Substation Market Share, Size, Trends, Industry Analysis Report, By Voltage (Low, Medium, and High); By Application; By End-User; By Component; By Technology; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM3164
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global substation market was valued at USD 126.42 billion in 2023 and is expected to grow at a CAGR of 4.5% during the forecast period. The substation unit serves as the intersection of electrical networks wherein bus bars, generators, and circuit breakers are used to connect both transmission and distribution connections. This makes it possible to regulate the flow of electricity across the network and, in particular, lowers or boosts the voltage in power grids to a level appropriate for the distribution network.
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Technology penetration will be positively impacted by improved product specifications that are in accordance with the rising demand for dependable & safe electrical infrastructure throughout commercial, utility, industrial, and residential institutions. A positive business outlook will also be provided by government regulatory activities and revisions by standard product configurations for installers and end users. Technology adoption will be favorably impacted by the ongoing trend toward electrification via off-grid connections and renewable electricity facilities.
The implementation of substation automation systems will benefit from the ability to quickly respond to disasters, temporary support of the load, and the continual expansion of transmission capacities. The electrification of the off-grid network combined with a regional movement toward the use of renewable power infrastructure will accelerate the expansion of the worldwide substation industry. In January 2023, To upgrade its transmission infrastructure, the Australian government committed more than $5 billion, as the need for private and public investments in grids grow globally.
Additionally, the incorporation of intelligent monitoring and control systems as well as bettering product designs and technical advancements would advance the industry spectrum. Reduced copper cabling, smart metering connectivity, interoperability, durability, and availability, as well as ease of installation and configuration, will encourage the product's adoption. Globally, microgrids are growing as a result of increased investment in electrical grid networks. Globally, investment in international grid networks is also rising. The demand for network infrastructure for the transmission and distribution of electricity around the world is rising as a result of rising power consumption. Global investment in "smart grids" networks is also rising quickly. During the anticipated period, the substation market will increase as a result of the aforementioned causes.
The fundamental of several industries, including business income, consumer behavior, and some facets of industrial processes, were slightly affected by the epidemic. The government's attempts to resolve the issue successfully enhanced the outlook for the sector further. Additionally, there is a large need for electricity in healthcare facilities all over the world. However, because of strict emission regulations and unstable power supplies, more complex power equipment is being adopted.
Industry Dynamics
Growth Drivers
Product adoption will be aided by a paradigm shift toward the retrofitting and refurbishing of subterranean and overhead transmission networks. The business scenario will be further complemented by the developing trends in energy-efficient technologies and the increasing investments in the construction of new grid infrastructure. For instance, in April 2022, The Power Grid Corporation of India Limited (PGCIL) declared that investments totaling Rs. 821.29 crores had been sanctioned for five projects across the nation. The Power Grid Corporation of India was created by the Government of India (GoI) to serve as the nation's primary transmission company. Therefore, the rising spending for the construction of new grid infrastructure is driving the growth of the substation market.
Increased spending on cutting-edge technology advancements along with the ongoing digitalization of the industrial periphery will increase product penetration. Substation digitization suggests improved operational effectiveness by utilizing modern technology and procedures. Digital substations provide advantages over traditional models in terms of investment and operational expenses. Additionally, the devices offer benefits including security, safety, interoperability, and high grid reliability. Backward compatibility, a feature of digital substations, permits seamless integration of cutting-edge communication technologies with a utility's older systems.
Additionally, the system provides a lower cost-benefit of maintenance due to the utilities' capacity to continuously monitor and adjust parameters. Substation automation also reduces the physical footprint, allowing utility operators to hire smaller spaces for the same purpose or use the area that is still available more efficiently. Worldwide, utilities are creating digital substations and expanding networking through new levels of digitization. Developing nations have also seen significant advancement in this area.
Report Segmentation
The market is primarily segmented based on voltage, technology, component, end-user, application, and region.
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By Voltage |
By Application |
By End-User |
By Component |
By Technology |
By Region |
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The distribution segment is expected to witness the fastest growth during forecast period
Global electricity demand is rising quickly, which may lead to an increase in the need for efficient distribution networks. The development of the distribution segment of this industry is driven by the expansion of current energy infrastructure as well as the rising demand for effective power grids across several emerging nations throughout the forecast period. A large increase in the electricity transmission and distribution sector is projected due to the rising demand for effective transmission and distribution control systems. Business possibilities will be further bolstered by a paradigm shift toward the improvement of current infrastructure and the absence of effective electrical grids in developing nations.
The industry dynamics will be further strengthened by end users' favorable attitudes toward the deployment of substations to ensure uninterrupted power supply and an improvement in power grid life expectancy. During the projected period, the transmission segment is expected to increase at a high rate. As end consumers' energy consumption rises and more power grids are installed around the world, there is a growing need for efficient transmission networks in many different countries. During the forecast period, the current trends are likely to increase demand for transmission networks.
The Industrial segment industry accounted for the highest market share in 2022
The industry spectrum will be complemented by a paradigm shift toward the incorporation of electric-powered transportation units and the necessity for a safe & dependable electricity supply across all these transport components. The inclusion of sustainable energy infrastructure, supported by financial support from the local authorities & international organizations, along with the rising demand for electricity across a variety of industries, will favorably influence the industry dynamics. The use of simple-to-install, energy-saving, and dependable intelligent technology will also improve product implementation.
The low voltage segment industry accounted for the largest market share in 2022
The low-voltage sector dominated the industry. Due to the expanding electrical supply-demand balance in the residential and commercial sectors, low-voltage systems are in great demand. The global population is growing at the same time that electronics are becoming more widely used. This raises the need for a constant supply of power. As a result, it can fuel the low-voltage segment's expansion over the projection period.
The demand in Asia-Pacific is expected to witness significant growth during projected timeframe
The demand for effective T&D systems would increase as a result of ongoing urbanization supported by the quick infrastructure development across Asia Pacific nations, including China and India. The business outlook would be boosted by the rising need for substation components to meet the energy consumption across these establishments. The region's population growth is causing a sharp rise in electricity demand. The requirement for an uninterrupted power supply is also rising as urbanization and industrialization take off quickly.
In China, India, and Australia, investments in the creation of efficient transmission and distribution systems are rising. Governments in the area are producing more electricity, which raises the need for the installation of such equipment. The installation of such lines is growing along with the capacity of renewable energy. The business sector's expansion is receiving more attention, and this attention, along with increasing expenditures in the industry, will greatly increase the demand for technology.
During the forecast period, North America is anticipated to contribute significantly. High levels of electronic device penetration and power usage are both present in this area. This raises the need for efficient electricity grids, transmission lines, and distribution networks in the area. This region is also experiencing replacement work for old infrastructure, which will fuel market expansion during the projection period.
Further, due to the continued development of the industrial sector and the decentralization of grid networks, Malaysia is the market leader for substations throughout the Asia Pacific area. In recent years, the Malaysian government unveiled a strategy called "Green Technology Master" to build and advance green technology and the economy, with a particular focus on the manufacturing sector. The outlook for the industry will also be affected by ongoing government reforms, laws, and goals to incorporate modern, energy-efficient electrical equipment into the power infrastructure as well as utility preferences for renewable energy sources.
Competitive Insight
Some of the major players operating in the global market include ABB Inc., Beiden Corp., Eaton Inc., Efacec Corp., General Electric Corp., Hitachi ABB Power Grids, L&T Electrical Automation Limited, NR Electric Co., Ltd., Novatech LLC, NEI Electric Power Engineering, Inc., Rockwell Automation Corp., Schweitzer Engineering Laboratories Inc., Sentient Energy Inc., Subnet Solutions INC., Siemens AG, Schneider Electric Limited, Tesco Automation Inc., Texas Instruments Incorporated, Tarigma Corporation, and Toshiba Corporation.
Recent Developments
- In December 2021, Iberdrola is intensifying its contribution to Brazil. The building and installation of a 500 kV sub-station with an expenditure of more than EUR 100 Mn, was granted to the Spanish company in a global transmission auction performed at the So Paulo stock exchange.
Substation Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 130.26 billion |
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Revenue forecast in 2032 |
USD 185.24 billion |
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CAGR |
4.5% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 - 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Voltage, By Application, By End-User, By Technology, By Component, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
ABB Inc., Beiden Corp., Eaton Inc., Efacec Corp., General Electric Corp., Hitachi ABB Power Grids, L&T Electrical Automation Limited, NR Electric Co., Ltd., Novatech LLC, NEI Electric Power Engineering, Inc., Rockwell Automation Corp., Schweitzer Engineering Laboratories Inc., Sentient Energy Inc., Subnet Solutions INC., Siemens AG, Schneider Electric Limited, Tesco Automation Inc., Texas Instruments Incorporated, Tarigma Corporation, and Toshiba Corporation |
FAQ's
The global Substation market size is expected to reach USD 185.24 billion by 2032.
Key players in the market are ABB Inc., Beiden Corp., Eaton Inc., Efacec Corp., General Electric Corp., Hitachi ABB Power Grids, L&T Electrical Automation Limited, NR Electric Co., Ltd.
Asia-Pacific contribute notably towards the global substation market.
The global substation market expected to grow at a CAGR of 4.34% during the forecast period.
The substation market report covering key segments are voltage, technology, component, end-user, application, and region.
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