Gas Insulated Switchgear Market Industry Chain, Market Channel, Development Trends and Drivers Analysis
6 min read
Updated on 11/25/2024
Industry Chain Analysis of Gas Insulated Switchgear
The upstream of gas insulated switchgear supplies raw materials and components, mainly including insulation materials, SF6 gas, metal materials and other materials (standard parts, electrical components, accessories, etc.). The midstream segment is gas insulated switchgear manufacturing. Downstream is the application field of gas insulated switchgear, mainly including Utility Power Infrastructure, Oil & Gas, Renewable Energy, Commercial and other fields.
Key Raw Materials and Suppliers
The raw materials of gas insulated switchgear mainly include electrical insulation materials, SF6 gas, metal materials (aluminum, copper, steel, etc.) and other materials (standard parts, electrical components, accessories, etc.). Raw materials account for a large portion of the cost. Since raw material costs account for a high proportion of costs, changes in raw material prices have a greater impact on manufacturers’ gross profit margins and profit balances.
The lowest total production cost is a general indicator of profit maximization. For manufacturers, the total cost of production can be controlled through global procurement, localized procurement, and centralized procurement. Large-scale and efficient procurement can effectively reduce time and labor costs. Now, the development of logistics and information technology is very good, which is also conducive to global procurement. In the future, more manufacturers will focus on raw material procurement and adopt strategic procurement.
Table Key Raw Materials Suppliers and Price Analysis
Downstream Customers of Gas Insulated Switchgear Market
The major downstream customer company in the Gas Insulated Switchgear market are TransnetBW, Duke Energy, Al Toukhi, Glencore, Fingrid, State Grid Corporation of China (State Grid), etc.
These companies represent a cross-section of the diverse industries that rely on Gas Insulated Switchgear for their operations, signaling a robust and broad-based market demand.
Tel: No. 86, West Chang’an Street, Xicheng District, Beijing City
Add: 95598
Technology Status and Key Development Trends
Currently, gas insulated switchgear (GIS) is widely used in power transmission and distribution systems around the world. The compactness and durability of gas insulated switchgear are key reasons for its popularity. Its denseness is mainly due to the presence of SF6 gas, which has the best properties as an insulating and quenching medium. Although SF6 gas has good insulation resistance, it is also considered harmful to the environment due to its greenhouse effect. Growing environmental concerns and stringent regulations regarding the high global warming potential of SF6 have prompted intensive research and innovation in the search for greener insulation solutions. In recent years, clean air and vacuum technology in high-voltage switchgear have been developed as alternatives to existing SF6 technology. For example, Siemens produces Blue GIS, a gas-insulated switchgear product that uses clean air as the insulation and interruption medium instead of sulfur hexafluoride (SF6) or other fluorinated gases. Hitachi Energy has launched EconiQ gas-insulated switchgear, a solution that significantly reduces carbon emissions and promotes the sustainable development of power systems through a sulfur hexafluoride (SF6)-free design.
In addition, intelligence is another trend in the development of gas insulated switchgear. Intelligent gas insulated switchgear is a new type of high-voltage gas insulated switchgear that adapts to the needs of smart grids and applies multi-disciplinary cutting-edge technologies such as sensing, information, communications, electronics, control, and electrical. Comprehensive use of intelligent principles and technologies such as status awareness, intelligent evaluation, life prediction, intelligent control, information interaction, reliability analysis and design, etc., to achieve comprehensive intelligence of gas insulated switchgear. According to the objective requirements of analyzing and processing various complex information in harsh electromagnetic environments, algorithms such as digital filtering, trend analysis, and fingerprint analysis are widely used to develop intelligent models such as information interaction, expert systems, and life prediction to achieve a high degree of intelligence. It has technical features such as measurement digitization, control network, status visualization, and function integration to meet the requirements of smart grid construction and application.
Market Drivers of Gas Insulated Switchgear Market
Table Market Drivers Analysis
Item
Description
Urbanization and infrastructure development
The expansion of urbanization and the simultaneous development of infrastructure are acting as primary catalysts propelling the growth of the gas insulated switchgear (GIS) market. With an increasing global population gravitating toward urban centers, there emerges an escalating requirement for robust and dependable electrical distribution systems to cater to the burgeoning needs of these expanding cities. Urban landscapes come with inherent spatial limitations, demanding electrical infrastructure solutions that are not only efficient but also space-saving. GIS systems emerge as the favored choice due to their streamlined design, effectively utilizing the limited urban real estate. Their compactness becomes pivotal in fulfilling the electricity demands of densely populated urban zones. Moreover, infrastructure development initiatives, encompassing the establishment of new commercial and residential structures, industrial complexes, and transportation networks, necessitate the installation of state-of-the-art electrical grids. GIS systems shine in this regard, as they are adept at managing high-voltage power distribution in these new developmental projects, guaranteeing a stable and uninterrupted power supply. In summation, urbanization and infrastructure development are acting as potent drivers of the GIS market by creating a substantial demand for electrical distribution solutions that are not only efficient and dependable but also tailored to fit the spatial constraints inherent to rapidly growing urban environments and contemporary infrastructure endeavors.
Commercial, Industrial & Government investments in Renewable Energy to boost demand for Gas Insulated Switchgears
With several governments focusing to provide adequate power infrastructure, power sector is expected to reflect strong growth in future. Particularly, in under developed countries with inadequate or nonexistent infrastructure, renewable power generation has become much less expensive than diesel-fired generating. As a result, the demand for distributed generation from renewable sources in the industrial and commercial sectors has significantly increased. For renewable energy systems and substations that demand higher capacity and performance as well as big current-carrying and high short-circuit capacity, a gas-insulated switchgear is appropriate. It also consists of all the equipment used to protect the power system and control power supply. Gas-insulated switchgears clear faults in the system, thereby ensuring a reliable power supply.
In addition, global concerns regarding increasing carbon emissions and subsequent measures to control these emissions through policy mandates are few factors driving the development of the renewable power sector in many nations. Schemes like Clean Energy Programs are the prime pillars which are expected to spur the overall renewable sector. Medium voltage GIS is ideal for land-based solar projects with limited space or floating solar projects or other renewable energy projects where the main goal is to reduce large land use. GIS also reduces the time required to install AIS substations for large solar PV projects or other renewable energy projects. This ensures the growth of the gas-insulated switchgear market.
