Utility-Scale Substation Market - By Technology (Conventional, Digital), By Component (Communication Network, Electrical System), By Application (Transmission, Distribution), By Voltage Level (Medium, High), By Category (New, Refurbished) & Forecast, 2024 – 2032

Utility-Scale Substation Market Size

Utility-Scale Substation Market size valued at USD 60.1 billion in 2023 and is estimated to exhibit over 2.6% CAGR from 2024 to 2032.  The substation unit serves as a crucial connection point for electrical networks, where transmission and distribution lines are interconnected with bus bars, circuit breakers, transformers and switches. Its main purpose is to regulate the voltage level in transmission lines, ensuring it is adjusted to an appropriate level for the distribution system. This enables the control and regulation of energy flow throughout the network.
 

The global utility-scale substation market is poised to observe significant growth due to the increasing electrification of off-grid networks and the growing adoption of renewable power infrastructure. Governments are implementing strict regulations to ensure affordable and reliable electricity, impacting the demand for utility-scale substations. There is also a strong emphasis on energy efficiency, capacity expansion, and technological advancements, which will further propel the industry's growth in the foreseeable future.
 

COVID- 19 Impact

The utility-scale substation market experienced significant disruptions and challenges due to the COVID-19 pandemic. The global lockdown measures and restrictions on movement and business operations had a profound impact on the construction and deployment of utility-scale substations. Supply chain disruptions, shortage of labor, and delays in project timelines were some of the key challenges faced by the market. Furthermore, the economic downturn caused by the pandemic led to uncertainties in investment decisions, resulting in project postponements or cancellations. The decline in electricity demand from commercial and industrial sectors also affected the need for new utility-scale substations.
 

However, the utility-scale substation market has shown resilience and adaptability in the face of the pandemic. The increased focus on renewable energy and the transition to a low-carbon economy have continued to increase investments in utility-scale substations. Governments and regulatory authorities have provided stimulus packages and policy support to encourage the development of renewable energy projects, including the construction of utility-scale substations. As the situation improves with vaccination efforts and the gradual reopening of economies, the utility-scale substation industry is forecast to recover and witness remarkable growth. The need for reliable electricity supply, grid modernization, and the integration of renewable energy sources will continue to drive the demand for utility-scale substations in the post-pandemic period.
 

Utility-Scale Substation Market Trends

The electricity transmission and distribution (T&D) sector is likely to experience rapid expansion due to the increasing demand for efficient control systems. There is a growing focus on improving existing infrastructure and addressing the limited availability of reliable electrical grids in developing countries, creating significant business opportunities. The deployment of substations plays a crucial role in ensuring uninterrupted power supply and extending the lifespan of the power grid, thereby positively impacting the industry landscape. Moreover, favorable industrial and economic conditions, coupled with regulatory support, will further enhance the business environment.
 

Utility-Scale Substation Market Analysis

The utility-scale substation market is segmented as conventional, digital based on technology. Among these, the digital substation market is projected to surpass USD 5.5 billion at a growth rate of nearly 5.5% by 2032. The growing need for reliable and secure electrical infrastructure in commercial, utility, and industrial settings is supporting the demand for advanced products with enhanced features. This trend is expected to foster the adoption of new technologies in the industry. Furthermore, the ongoing shift towards electrification of off-grid networks and the integration of renewable energy infrastructure will contribute to the increased adoption of innovative technologies including substations.
 

The utility-scale substation market is segmented as communication network, substation automation system, monitoring & control system, electrical system, and others based on components. The deployment of substation automation systems will benefit from their ability to provide quick response during disasters, support temporary loads, and meet the growing transmission needs. Increasing investments in advanced technologies and the digitalization of industrial infrastructure will influence the adoption of these systems. The integration of sophisticated monitoring and control systems, improved product combinations, and technological advancements will further enhance the industrial landscape. The adoption of these systems will be facilitated by features such as intelligent grid communication, high reliability and availability, interoperability, easy configuration and installation, and reduced dependence on copper wiring.
 

The utility-scale substation market is segmented as transmission and distribution based on application. Transmission substations are set to grow at a 3% CAGR through 2032 owing to the growing electricity demand across the globe. The growing need for electricity due to population growth, urbanization, and industrialization is driving the expansion of transmission substations. As power consumption continues to rise, new substations are required to transmit and distribute electricity efficiently. The integration of renewable energy sources such as wind and solar power into the grid requires the development of new transmission substations. These substations help connect renewable energy generation facilities to the existing transmission infrastructure, facilitating the integration of clean energy into the grid, which further complements the product penetration.
 

Asia Pacific utility-scale substation market is anticipated to witness an annual installation of around 11,500 units by 2032. The increasing urbanization and infrastructure development in Asia Pacific countries, particularly China and India, are rising the demand for efficient transmission and distribution systems. This presents a favorable outlook for companies involved in the substation market as there is a rising need for substation components to meet the growing energy consumption in these regions. Moreover, the expansion of the commercial sector and increasing investments in the sector further contribute to the increased demand for substation technology, therefore augmenting the utility scale substation market growth. The U.S. substation market is likely to cross USD 24.1 billion by 2032.
 

Utility-Scale Substation Market Share

Several key players are actively operating in the utility-scale substation market, including

• Hitachi Energy Ltd.
• Efacec
• NR Electric Co., Ltd.
• Siemens Energy
• General Electric
• Eaton
• Schneider Electric
• ABB
• Cisco Systems, Inc.
• Rockwell Automation, Inc.
• L&T Electrical and Automation
• Open System International, Inc.
• SIFANG
• CG Power & Industrial Solutions Ltd

These industry participants are engaged in various strategies to expand their market presence, such as forming strategic alliances, introducing new products, and focusing on commercialization. Additionally, significant investments in research and development enable these companies to launch innovative solutions and maximize their profitability within the market.
 

Utility-Scale Substation Market News

• In January 2022, GE announced that it has received various supply contracts for its low maintenance power transformers for multiple projects across the globe. The contracts include the supply of two 1,200 MVA 400 kV auto transformers for Scottish distribution network, supply of a small power transformer, GE-Mistral-14, a 14 MVA – 66 kV, for Dogger Bank, world’s largest windfarm, situated in Northeast England. The supply contracts will aid the firm in generating a higher revenue through its grid solutions, further expanding its customer base globally.
   
• In January 2022, Efacec, a company specializing in power transformers and other electrical solutions, has secured a significant contract with Red Electrica De Espana (REE), a Spanish transmission and systems operator. The contract involves the supply of more than 20 power transformers for the modernization of power transmission grids in Spain. Under the agreement, Efacec will provide power transformers for a 400 kV substation in Peninsular Spain and a 245 kV substation in the Canary Islands. The project aims to enhance the efficiency, safety, and durability of the transmission grids operated by REE, which manages high-voltage electricity transmission networks spanning about 44,500 km and encompassing around 700 substations. The total value of the contract is estimated to be over USD 34 million, and the delivery of the power transformers is scheduled to be completed by 2024. This partnership with REE not only signifies Efacec's involvement in the modernization of Spain's power infrastructure but also opens up opportunities for the company to expand its service portfolio across Europe, enabling it to capture a larger market share in the region.
   

This utility-scale substation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2019 to 2032, for the following segments:

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By Technology

• Conventional
• Digital

By Component

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

By Application

• Transmission
• Distribution

By Voltage Level

• Medium
• High

By Category

• New
• Refurbished

The above information has been provided for the following regions and country:

• 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