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Global Gas Insulated Transformer Market Analysis and Review by Configuration Type (Single-phase Gas Insulated Transformers, Three-phase Gas Insulated Transformers)
In 2023, the Global Gas Insulated Transformer Market will be worth US$ 3.8 Bn and is estimated to expand steadily at a CAGR of 5.4 % to reach a market valuation of close to US$ 6.6 Bn by 2033.
Global Gas Insulated Transformer Market Size (2022A)
US$ 3.7 Bn
Estimated Market Size (2023E)
US$ 3.8 Bn
Projected Market Value (2033F)
US$ 6.6 Bn
Value CAGR (2023-2033)
Collective Share: Top 3 Countries (2022)
Gas-insulated transformers are technologically advanced transformers that are used in hydropower and underground substations. It is most commonly found in densely populated cities, mission-critical substations, and offshore substations. Gas-insulated transformers have several advantages over traditional hazardous transformers, including the absence of the need to check or replace oil, the absence of oil leakage, and the fact that they are non-flammable and explosive, making them ideal for heavy-duty applications. These advantages have resulted in increased demand for gas-insulated transformers.
Factors such as increased investments in power transmission and distribution infrastructure across global, increased power consumption, the incorporation of renewable energy sources into the energy mix, and the upgrading and modernization of aging infrastructure are anticipated to fuel the market during the forecast period.
Several electrification projects, high renewable energy adoption, and growing industrialization increase power consumption in developing economies significantly, which drive the demand for gas-insulated transformers.
China is anticipated to hold a majority of the market share owing to a large number of gas-insulated transformer uses. The gas-insulated transformer market accounts for about 7 to 10 % of its parent market, the transformer market.
From 2017 to 2022, the global gas-insulated transformer market expanded at a CAGR of around 3.0%.
The international economy has been impacted in recent years by the COVID pandemic, the Russia-Ukraine war, and other socioeconomic factors. The virus outbreak exacerbated the economy's already sluggish growth. Import and export restrictions on goods and raw materials have had a significant impact on the gas-insulated transformer market as consumer consumption and demand patterns have changed.
The global demand for sustainable development is driving up demand for renewable energy. Globally, there has been a greater emphasis on investments in clean energy projects and the development of renewable energy. Increase in new renewable projects and rising electricity consumption are anticipated to rise the demand for gas-insulated transformers over the forecast period.
Gas-insulated transformers provide additional ease of operation and assurance of safety, as well as hazardous material prevention and ease of maintenance. This type of transformer is ideal for applications requiring pollution prevention or small installation spaces. This transformer is expected to drive future demand.
According to Persistence Market Research, the market will grow at a 5.4 % CAGR through 2033.
“Increase in demand for renewable energy source”
The requirement for HVDC is increasing with the worldwide plans for the vast integration of new renewables in the electrical energy supply, transferring power over long distances. This is especially true for offshore wind farms, which are being planned to meet large electric power transmission needs, which is expected to increase the significant use of gas-insulated transformers. For instance, the European Union has the objective of reducing its carbon footprint by at least 55% by 2030 and creating a climate-neutral zone by 2050 by adopting renewable energy sources, which are generating lucrative opportunities for the gas-insulated market.
The market is expanding as a result of a significant increase in power consumption in developing economies owing to several electrification projects, rising megacities, investments in smart grid technology, expanding IT hubs, and commercial institutions. Furthermore, rapid urbanization and an increasing number of commercial infrastructures looking for ways to reduce operating expenses are expected to drive market growth in the commercial sector.
Owing to their compact design and low maintenance, gas-insulated transformers are preferred for installation in underground and indoor substations in urban areas. With rapid urbanization across the region, electricity demand has increased significantly over the past few years, which drives the demand for gas-insulated transformers. In the forecast period, factors such as increased investments in transmission and distribution infrastructure, increased power consumption, the rise of the renewable energy sector, and the upgrade and modernization of ageing infrastructure are expected to drive the market.
“Uses of Renewable energy and reliable power supply”
As the significance of electrical energy in every sector increases due to the increase in population, the increase in energy consumption from technological developments, rapid growth in industrialization, and urbanization across the region, high power electricity demand has been increasing significantly in the last few years. Due to this, investments in transmission and distribution (T&D) infrastructure for reliable power sources have also grown significantly.
Furthermore, gas-insulated transformers are increasingly being used on long-distance energy transmission and distribution projects to address environmental issues while also improving safety by installing underground networks and smaller substations, so gas-insulated transformers are becoming more popular.
The adoption of renewable energy sources to address the global warming problem by reducing carbon footprint has been increasing rapidly. To meet the rising demand for energy, governments also support the adoption of renewable energy, which required gas-insulated transformers owing to their low maintenance requirements, non-flammability, and compactness. The adverse environmental effects of the oil-based transformer have encouraged manufacturers to shift towards the use of a non-explosive and large-capacity gas-insulated transformer.
“Strengthen environmental norms”
Regional governments and world energy association, and environmental associations have prescribed different regulations for use of transformer material. Environmental regulations concerning the use of sodium hexafluoride (SF6) as a greenhouse gas with a global warming potential 23,000 times that of carbon dioxide, as well as the high cost of instruments, are major factors limiting the growth of the gas-insulated transformer.
Various health and safety organisations, including the Occupational Safety and Health Administration (OSHA), have issued warnings about the formation of toxic compounds from sodium hexafluoride gas electrical discharge. As a result, the use of alternative gas-based transformers is increasing.
What Makes China One of the Leading Markets for Gas-Insulated Transformers in East Asia?
China is the world's largest consumer of electricity and consumes almost one-quarter of the world’s energy. The country is known for relying primarily on coal, but in recent years it has adopted renewable energy sources and natural gas sources, creating a booming market for gas-insulated transformers.
China dominates the gas-insulated transformer market, accounting for 54% of the market in East Asia. The chain has the advantage of having cheap labor, raw material availability, and a controlled manufacturing facility. China is the most populated country in the world. The rising population of China, heavy investment in the transmission and distribution of power, and the need to connect renewable energy generation projects to the grid are driving the market for gas insulation transformers.
What is the Strategy of Key Producers of Gas Insulated Transformers in the European Market?
Europe is expected to account for more than 10% of the global market. Because of the adoption of renewable energy, Europe is expected to be a rapidly growing market for gas-insulated transformers. The EU has set ambitious new targets to combat climate change, with the promise of making them legally binding. The EU will cut carbon emissions by at least 55% by 2030, according to a new law agreed upon by member states and the EU Parliament, creating lucrative opportunities for the gas-insulated transformer market.
Why are Three-phase Gas Insulated Transformers Leading the Race?
‘’High power density requirements’’
Throughout the forecast period, three-phase gas-insulated transformers will continue to account for the majority of the global share owing to the characteristics of their products. Such as a three-phase gas-insulated transformer has a higher power density than a single-phase circuit at the same amperage, resulting in less wiring and lower costs. Among segments, the three-phase gas-insulated transformer is expected to dominate the market during the forecast period.
Which Application Provides Great Opportunity for Gas Insulated Transformer Manufacturers?
“Growing commercial sector generate lucrative opportunities”
The commercial sector is the most profitable end-user sector for gas-insulated transformers, accounting for more than 30.3 % of total demand in 2022, and it is estimated that this application sector will continue to grow in the forecast period at an incredible rate. This is due to aspects such as increased investment in reliable energy supply, low installation space, and increased use of renewable energy. Growing industrialization and commercial trade hubs are expected to drive demand for gas-insulated transformers in the future.
With numerous players, the global gas-insulated transformer market is partially fragmented and competitive. Global players are expanding their operations and market share.
Global players in the gas-insulated transformers market are implementing strategic acquisition, collaboration, product launch, and regional expansion strategies such as establishing manufacturing, sourcing, and strategic marketing facilities in developing countries to strengthen their position in fast-growing markets.
Some of the leading companies operating in this gas-insulated transformer market are General Electric, ABB Ltd, Siemens AG –Trench Group, Arteche, Mitsubishi Electric Corporation, Toshiba International Corporation, NISSIN ELECTRIC Co., Ltd, Takaoka Toko Co., Ltd., Tatung Co., Bharat Heavy Electricals Limited, Hyosung Heavy Industries Corp., and others.
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Gas Insulated Transformer Market by Configuration Type:
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The Gas Insulated Transformer Market is expected to total US$ 3.8 Bn in 2023.
The demand for Gas Insulated Transformers will increase by 5.4 % during the forecasted period from 2023 to 2033.
General Electric, ABB Ltd, Siemens AG –Trench Group, Hyosung Heavy Industries Corp, Mitsubishi Electric Corporation, and others are the leading market players, which hold around 40 to 45 % of the market share.
The demand in India is expected to increase by 6.8 % CAGR from 2023 to 2033 on a value basis.
China is the leading country in the Gas Insulated Transformer market. Sales in the country will be over 11.4 % of total global demand throughout the forecast period.