Asia Pacific Substation Market

Asia Pacific Substation Market Size

The Asia Pacific substation market was valued at USD 67.3 billion in 2024 and is estimated to reach the value of USD 85.4 billion by 2034, growing at a CAGR of 2.7% from 2025 to 2034, due to the aging power infrastructure and increasing electricity demand in the region. Furthermore, development in urban areas, along with ongoing industrialization is set to improve the region’s electrical infrastructure.

The rapid infrastructural development and urbanization in the Asia Pacific region is accompanied by a growing population which is increasingly straining the supply of power and electricity. The considerable investment is being made in power generation and distribution facilities in India and China, improving the security and stability of the power grid by building new substations. The annual investment for clean energy for South Korea and Japan is reported to increase by approximately 40% and 10% respectively from 2021 to 2023, according to IEA reports.

The transition toward clean energy sources, including solar and wind, is driving the need for modernized substations, that are capable of handling variable power inputs. Many countries are integrating renewable energy into their grids, necessitating advanced substations. For instance, Japan has made strong progress in its green transformation, with over 128 gigawatts of installed renewable energy at the end of 2023. These developments will create a significant need for substations, thereby increasing its market across the Asia Pacific.

The countries in the Asia Pacific have developed multiple policies to enhance grid operating efficiency and decrease transmission losses. These policies have been pronounced in the case of India, which has been aggressively pursuing new advanced substations. India’s Revamped Distribution Sector Scheme (RDSS), which itself has a budgetary outlay of close to USD 41 billion and China's all out smart grid deployment program are important initiatives, thereby driving the need for substations. These policies will directly support Asia Pacific’s 2030 ambition of utilizing renewable energy capacity at its best.

The region’s need for more sophisticated substations, that utilize advanced technologies, is growing commensurately with the increasing requirement for reliable electricity and the commitment to renewables in the region. The integration of smart grids and IoT are transforming substations. With further development of the Asia Pacific, real-time monitoring, digital predictive maintenance, and IoT control systems are gaining traction, driving the demand for advanced substations. These systems reduce operational expenses and downtimes while ensuring efficiency.

Asia Pacific Substation Market Trends

• The compact designs, low maintenance, and high reliability of gas-insulated substations (GIS) make them more popular in densely populated urban areas. China, Japan, and South Korea are increasingly deploying GIS in order to effortless spatial constraints and enhance the efficiency of the grid systems. GIS technology is especially used in high-voltage power systems; thus, it is highly suitable for power transmission in metropolitan and industrial regions.
  
• As the region pivots toward renewable energy sources, substations are being upgraded to manage the intermittent power generated by solar and wind energy. The preference for solar and wind is significantly increasing, along with the rising focus on clean energy. In 2024, Japan's solar energy sector saw significant growth, with solar power becoming the largest source of clean energy, and the government aiming for 40-50% of electricity supply from renewables by 2040.
  
• In the entire Asia Pacific Region, the transition towards digitally automated substations is of utmost importance. The evolution to smart grids is encouraging a strong focus towards automatic and data driven systems. Active checkpoints, through the Internet of Things, in the form of control systems and sensors within digital substations facilitate better predictive maintenance, higher grid efficiency, and lower downtimes. Concerning improvement in grid stability and reliability, China is leading in the adoption of digital substations.
  
• Additionally, Japan and Australia are also pursuing new opportunities for growth by investing in the electrical infrastructure projects. For instance, Australia’s net international investment liability position reached USD 653.2 billion in 2024. The necessity to enhance grid dependability, accommodate renewables, and address evolving power needs is fostering the proliferation of modern substations and smart grids along with advanced metering infrastructure systems.
  
• As the digitalization of substations increases, cybersecurity is becoming a major issue of concern. In order to protect the substations from potential cyberattacks, both government bodies and utilities are increasingly investing in cyber protection. Such activities are particularly pronounced in Japan, South Korea, and Australia.
  

Asia Pacific Substation Market Analysis

• The Asia Pacific market for substation exceeded USD 59.8 billion, USD 63.8 billion and USD 67.3 billion, in the years 2022, 2023 and 2024, respectively. Particularly, the heightened need for electricity, faster adoption of renewable energy sources, advanced grid infrastructures, and ample government policies are the major drivers. The market size has consistently grown on a year-to-year basis showcasing increased spending in infrastructure, industry, and advanced intelligent power distribution systems.
  
• The new emerging economies and specifically India, Japan, and Australia are experiencing acceleration in both urbanization and industrialization. Such changes are resulting in new investments and power infrastructure development. Their electric grids are being developed (in expansion) and there is marked investment towards meeting the industrial electricity consumption. For instance, in India, where annual expenditures by the major utilities for electricity production and delivery surged from USD 287 Billion in 2003 to USD 320 Billion in 2023, a 12% increase over a span of 20 years.
  
• The conventional segment is anticipated to exceed USD 80.6 billion by 2034. China, India and Japan are enormously bringing multiple investments in the end use industries, thereby increasing their economy on a large scale. In 2024, China's GDP reached approximately USD 18.80 trillion, representing a 5.0% year-on-year growth, meeting the government's target of around 5%. These countries are continuously driving the demand for substation for electrical infrastructure.
  
• The digital segment is also projected to cross USD 4.5 billion by 2034. The enhancement of the grid’s reliability and efficiency has prompted policy action from governments in the region. Investments in substations in India are being driven by the country's Revamped Distribution Sector Scheme (RDSS) as well as China's massive spending on ultra-high voltage (UHV) transmission lines. Adoption of smart grids by Japan, South Korea, and Australia is also aiding market growth.
  

• The electrical system segment in the Asia Pacific substation market is anticipated to grow at a CAGR of more than 1.7% through 2034 due to the rapid expansion of renewable energy projects, increasing investments in transmission and distribution infrastructure, and the growing demand for grid modernization to enhance efficiency and reliability.
  
• Indicators of pollution are escalating in the Asia Pacific region, making carbon emissions a pertinent issue. For instance, there was an increase of 0.8% year over year in China’s CO2 emissions in 2024, hitting 37.8 Gt CO2, while there were increase in the addition of clean energy. It is observed that Asia Pacific countries are rapidly increasing their renewable energy capacity in order to achieve MPCC goals and mitigate carbon emissions.
  
• Rising electricity consumption has also necessitated the enhancement of electrical systems in substations. In 2023, it was reported that, South Korea consumed approximately 575 billion kilowatt-hours (kWh) of electricity, with per capita consumption around 11 MWh, and the country relies heavily on fossil fuels for electricity generation, aiming to increase its renewable energy share. These numbers indicate that the demand for substations will increase across the Asia pacific in coming years.
  
• In the Asia Pacific substation market, the monitoring and control systems segment is anticipated to grow with CAGR of above 3.7% through 2034, due to the growing adoption of smart grid technologies, increasing investments in digital substations, and the rising need for real-time data analytics to enhance grid reliability and efficiency. Smart grid technologies rely on advanced monitoring and control systems that provide real-time data on grid performance, allowing utilities to optimize power distribution and respond to faults quickly.
  
• In the Asia Pacific substation market, the communication network segment accounted for 15.7% of the market share in 2024. This is driven primarily by the adoption of smart grid technologies, increased spending on digital substations, and heightened requirements for communication linkages among grid elements for effective power transmission and distribution. There is further in demand in China for advanced communication networks because of the need to control data monitoring and remote supervision of grids due to the rapid expansion of smart grid initiatives in the country.
  

• The China substation market reached USD 18.5 billion, USD 20.2 billion, and USD 21.8 billion respectively in 2022, 2023, and 2024 respectively, owing to the country’s spending on upgrading its electrical grid infrastructure, large-scale implementation of smart grid technologies, and increasing adoption of renewables. Substantial investment into the sector with modern automation and communication systems, including digital substations, has yielded consistent market growth.
  
• The expansion of UHV AC and DC transmission lines in China aims to improve the efficiency of long-distance electricity transmission, lowering both transmission losses and stabilizing the national grid. The integration of UHV networks requires substations with high-capacity power flow capabilities, advanced high-speed processing units, and high-speed communication interfaces. The communication protocols IEC 61850 used in Chinese substations allow advanced communication between intelligent devices which leads to enhanced speed of fault detection and automatic grid operation.
  
• Moreover, India is also strategizing for multiple developments in electrical systems. For instance, India Investment Grid (IIG) has presented 406 project opportunities in the Transmission & Distribution (T&D) sector valued at USD 101.9 billion, showcasing the country’s relentless efforts to improve its electrical infrastructure and power supply capacity. Most of these projects are aimed at the construction of 400 kV and 765 kV transmission lines, which improves grid reliability and lowers the cost of energy transmission.
  
• In addition, India has also proclaimed the National Electricity Plan 2022-32 which details the Investment Plan of USD 400 billion alongside the requirement of 3.78 million power professionals by 2032. This is in order to resolve the issues concerning demand and supply. This plan underscores India’s efforts towards achieving energy security, enhancing grid dependability, and increasing the integration of renewable energy to reach its sustainability objectives.
  
• Japan is also investing heavily in its power and utility sectors, aiming for a greener future with increased renewable energy, hydrogen, and carbon capture technologies, while also strengthening its power grid infrastructure to meet growing demand. The nation seeks to achieve a 40 to 50% share of renewable energy in the electricity generation mix by 2040 and is furthermore encouraging the installation of renewable energy facilities such as solar and wind power plants.
  

Asia Pacific Substation Market Share

Top 4 companies, including ABB, General Electric, Siemens, and Schneider Electric, hold more than 30% market share around the region. With well-placed manufacturing plants and networks of services worldwide, these companies have established diverse R&D centers in all major regions. This ensures that all requirements from industrial clients to government agencies are met.

Asia Pacific Substation Market Companies

• In December 2024, Hitachi Energy invested around USD 47 million to advance its global strategy aimed at supporting the clean energy transition. Scheduled for completion by the end of 2025, this expansion is expected to boost the factory’s production capacity by over 40% and generate up to 200 new jobs.
  
• In June 2023, Siemens announced its plan of investment of around USD 2 billion to boost future growth, innovation and resilience. With this investment plan, Siemens has disclosed its plan to expand its production network and R&D capacities in Asia. New high-tech factory in Singapore have also been announced to serve growing markets in Southeast Asia. Also, it will expand its digital factory in Chengdu to boost further growth in China.
  

Asia Pacific Substation Market Companies

Major players operating in the Asia Pacific substation industry are:

• ABB
• Alstom
• Belden
• Cisco Systems
• Eaton
• Efacec
• Fuji Electric
• General Electric
• Hitachi Energy
• Larsen & Toubro Limited
• Mitsubishi Electric
• Rockwell Automation
• Schneider Electric
• Siemens
• SIFANG
• Tesco Automation
• Texas Instruments Incorporated
• Toshiba
  

Asia Pacific Substation Industry News

• In March 2025, Cisco in cooperation with Hitachi Ltd. will work to transform substation protection and control marketing data by digitization. This advancement changes the old copper wire to fiber optic ethernet which increases throughput so more critical substation data can be captured and installed wiring maintenance cost is simplified, reduced, and made more complex rather than simple.
  
• In February 2025, Eaton has showcased its latest innovations at Elecrama 2025, reinforcing its commitment to sustainable, efficient, and customer-centric power solutions. Eaton unveiled cutting-edge products designed to enhance reliability and performance across critical applications, renewable energy, and industrial power distribution. At the event, Eaton introduced the 9395 XR uninterruptible power supply system, an advanced power backup solution designed to maximize energy efficiency.
  
• In February 2025, Hitachi, the Japanese industrial conglomerate, increased the amount it is investing in startups to USD 1 billion, with the launch of its fourth corporate venture fund with a USD 400m allocation. The new fund will increase Hitachi’s ability to invest in generative AI startups.
  
• In October 2024, Hitachi Energy has planned to invest around USD 250 million in its operations in India over the next five years, contingent on continuing current underlying trends. This investment is part of the company’s larger USD 6 billion investment plans in manufacturing, engineering, digital, R&D, and partnerships across all major markets globally.
  
• In February 2024, GE Vernova’s Grid Solutions business announced that it has been awarded orders worth multi-million dollars from Power Grid Corporation of India (PGCIL) for the supply of 765 kV Shunt Reactors for various transmission system projects in India. These projects are part of PGCIL’s efforts to integrate renewable energy into the national electricity grid and enhance electricity transmission within the country, particularly in regions such as Rajasthan and Karnataka.
  
• In May 2023, Australia’s Edify Energy has partnered with the Siemens Energy Global GmbH to develop a 100% green hydrogen production facility in Queensland. The project will produce green hydrogen from Australia’s abundant supplies of solar power, supplemented by wind power.
  

This Asia Pacific substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” and “Units” from 2021 to 2034, for the following segments:

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Market, By Technology

• Conventional
• Digital

Market, By Component

• Substation Automation System
• Communication Network
• Electrical System
• Monitoring & Control System
• Others

Market, By Application

• Transmission
• Distribution

Market, By Connectivity

• ≤ 33 kV
• > 33 kV to ≤ 110 kV
• > 110 kV to ≤ 220 kV
• > 220 kV to ≤ 550 kV
• > 550 kV

Market, By Voltage Level

• Low
• Medium
• High

Market, By End Use

• Utility
• Industrial

Market, By Category

• New
• Refurbished

The above information has been provided for the following countries:

• China
• India
• Japan
• South Korea
• Australia