Global Substation Market Size, Share, and COVID-19 Impact Analysis, By Voltage (Low, Medium, and High), By Application (Transmission and Distribution), By End-user (Utilities and Industrial), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The Global Substation Market is projected to grow from USD 129.9 billion in 2021 to USD 181.3 billion by 2030 at a CAGR of 4.4% during the forecast period.

The substation unit is an electrical network interface that connects distribution and transmission lines via transformers, circuit breakers or switches, and bus bars. This allows for the controlling of transfer energy through the network, with the power in the transmission lines being lowered or raised to a level suited for the distribution system. The global substation market is expected to increase significantly during the projected period. The electrical system's substation automation is crucial. It is a grid building block that is essential for successful power generation, transmission, and distribution. The growing number of market players around the world is helping to drive the worldwide substation market forward, resulting in lucrative income potential for market participants.

COVID-19 ANALYSIS     

The COVID-19 pandemic has spread to almost every country on the globe. From power generation and oil and gas to manufacturing, railways, mining, and construction, almost every industry vertical is represented. To stop the spread of the COVID-19 epidemic, governments in several nations enforced severe containment measures. Unprecedented circumstances have had a negative influence on the power generation, transmission, and distribution segments. The supply chain was interrupted, and nations enforced travel bans, disrupting the manufacturing industry's raw material supply. Due to the statewide lockdown and falling power demand from the industrial and commercial sectors, a number of power transmission and distribution projects have been suspended. COVID-19 also caused other prospective projects to be postponed, as well as investment concerns in the industry.

LATEST TREND  

Growing Demand for Uninterrupted Power Supply

The majority of the world's power usage has increased dramatically in recent years. Power consumption has increased as a result of strong economic growth, expanding population, and greater industrialization. Electrically powered equipment is becoming more widely used around the world. Several economies are experiencing rising power demand as a result of the development of new and expanded energy infrastructure, as well as the expansion of current energy infrastructure. Rapid urbanization, combined with rising human living standards, raises the demand for reliable electricity generation. In order to satisfy increased power demand, some countries are increasing their power generating capacity and infrastructure investment for efficient transmission and distribution.

DRIVING FACTORS   

Increased Electricity Consumption from Industries and Utilities Will Propel Market Growth

The industry will benefit from a paradigm change toward the integration of electric-powered transportation units, as well as the necessity for safe and reliable electrical supply across various transport peripherals. The sector dynamics will be positively swayed by rising electricity demand across diverse industries along with the integration of sustainable energy infrastructure favored by funding from local regulatory authorities and institutions such as the World Bank, IFC, and similar organizations. Furthermore, the use of simple-to-install, energy-efficient, and dependable intelligent technology will improve product implementation.   

RESTRAINTS

Higher Reliance on Imports May Restraint Market Growth 

Raw materials such as steel, cables, and alloys are used in transmission and distribution lines and towers. Several countries throughout the world import these alloys in large quantities. Substations also make extensive use of components that are mostly imported by the majority of countries worldwide. The strong reliance on imports stifles market expansion because import and export restrictions change, affecting the overall expense of such equipment.     

SEGMENTATION

The Substation Market is segmented by Voltage, Application, End-user, and Region. Based on the Voltage, the market is categorized into Low, Medium, and High. Based on Application, the market is categorized into Transmission and Distribution. Based on End-user, the market is categorized into Utilities and Industrial. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.         

REGIONAL INSIGHTS

The Global Substation Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.     

North America is dominating the substation market due to the high level of electricity usage and electronic equipment penetration. This raises the need for efficient electricity grids, as well as transmission and distribution networks, throughout the region. This region is also experiencing replacement work for outdated infrastructure, which is propelling market expansion throughout the projection period.  However, Europe is expected to increase at a significant rate. Due to rising need for reliable power, this region is constantly expanding its electricity generation capacity. The amount of money invested in electrical grid infrastructure is likewise rising. During the forecast period, the above-mentioned variables lead to market expansion in Europe. 

Asia pacific is projected to see highest growth in substation automation market due to the demand for electricity is rapidly increasing as the population grows. Rapid urbanization and industry also raise the demand for a steady supply of electricity. China, India, and Australia are increasing their investments in the development of effective transmission and distribution systems. Governments are increasing electricity generation in the region, raising the demand for such systems to be installed. The increasing capacity of renewable energy also increases the number of such lines being installed. More than 55 GW of wind capacity will be installed in the region by 2020.

KEY INDUSTRY PLAYERS

The global substation market is extremely fragmented, with major market participants present in both developed and emerging markets. Siemens, Hitachi Energy Ltd., General Electric, Schneider Electric, Eaton, and L&T Electrical Automation currently have the lion's share of the market. These market participants are concentrating on growing their presence and gaining new contracts. For instance, GE announced in 2020 that it has secured a contract for a project in Benin. The company will deliver four substations, including gas-insulated switchgear (GIS), and seven substation additions for the project, which is valued at USD 47 million.   

KEY INDUSTRY DEVELOPMENTS:

September 2021- Relion relays from ABB helped Enel optimise and automate power distribution operations. Relion protection relays from ABB help to reduce the frequency of power outages and downtime. The time it takes to isolate the defective network part is expected to be reduced by about 20%. Relays are designed for digital substations and can exchange data through a communication network for increased operational safety. 

February 2022- The GE Group is planned to supervise the deployment of the digital substation, which includes enhanced digital monitoring, controls, and software systems, which was announced by GE and Bond. Between the offshore wind farm and the point of connectivity to the New York power grid, GE would supply the necessary connection and power balance.

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd. (Switzerland)
• Trilliant Holdings Inc. (U.S.)
• ALSTOM (France)
• Schneider Electric. (France)
• Cisco Systems, Inc. (U.S.)
• Siemens (Germany)
• Eaton. (Ireland)
• General Electric (U.S.)
• Itron, Inc. (U.S.)
• Echelon Corporation (U.S.)

SEGMENTATION

By Voltage

• Low
• Medium
• High

By Application

• Transmission
• Distribution

By End-user

• Utilities
• Industrial

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa