Gas Insulated Transformer Market Size, Share & Trends Analysis Report By Voltage (Medium Voltage, High Voltage, Extra High Voltage), By Installation (Indoor, Outdoor), By Application, By Region, And Segment Forecasts, 2024 - 2030

Gas Insulated Transformer Market Trends

The global gas insulated transformer market size was estimated at USD 2.83 billion in 2023 and is expected to expand at a CAGR of 4.6% from 2024 to 2030. The rising demand for electricity, driven by industrialization, urbanization, and increasing use of electrical appliances, necessitates efficient and reliable power distribution systems, thus driving the growth of the global gas insulated transformer market.

The gas insulated transformer market is experiencing significant growth driven by several key factors. One of the primary drivers is the increasing demand for compact and efficient power transmission solutions in urban areas. Gas insulated transformers offer a smaller footprint compared to traditional oil-filled transformers, making them ideal for substations in densely populated cities. For example, in metropolitan areas such as Tokyo and New York City, utilities are increasingly turning to gas insulated transformers to upgrade their aging infrastructure while minimizing the physical space required, thus positively influencing the market.

In addition, growing focus on environmental sustainability and safety is expected to trigger the gas insulated transformer market growth in the coming years. Gas insulated transformers, particularly those using eco-friendly gases such as sulfur hexafluoride (SF6) alternatives, offer reduced fire risk and environmental impact compared to oil-filled transformers. This aligns well with stringent environmental regulations and corporate sustainability goals.

Moreover, the rapid expansion of renewable energy sources and the need for grid modernization are propelling the growth of gas insulated transformer market. As more wind and solar farms are integrated into the power grid, there is an increased need for efficient and reliable transformer technology to manage the intermittent nature of these energy sources. Gas insulated transformers, with their superior performance in harsh environments and ability to handle rapid load changes, are well-suited for these applications. Countries such as China and India, which are heavily investing in renewable energy infrastructure, are seeing a surge in demand for gas insulated transformers in their expanding power networks.

Voltage Insights

Based on the voltage, the gas insulated transformer market is segmented into medium voltage (up to 72.5 Kv), high voltage (72.5 Kv to 220 Kv), and extra high voltage (above 220 Kv). Medium voltage gas insulated transformers registered largest revenue market share of over 56.0% in 2023. These transformers are favored for their compact design and enhanced safety features, making them ideal for densely populated areas. They are often employed in commercial buildings, underground substations, and small to medium-sized industrial facilities.

High voltage gas insulated transformers are commonly used in larger industrial and utility applications. They provide a balance between capacity and efficiency, ensuring that power can be distributed reliably across cities and regions. Their robust design and high reliability make them suitable for power plants, large industrial complexes, and substations that require stable and efficient power transmission.

Extra high voltage gas insulated transformers are designed for the highest capacity and most demanding applications in the power industry. These transformers are critical for long-distance transmission and the interconnection of power grids. Their advanced insulation and cooling technologies allow them to operate efficiently under high stress and load conditions, making them indispensable for national grids, intercontinental power links, and large power generation stations.

Installation Insights

Based on the installation, the gas insulated transformer market is segmented into indoor and outdoor. Indoor installation segment accounted for the highest revenue market share of over 63.0% in 2023. Indoor gas insulated transformers are designed for use within buildings or other enclosed spaces. These transformers are particularly beneficial in urban areas where space is limited, and environmental conditions can be controlled. They offer enhanced safety features, such as reduced risk of fire and lower maintenance requirements, due to their enclosed design.

Outdoor gas insulated transformers are built to withstand harsh environmental conditions and are typically installed in open areas such as power plants, substations, and outdoor industrial sites. Outdoor transformers are crucial for utilities and industries requiring durable and low-maintenance solutions for transmitting and distributing electrical power over long distances. Their installation often involves additional protective measures to ensure safety and efficiency in diverse outdoor settings.

Application Insights

Based on the application, the gas insulated transformer market is segmented into utility, industrial, and commercial. The utility segment of the gas insulated transformer market registered highest revenue market share of over 57.0% in 2023. It primarily involves power generation, transmission, and distribution. Utilities use gas insulated transformers (GITs) to ensure the reliable and efficient delivery of electricity over long distances. The growing demand for electricity and the expansion of smart grid technologies are driving the adoption of gas insulated transformers in the utility sector.

In the industrial sector, gas insulated transformers are employed to power manufacturing plants, processing facilities, and other heavy-duty applications that require robust and reliable electrical systems. Industries such as steel, chemicals, and automotive benefit from GITs due to their ability to withstand harsh environmental conditions and high electrical loads.

Moreover, the commercial segment includes applications in office buildings, shopping malls, hospitals, and data centers, where the demand for stable and reliable electricity is critical. Gas insulated transformers are particularly suited for commercial applications due to their compact size, which allows for space-saving installations in basements or on rooftops. Their quiet operation and enhanced safety features make them ideal for commercial environments.

Regional Insights

The region's robust and aging power infrastructure necessitates significant upgrades and replacements. Many transformers in North America are nearing or have exceeded their expected lifespans, driving demand for modern, efficient alternatives such as gas insulated transformers. For example, the American Society of Civil Engineers has consistently rated the U.S. energy infrastructure as below average, highlighting the urgent need for modernization. This creates a substantial market for gas insulated transformers, which offer improved reliability and reduced maintenance requirements compared to traditional oil-filled transformers.

Asia Pacific Gas Insulated Transformer Market Trends

Asia Pacific dominated the market and accounted for the largest revenue share of over 40.0% in 2023. Rapid industrialization and urbanization across many Asian countries are driving significant growth in electricity demand. Countries such as China, India, and Southeast Asian nations are expanding their power infrastructure to meet the needs of growing populations and economies. Gas insulated transformers are particularly well-suited for urban environments due to their compact size and enhanced safety features. For instance, in densely populated cities such as Shanghai and Mumbai, where space is at a premium, these transformers allow for more efficient use of limited real estate in electrical substations.

China Gas Insulated Transformer Market Trends

China's rapid industrialization and urbanization have led to a surge in power demand, necessitating significant investments in power infrastructure. The country's ambitious plans to upgrade and expand its electrical grid have created a massive domestic market for GITs. For example, the State Grid Corporation of China, the world's largest utility company, has been implementing ultra-high voltage (UHV) transmission projects across the country, which require advanced GIT technologies. This domestic demand has allowed Chinese manufacturers to achieve economies of scale and gain extensive experience in GIT production.

Europe Gas Insulated Transformer Market Trends

Europe has been at the forefront of adopting environmentally friendly and energy-efficient technologies. Gas insulated transformers, which typically use sulfur hexafluoride (SF6) or newer eco-friendly gases, align well with Europe's stringent environmental regulations and sustainability goals. Countries such as Germany, France, and the UK have been investing heavily in upgrading their power infrastructure to meet ambitious carbon reduction targets. For example, Germany's Energiewende policy has driven significant investments in modernizing the country's electrical grid, creating a strong demand for advanced transformer technologies such as GITs.

Key Gas Insulated Transformer Company Insights

The gas insulated transformer (GIT) market is highly competitive. Established companies are investing heavily in R&D to develop more compact, efficient, and eco-friendly GIT solutions, while new entrants are leveraging advancements in insulation materials and design to gain market share.

• In April 2024, Hitachi Energy Ltd., a Switzerland-based electricity equipment manufacturer, announced plans to invest more than USD 1.5 billion to enhance its global transformer manufacturing capacity by 2027 to meet rising demand and support electrification initiatives worldwide. This investment is in addition to a previously announced USD 3.0 billion allocation for advancing the electrification of the energy system amid the ongoing energy transition and includes a new USD 180.0 million transformer factory in Finland as well as expansions in Germany, the U.S., and Colombia.

• In February 2024, Siemens Energy planned to address the national shortage of power transformers in the U.S. by investing USD 150.0 million to expand operations in Charlotte, North Carolina. This investment aims to meet the growing demand for transformers, which are crucial for grid expansion and the energy transition. The new factory will produce transformers, enabling reliable electricity transmission and grid stability. The project is supported by a Job Development Investment Grant from the state of North Carolina and is expected to begin construction in 2024, with the first transformers set to be manufactured in early 2026.

• In February 2022, Arteche and Hitachi Energy Ltd. formed a joint venture called Arteche Gas Insulated Transformers (AGIT), in which Arteche holds a 51.0% majority stake and Hitachi Energy holds 49.0%. This strategic move was aimed to allow the two companies to collaborate in the sustainable gas insulated transformer market, strengthening AGIT's position in the field of instrument transformers for GIS substations and voltage transformers for ancillary services.

Gas Insulated Transformer Market Report Scope

Global Insulated Transformer Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global gas insulated transformer market report on the basis of voltage, installation, application, and region:

• Voltage Outlook (Revenue, USD Million, 2018 - 2030)

  • Medium Voltage (Up to 72.5 Kv)

  • High Voltage (72.5 Kv to 220 Kv)

  • Extra High Voltage (Above 220 Kv)

• Installation Outlook (Revenue, USD Million, 2018 - 2030)

  • Indoor

  • Outdoor

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Utility

  • Industrial

  • Commercial

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE