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Substation Market Size By Technology (Conventional, Digital), By Component (Substation Automation System, Communication Network, Electrical System {Transformer, Busbar, Protection Devices [Circuit Breaker, Protective Relay, Switchgear]}, Monitoring & Control System {Human Machine Interface, Programmable Logic Controller}), By Application (Transmission, Distribution), By Connectivity (≤ 33 kV, > 33 kV to ≤ 110 kV, > 110 kV to ≤ 220 kV, > 220 kV to ≤ 550 kV, > 550 kV), By Voltage Level (Low, Medium, High), By End-use (Utility, Industrial), By Category (New, Refurbished), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI4485
  • Published Date: Oct 2021
  • Report Format: PDF

Industry Trends

Substation Market size was valued at over USD 96 billion in 2020 and is set to grow at a CAGR of 3% between 2021 and 2027. The substation unit is an interface of electrical networks where transmission and distribution lines are connected to each other through circuit breakers or switches by transformers and bus bars. This enables the control of energy flow through the network and primarily lowers or raises the voltage in transmission lines to a level suitable for the distribution system.

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The regional shift toward the adoption of renewable power infrastructure coupled with electrification across the off-grid network will augment the global substation market growth. Stringent government norms regarding affordable uninterrupted electricity along with inclination toward enhanced energy efficiency, capacity expansion, and technological advancements will further drive the industry size.

Reliable & safe electrical infrastructure along with flexible product configurations will positively influence product adoption

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The digital substation market is expected to surpass USD 8 billion at a CAGR of over 6% through 2027. Advanced product specifications in line with the growing demand for reliable & safe electrical infrastructure across commercial, utility, industrial, and residential establishments will positively influence technological penetration. In addition, government regulatory initiatives and updates in accordance with standard product configurations for installers and end users will provide a favorable business outlook. Ongoing inclination toward the adoption of electrification across off-grid networks and renewable electricity infrastructure will positively influence technology penetration.

The power T&D sector is anticipated to experience a significant surge on account of the growing demand for efficient transmission & distribution control systems. A paradigm shift toward the expansion of existing infrastructure combined with the lack of efficient electricity grids across the developing countries will further complement business prospects. Positive inclination of end users toward the substation deployment to ensure uninterrupted power supply as well as increase in power grid life expectancy will further strengthen the industry dynamics.

Technological escalation along with the integration of smart monitoring & control substation units will sway the industry share

Ability of rapid response to disasters, temporary support of the load, and the ongoing expansion of transmission capacities will positively influence the substation automation system deployment. Rising investments in advanced technological developments coupled with the ongoing digitalization across the industrial periphery will augment the product penetration. In addition, the integration of intelligent monitoring and control units along with improving product configurations and technological escalations will propel the industry spectrum. Interoperability, reliability & availability, intelligent grid communication capabilities, ease of configuration & installation, and reduced copper cabling will stimulate the product deployment.

Ongoing installation of technology-aided smart units will propel the substation demand across the transmission & distribution network

The rapid integration of intelligent technology-aided systems, consisting of monitoring hardware and software along with powerline networks across substation units to optimize the overall functionality, will complement the product demand. However, a substantial amount of automated systems have been deployed in conventional substation units to increase & reduce excessive incursion costs while deploying new substations.

Rising electricity demand from industries as well as utilities will boost the business growth

A paradigm shift toward the integration of electric-powered transportation units along with the demand for safe & reliable electricity supply across these transport peripherals will complement the industry spectrum. The growing electricity demand across various industries coupled with the integration of sustainable energy infrastructure favored by funding from local regulatory authorities and institutions including the world bank, IFC, and similar organizations will positively sway the industry dynamics. In addition, the deployment of easy-to-install, energy-efficient, and reliable intelligent technologies will further enhance product implementation.

Growing demand for energy-efficient technologies will propel the industry outlook

A paradigm shift toward the retrofitting & refurbishment of overhead transmission along with underground line networks will augment the product adoption. Rising trends of energy-efficient technologies coupled with the growing investments in new grid infrastructure development will further complement the business scenario. Growing focus on replacing and expanding the existing power equipment with advanced systems will stimulate the industry spectrum.

Asia Pacific region dominates the substation industry on account of ongoing infrastructural expansion along with rising electricity demand

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Asia Pacific substation market will witness an annual installation of over 13,000 units by 2027. Continuous urbanization fostered by the rapid infrastructure development across Asia Pacific countries including China and India will accelerate the efficient T&D systems demand. The growing demand for substation components to cater to the energy demand across these establishments will foster the business outlook. Growing focus on the commercial sector development combined with the rising investments in the sector will significantly boost the technological demand.

Malaysia dominates the substation market across the Asia Pacific region on account of ongoing development of industrial sector along with decentralization of grid networks. In the recent years, Malaysian government introduced a plan ‘Green Technology Master’ to promote and establish green technology and economy further focusing on manufacturing sector. Furthermore, ongoing government reforms and policies and targets to integrate the power infrastructure with advanced and efficient electrical equipment coupled with utility inclination toward renewable generation sources will sway the industry outlook.

Government initiatives along with the re-initiation of industrial operations after the pandemic will fuel the business spectrum

The pandemic slightly altered the fundamentals of various sectors including business revenues, customer behavior, and some aspects of industrial operations. Government efforts to effectively deal with the situation further boosted the industry outlook. Moreover, the healthcare centers across the globe witnessed a high electricity demand; however, stringent emission norms and unreliable power supply increased the adoption of advanced power equipment.

Technological collaborations, agreements, and joint ventures will strengthen the position of various companies in the industry

Inorganic growth ventures, technological alliances, acquisitions & mergers, and Joint Ventures (JV) among industry leaders will propel the business outlook. For instance, in August 2021, Siemens bagged the contract to install over 7,500 km of high voltage DC transmission lines for the Suedlink substation, connecting Wilster and Bergrheinfeld to provide the required number of converters, and will prepare a detailed project report for facilities in the preceding months. This project will help the company get hold of positive industrial drivers across the European market.

Eminent players operating in the global substation market include Efacec, Siemens, NetControl Group, Locamation, Texas Instruments, Tesco Automation, Belden, Alphapower Electrical Technology PLC, NR Electric, General Electric, Hitachi ABB Power Grids, Eaton, Schneider Electric, Rockwell Automation, L&T Electrical and Automation, Open System International, Cisco Systems, cgglobal, Emerson Electric, Guodian Nanjing Automation, and SIFANG.

Global substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘Units’, ‘MVA’ & ‘USD’ from 2017 to 2027 for the following segments:

By Technology

  • Conventional
  • Digital

By Component

  • Substation Automation System
  • Communication Network
  • Electrical System
    • Transformer
    • Busbar
    • Protection Devices
      • Circuit Breaker
      • Protective Relay
      • Switchgear
  • Monitoring & Control System
    • Human Machine Interface
    • Programmable Logic Controller
    • Others
  • Others

By Application

  • Transmission
  • Distribution

By Connectivity

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

By Voltage Level

  • Low
  • Medium
  • High

By End Use

  • Utility
  • Industrial

By Category

  • New
  • Refurbished

The above information has been provided for the following regions and country:

  • North America
    • U.S
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Spain
    • Italy
    • UK
    • Netherlands
    • Russia
    • Sweden
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • New Zealand
    • Malaysia
    • Thailand
    • Singapore
    • Australia
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • Oman
    • South Africa
  • Latin America
    • Brazil
    • Chile
Authors: Ankit Gupta, Riya Gupta

Frequently Asked Questions (FAQ) :

Global market for substation surpassed USD 96 billion in 2020 and will expand at a CAGR of 3% from 2021 to 2027 with rising adoption of renewable power infrastructure and electrification across off-grid networks.
Digital substation industry size is estimated to cross USD 8 billion through 2027 driven by the surging demand for safe and reliable electrical infrastructure across utility, commercial, residential, and industrial establishments.
Substation industry in the Asia Pacific is expected to exceed an annual installation of 13,000 units up to 2027 owing to continuous urbanization and rapid infrastructure development in countries including India and China.
The companies operating in Efacec, Siemens, Texas Instruments, Hitachi ABB Power Grids, NetControl Group, Alphapower Electrical Technology PLC, Open System International, and Cisco Systems, among others.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 21
  • Tables & Figures: 1822
  • Countries covered: 28
  • Pages: 780
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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