Mitsubishi Electric Corporation, a Japanese multinational electronics and electrical equipment manufacturing company, developed new gas-insulated GIS technologies for electric power applications.
Pawan Topno – Analyst: Energy and Power at MarketsandMarkets™, shares his point of view as mentioned below:
Mitsubishi Electric Corporation has come up with 2 new technologies for GIS—arc-cooling technology and high-density dielectric coating technology. The former is expected to improve the current interruption in GIS used in power systems by 25%, whereas the latter would improve the insulation performance by 30% in conductors. These 2 switchgear technologies are expected to curb the emissions of powerful greenhouse gases, which absorb heat in the lower atmosphere and eventually result in global warming.
The technologies will help in further reducing the size of switchgears and thus minimize the use of Sulfur Hexafluoride (SF6) gas, which has global warming potential.
GIS occupies 80% lesser space than the traditional switchgear, and this is the reason why the demand for GIS has been on the rise lately. The maintenance cost of a GIS is remarkably low; moreover, it can be in a good working condition for up to 40 years without any maintenance—this makes it more reliable than an Air-Insulated Switchgear (AIS). Also, with the rise of new technologies, GIS is more likely to expand globally.
GROWING SHARE OF RENEWABLE POWER GENERATION IS EXPECTED TO DRIVE THE GIS MARKET DURING THE FORECAST PERIOD
Impact on the GIS Market
As per MarketsandMarkets’ analysis, the outdoor GIS market is projected to reach USD 16.05 billion by 2023 from USD 10.79 billion in 2018, at a CAGR of 8.28%. The indoor GIS market is projected to reach USD 12.03 billion by 2023 from USD 7.70 billion in 2018, at the highest CAGR of 9.34%. Also, the power transmission utility segment of the GIS market is projected to reach USD 9.11 billion by 2023, at a CAGR of 8.73% between 2018 and 2023.
POWER TRANSMISSION UTILITY SEGMENT IS EXPECTED TO DOMINATE THE GIS MARKET, BY END-USER, DURING THE FORECAST PERIOD
The GIS market is driven by increase in investments, government initiatives toward improving electricity access, and growing share of renewable power generation. Major industries, namely, ABB, Schneider Electric, Larsen & Toubro Limited, and Siemens are planning to invest in smart grids and energy systems, extend and replace old switchgears at substations in developed regions, and develop environment-friendly alternatives to SF6 gas.
Most of the countries are working on developing their transmission and distribution infrastructure to satisfy the rising demand for electricity. For example, in the next 10 years, Saudi Arabia is planning to double the domestic power generation from 40,000 MW to 80,000 MW by investing about USD 100 billion. Also, the investment in transmission and distribution sector is expected to be about USD 6.8 trillion between 2014 and 2035 as per the World Energy Investment Statistics.
Correspondingly, smart grid is anticipated to add up to a country's environmental and economic health by not only offering technologies but also providing an unprecedented opportunity to leapfrog the energy sector into a new era of efficiency and reliability. Apart from helping in power supply, smart grid technologies also help with load management, ensuring proper monitoring of faults.
Impact on top competitors
The top competitors in the GIS ecosystem, such as Schneider Electric, General Electric, and Larsen & Toubro Limited, have their technologies in the developmental or approval phases. Mitsubishi, on the other hand, is planning to extend and upgrade the existing substations and hence boost the power transmission capacity, which would, in turn, help the organization build a strong position in some of the most important GIS markets in the Middle East, Europe, and Asia Pacific. Also, while competitors are targeting to gain a larger market share, strengthening the market position by enhancing their product portfolio would provide Mitsubishi with the first-mover advantage and gain a substantial share initially.
Source: Company Website, Press Release, and Company Annual Reports
The GIS market is driven by increased investments in transmission and distribution infrastructure, government initiatives toward improving electricity access, and growing share of renewable power generation. The base for the growth in this market is technological advancement; however, without approvals and certifications, progress in this sector is not possible.
There is considerable growth seen in the switchgear industry, and the trend is expected to continue, given the fact that the government is making significant investments to ensure uninterrupted power supply. In addition, the evolution in the real-estate sector is expected to be a key driver for the switchgear market. Meanwhile, the greater focus would be on the deployment as well as the development of advanced digital switchgears.
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