Di-Electric Gases Market Size, Share, Industry Analysis, Trends, Growth, Forecast 2030

Di-electric Gases Market: Industry Prospective

The global di-electric gases market size was worth around USD 180.78 Billion in 2022 and is predicted to grow to around USD 318.36 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.33% between 2023 and 2030. The report analyzes the global di-electric gases market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the di-electric gases industry. 

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Key Insights:

• As per the analysis shared by our research analyst, the global Di-electric Gases Market is estimated to grow annually at a CAGR of around 7.33% over the forecast period (2023-2030).
• In terms of revenue, the global Di-electric Gases Market size was valued at around USD 180.78 Billion in 2022 and is projected to reach USD 318.36 Billion Billion by 2030.
• Based on the End-use equipment, the gas-insulated lines, transformers, and switchgear is growing at a high rate and will continue to dominate the global market as per industry projections.
• On the basis of Application, the extra & ultra high voltage, high voltage, and medium voltage segment is anticipated to command the largest market share.
• In terms of End-user, the transportation, mining, heavy metals, chemicals & petrochemicals, oil & gas, power utilities, and others is projected to lead the global market.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Di-electric Gases Market: Overview

Di-electric gas also known as insulating gas present in the gaseous state that can prevent electrical discharge. Dielectric materials are pure and basic electrical insulators and by applying a sensible electrical field, dielectric gases can be polarized. Sulphur hexafluoride (SF6), and dry air are some of the examples of gaseous dielectric materials. In high-voltage applications, dielectric gases are used as insulators such as gas-insulated switchgear, gas circuit breakers, gas-insulated transmission lines, and other power equipment.

Di-electric Gases Market: Growth Factors

The global di-electric gases market is growing at a healthy rate. Some of the predominant factors that are spurring the growth of the global market are an increase in demand for gas-insulated transmission lines, a rise in high-energy transportation operations, and rapidly expanding power industries. Sulfur hexafluoride (SF6) is a strong electronegative gas both at room temperature and at temperatures well above ambient, which principally accounts for its decent arc-interruption and extraordinary dielectric strength properties. As compared to air at atmospheric pressure, the breakdown voltage of SF6 is approximately three times greater.

Further, due to heat transfer properties, it has fast self-healing and recovery properties as it can reform itself when separated under high gas-pressure conditions in an arc or electric discharge. Thus, it is widely used by the electric power industry as it reveals numerous properties that make it appropriate for apparatus utilized in the distribution and transmission of electric power. This is majorly contributing to the growth of the global di-electric gases market. Moreover, the growing adoption of di-electric gases in petrochemicals as well as the chemical industry is also fuelling the growth of the global market.

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On the other hand, the growing risk of using SF6 as it is a potent greenhouse gas with a huge potential of contributing to global warming may hamper the growth of the global di-electric gases market. However, the technological advancements and huge investments in R&D activities for SF6 technology alternatives to minimize the greenhouse effect may create numerous opportunities for the growth of the global di-electric gases market over the forecast period.

The Covid-19 pandemic hurts the global di-electric gases market. During the crisis period across the world, a huge reduction in commercial and industrial activities is been witnessed due to the strict lockdown and restrictions on movement. This resulted in a decline in electricity demand, ultimately affecting the use of di-electric gases in high-voltage applications. However, with the ease of the restrictions, the market may gain traction in the upcoming years.

Di-electric Gases Market: Report Scope

Di-electric Gases Market: Segmentation

The global di-electric gases market is categorized based on end-use equipment, gas type, application, end-user, and region.

Based on the End-use equipment, the global di-electric gases market is fragmented into gas-insulated lines, transformers, and switchgear.

The Application segment is bifurcated into extra & ultra high voltage, high voltage, and medium voltage.

Based on the End-user, the global market is split into transportation, mining, heavy metals, chemicals & petrochemicals, oil & gas, power utilities, and others.

Di-electric Gases Market dynamics

Key growth drivers 

A primary driver is the rising global demand for electricity due to rapid urbanization, industrialization, and the integration of renewable energy sources into power grids.  This growth necessitates the expansion and modernization of electrical infrastructure, which increases the demand for high-performance insulating materials. Another significant factor is the increasing focus on environmentally friendly solutions. There's a strong push to move away from traditional gases, such as sulfur hexafluoride (SF6), which have an extremely high global warming potential. This trend is creating a strong market for new, greener alternatives with lower environmental impact. Finally, technological advancements are leading to more compact and efficient electrical equipment, which relies on these improved dielectric gases for insulation.

Restraints

The high global warming potential and the associated strict environmental regulations on SF6 are major restraints. While this is also a driver for newer gases, the regulations and phase-down efforts can increase operational costs and complexity for companies still using or manufacturing SF6-based equipment. Another challenge is the cost and complexity of transitioning to new gas technologies. The adoption of new dielectric gas alternatives requires significant investments in research and development, as well as the redesign of existing equipment, which can be a slow and expensive process for equipment manufacturers and utility companies. There are also performance and reliability issues with some of the newer, eco-friendly gases, as they may not yet match the proven performance and long-term reliability of SF6 in all high-voltage applications.

Opportunities

The market for dielectric gases is seeing significant opportunities in the development of SF6 alternatives with low global warming potential, such as fluoronitriles and fluoroketones. These alternatives are opening up new revenue streams and enabling companies to meet evolving environmental regulations. The integration of smart grid technologies also presents an opportunity, as smart grids require advanced insulation and monitoring systems to ensure reliability, creating a demand for dielectric gases that can be used with digital sensors. Additionally, the increasing investments in power infrastructure upgrades, particularly in emerging economies, and the growing number of high-voltage direct current (HVDC) transmission projects, offer substantial opportunities for the use of new and more efficient dielectric gases.

Challenges

One of the key challenges is the long-term reliability and aging behavior of new gases. Unlike SF6, which has been used for decades and whose behavior is well-understood, the long-term performance of newer alternatives is still being evaluated. This uncertainty can make utilities hesitant to fully commit to the new technologies. Another challenge is the complexity of the supply chain and the potential for disruptions. Geopolitical issues can affect the sourcing of raw materials, which can lead to price volatility and supply shortages. Finally, there's a need to address the "black box" issue where the performance and behavior of new gas mixtures can be complex and difficult to fully model and predict, which can be a barrier to widespread adoption in critical infrastructure.

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Recent Development

• In October 2023, Siemens Energy introduced a new generation of dielectric gases aimed at improving insulation performance and sustainability in high-voltage electrical systems.
• In May 2022, Elsewedy Electric inaugurated Africa’s first busway dielectric system facility, providing enhanced safety and load distribution features.
• In June 2022, General Electric (GE) introduced an eco-friendly dielectric gas designed for transformers, targeting reduced greenhouse gas emissions without compromising performance.

Di-electric Gases Market: Regional Analysis

Among the regions, Europe is expected to be the largest contributing region in terms of revenue in the global di-electric gases market over the forecast period. This is attributable to the presence of major key players & production facilities, the increase in the adoption of gas-insulated transmission lines, and growing use of di-electric gases in the transportation sector. Asia Pacific is estimated to grow with the highest CAGR during the forecast period. Factors that are primarily contributing to the rapid growth of the market in this region are growing demand for di-electric gases from chemical & petrochemical as well as the mining industry and rapidly growing power industries.

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Di-electric Gases Market: Competitive Players

Some of the prominent players are operating in the global di-electric gases market.

• The 3M Company
• Messer Group GmbH

• Kanto Denka Kogyo Co. Ltd.

• The Linde Group
• KPL International Limited
• ABB Inc.
• Matheson Tri-Gas, Inc.
• General Electric
• Showa Denko K.K.
• Solvay S.A.
•  among others

The global di-electric gases market is segmented as follows:

By End-Use Equipment

• Gas Insulated Lines
• Transformers
• Switchgear

By Application

• Extra & Ultra High Voltage
• High Voltage
• Medium Voltage

By End-User

• Transportation
• Mining
• Heavy Metals
• Chemicals & Petrochemicals
• Oil & Gas
• Power Utilities
• And Others

Di-electric Gases Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

What Reports Provides

• Full in-depth analysis of the parent market
• Important changes in market dynamics
• Segmentation details of the market
• Former, on-going, and projected market analysis in terms of volume and value
• Assessment of niche industry developments
• Market share analysis
• Key strategies of major players
• Emerging segments and regional markets
• Testimonials to companies in order to fortify their foothold in the market.