Japan Gas Insulated Transformer Market to Benefit from Growing Demand for Renewable Energy

Japan is a developed country with a high standard of living. The country has a large and growing population, which is putting a strain on the power grid. In order to meet the increasing demand for power, the government of Japan is investing in the expansion of the power grid. This includes the construction of new substations and the upgrading of existing substations.Gas insulated transformers are a key part of the power grid. They are used to transmit and distribute power over long distances. Gas insulated transformers are more efficient and reliable than traditional oil-filled transformers. They are also safer, as they do not contain any flammable liquids.

The demand for gas insulated transformers is expected to grow in Japan in the coming years. This is due to the increasing investment in the power grid and the growing demand for reliable and efficient power.

Read More: https://www.fairfieldmarketresearch.com/report/gas-insulatedtransformer-market

The global gas insulated transformer (GIT) market is poised for remarkable growth, with estimated revenues surpassing US$3.2 billion in 2022 and projected to achieve a robust CAGR of 4.6%, reaching over US$4.4 billion by the end of 2029, according to recent research.

The surge in demand for gas insulated transformers can be attributed to the adoption of environmentally friendly gases and materials in transformer construction, as well as efforts to minimize power losses in transmission and distribution. Governments worldwide have actively embraced these initiatives, leading to a potential decrease in transmission costs as manufacturers ramp up investments in developing such equipment. Moreover, the escalating electricity consumption in developing nations and the proliferation of electrification programs are driving the market growth of gas insulated transformers, particularly in countries utilizing gas-insulated substations.

The market's positive trajectory is further supported by major corporations' focus on introducing SF6 gas alternative transformers, driven by stringent environmental regulations. With the gas used in gas insulated transformers being non-explosive and non-flammable, routine oil checks are no longer necessary, highlighting their environmental advantages. These transformers find extensive applications in medium- and high-voltage settings, including underground shopping malls, hydroelectric and thermal power plants, chemical plants, and public water utilities. Their deployment enhances the reliability and security of power systems, aligning with government efforts to fortify transmission and distribution infrastructure.

Undoubtedly, the COVID-19 pandemic had a significant impact on the gas insulated transformer market. The outbreak, declared a global health emergency by the World Health Organization, led to substantial disruptions across various sectors, including finance, manufacturing, tourism, and international trade. Consequently, the global economy faced unprecedented challenges, exacerbating the already sluggish growth trajectory. However, as the world emerges from the pandemic, the gas insulated transformer market is expected to rebound, propelled by increased government initiatives and soaring power consumption.

Government-backed energy plant initiatives, designed to meet the growing energy demands, are set to drive the gas insulated transformer market forward. Notable examples include the construction of a new gas-insulated substation in Maharashtra, India, by the Indian government. With a capacity of 300MW, expandable up to 700MW, this project highlights the heightened efforts to develop gas and power plants worldwide.

Analyzing the market by type, the step-up transformer segment currently dominates the global gas insulated transformer market and is projected to maintain its dominance throughout the forecast period. Step-up transformers play a pivotal role in reducing overall investment costs, especially in areas with high land or earthwork expenses. The integration of step-up transformers with gas insulated switchgear eliminates the need for a separate transformer room, resulting in efficient gas insulated substations, particularly in areas with space constraints or contamination concerns.

In terms of configuration, the single-phase transformer segment commands a significant share of over 60% in 2021. However, the poly-phase transformer segment is expected to witness strong growth, projected to achieve a CAGR of 6.2% from 2022 to 2029, indicating lucrative opportunities in the near future.

Furthermore, the utility segment dominates the gas insulated transformer market, accounting for 79.2% of the global market share in 2021. The rising demand for reliable power supply, coupled with substantial investments in infrastructure development, underpins the utility segment's growth prospects. The commercial and industrial sectors, driven by rapid urbanization and the establishment of trade centers, are also anticipated to contribute to market expansion.

Geographically,Asia Pacific holds the largest market share in the gas insulated transformer market, led by India and China, which are significant electricity producers and consumers. The penetration of renewable energy and the shift away from coal-fired power plants in these countries are expected to further fuel the demand for gas insulated transformers. The governments of India, China, and Japan are increasingly focusing on energy security, smart grids, and energy-efficient technologies. China's power grid development heavily relies on ultra-high voltage (UHV) transmission projects, providing substantial opportunities for suppliers and manufacturers in the gas insulated transformer market.

In Europe, the growing adoption of renewable energy has created substantial prospects for GIT manufacturers, necessitating modifications to traditional grid infrastructure to accommodate smart grid integration with renewable generation.

Leading players in the global gas insulated transformer market includeABB Ltd.,Arteche, Fuji Electric, General Electric, Hyosung Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, SiemensAG, Toshiba Corporation, and X.D. Group.

For further details, please visit www.fairfieldmarketresearch.com.

Contact Fairfield Market Research

London, UK

UK +44 (0)20 30025888

USA (Toll-free) +1 (844) 3829746

Email: sales@fairfieldmarketresearch.com