Low Voltage Substation Market Size - By Technology (Conventional, Digital), By Component (Substation Automation System, Communication Network, Electrical System, Monitoring & Control System), By Category (New, Refurbished), Country Outlook & Forecast, 2024 – 2032

Low Voltage Substation Market Size

Low Voltage Substation Market was valued at USD 40.4 billion in 2023 and is projected to grow at a CAGR of 2.3% from 2024 to 2032, driven by the increasing demand for reliable and efficient power distribution systems to support expanding urbanization and industrialization. The International Energy Agency (IEA) reported a 7% increase in investment in innovative digital infrastructure for electricity grids, covering both distribution and transmission sectors, from 2021 to 2022. Advancements in automation and smart grid technologies are enhancing the efficiency and reliability of low voltage substations, further boosting market growth.
 

Additionally, the integration of renewable energy sources into the power grid necessitates advanced substation solutions to manage fluctuating energy inputs, thereby contributing to the steady expansion of the low voltage substation market. Moreover, the increasing focus on energy efficiency and sustainability further drives the market growth. Governments and utilities are implementing stricter regulations and incentives to reduce energy consumption and carbon emissions, prompting the adoption of advanced substation technologies that enhance efficiency and integrate renewable energy sources.
 

Low Voltage Substation Market Trends

The low voltage substation industry is experiencing significant growth due to various factors such as the rising emphasis on integrating renewable energy, advancements in automation and smart grid technologies, and increasing digitalization. In 2022, renewable energy sources comprised 23% of the gross final energy consumption in the EU, spurring deployment opportunities across Europe. The demand for enhanced grid reliability and the integration of energy storage solutions are driving innovation in substation design. Additionally, the push for urbanization and industrial expansion requires more robust and scalable substation infrastructure. These trends are fostering the development of more efficient and resilient low voltage substations, catering to evolving energy needs.
 

Low Voltage Substation Market Analysis

Based on technology, the conventional segment is expected to cross over USD 44 billion by 2032. Conventional substations facilitate the reliable and efficient transformation and distribution of electricity across low voltage networks. Their recognised infrastructure and standardized equipment offer compelling solutions for power transmission requirements. Their scalability, reliability and ease of integration into existing grids support market expansion. However, digital substations are set to replace conventional ones, offering enhanced grid monitoring, automated processes, and optimized maintenance through innovative data analytics and real-time control systems.
 

The substation market for new installations is projected to grow at a CAGR of over 1.5% through 2032. Key drivers of this growth include increasing industrialization, urbanization, and the integration of renewable energy sources, which heighten the demand for newer units. Advancements in smart grid technologies, such as IoT sensors and predictive maintenance systems, are promoting the deployment of modern substations. Additionally, government initiatives supporting electrification projects and grid modernization are accelerating the rollout of new low voltage substations. The rising emphasis on energy efficiency and sustainability is further driving the adoption of advanced substation solutions, fueling market expansion.
 

Asia Pacific Low Voltage substation market is expected to surpass USD 26 billion by 2032, driven by rapid industrialization, urbanization, and infrastructure development. Government initiatives to upgrade power infrastructure and rising investments in renewable energy projects are key factors boosting demand for low voltage substations. For example, in 2022, India launched a USD 38 billion program to support power distribution companies and improve the country's distribution infrastructure. Additionally, the increasing need for reliable electricity supply and advancements in smart grid technologies are further propelling the growth of the low voltage substation market in the Asia Pacific region.
 

The U.S. low voltage substation market is propelled by efforts to modernize infrastructure for enhanced reliability and efficiency in power distribution networks. This involves replacing outdated substations with advanced, digitally integrated solutions that support smart grid technologies. Additionally, the increasing integration of renewable energy sources, like solar and wind power, requires new substations to facilitate their incorporation into the grid. Government initiatives focused on energy efficiency and carbon reduction drive investments in modern substation technologies. Furthermore, the rise in electric vehicle adoption necessitates expanded and upgraded low voltage substations to meet growing electricity demand across the U.S.
 

Low Voltage Substation Company Market Share

ABB holds a significant share in the low voltage substation market due to its innovative solutions and extensive global presence. A leader in digital technologies, ABB offers advanced substation automation systems, digital substations, and eco-efficient components. These solutions enhance grid reliability, efficiency, and sustainability, meeting the evolving demands of urbanization, industrialization, and renewable energy integration worldwide. ABB's commitment to innovation and reliability solidifies its position as a key player in the low voltage substation sector.
 

Low Voltage Substation Companies

Some of the key market players operating across the low voltage substation industry are:

• ABB
• AF Switchgear Ltd
• AK Transformers
• Boerstn Electric Co.,Lt
• Cisco Systems, Inc.
• DOHO Electric
• Eaton
• Efacec
• EVR Power
• General Electric
• Henan Fengyuan Power Technology Co.,Ltd.
• Hitachi Energy Ltd.
• Kexunan Electrical Technology Co., Ltd.
• Locamation
• Netcontrol Group
• Rockwell Automation, Inc.
• Schneider Electric
• Shenheng Power Equipment Co., Ltd.
• Siemens
• Tesco Automation Inc.
• Texas Instruments Incorporated
• TMEIC
• V POWER
• Yueqing Luban Technology Co., Ltd.
   

Low Voltage Substation Industry News:

• In April 2021, Hitachi Energy launched the ITT600 SA Explorer, an integrated testing tool designed to streamline the diagnosis and troubleshooting of substation automation systems compliant with the IEC 61850 standard. This tool features intuitive navigation for easy access to system components and presents application data comprehensively, aiding effective analysis and issue identification. ITT600 SA Explorer supports consistency checks both online and offline to ensure system integrity and reliability. Furthermore, this testing tool enhances overall substation performance, contributing to increased reliability.
   

This low voltage substation market research report includes an in–depth coverage of the industry with estimates & forecast in terms of volume and revenue in Units and USD Million from 2021 to 2032, 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