpopulated urban areas has been sparked by the expanding demand for electricity in cities worldwide, the shortage of available land to build new substations or renovate those already present close to the load centers, and unfavorable environmental conditions. To avoid accidents and guarantee the compactness of equipment, a developing market for large-capacity, incombustible, and nonexplosive gas insulated transformers (GIT) has emerged.

Gas Insulated Transformer Type Insights

The global gas insulated transformer market segmentation, based on type includes Instrument Transformer and Others. The instrument transformer segment dominated the market. An electrical device known as an instrument transformer uses the ferromagnetic properties of alternating currents and materials.

Gas Insulated Transformer Type of Cooling Insights

The global gas insulated transformer market segmentation, based on type of cooling includes Gas Directed Air Natural Cooling, Gas Directed Air Forced Cooling and Gas Directed Water Forced Cooling. The gas directed air natural cooling segment dominated the market. Gas-insulated transformers use a cooling technique called "Gas Directed Air Natural Cooling" (GDANC). The advantages of gas and directed air natural cooling are combined in the cutting-edge cooling technique, GDANC.

Gas Insulated Transformer Installation Insights

The global gas insulated transformer market segmentation, based on installation includes Outdoor and Indoor. The indoor segment dominated the market. Gas-insulated transformers are widely used for cities' subterranean or indoor installations because of their small size, reduced noise level, and low electromagnetic radiation output. Indoor installation of gas-insulated transformers is frequently done in underground spaces beneath public parks and commercial structures to conserve space, maintain safety, and offer a consistent electricity supply. In addition, indoor gas-insulated transformers are suitable for use in establishments that prioritize fire safety, including hotels, schools, factories, department stores, chemical plants, and hospitals.

Figure 1: Global Gas Insulated Transformer Market, by Installation, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gas Insulated Transformer Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American gas insulated transformer market area will dominate this market. Electricity in the region is produced, transmitted, distributed, and used in drastically altering ways. The energy markets have undergone major reorganization, particularly in the transmission and distribution networks, which has prepared the way for the increased demand for cutting-edge technologies like gas-insulated transformers. Rising energy consumption and ageing power infrastructure are expected to be the key forces behind the transmission and distribution sector development, which will promote the local expansion of gas-insulated transformers.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Gas Insulated Transformer Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe gas insulated transformer market accounts for the second-largest market share. In Europe, many countries are investing in renewable technologies like solar photovoltaic and wind power to reduce their reliance on fossil fuels due to the region's energy diversification. In addition, governments have implemented a number of laws to boost renewable energy in response to the rising worries over carbon emissions. Due to the regulations' considerable impact on the market's growth and integration of renewable energy into national grids, the market for gas-insulated transformers is projected to expand. Further, the German gas insulated transformer market held the largest market share, and the UK gas insulated transformer market was the fastest growing market in the European region

The Asia-Pacific Gas insulated transformer Market is expected to grow at the fastest CAGR from 2023 to 2032. The tremendous industrialization and urbanization of the area over the last few years has resulted in a major rise in the power demand. As a result, over the same period, investments in T&D infrastructure have significantly increased. Gas-insulated transformers are also becoming increasingly common as long-distance T&D projects attempt to be more ecologically friendly by reducing their negative environmental effects and enhancing safety by constructing underground networks and smaller substations. Moreover, China’s gas insulated transformer market held the largest market share, and the Indian gas insulated transformer market was the fastest growing market in the Asia-Pacific region.

Gas Insulated Transformer Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the gas insulated transformer market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, gas insulated transformer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the insulated Voltage Transformers industry to benefit clients and increase the market sector. In recent years, the gas insulated transformer industry has offered some of the most significant advantages to market. Major players in the Gas-insulated Station service market attempting to increase market demand by investing in research and development operations include ABB Ltd. (Switzerland), General Electric (US), Mitsubishi Electric Corporation (Japan), Siemens AG (Germany), Toshiba Corporation (Japan), Arteche (Spain), Meidensha Corporation (Japan), Takaoka Toko Co. Ltd (Japan), Fuji Electric co. Ltd. (Japan) and Chint Group (China).

Chint Electrics is a producer of low-voltage electrical goods based in Zhejiang, China. It produces and sells a variety of low-voltage items with different specifications. Moulded case circuit breakers, modular din-rail products, control products, transformers, soft starters, inverters, automatic voltage regulators, power relays, capacitors, and switch disconnectors are among the company's product offerings. The company provides services to a number of industries, including petrochemical, building, electric power, machinery, railroad, communication, metallurgy, and HVAC.

The company Mitsubishi Electric Corp. creates, produces, and sells electrical and electronic equipment. The company's product line includes air conditioning systems, household goods, space systems, industrial automation systems, automobile equipment, visual information systems, transportation systems, semiconductors and devices, building systems, energy systems, information and communication systems, and public systems. Additionally, it provides network, infrastructure, and maintenance services. Mitsubishi Electric provides services to the information processing and communications, satellite communications, industrial technology, construction equipment, consumer electronics, energy, and transportation industries.

Key Companies in the gas insulated transformer market include

• ABB Ltd. (Switzerland)


• General Electric (US)


• Mitsubishi Electric Corporation (Japan)


• Siemens AG (Germany)


• Toshiba Corporation (Japan)


• Arteche (Spain)


• Meidensha Corporation (Japan)


• Takaoka Toko Co. Ltd (Japan)


• Fuji Electric co. Ltd. (Japan)


• Chint Group (China)

Gas Insulated Transformer Industry Developments

April 2023- Hyosung Heavy Industries recently disclosed that it secured 3.5101 trillion won (US$2.6752 billion) in sales and 143.2 billion won (US$109.1 million) in operating profit in 2022, thanking the rise in global demand for power generation equipment. This signified a rise of 23.1 billion won (US$17.6 million) in operating profit compared to 2021. The organization anticipates continued development because of the rise in new power generation sources and escalating demand for transmission and distribution in the global power market.

May 2022: After completing all procedures to establish Arteche Hitachi Energy Instrument Transformers S.L., the replacement for Arteche Gas Insulated Transformers (AGIT), Arteche and Hitachi Energy received regulatory permission. Through this partnership, Arteche and Hitachi Energy are hastening the creation of environmentally friendly, sustainable gas insulated transformers.

Meidensha Corporation (Meiden), in September 2022, entered into a sustainability-linked loan (SLL) agreement with Sumitomo Mitsui Banking Corporation (SMBC).

An Econiq 420 kv circuit breaker was released by Hitachi Energy in August 2022.

In May 2022, Arteche and Hitachi Energy obtained regulatory authorization, thereby completing all the formalities for the taking over of Arteche Gas Insulated Transformers (AGIT) to become Arteche Hitachi Energy Instrument Transformers S.L. Consequently, both companies are fast-tracking their green gas-insulated transformers journey through the establishment of a joint venture called Arteche Hitachi Energy Instrument Transformers S.L. The development is expected to foster the wide use of renewable energy sources and sustainable, environmentally friendly gas-insulated transformers.

A range of power transformers was introduced by General Electric in January 2022 to facilitate the adoption of renewable energy sources, such as the GE-Mistral-14, which operates between 275 kV and 400 kV, two large power transformers rated at 340 MVA each and MBH Power transformer. These have been deployed in various wind farms in many countries. GE’s range encompasses various voltage levels, suitable for applications like power generation, transmission and distribution.

Pfiffner and Trench had issued a joint statement on SF6-free instrument transformers as manufacturers, As SF6 has traditionally been used for safety purposes in AIS High Voltage Instrument Transformers. Nonetheless, SF6, when leaked, is viewed as one of its kind that results in a global warming problem.

The power minister of Goa state, India, announced plans to build to state's first gas-insulated substation in November 2021, which cost around USD4.3 million. This is intended to benefit consumers residing in Davorilm, Navelim as well as Margao and Curtorim areas. Furthermore, there have been proposals to deploy GIS technology throughout the area.

Collaboratively, Meidensha Corporation joined Toshiba in June 2021 with the plan of commercializing by March 2023 new GIS solutions for gas-insulated transformers based on natural origin gases.

Gas Insulated Transformer Market Segmentation:

Gas Insulated Transformer Voltage Rating Outlook (USD Billion, 2018-2032)

• Medium


• High


• Extra High

Gas Insulated Transformer End-Use Outlook (USD Billion, 2018-2032)

• Utility


• Industrial


• Commercial

Gas Insulated Transformer Type Outlook (USD Billion, 2018-2032)

• Instrument Transformer


• Others

Gas Insulated Transformer Type Of Cooling Outlook (USD Billion, 2018-2032)

• Gas Directed Air Natural Cooling


• Gas Directed Air Forced Cooling


• Gas Directed Water Forced Cooling

Gas Insulated Transformer Installation Outlook (USD Billion, 2018-2032)

• Outdoor


• Indoor

Gas Insulated Transformer Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America