Substation Market by Component (Substation Automation System, Communication Network, Electrical System, Monitoring & Control System, and Others), by Technology (Conventional and Digital), by Voltage Level (Low, Medium, and High), by Application (Transmission and Distribution), and by End-use (Utility and Industrial) – Global Opportunity Analysis and Industry Forecast 2023-2030

Market Definition:

The Substation Market size was valued at USD 95.78 billion in 2022 and is predicted to reach USD 132.63 billion by 2030 with a CAGR of 4.8% from 2023-2030. 

A substation is a crucial part of an electrical power system that serves as a bridge between the high-voltage transmission lines transporting electricity from power plants and the lower-voltage distribution lines that provide power to homes and industries. Its primary function is to transform and regulate the voltage levels to ensure efficient transmission and distribution of electricity. 

Substations play a vital role in maintaining the reliability and stability of the power grid by controlling the flow of electricity, protecting against overloads and faults, and facilitating the integration of renewable energy sources. They often contain transformers, circuit breakers, switches, and other equipment, making them essential components in delivering safe and reliable electrical power to consumers. 

Market Dynamics and Trends

The growing demand for electricity across the globe, driven by the population growth, urbanization, and industrialization is driving the growth of the substation market to facilitate efficient electricity transmission and distribution.

Moreover, the growing adoption of renewable energy sources, such as solar and wind power that require efficient and flexible substations to manage the integration of intermittent energy generation and distribution is further boosting the growth of market. 

As per the International Energy Agency (IEA), the proportion of renewable energy sources in the worldwide power generation is projected to increase from 29% in 2022 to 35% by 2025. With the growing adoption of renewable energy across the globe, substation infrastructure is anticipated to play a pivotal role in efficiently integrating and distributing diverse energy sources.

Furthermore, favorable government policies and regulations promoting energy efficiency & sustainability to reduce carbon emission is further accelerating the growth of the advanced substations in integrating renewable energy sources and ensuring efficient electricity distribution. 

For instance, in August 2022, the Indian government introduced an updated National Determined Contributions (NDC) plan, aiming to achieve a 50% share of non-fossil fuel sources in the country's total installed power capacity by 2030. The initiative highlights the country’s efforts to reduce CO2 emissions while also transitioning to renewable and sustainable energy resources in its power generation. 

However, the high initial set-up cost involved in building substations, is the major factor restraining the growth of the market during the forecast period. 

On the contrary, introduction of digital substations along with the solid-state transformers (SSTs) to enable real-time data monitoring and control while offering higher energy efficiency and increased electricity power are expected to create ample opportunities in the growth of the substation market in the coming years.

Market Segmentations and Scope of the Study

The substation market share is segmented on the basis of components, voltage level, technology, application, end-user, and region. On the basis of component, the market is divided into substation automation system, communication network, electrical system, monitoring & control system, and others. 

Electrical system segment is further divided into transformer, busbar, and protection devices. Protection devices segment is further sub-classified into circuit breaker, protective relay, and switchgear. Monitoring & control system segment is further categorized into human machine interface and programmable logic controller. 

On the basis of technology, the market is classified into conventional and digital. On the basis of voltage type, the market is divided into low, medium, and high. On the basis of application, the market is divided into transmission and distribution. On the basis of end-use, the market is segmented into utility and industrial. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the predominant share of the substation market at present and is expected to continue its dominance during the forecast period. This is due to the increasing demand for reliable power infrastructure and substations, driven by the rapid expansion of industries, urban centers, and population in countries such as the U.S., Canada, and Mexico. 

As per the latest data from the U.S. Energy Information Administration (EIA), the United States' electricity consumption alone surpassed approximately 4.05 trillion kWh, highlighting the need for robust power infrastructure and substations to support the surging energy requirements in the region. 

Moreover, the rapid adoption of electric vehicles (EVs) in North America is further driving the need for a greater number of charging infrastructures, which in turn requires the installation of new substations. 

According to the California Energy Commission, zero-emission vehicles accounted for about 18% of new vehicle sales between January and September 2022. The country currently has over 116,000 public charging ports located at nearly 46,000 stations, driving the demand for electric charging substations to support the growing number of EVs on the roads throughout the country.

On the other hand, Asia-Pacific is expected to show a steady rise in the substation market. This is due to the growing infrastructure development and smart city projects, creating a huge demand for electricity in this region. 

For instance, in May 2022, Japan's NEC Corporation announced its commitment to support India's smart cities and 5G projects, boosting the demand for reliable and efficient power substations in the country. The collaboration aims to enhance India's infrastructure and digital capabilities, fostering sustainable urban development and connectivity.

Moreover, various players in the substation market are upgrading and modifying their infrastructure to transmit higher amounts of electricity and meet the future demand, which is further boosting the market growth in this region. 

For instance, in October 2021, the China Southern Power Grid (CSG) Ltd launched Pala 500 kV high voltage power transformer substation. The new substation system contributes to the construction of large-capacity and highly-efficient cross-border power transmission passage linking China, Laos, Thailand, and Vietnam.

Competitive Landscape

Various market players operating in the substation market include Arkema S.A., China Shipbuilding Industry Corporation, Sasol Limited, Xinji Xinneng Energy Co. Ltd., Yantai Jinzheng Eco-Technology Co. Ltd., Shanghai Jiuxing Investment Management Co. Ltd., Total S.A., Panjin Liaohe-Soken Chemical & Industry Co., Ltd., Soken Tecnix Co. Ltd., General Electric, NR Electric Co. Ltd., Efacec, Rockwell Automation, L&T Electrical & Automation, Texas Instruments Incorporated, and others. 

These market players are adopting various strategies, such as collaboration and product launches across various regions to maintain their dominance in the substation market. 

For instance, in June 2022, Efacec signed two contracts for the execution of two substation projects in Chile, worth USD 1.6 million. The contracts entail the installation of fast chargers for electric vehicles and the supply of transformers for a major solar photovoltaic project, contributing to Chile's sustainable energy initiatives. 

Moreover, in May 2022, Schneider Electric launched the 2nd generation Metalclad Distribution Substation (MDS). The MDS features a bunding system that captures oil leakage, making it ideal for environmentally sensitive locations such as electric vehicle charging parks, airports, factories, pharmaceuticals, retail parks, and railway infrastructure.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the substation market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the substation market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the substation market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

KEY MARKET SEGMENTS

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 Technology 

• Conventional 

• Digital

By Voltage Level 

• Low

• Medium

• High

By Application 

• Transmission 

• Distribution

By End-use 

• Utility 

• Industrial

By Region

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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