North America Substation Market Size - By Technology (Conventional, Digital), By Component, Application, Connectivity, Voltage Level, End-use, Category, Country Outlook & Forecast, 2024 – 2032

North America Substation Market Size

North America Substation Market was valued at USD 18.7 billion in 2023 and is anticipated to grow at a CAGR of over 4.7% from 2024 to 2032. Rapid urbanization and industrialization are leading to increased electricity demand, necessitating the expansion and upgrading of substations to ensure reliable power supply.
 

The integration of renewable energy sources, such as wind and solar, into the grid is also propelling market growth, requiring advanced substations to manage intermittent power generation efficiently. In 2022, wind and solar energy constituted around 15% of the electricity generation in the United States, while in Canada, they comprised roughly 6.6% of the electricity generation mix in the same period, thus creating a positive scenario for substation market growth across the region.
 

North America Substation Market Trends

The North America substation industry is witnessing several prominent trends shaping its trajectory, including the integration of smart technologies, such as digital monitoring and control systems, into substations to enhance operational efficiency and grid reliability. Additionally, there's a growing focus on grid modernization and resilience, driven by increasing concerns over climate change and extreme weather events. As per IEA, Canada's Smart Grid Program is allocating USD 100 million to bolster the implementation of smart grid technologies and integrated systems. This includes the adoption of advanced automation and cybersecurity measures to safeguard critical infrastructure.
 

Moreover, the expansion of electric vehicle (EV) infrastructure and the electrification of transportation are fueling demand for substations to support charging stations and manage the increased electrical load.
 

North America Substation Market Analysis

Categorized by technology, conventional segment is expected to exceed USD 27.5 billion by 2032, driven by its longstanding reliability and presence in North America. Conventional substations utilize traditional components like circuit breakers, transformers, and switches, providing a well-established and cost-efficient solution for electricity transmission and distribution. This segment is poised to maintain dominance owing to ongoing infrastructure projects, urbanization, and growing electricity needs in emerging economies throughout the North America region.
 

Categorized by application, the transmission segment is likely to achieve a CAGR of over 3.5% through 2032. As the demand for electricity continues to rise, driven by population growth, urbanization, and industrialization, there is a pressing need to enhance the efficiency, reliability, and capacity of the existing transmission infrastructure. This demand is further compounded by the increasing integration of renewable energy sources, such as wind and solar, into the grid. Consequently, utilities and grid operators are investing significantly in the construction of new substations and the upgrading of existing ones to accommodate these changes.
 

U.S. substation market is projected to surpass USD 24 billion by 2032 owing to the ongoing investments across upgrades, replacements, and expansions of the aging infrastructure of substations across the country to maintain reliability and efficiency. The rapid advancement of digital technologies and the adoption of smart grid solutions are driving the modernization of substations, enabling better monitoring, control, and optimization of power flows.
 

In 2022, the U.S. government directed over USD 89 billion towards investments in the electricity grid, as reported by the International Energy Agency (IEA). Approximately 20% of this funding was earmarked specifically for initiatives aimed at digital transformation within the grid, which complements the market statistics.
 

Supportive government policies and incentives aimed at promoting grid modernization and the transition to cleaner energy sources further contribute to the growth of the U.S. substation market, creating a favorable environment for investment and innovation in the sector. The increasing integration of renewable energy sources, such as solar and wind, into the grid requires the development of new substations and the enhancement of existing ones to accommodate the variability and intermittency of these sources.
 

North America Substation Market Share

Siemens stands as a prominent player in the North America substation industry, renowned for its comprehensive portfolio of innovative solutions catering to the evolving needs of grid modernization. With a strong emphasis on digitalization and sustainability, Siemens offers advanced substation technologies that enhance efficiency, reliability, and flexibility. Its commitment to providing cutting-edge solutions positions Siemens as a key contributor to the region's energy infrastructure advancement.
 

North America Substation Market Companies

Eminent players operating in the North America substation industry include:

• ABB
• CG Power & Industrial Solutions Ltd.
• Cisco Systems, Inc.
• Efacec
• Fuji Electric
• General Electric
• Hitachi Energy Ltd.
• L&T Electrical and Automation
• NR Electric Co., Ltd.
• Open Systems International, Inc.
• Rockwell Automation, Inc.
• Schneider Electric
• Siemens
• SIFANG
• Tesco Automation Inc.
• Texas Instruments Incorporated
   

North America Substation Industry News

• In March 2023, a strategic alliance between GE Digital and Siemens was unveiled to bolster digital substation capabilities in North America. This partnership seeks to fuse GE Digital's Predix platform with Siemens' digital substation solutions, facilitating live monitoring and management of power grids. The collaboration anticipates enhancing grid reliability, efficiency, and security, fostering growth within the digital substation sector throughout the region.
   
• In February 2021, ABB and Hitachi Power Grids announced the introduction of their Smart Digital Substation in North America. This cutting-edge solution merges ABB's digital substation technology with Hitachi's Lumada APM solution. The Smart Digital Substation aims to boost the reliability, efficiency, and security of power grids in North America, offering advanced predictive, prescriptive, and prognostic capabilities to optimize operations and minimize downtime.
   

This North America substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units & USD Million” from 2021 to 2032, 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 across the region:

• U.S.
• Canada
• Mexico