Gas Insulated Substation Market Report by Trends, Drivers, and Challenges - 2025

The gas insulated substation (GIS) market is projected to achieve a remarkable value of approximately US$ 41,059.8 million by the year 2025, a significant increase from US$ 15,416.1 million recorded in 2016. This growth represents a compound annual growth rate (CAGR) of 19.4% during the forecast period spanning from 2017 to 2025. Several factors are driving the demand for gas insulated substations, including their straightforward installation and operational processes, minimal maintenance requirements, extended lifespan, and enhanced reliability compared to traditional air insulated substations. However, the relatively high cost of gas insulated substations in comparison to their air-insulated counterparts poses a challenge to market expansion.

The potential for substantial growth in the gas insulated substation market is bolstered by ongoing research and development efforts aimed at improving the technology. There is a rising global demand for mobile gas insulated substations, particularly in regions with limited space, as they facilitate maximum power generation. One of the key benefits of gas insulated substations is their compact design, which makes them more suitable for various applications, including mining, construction, oil and gas, and marine port operations. Mobile gas insulated substations can be easily relocated and reconfigured to meet the evolving needs of different projects. Additionally, these mobile units are equipped with advanced shock absorbers, enabling them to traverse rough terrains effectively. They are also designed to operate under extreme temperature conditions without interruptions and are resistant to corrosion. The integration of electromagnetic compatibility features in mobile gas insulated substations ensures the safety of personnel and the surrounding environment while minimizing noise levels. These advantages are expected to significantly contribute to the growth of the gas insulated substation market in the near future.

The gas insulated substations market is segmented based on application into power transmission and distribution, as well as manufacturing and processing. One of the primary benefits of utilizing GIS for power transmission and distribution is their compact structure, which allows for installation in restricted spaces. Despite their smaller size, gas insulated substations can handle heavier loads than air insulated substations. The market for gas insulated substations is anticipated to expand during the forecast period from 2017 to 2025, driven by the modernization of existing power transmission and distribution facilities in several developed nations, which are transitioning to gas insulated substations for improved efficiency over longer distances.

In the manufacturing sector, various industries are incorporating gas insulated substations into their operations to ensure a reliable power supply. Manufacturing and processing facilities are making significant investments to acquire advanced gas insulated substations, thereby enhancing their operational efficiency. These developments are expected to further stimulate the gas insulated substation market throughout the forecast period and are likely to propel its growth in the future.

The overall market size has been determined through a combination of primary and secondary research methodologies. The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Additionally, primary interviews are conducted with industry stakeholders and experts to validate the findings and analyses. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the gas insulated substation sector.