Low Voltage Substation Market Size - By Technology, By Component, By Category Analysis, Forecast, 2025 - 2034

Low Voltage Substation Market Size

The global low voltage substation market size was valued at USD 42.3 billion in 2024 and is estimated to reach the value of USD 52.2 billion by 2034, growing at a CAGR of 1.9% from 2025 to 2034. The world’s low voltage substations are being upgraded and expanded to cater to the growing electricity consumption across emerging regions like India, China, and the Southeast Asian countries. This is triggered by the increased consumption which is caused by growth in rural and industrial population, urban localities, and commercial zones.
 

Transmission and distribution systems are being upgraded by different governments and utilities globally. In November 2022, the U.S. electric power sector surpassed capital spending benchmarks set in with historic USD 179 billion investments, driven by heightened demand, renewables overtaking coal for the first time, and the grid enhancement focus. Implementation of smart grid technologies and automation increases the need for advanced, low voltage substations that interface with digital systems to improve efficiency and reduce downtime.
 

The growing penetration of renewable energy sources, such as solar and wind, is increasing the complexity of power distribution. In October 2024, Australia achieved 4.7 TWh of solar energy production, which accounted to 25% of their total electricity requirements. In the same year, Japan's government set target of increasing the contribution of solar power as a part of the country’s clean energy shift. The goal is to have renewables reach 40-50% of total energy by 2040. These figures indicate the rising the rising focus on renewable energy will be fostering further market growth.
 

Expanding industrial operations and commercial infrastructure require enhanced power supply and reliable distribution systems. Low voltage substations facilitate the smooth operation of machinery and equipment, which boosts demand in sectors such as manufacturing, data centers, and commercial complexes. Low voltage substations play a critical role in ensuring this by stepping down high voltage electricity to safe, usable levels, facilitating the smooth operation of industrial machinery, automated systems, and critical infrastructure.
 

The growing global population and urbanization are accelerating the need for new low voltage substations to be deployed in smart cities and urban areas. This is to meet the power requirements of advanced infrastructure. Powerful modern smart cities in developing regions, which have recently emerged, have absolute energy requirements, which further escalates the need for such substations. Low voltage substations also play a critical part in enabling consistent and multifunctional power supply in commercial, industrial as well as residential areas.
 

Low Voltage Substation Market Trends

• The analog to digital substation conversion is one of the unique trends in the low voltage substation market. To optimize the levels of human interaction and increase the detection of issues in a digital substation, IoT sensors, cloud computing, and real-time data analytics are employed. Enhanced remote monitoring and control using SCADA (Supervisory Control and Data Acquisition) and Remote Terminal Units (RTUs) improves response and recovery times.
   
• The increase in the use of modern technologies, including solar and wind energy, requires the inclusion of substations in the power system. Recently, in 2024, Norway added an additional 148.68 megawatts (MW) of solar power (PV) capacity which now takes the total installed PV capacity in Norway to over 750 MW. As of now, Norway is targeting a yearly production of 8 terawatt-hours (TWh) of solar energy by the year 2030.
   
• There is an increasing requirement for compact and modular substations because of the need for quick installation and expansion in urban areas. Modular type constructions shorten the installation period, increase ease of deployment, reduce operational costs, and increase flexibility. This pre-assembled required on-site work and was commissioned during substations which underwent factory assembly and testing prior to deployment. This is becoming popular in new developing regions and in Emerging Markets with growing urban infrastructure sprawling regions.
   
• The evolution of smart grid technologies is driving the adoption of low voltage substations equipped with advanced metering infrastructure (AMI), load management systems, and fault detection mechanisms. Utilities are investing in smart substations that can automatically respond to grid fluctuations, minimize power outages, and optimize energy distribution. This trend is accelerating in regions with strong government support for grid modernization, such as the United States, Europe, and China.
   
• As digital substations become more prevalent, the risk of cyber threats to critical power infrastructure has increased. Consequently, utilities are prioritizing cybersecurity enhancements in low voltage substations to safeguard sensitive data and prevent unauthorized access. The deployment of fire detection systems, and encryption protocols ensures the secure operation of substations in an increasingly interconnected grid environment.
   
• The proliferation of electric vehicle (EV) charging stations has led to a higher demand for low voltage substations to ensure reliable power distribution. This demand will further increase owing to the rising number in EV. Electric car sales neared 14 million in 2023, 95% of which were in China, Europe and the U.S. As the adoption of electric vehicles accelerates, particularly in urban areas, low voltage substations are being deployed to support the expansion of EV charging infrastructure.
   

Low Voltage Substation Market Analysis

• The low voltage substation market was valued at USD 38.1 billion, USD 40.4 billion and USD 42.3 billion in 2022, 2023 and 2024 respectively. Urbanization, especially in developing economies across Asia Pacific, Latin America, and Africa, is creating a surge in demand for reliable power infrastructure. As cities expand and new smart city projects emerge, low voltage substations are being deployed to support energy-intensive applications such as residential complexes, commercial buildings, and industrial facilities.
   
• The rising preference for clean energy sources is remarkably driving the substation industry across the world since substations are highly required for power transmission and distribution. In 2024, the global wind energy sector experienced significant growth, with capacity additions reaching record levels and a global cumulative capacity surpassing 1 terawatt (TW). The rising demand for electricity will further increase this number, thereby growing the overall low voltage substation market worldwide.
   
• The conventional substation segment in the low voltage substation market is anticipated to surpass USD 47.6 billion by 2034 due to several critical factors, including the ongoing expansion of industrial infrastructure, increasing urbanization, and continued reliance on proven and cost-effective technologies. Conventional substations, which use traditional electromechanical equipment and switchgear, remain a preferred choice in various applications where simplicity, reliability, and affordability are prioritized.
   
• Government initiatives aimed at extending electricity access to underserved areas, particularly in India, Africa, and Southeast Asia, are expected to drive the installation of conventional substations over the next decade. India is actively expanding its substation capacity to meet growing electricity demand, with a focus on 220kV and higher voltage substations, aiming for a total transformation capacity of around 18.8 million MVA by March 31, 2027.
   
• Even as digital substations gain traction, a significant portion of existing power infrastructure globally still consists of conventional substations. Many utilities are investing in the retrofit and modernization of conventional substations to enhance their efficiency and extend their operational lifespan. This ongoing modernization includes upgrading switchgear, transformers, and protection systems, ensuring that conventional substations continue to play a vital role in the power distribution landscape through 2034.
   

• The electrical system segment in the low voltage substation market is anticipated to grow at a CAGR of more than 1.7% by 2034 due to increasing demand for power infrastructure upgrades, the expansion of renewable energy integration, and the growth of industrial and commercial facilities requiring efficient power distribution. Electrical systems, which include transformers, switchgear, circuit breakers, busbars, and protection devices, play a critical role in ensuring seamless power distribution and grid stability, driving sustained growth in this segment.
   
• The shift toward solar and wind power renewables is augmenting the demand for automatic, dependable electrical systems in LV substations integration with the existing distribution network. In 2024, renewables accounted for 46.9% of net electricity produced within the EU, and Denmark topped the rank in renewables share in net electricity generation with 88.4 percent, predominantly from wind.
   
• In the year 2024, the communication network segment in the low voltage substation market holds a market share of 18.2% due to the rising implementation of smart grids and the need for real-time data monitoring and management. The value of advanced communication systems such as the IEC 61850 and DNP3 Standards for telecommunication in construction and remote industrial substation monitoring is becoming increasingly apparent for utility systems undergoing modernization. These systems support telemetry and remote operations, allowing for advanced maintenance and operational control.
   
• The rapid growth of electric vehicle (EV) adoption globally is driving the development of EV charging stations, which require robust low voltage substations with advanced electrical systems. In January 2025, battery electric vehicles (BEVs) accounted for 15% of the EU car market, a significant increase from 10.9% in January 2024, with BEV sales surging 34% to 124,341 units. These numbers also indicate that the demand for this segment will significantly increase.
   
• Now, regulatory bodies focus on reliability, quality, safety, and other associated standards for the power distribution systems. To guarantee compliance with these rules, advanced systems of electrical supply with protective relays, circuit breakers, and transformers must be installed for stable power supply. Increased spending on advanced electrical systems capable of meeting stringent safety and reliability standards will be needed, thus increasing demand on high-performance electrical systems and propelling versatile growth in the global market.
   

• In 2022, 2023, and 2024, the value of the U.S. low voltage substation market was USD 4.5 billion, USD 4.7 billion, and USD 5 billion, respectively fueled by reasons including growing grid modernization investment, wide scale adoption of renewable energy, and development of industrial and commercial infrastructure. The sustained growth during this phase indicates the increasing demand for dependable power distribution systems to aid in adapting to the changing energy ecosystem and provide stability across multiple domains.
   
• Governments and utilities in both developed and developing nations in the Asia Pacific region are modernizing aging power infrastructure with the hopes of improving grid resilience and operational efficiency. China's utility sector continues to draw capital for investment, particularly with respect to green energy and infrastructure owing to the Belt and Road Initiative (BRI), which is often defined in USD. The BRI includes construction contracts amounting to some USD 634 billion and other non-financial investments of approximately USD 419 billion.
   
• The adoption of wind and solar power in Europe is rapidly growing, thereby augmenting the capacity for wind and solar photovoltaic (PV) generation. In 2024, the European Union installed 65.5 GW of solar PV, marking the eighth consecutive year of record-breaking annual additions. In 2024, the European Union installed 65.5 GW of solar PV, marking the eighth consecutive year of record-breaking annual additions.
   
• In Middle East and Africa, the growing number of projects in the end use industries are also creating a massive requirement for LV substation. The end use industries including oil & gas, mining, manufacturing, utilities are significantly growing due to rising urbanization and industrialization, along with emerging economies. Saudi Arabia, Iraq, Iran, and the United Arab Emirates have major oil refineries in the region because the Middle East is a core driver in world oil production, accounting for approximately 31.5% of global production in 2023.
   
• Countries like Brazil, Mexico, Argentina and Colombia are examples of Latin America undergoing rapid industrialization and urbanization. The construction of new manufacturing and commercial enterprises, as well as metropolitan residential developments, is creating a need for low voltage substations to optimize power distribution and minimize operational interruptions. This development makes Latin America an increasingly important part of the region’s overall growth.
   

Low Voltage Substation Market Share

Top 4 companies, including ABB, General Electric, Siemens, and Schneider Electric hold more than 30% market around the world. Firms within the industry develop new products and solutions to capture a market presence on a global level. Conversely, these firms do seem to invest a lot in research and development. They generally work to broaden their market and, as a result, capture a large portion of the industry.
 

Low Voltage Substation Market Companies

Major players operating in the low voltage substation industry are:

• ABB
• Alstom
• Belden
• Cisco Systems
• Eaton
• Efacec
• General Electric
• Grid to Great
• Hitachi Energy
• L&T Electrical and Automation
• Mitsubishi Electric
• Netcontrol Group
• Open System International
• Rockwell Automation
• Schneider Electric
• Siemens
• SIFANG
• Tesco Automation
• Texas Instruments Incorporated
• Toshiba
   
• In December 2024, Hitachi Energy invested approximately USD 47 million to expand its global strategy to support the clean energy transition. Set to be completed by the end of 2025, the expansion will increase the factory’s production capacity by over 40% and create up to 200 new jobs.
   
• In July 2024, the Toshiba Group declared it would invest 6 million dollars toward improving the power transmission and power distribution equipment manufacturing facilities in India. The company reports that TTDI Toshiba Transmission & Distribution Systems (India) Pvt Ltd will increase its’ capacity for manufacturing of power and distribution transformers by about 150% of the fiscal year 2023, during the period of FY 2024 to FY 2026.
   

Low Voltage Substation Industry News

• In February 2025, Lauritz Knudsen, is set to unveil its comprehensive switchgear portfolio at ELECRAMA 2025, the largest electrical exhibition in India. The new portfolio features advanced, high-performance switchgear solutions designed to enhance safety, reliability, and energy efficiency across residential, commercial, and industrial applications.
   
• In December 2024, The Federal Executive Council approved approximately USD 160 million for the first phase of the Presidential Power Initiative, otherwise known as the Siemens Project. The project involves engineering, procurement, construction and financing for 330/132 KV and 132/33 KV substations in Onitsha, Offa, Abeokuta, Ayede and Sokoto.
   
• The Sharjah Electricity and Water Authority (Sewa) has announced the launch of the largest 220 kV substation in its network, located at the airport area in Umm Fannin. This strategic move, with a cost exceeding USD 136 million, is aimed at boosting the energy infrastructure of Sharjah city, said Sewa in a statement. The project was carried out in collaboration with Siemens Energy and General Projects Company for Mechanical and Electrical Contracting.
   
• In February 2023, the U.S. Department of Energy announced USD 48 million in funding to support a new program focused on developing power grid technologies that improve control and protection of the domestic power grid. This initiative aligns with broader goals to accelerate renewable energy deployment and achieve 100% clean electricity by 2035.
   

The low voltage substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” and “Units” from 2021 to 2034, for the following segments:

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Market, By Technology

• Conventional
• Digital

Market, By Component

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

Market, By Category

• New
• Refurbished

The above information has been provided for the following Regions and countries:

• 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