Electric Substation Market Size is expected to record an appreciable CAGR from 2022 to 2028. Electric substations constitute the interface between transmission systems and parts of the distribution grid in a particular region. These areas step down the voltage in transmission lines to the level that is suitable for the distribution grid. Electric substations also come with circuit breakers that are incorporated for the protection of the distribution system and can be effectively used for controlling the flow of current in numerous directions.
On the basis of type, the AIS substation segment is anticipated to register considerable growth through 2028. This is because the main circuit potential in these substations is insulated from the ground by air with the help of composite or porcelain bushings or insulators. Furthermore, AIS is fully composed from air-insulated technology components including capacitors, power transformers, circuit breakers, instrument transformers, disconnecting switches, bus bars, surge arrestors, and others. These factors are slated to drive segment growth through the coming years.
By application, the power transmission and distribution segment is estimated to account for a substantial share in the electric substation market by 2028. This is because a substation is a crucial part of electrical generation, distribution, and transmission systems and is highly useful in the transformation of voltage from high to low as per requirements. Additionally, substations are also used for dispatching electric power from generating stations to the consumption center.
Based on region, the North America electric substation market value is projected to record lucrative growth through 2028. This rise can be attributed to the presence of a stringent regulatory framework in the region. For instance, the U.S. EIA’s (Energy Information Administration) interactive U.S. Energy Atlas has a data catalog and an electricity map application. The catalog comprises data and locations for electric substations that are chiefly associated with electric power transmission.
Prominent players in the electric substation industry comprise Mitsubishi, ABB, Eaton, Siemens, CG, Schneider, General Electric, and others. These companies are focused on the implementation of strategic initiatives such as mergers, acquisitions, collaborations, partnerships and the development and rollout of different types of substations for establishing a strong foothold in the industry.
A few instances have been mentioned below:
The SARS-CoV-2 pandemic has transformed the functioning of power systems at the global level, offering a glimpse that low carbon sources would be a major part of the future electricity mix. The performance of nuclear power particularly demonstrates how nations can support the transition to a clean and resilient energy system. However, restrictions on social and economic activity during the COVID-19 outbreak have led to a sustained and unprecedented decline in the demand for electricity in numerous countries. This has created challenging conditions for both system operators and electricity generators, temporarily affecting digital substation market growth.