High voltage gas insulated switchgear market to generate a considerable valuation over 2017-2024, U.S. to emerge as a major revenue pocket
Publisher : Fractovia | Published Date : 2017-08-21Request Sample
Gas insulated switchgear market is defined by strategic mergers and acquisitions, undertaken by major corporations, in a bid to enhance power grid capacity. A recent instance of this fact is the agreement between the EETC and Siemens. The Egyptian Electricity Transmission Company (EETC) has signed a contract with Siemens to strengthen the country’s power grid capacity. Under this deal, Siemens is slated to develop two power substations in Egypt. Apart from this, the company is likely to supply power transformers, telecommunication equipment, control systems, and gas-insulated switchgear (GIS) to EETC, which will favorably enhance its position in gas insulated switchgear industry. Many other countries have been involving themselves in the upgradation of grid infrastructure. As per the statistics, gas insulated switchgear market was worth USD 14 billion in 2016.
The U.S. government has undertaken appreciable initiatives to upgrade and replace old electric grids. In 2016, the U.S. Department of Energy (DOE) released funds of USD 220 million for grid modernization across the country – a step that may favorably impact gas insulated switchgear market. As per estimates, in 2016, U.S. covered 65% of the revenue contribution of North America gas insulated switchgear industry share. Other than the U.S., China is also involved in grid upgradation programs. The Chinese government configured the ‘Made in China 2025 Plan’ to upgrade manufacturing facilities in the renewable energy sector, which will undeniably propel the regional gas insulated switchgear market.
Europe Gas Insulated Switchgear Market Size, By Capacity, 2016 & 2024 (USD Billion)
Many of the world’s leading corporations have been continuously implementing new features in GIS technology. Undoubtedly, ABB is one of the pioneers and technology leaders in GIS innovations. Recently, the company launched a new gas insulated high voltage switchgear comprising disconnectors and circuit-breakers, capable of working in confined spaces such as city buildings, hydro power plants, offshore platforms, and industrial plants. High voltage GIS offers noticeable benefits such as operational safety, environmental compatibility, and excellent reliability, due to which consumers are increasingly giving preference to this product. In 2016, high voltage gas insulated switchgear market covered 60% of the overall revenue contribution. This product is extensively used for power transmission and railway applications. Gas insulated switchgear industry boasts of a rich competitive landscape, with the inclusion of Siemens AG, General Electric, ABB, Fuji Electric, Schneider Electric, Toshiba, Hyundai Heavy Industries, Chint Group, Larsen and Toubro, Nissin electric, Alstom, Mitsubishi Electric, CG Power and Industrial Solutions ltd., Meidensha Corporation, Hitachi, Hyosung, Ormazabal, and Xi'an XD Switchgear Electric Co.,Ltd.
As per reliable sources, Toshiba Transmission & Distribution Systems (India) Pvt. Ltd. has declared an investment of 3 billion Yen in India to enhance the service of power storage, transmission & distribution, and power generation, which may have a positive impact on gas insulated switchgear industry. The company is committed to comply with strategies of the Indian government, such as Make in India and Export from India. In favor of their commitment, in 2016, Toshiba invested USD 30 million to increase the production capacity of the transformers in India. The company also set up a new manufacturing line for gas insulated switchgear and ultra-high voltage transformers up to the capacity of 1200 KV, which is likely to have a positive influence on the overall gas insulated switchgear market share.
Another instance of the initiatives taken by industry giants to expand their geographical landscape is the 2014 joint venture of WJCO and Hitachi. In 2014, Hitachi established a joint venture with Walid Ahmad Juffali Company Limited (WJCO) to expand its business scope in in gas insulated switchgear industry.
In Saudi Arabia, an escalating requirement has been observed for the development of electric power transmission and distribution infrastructure pertaining to the surging deployment of renewable energy power plants. Subject to the fact that switchgears play a vital role in electric power transmission and distribution, gas insulated switchgear market is likely to observe a considerable traction in Saudi Arabia.
Growing awareness among the people about the benefits of renewable energy along with surging demand for improved resource efficiency have stimulated the requirement of renewable energy power plants. Among all other options, offshore wind power is particularly gaining popularity among the users. Rising demand for new generation wind power plants equipped with innovative technologies is slated to propel the demand for high-voltage switchgear, which in turn, will augment gas insulated switchgear market size.
To acquire more business space, industry giants are focusing not only on the development of cost-effective products but also on the creation of new manufacturing and design technologies. The Japanese company Toshiba has implemented the Kaizen activity, which helps them to reduce transmission losses and contributes to the improvement of power transmission. Manufacturing products with a longer shelf life is likely to generate considerable revenue for the players in gas insulated switchgear industry. Most of the companies are giving preference to the deployment of customer-oriented support, which would help them increase their customer base. As per Global Market Insights, Inc., “Worldwide gas insulated switchgear market is slated to surpass a revenue collection of USD 29 billion by the end of 2024 with an annual growth rate of more than 8% over the period of 2017-2024.
