Gas insulated power equipment market to generate substantial proceeds via surging investments in grid infrastructure upgrades, rising carbon emissions to fuel the industry growth
Publisher : Fractovia | Published Date : 2019-05-30Request Sample
The global gas insulated power equipment market is poised to experience steady expansion over the ensuing years, owing to the increased demand for compact substations for decreasing the overall maintenance requirements, project space, and cost. The demand for gas insulated power units will be primarily led by factors like burgeoning energy demand, adoption of renewable energy sources, and increasing expenditure on electrification among others.
Gas Insulated Power Equipment Market, By Product (USD Million)
Powered by population increase, the worldwide demand for energy is surging, while developed nations continue to consume massive amounts of energy, the demand across developing nations is escalating at rapid pace. Numbers released by the UN DESA report suggest that the global population would reach 8.5 billion by 2030 and 9.7 billion by 2050. Growth will mainly be observed in developing nations, where the increasing standard of living will generate a higher demand for energy resources. Additionally, technological advancement boosts the availability of energy-consuming products. The integration of conventional power infrastructure to meet the growing power demand from emerging nations will propel the gas insulated power equipment industry.
The paradigm shift in electrification to reduce emissions and embrace alternative energy sources will spike the need for sustainable electric infrastructure in the coming years. Increasing investment to integrate robust grid infrastructure, enhance power transmission capacity, and to modernize existing electrical infrastructure will drive the gas insulated power equipment industry. For instance, electric cars can significantly reduce emissions, and countries like Denmark are investing immensely to expand and upgrade their present electricity grid infrastructure to become an all-electric vehicle nation in the foreseeable years. In this backdrop, it can be assumed that increasing electrification initiatives will surge the demand for gas insulated transmission lines and GIS apparatus, thereby proliferating the gas insulated power equipment market in the following years.
Climate change and global carbon emission from power generation are two of the major challenges witnessed by the current generation, but amidst these issues lies a huge opportunity for the gas insulated power equipment market growth. To prevent emission, several nations have already adopted energy generation from renewable sources, which could potentially result in a massive demand for advanced and compatible electrical infrastructure. According to estimates by the International Renewable Energy Agency, the share of renewable in the overall energy mix throughout all nations is estimated to surpass 40 percent and, in some nations, the share is likely to surge up to 60 percent by the year 2050. The use of clean energy will require the integration of compatible renewable grid networks and substations, which in return will boost product demand in the near future.
As the power sector gets digitally empowered, industry leaders will upgrade their offerings to satisfy evolving market needs. Government bodies or organizations that have already started implementing such updates would stay ahead of their counterparts. The role of digitization in transforming the energy sector will emerge to be a significant factor over the coming years, pushing companies to initiate grid modernization to improve operational efficiency and to assure effective network planning. Technology upgradations will require the establishment of gas insulated transmission lines projects, which will boost the gas insulated power equipment industry growth in the future.
All in all, gas insulated power equipment are essential tools for the operational efficiency of the energy sector. Provided that there is a considerable increase in the electric power consumption and the demand is anticipated to grow on account of numerous electrification projects, the gas insulated power equipment industry will continue to experience substantial momentum. A report by Global Market Insights, Inc. projects the global gas insulated power equipment market to be worth more than $30 billion by 2025.
