Gas Insulated Transformer Market by Installation Sites, End-user and Geography - Forecast and Analysis 2023-2027

Gas Insulated Transformer Market Forecast Report 2023-2027

The Gas Insulated Transformer Market size is estimated to grow by USD 995.05 million at a CAGR of 5% between 2022 and 2027. The global market is driven by three key factors: the growth of transmission and distribution networks, rising power requirements from residential, industrial, and commercial sectors, and the expansion of renewable power generation capacity. Gas insulated transformers play a vital role in efficiently distributing power, meeting increased demand, and integrating renewable energy sources into existing grids.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by installation sites (indoor and outdoor), end-user (utility, industrial, and commercial), and geography (APAC, North America, Europe, South America, and the Middle East and Africa).

Installation Sites Segment Analysis

The Indoor segment will account for a major share of the market's growth during the forecast period. The indoor segment will give significant opportunities within the global market as it will come up with the highest to incremental growth in the overall market between 2022 and 2027.  

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The Indoor segment was valued at USD 2.05 billion in 2017 and continued to grow until 2021. Many commercial and industrial end-users, such as power companies and hydroelectric power plants, are beginning to install both distribution and power transformers, such as gas insulated transformers, on their premises. Therefore, this segment is expected to grow vigorously during the forecast period. New installations and retrofit activities create demand for gas insulated transformers as there are extensive expansion and retrofit activities in the transmission and reception sectors around the world. Demand for gas insulated transformers is expected to be high during the forecast period. 

End-user Segment Analysis

Based on the end-user, the market has been segmented into utility, industrial, and commercial. The utility was the largest segment of the global market in 2022.  It is projected that in 2027, its position will remain unchanged compared with the largest market. The utility segment comprises gas insulated transformers used by power utilities to supply electricity to residential, commercial, and industrial end-users. As it reduces fire hazards, gas insulated transformers are suitable for a number of applications which include hotels, retail outlets, and others. It is increasingly essential for utility networks to invest in power infrastructure due to increasing global energy demand. While demand for power generation can be met through conventional fossil fuel and renewable power, the transmission and distribution segments require greater intervention as they supply power from the point of generation to end-users, including residential buildings and others.  Demand for new distribution transformers will, therefore, continue to remain high in these regions during the forecast period.

Regional Analysis

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APAC is estimated to contribute 51% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  The market demand for electricity in APAC remains high due to the growing electricity consumption in the region. Rapid urbanization and better living standards are boosting electricity consumption in major countries such as China and India.  In order to guarantee the effective production and transmission of electricity, a number of public utility companies in this part of the country are now run by privately owned operators. Such expansion by the private sector into the power generation sector has reduced the total price of electricity and intensified market competition in the power sector.

Market Dynamics and Customer Landscape

The market is expanding rapidly due to various factors, such as increasing electrification rates and growing government initiatives promoting clean energy projects. With space constraints in densely populated urban areas, gas insulated transformers offer a viable solution for efficient power distribution. Governments, including the Indian Government, are investing in T&D infrastructure to accommodate renewable energy sources like solar and wind power. Additionally, initiatives like the tariff-based competitive bidding (TBCB) scheme and the Make In India Program drive market growth, fostering collaborations with key players like the Powergrid Corporation of India and international entities such as the State Grid Corporation of China.

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.    

Key Market Driver

The transmission and distribution (T&D) sector's expansion is shaping trends in the insulated transformer market. Urbanization, propelled by industrial growth, spurs construction activities for both residential and commercial purposes. India, with its rapid urbanization fueled by increasing disposable incomes and population growth, stands out in this regard. Similar patterns are observed in China and other regions like South America, particularly Brazil, experiencing significant economic shifts. These regions show immense potential for development and urbanization. However, such growth also amplifies electricity demand, prompting both industry and government power companies to embark on capacity expansion initiatives. Integration of Sulfur hexafluoride (SF6) in gas insulated transformers, known for its safety attributes, further bolsters their adoption in electricity distribution, aligning with government initiatives for clean energy projects and compliance with environmental regulations. This convergence of factors foretells a promising outlook for the global insulation transformer market in the forecast period.

Significant Market Trends

The increasing strategic alliances between companies are a primary trend in the gas insulated transformer market. Companies operating in the market have been adopting various strategies, such as collaboration and agreement for gas insulated transformers to enhance the product offering. For instance, Toshiba and Meshaiden Corporation have been working together since 2020 on the joint development of gas insulated switchgear for 72 kV and 84 kV using natural-origin gas that does not contain SF6. In view of the increasing demand for eco-friendly products on the market, companies decided to accelerate their development and commercialization of this gas insulated switchgear in June 2021.

Moreover, in June 2021, a Memorandum of Understanding was signed between Siemens and Mitsubishi to conduct a feasibility study on the combination development of high voltage switches with low global warming potential (GWP), which uses clean air instead of greenhouse gases for insulation. Both businesses will look for ways to scale up the clean-air insulation technology's use at higher voltages. Thus, such strategies by the Companies operating in the market will positively impact the market in focus during the forecast period.

Major Market Challenge

The price volatility of raw materials is a major challenge in the gas insulated transformer market.  Steel is the most important material used in transformers. Copper and aluminum make the other parts of transformers and are used as coatings for primary coils. Since Companies in the market cater to multiple end-users, such as utilities, they purchase raw materials in different forms as per their requirements. They include extrusions, castings, powder metal, metal sheets and strips, forging billets, bar stock, and plastic pellets.  In view of the various macroeconomic factors and political reasons, the prices of these basic materials are subject to significant variations.

Since these raw materials, particularly steel, copper, and aluminum, are used in nearly all industries, any demand fluctuation in other industries can also cause price changes. The price change is also different according to the requirements for various grades of Raw Materials. For one and phosphorus, ammonium metal distribution transformers use an alloy of amorphous material in the iron core. The costs of the distribution transformers may also be influenced by price changes in these materials. Derivative active instruments can hedge risks against price volatility.  However, in the face of price volatility, high raw material prices will continue to pose a challenge to the market. This is expected to restrict the growth of the market during the forecast period.

Technavio’s Exclusive gas insulated Transformer Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The market forecasting report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Customer Landscape

Who are the Major Gas Insulated Transformer Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd. - The company offers gas insulated transformers such as ELK transformers.

Arteche Lantegi Elkartea SA - The company offers gas insulated transformers such as Arteche Hitachi Electric Instrument Transformer.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market Companies, including:

• China XD Group Co. Ltd.
• Fuji Electric Co. Ltd.
• General Electric Co.
• Hyosung Heavy Industries Corp.
• Kanohar Electricals Ltd.
• KharkovEnergoPribor Ltd.
• Kirloskar Electric Co. Ltd.
• Meidensha Corp.
• Mitsubishi Electric Corp.
• Nissin Electric Co. Ltd.
• Schneider Electric SE
• Shihlin Electric and Engineering Corp.
• Siemens AG
• Takaoka Toko Co. Ltd
• Tatung Co.
• Toshiba Corp.
• Yangzhou Xinyuan Electric Co. Ltd
• Zhejiang CHINT Electrics Co. Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Analyst Overview

The Gas Insulated Transformer Market is witnessing substantial growth, driven by factors like space constraints in densely populated urban areas and government initiatives to enhance the electrification rate. Increasing electrical network expenditure and a growing emphasis on clean energy projects further bolster market expansion. Gas-insulated transformers, utilizing SF6 gas, are favored for their compactness and incombustible nature, making them ideal for substations, especially in underground installations.

In regions like Asia-Pacific, where utility sectors are rapidly expanding, the demand for large-capacity gas-insulated transformers is escalating. Smart grid projects and the up-gradation of older grids are also driving market growth. Notable projects like the Villaverde substation in Spain's Madrid plan project, led by Iberdrola and supported by the regional government and the city of Madrid, exemplify the market's momentum. Additionally, initiatives by governments like India, with ultra-high voltage (UHV) power transmission projects, interstate transmission system (ISTS) projects, and renewable energy deployment, are contributing significantly to the market's trajectory, ensuring grid stability and sustainable power supply.

The Gas Insulated Transformer Market is evolving rapidly due to various factors such as increasing electrification rates and growing government initiatives promoting clean energy projects. With rising concerns about environmental regulations, there's a heightened demand for incombustible and nonexplosive equipment like large-capacity gas insulated transformers. Moreover, the market is witnessing significant growth in regions with space constraints, like densely populated urban areas, where underground substations are becoming increasingly popular. Innovations in smart grid technology further drive market expansion, ensuring efficient power supply and grid stability amidst the shift towards renewable energy deployment.

Segment Overview

The market growth analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Installation Sites Outlook 
  • Indoor
  • Outdoor
• End-user Outlook 
  • Utility
  • Industrial
  • Commercial

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Gas Insulated Transformer Market Scope
Market Report Coverage	Details
Page number	160
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5%
Market growth 2023-2027	USD 995.05 million
Market structure	Fragmented
YoY growth 2022-2023(%)	4.35
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 51%
Key countries	US, China, India, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Arteche Lantegi Elkartea SA, China XD Group Co. Ltd., Fuji Electric Co. Ltd., General Electric Co., Hyosung Heavy Industries Corp., Kanohar Electricals Ltd., KharkovEnergoPribor Ltd., Kirloskar Electric Co. Ltd., Meidensha Corp., Mitsubishi Electric Corp., Nissin Electric Co. Ltd., Schneider Electric SE, Shihlin Electric and Engineering Corp., Siemens AG, Takaoka Toko Co. Ltd, Tatung Co., Toshiba Corp., Yangzhou Xinyuan Electric Co. Ltd, and Zhejiang CHINT Electrics Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the gas insulated transformer market between 2023 and 2027.
• Precise estimation of the size of the gas insulated transformer market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and the Middle East and Africa
• Our market research and growth includes a thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the growth of gas insulated transformer market Companies

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