Europe HV Gas Insulated Switchgear (GIS) Market Analysis

Europe HV Gas Insulated Switchgear Market Analysis

Based on capacity, the 300 kV segment was worth USD 150 million in 2022. The demand for electricity is continuously on the rise, primarily fueled by factors like urbanization, industrialization, and the widespread adoption of electricity in various sectors, including transportation. This escalating demand underscores the critical necessity for dependable and efficient Gas Insulated Switchgear systems, especially those rated at 300 kV, to ensure the stability of power distribution networks.
 

Many countries are strategically placing a high priority on upgrading their electrical grids to enhance reliability, minimize transmission losses, and facilitate the integration of renewable energy sources. GIS systems, known for their compact design and high voltage capabilities, play a central role in modernizing grid infrastructure. Given the increasing prevalence of renewable energy sources such as wind and solar power, GIS systems are essential for effectively connecting these intermittent energy sources to the grid, thanks to their ability to manage the high voltages associated with the transmission of renewable energy.
 

Based on application, the offshore wind segment is set to grow at a CAGR of more than 18.4% through 2032. Offshore wind farms are undergoing rapid expansion, both in terms of their scale and numbers, owing to technological progress and the advantages of economies of scale. Numerous countries are now actively pursuing ambitious initiatives to substantially increase their offshore wind energy capacity, which has resulted in a growing utilization of high voltage gas insulated switchgears (GIS). The shift towards larger and more powerful wind turbines persists, as these larger turbines can harness more wind energy and enhance the overall efficiency of offshore wind farms.
 

The HV gas insulated switchgear market across Germany held a revenue share of over 11.9% in 2022. Germany has been a leader in renewable energy adoption, particularly wind and solar power. The need to efficiently integrate these intermittent energy sources into the grid has driven demand for high voltage GIS systems. Germany was actively modernizing its electrical grid to enhance reliability and accommodate the increasing share of renewable energy. High voltage GIS plays a crucial role in this grid modernization effort. Germany's commitment to reducing greenhouse gas emissions and transitioning to sustainable energy sources, as outlined in its "Energiewende" policy, has spurred investments in energy infrastructure, including GIS.
 

The growth of electric vehicles (EVs) and electrification of various industries has increased electricity demand, necessitating more advanced and reliable high voltage GIS systems. The GIS industry, including manufacturers in Germany, has been focusing on developing more compact, efficient, and environmentally friendly solutions, which align with global trends in the switchgear market.