Packaged Substation Global Market Report 2024

The packaged substation market has grown strongly in recent years. It will grow from $16.16 billion in 2023 to $17.76 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The expansion witnessed during the historic period can be linked to several factors. These include the accelerated pace of urbanization and industrialization, an upsurge in power demand, the integration of renewable energy sources, a heightened focus on grid stability, initiatives for rural electrification, and the implementation of stringent regulatory standards. These elements collectively contributed to the growth observed within this period.

The packaged substation market is expected to see strong growth in the next few years. It will grow to $24.86 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. Anticipated growth in the forecast period stems from several key factors. These include a drive towards enhanced efficiency and cost-effectiveness, a surge in data center construction, integration with energy storage systems, a heightened emphasis on environmental sustainability, and fortification against natural disasters. Noteworthy trends expected in this period encompass compact design and portability, smart grid integration, the adoption of modular and prefabricated solutions, emphasis on remote monitoring and diagnostics, the emergence of hybrid substation solutions, and increased collaborations and partnerships within the industry. These elements are poised to shape and drive growth within the forecasted timeframe.

The projected upsurge in electricity demand is set to drive growth in the packaged substation market. This demand, shaped by societal, economic, technological, and policy-related factors, finds applications for packaged substations in temporary or remote settings requiring swift and provisional power distribution solutions, such as construction sites or emergency response scenarios. For example, based on data from the Energy Information Administration in 2022, total U.S. electricity end-use consumption saw a 2.6% increase from the previous year, with retail electricity sales to residential and commercial sectors also rising by approximately 3.5% and 3.4%, respectively. This heightened electricity demand is a driving force behind the growth of the packaged substation market.

The increasing focus on integrating renewable energy sources is anticipated to propel the packaged substation market forward. Renewable energy integration involves seamlessly incorporating renewable sources into existing power systems. Packaged substations, designed to integrate energy storage systems, aid in effectively managing and incorporating renewable energy. These substations facilitate the connection of batteries or other storage solutions, optimizing energy flow and grid stability by storing excess renewable energy for later use. For instance, according to the National Renewable Energy Laboratory in September 2022, India can potentially harness 160 GW of solar and wind capacity to meet 22% of its power demand, leading to fuel savings and reduced emissions. This emphasis on renewable energy integration drives the growth of the packaged substation market.

Significant investments by major companies are fueling expansion and advancements in the packaged substation market. These investments are geared towards scaling operations, introducing new products, and fortifying market positions within the thriving global demand for efficient power distribution networks. For instance, in November 2021, the World Bank allocated a USD 135 million loan to West Bengal's government in India to enhance the state's power distribution network. This initiative aims to bolster power infrastructure, enhance efficiency, and elevate reliability in specific regions. The loan, supporting the Government of India's 24x7 Power For All Program, is financed by the Government of West Bengal and loans from the Asian Infrastructure Investment Bank (AIIB).

Product innovation emerges as a pivotal trend driving the packaged substation market. Companies within this market segment are introducing inventive products to maintain their market standing. For example, in April 2022, TP Southern Odisha Distribution Limited (TPSODL) in India unveiled a mobile compact substation. This portable substation, comprising a distribution transformer and high- and low-tension protective devices on a mobile trolley, takes approximately 1.5 hours to set up, offering swift power restoration in cases of transformer failure, emergencies in institutions such as hospitals, water supply systems, or during cyclones and storms. This innovation caters to immediate power restoration needs, showcasing the market's drive towards versatility and responsiveness.

In March 2021, Valmont Utility Services, a prominent U.S.-based global engineering and innovation leader, successfully acquired Kansas City Utility Packaging (KCUP) for an undisclosed sum. This strategic acquisition aligns with Valmont's objectives to enhance its supply chain efficiency and broaden its array of offerings within the sector. By integrating the specialized substation engineering, design, and packaging expertise of Kansas City Utility with Valmont Utility's steel structural design capabilities, this acquisition amplifies Valmont's overall capabilities. Kansas City Utility Packaging (KCUP) stands as a U.S.-based provider renowned for delivering services encompassing substation, transmission line, procurement, and packaging within the industry.

Major companies operating in the packaged substation market report are ABB Ltd., Schneider Electric SA, Eaton Corporation, Siemens AG, Larsen and Toubro Limited, General Electric Company, Lucy Electric Ltd., Toshiba Corporation, Tepco Group, C and S Electric Limited, E + I Engineering, AI Asry Electric Co. Ltd., Sudhir Power Ltd., Matelec Group, Anord Mardix Inc., Faremco International, Alstom SA, CG Power and Industrial Solutions Ltd., Alfanar Group Company, TGOOD Global Limited, Powell Industries Incorporated, Mitsubishi Electric Corporation, Hyundai Electric & Energy Systems Company Limited, Hitachi Limited, Fuji Electric Company Limited, Bharat Heavy Electricals Limited, Crompton Greaves Limited, HICO America Inc., Rittal GmbH & Co. KG, WEG S.A.

Asia-Pacific was the largest region in the packaged substations market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global packaged substation market during the forecast period. The regions covered in the packaged substation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the packaged substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Two primary types exist such as indoor and outdoor packaged substations. Indoor ones involve equipment installed within a structure to distribute high-voltage power to different electrical loads within a building or facility. These substations find application across various voltage ranges high, medium, and low and serve diverse sectors such as mining, power generation, oil and gas, infrastructure, and more.

The packaged substation market research report provides packaged substation market statistics, including global market size, regional shares, competitors with a packaged substation market share, detailed packaged substation market segments, market trends and opportunities, and any further data you may need to thrive in the packaged substation industry. This packaged substation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The packaged substations market consists of sales of transformers, switchyards, step-down transformers, and customer substations. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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