From 2021 to 2028, the global substation market is predicted to grow at a CAGR of 3.3%, from US$ 95,723 million in 2020 to US$ 1,23,417 million in 2028.

Substations are components of the electrical generation, transmission, and distribution network. They change the voltage from high to low (or vice versa) and conduct a variety of other important tasks. Substations can be built in a variety of places, depending on the resources available.Substations with equipment, transformers, circuit breakers, and switches come in a variety of shapes and sizes.Power generating substations can currently meet the rapidly rising demand for electricity in every city and town. Nuclear, thermal, and hydroelectric stations are among the many types of power generation substations around the world.

Market Dynamics

The increased need for efficient electricity worldwide is the primary factor driving the growth of the global substation market. Substations are deployed to convert high-voltage electricity from the transmission system to lower-voltage electricity that can be conveniently distributed to homes and businesses via distribution lines. In addition, power generation capacity additions for distribution networks, as well as the upgrading of existing power infrastructures, are two major drivers that are expected to enhance the substation industry.

One of the most significant difficulties that utilities confront today is the aging of their power generation and distribution facilities. Utilities and grid operators bear enormous costs as a result of electricity infrastructure failure. According to the US Department of Energy, almost 75% of transmission lines and transformers in the United States are over 25 years old.

In addition, the sector is being propelled forward by expanding infrastructure development in smart cities, the rising need to replace old substation equipment, and increased interoperability and safety. However, high initial set-up costs associated with substations, as well as increased concerns about cyber-attacks, are projected to constrain demand for the substation industry. On the other hand, increasing investments of power companies in transmission and distribution networks are likely to generate numerous growth opportunities for the market in the coming years. Furthermore, the market expansion is projected to be aided by a greater focus on renewable energy generation and distribution in the coming future.

Market Insights

The global substation market is classified into seven segments – component, technology, connectivity, voltage level, application, end-use, and regions. Substation automation system, Electrical system (busbar, transformer, and protection devices (circuit breaker, protective relay, and switchgear)), monitoring & control system (programmable logic controller, human machine interface, and others), communication network, and others are covered under the component segment. By component, the substation automation segment held the maximum share in 2020. The introduction of IoT and cloud computing technologies are two important trends that will allow substation automation to be integrated for operational and financial benefits.

Based on technology the market categorizes into conventional and digital. The digital segment accounted for the maximum share in 2020. The demand for digital technology is increasing as a result of rising power demand, increased infrastructure development in smart cities, limited space availability,and a growing need for renewable energy projects and battery technology to create electricity.

The connectivity segment is divided into ≤ 33 kV, > 33 kV to ≤ 110 kV, > 110 kV to ≤ 220 kV, > 220 kV to ≤ 550 kV, and >550 kV. In 2020 ≤ 33 kV connectivity segment occupied the biggest share and is expected to lead the market in coming years. Growing planned investments and installation of ≤ 33 kV connectivity infrastructure in the Asia-Pacific region is likely to drive the segmental growth. For instance, the Asia Pacific substation market would have installed approximately 13,000 units per year by 2027.

On the basis of voltage level, the market splits into low, medium, and high. Because of the increased need for high voltage energy in both developed and emerging countries, the high voltage category earned a considerable boost in 2020. Meanwhile, the medium and low segments of the market grew steadily, owing to higher demand in small and medium businesses.

Transmission and distribution are bifurcated into the application segment. The transmission segment has gathered a significant market share in 2020. However, the distribution application is expected to attain a considerable growth rate during the projected years.

Furthermore, utility and industrial are the splits of the end-use segment. Among them, the utility segment conquered the largest market share in 2020. However, the industrial segment is likely to attain a significant impetus throughout the forecast period.

Substation Market Regional Overview

North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa are the categorization of the global Substation market. North America maintained a significant market share among regional distribution in 2020, because of the growing construction of smart grid networks and the restoration and refit of existing grid infrastructure.The Asia-Pacific region is predicted to have the highest CAGR during the forecast period due to growing industrialization, upgrading of grid infrastructure, and the entry of many private enterprises into the power sector. Increased government spending to enhance the utility industry, as well as an increase in the number of power utilities, are some of the main factors contributing to the Asia-Pacific substation market's quickest growth rate.

Global Substation Segment Analysis

Market By Technology

·         Conventional

·         Digital

Market By Component

·         Electrical System

o   Transformer

o   Busbar

o   Protection Devices

§  Circuit Breaker

§  Protective Relay

§  Switchgear

·         Substation Automation System

·         Communication Network

·         Monitoring & Control System

o   Human Machine Interface

o   Programmable Logic Controller

o   Others

·         Others

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 Application

·         Distribution

·         Transmission

Market By End-Use

·         Utility

·         Industrial

Substation Market Competitive Landscape

This section of the report identifies the market's major players. Alphapower Electrical Technology PLC, Belden, Cisco Systems, Eaton, Efacec, Emerson Electric, General Electric,NetControl Group, NR Electric, Rockwell Automation, Schneider Electric, Siemens, Tesco Automation, and Texas Instrumentsare the key companies mentioned in the research.

Substation Market Regional Overview