Substation Market Size By Technology (Conventional, Digital), By Component (Substation Automation System, Communication Network, Electrical System, Monitoring & Control System), Application, Connectivity, Voltage Level, End-use, Category & Forecasts, 2023 – 2032

Substation Market Size

Substation Market size valued at USD 114 billion in 2022 and is estimated to grow at 3.4% CAGR from 2023 to 2032. The substation unit serves as the junction point for electrical networks where transformers, bus bars, circuit breakers and switches join transmission and distribution lines. By essentially lowering or raising the voltage in transmission lines to a level acceptable for the distribution system, this permits the regulation of energy flow through the network.

The electrification of the off-grid network combined with a regional movement towards the use of renewable power infrastructure will accelerate the market growth. Strict government regulations for affordable, reliable electricity as well as a preference for increased energy efficiency, capacity growth, and technological developments.
 

COVID- 19 Impact

The pandemic altered the fundamentals of various sectors which includes customer behaviour, business revenues, and industrial operations. Regulatory efforts to effectively deal with the situation boosted the substation market outlook. In addition, the healthcare centres witnessed a high demand of electricity; however, unreliable power supply & strict emission norms increased the adoption of advanced power equipment. Moreover, ongoing vaccination drives, and the reopening of the entire globe have improved the overall scenario of the market.

Substation Market Trends

Rapid expansion of the electricity T&D sector is projected owning to the rising need for effective transmission & distribution control systems. Business opportunities will be further bolstered by a paradigm shift towards the improvement of existing infrastructure and the limited availability of efficient electrical grids in developing nations. Additionally, the deployment of substations will provide an uninterrupted supply of power and extend the life of the power grid, which will boost the industry dynamics. Additionally, favourable industrial and economic proximity along with regulatory support will enhance the business environment.

Substation Market Analysis

The digital substation market size is anticipated to surpass USD 6 billion at a CAGR of over 6% by 2032. The increased demand for dependable and safe electrical infrastructure across commercial, residential, utility, and industrial facilities will lead to more advanced product requirements, which will have a beneficial impact on technology penetration. Furthermore, governmental regulatory actions and modifications in line with typical product configurations for installers and end users will offer a positive outlook for business. The ongoing shift towards the electrification of off-grid networks and integration of renewable electricity infrastructure will have a favourable impact on the uptake of new technologies.

Ability to respond quickly to disasters, temporary load support, and the continual increase of transmission capabilities will all have a favourable impact on the deployment of substation automation systems. The penetration of the product will be increased by rising investments in cutting-edge technical advancements and growing digitalization of the industrial periphery. The industrial spectrum will also be advanced by the incorporation of sophisticated monitoring and control systems, better product combinations, and technical advancements. The product deployment will be encouraged by intelligent grid communication capabilities, reliability & availability, interoperability, ease of configuration & installation, and reduced copper wiring.

Powerline networks and monitoring hardware and software combined with quick integration of intelligent technology-aided systems across substation units to optimise overall functioning will support the substation market demand. To increase & decrease excessive intrusion expenses while establishing new substations, a sizable number of automated systems have been installed in conventional substation units. Additionally, the use of new digital substation units across transmission and distribution networks has increased in developing nations as a result of strong economic expansion.

The industry spectrum will witness significant growth through 2032, owing to paradigm shift towards the integration of electric-powered transport units and the necessity for safe and dependable electricity supply across these transport peripherals. The integration of sustainable electricity infrastructure, supported by finance from local regulatory authorities and institutions like the world bank, IFC, and similar organisations, along with the rising demand for power across a variety of businesses, would favourably influence the substation market revenue. The deployment of simple-to-install, dependable and energy-saving intelligent technology will also improve product implementation.

The Asia Pacific substation market will witness an annual installation of around 20,000 units by 2032. The demand for efficient transmission and distribution systems would increase on account of ongoing urbanisation favoured by the rapid infrastructure development across Asia Pacific nations, particularly China and India. The prognosis for company would be boosted by the rising need for substation components to meet the energy consumption across these enterprises. Additionally, the growing emphasis on the expansion of the commercial sector along with increasing investments in the area would greatly increase the demand for technology.

Substation Market Share

Prominent participants operating across the global substation market are:

• Hitachi Energy Ltd
• Efacec
• Tesco Automation Inc.
• Locamation
• Texas Instruments Incorporated
• Netcontrol Group
• Belden Inc.
• NR Electric Co. Ltd.
• Siemens
• General Electric
• Eato
• Schneider Electric
• ABB
   

For the market expansion, these companies focus on strategic alliances, new product launches, and commercialization. Additionally, these firms are heavily investing on research, which enables them to launch innovative products and generate maximum profit from the market.
 

Substation Industry News

• In January 2022, Efacec signed a contract with Red Electrica De Espana, a Spanish transmission and systems operator to supply over 20 power transformers for a 400 kV Peninsular Spain substation and a 245 kV substation in the Canary Islands for the modernization of power transmission grids. The contract is worth over USD 34 million, and the supply of power transformers will be carried out until 2024. REE is focused on electricity transmission networks of high voltage of over 44.500 km and 700 substations, establishing advanced features, safety, and durability of the transmission grid. This contract will aid the firm to expand its service portfolio across Europe, and thus gain a bigger market share.
   
• In November 2021, Schneider Electric acquired DC Systems, a solution provider for DC power conversion and AC/DC microgrids based in the Netherlands. The acquisition will strengthen the company’s energy solution portfolio and will aid the company to offer reliable, flexible, and sustainable energy infrastructure to its customers across Europe.
   

This substation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2019 to 2032, for the following segments:

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Market, By Technology (2019 – 2032)

• Conventional
• Digital

Market, By Component (2019 – 2032)

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

Market, By Application (2019 – 2032)

• Transmission
• Distribution

Market, By Connectivity (2019 – 2032)

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

Market, By Voltage Level (2019 – 2032)

• Low
• Medium
• High

Market, By End Use (2019 – 2032)

• Utility
• Industrial

Market, By Category (2019 – 2032)

• New
• Refurbished

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

• North America
  • U.S
  • Canada
  • Mexico 
• Europe
  • Germany
  • France
  • Italy
  • UK
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Oman
  • South Africa
• Latin America
  • Brazil
  • Chile