Modular Substation Market size is projected to be worth USD 47.69 Billion, registering a CAGR of 7.70% during the forecast period (2024-2032). The market was valued at USD 22.7 billion in 2023.
A modular substation is an important component of an electrical generating, transmission, and distribution system that helps to change voltages and performs other activities such as monitoring, protection, and switching. High voltage equipment, power transformer, and medium voltage equipment are the three independent modules that make up a modular substation. These substations have some advantages over traditional substations, including reduced installation time and space savings while improving safety.
Local equipment rooms, LV/MV/HV packaged substations, generator power plant rooms, control rooms, and process or utility buildings are all examples of modular substation uses. Modular substations are built to work in hazardous, chemically contaminated, and potentially explosive settings. The global modular substation market is predicted to be driven by factors such as increasing urbanization and industrialization, aging power infrastructure, and minimal spatial requirements. One of the most significant difficulties that utilities confront today is the aging of their power-producing and distribution facilities. Utilities and grid operators bear enormous costs as a result of electricity infrastructure failure. They conserve space and can be used to upgrade power infrastructure in areas where space is limited. The worldwide modular substation market is projected to be driven by such reasons.
Modular substation is a critical part of electrical generation, transmission, and distribution system, which is designed to help transform voltages and perform other functions, including monitoring, protection, and switching. Modular substation consists of three separate modules, namely, high voltage equipment, power transformer, and medium voltage equipment. These substations offer many advantages to conventional substations including installation time and saving space while enhancing safety. Modular substation is used for a wide range of applications, including local equipment rooms, LV/MV/HV packaged substations, generator power plant rooms, control rooms, and process or utility buildings. Modular substations are designed to work safely in harsh, chemically contaminated and potentially explosive and environments.
In March 2024, Siemens came together with NVIDIA in terms of product development through collaboration. The merging of Siemens Xcelerator and NVIDIA Omniverse Cloud APIs has created an area for exploring a niche within the generative Al sector. The main aim is to highlight immersive real-time visualization.
In May 2023, ABB formed strategic partnerships with Lhyfe and Skyborn. This enabled the company to acquire a market base in Europe through an upcoming project. For instance, hydrogen will be used as fuel to generate power for renewable energy conservation and storage.
In December 2022, Eaton launched a new marketing campaign, which was a key strategic play in their marketing initiative. This campaign brought to the fore of this business new energy solutions that have been simplified. It also focused on sustainability when it ran.
The Indian government has plans to strengthen electrical network by building strong and smart grids. For example, the state government of Madhya Pradesh in India would expand and modernize its electricity distribution network from early 2022 using USD157.5m provided by KfW bank, Germany for smart grid and smart metering deployment purposes; thereby supplementing demand for modular substations.
In September 2021, Adani Group announced that it would invest nearly $20 billion in renewable power generation and component manufacturing during the next decade. Many opportunities would emerge from it in case of any player in the modular substation market.
In April 2021,the U.S Energy Department offered federal loans worth about $8.25bn aimed at upgrading and expanding the country's electric grid.USDA announces includes $3.25 billion allocated toward western states project funding while tribal lands are set aside with $2 billion. Thus, it is envisaged that the utility section of the modular substation market will be boosted.
In September 2019, VEO acquired TechTeam360 (TT360) a Swedish company specializing in turnkey and construction preparation of electrification projects. TT360 has an extensive base that includes transmissions and distribution networks which offer attractive opportunities for the VEO Group.
In March 2018, TGOOD won a tender for a 252kV modular substation offshore wind farm project in China. To make it easier to prefabricate, assemble, manufacture, transport, install on-site and construct these products are designed with modules.
Rising urbanization and industrialization, aging power infrastructure, and minimum spatial of requirements are the factors expected to drive the global modular substation market. Aging electricity generation and distribution infrastructure are among the biggest challenges that utilities face today. Due to the failure of power infrastructure, huge costs are incurred by the utilities and grid operators. According to the US Department of Energy, in the US, nearly 75% of transmission lines and transformers are 25 years old. Aging infrastructure is the biggest threat to the energy supply in the US and require replacement and refurbishment. So, modular substations and other equipment are required for reliable energy supply. Also, they save space and are useful for upgrading power infrastructure where space is at a premium. Such factors are expected to drive the global market. However, the factors such as lack of standardization and grid stability will pose a challenge to the global market.
Global modular substation market has been segmented based on voltage, type, fuel type, application, and region. Based on voltage, the market is classified into 11kV-33kV, 33kV-400kV, and above 400kV. The 33kV-400kV segment is leading the market, mainly due to the wide use of this substation by utilities for reliable power supply. The global market is further segmented based on insulation type into air and gas. On the basis of type, the global modular substation market is segmented into skid/trailer mounted and fixed. Skid/trailer mounted segment led the global modular substation genset market in 2018. The global market is segmented by application into power utilities, commercial, and industrial. Power utilities segment is estimated to hold the largest share in the Global Modular Substation Market during the forecast period.
BW Ideol and Hitachi ABB have decided to collaborate in the production of floating substations for supporting offshore wind farms.
Global modular substation market is expected to witness substantial growth during the forecast period owing to urbanization and industrialization, and aging power infrastructure. Asia-Pacific is expected to be the largest modular substation market, by region, during the forecast period. China is expected to be the fastest-growing market in Asia-Pacific owing to rising demand of power solutions due to the investments in power generation capacity additions. This is due to the urbanization and growing energy generation needs in the region. Moreover, the rural electrification plans are expected to further boost the demand of modular substation in Asia-Pacific. In North America, the US is expected to dominate the modular substation market owing to refurbishment of its existing power infrastructure. The Middle East also offers promising business opportunities in the market owing to rising infrastructural developments.
| Report Attribute/Metric | Details |
| Market Size 2023 | Â USD 22.7 Billion |
| Market Size 2024 | Â USD 24.47 Billion |
| Market Size 2032 | Â USD 47.69 Billion |
| Â Â CAGR | Â Â 7.70% CAGR (2024-2032) |
| Â Â Base Year | Â Â 2023 |
|   Forecast Period |   2024 to 2032 |
| Â Â Historical Data | Â Â 2019Â &Â 2022 |
| Â Â Forecast Units | Â Â Value (USD Billion) |
| Â Â Report Coverage | Â Â Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Â Â Segments Covered | Â Â Voltage, Type, Insulation Type, Application |
| Â Â Geographies Covered | Â Â North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Â Â Key Vendors | Â Â ABB Ltd. (Switzerland), Eaton Corporation plc (Ireland), Siemens AG (Germany), General Electric (US), Crompton Greaves Ltd (India), Bharat Heavy Electricals Limited (India), SPX Transformer Solutions Inc. (US), Skema S.P.A. (Italy), ModPower Solutions (Mexico), Enerset Power Solutions (US), American Modular Power Solutions Inc. (US) |
| Â Â Key Market Opportunities | Â Â Increasing Share of monitoring, protection, and switching |
| Â Â Key Market Drivers | Rising urbanization and industrialization Aging power infrastructure |
Frequently Asked Questions (FAQ) :
At 7.70% CAGR, the modular substation market can surge, from 2024 to 2032.
By 2032, the modular substation market can reach at USD 47.69 Million.
Eaton Corporation plc (Ireland), General Electric (US), Siemens AG (Germany), and Crompton Greaves Ltd (India) are some reputed companies in the modular substation market.
Air and gas are insulation types used for modular substation.
Power utilities, industrial, and commercial are areas of application of modular substation.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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