Packaged Substation Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 4.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Packaged Substation Market Analysis
The packaged substation market is expected to record a CAGR of around 4.5% during the forecast period. The COVID-19 pandemic significantly impacted the market due to the decline in power demand from commercial and industrial (C&I) customer bases, like MSME industries, among other commercial places. As a result, distribution companies (discoms) faced financial challenges during the period. For instance, in FY 2021, the total discom losses in India were around INR 90,000 crores due to a crash in power demand from the C&I sector. The packaged substation market is likely to grow in the near future due to the requirement for efficient power distribution networks across the globe and the growing demand for the refurbishment of aging substation infrastructure. However, due to inadequate relative power handling capacity as compared to large outdoor substations, the market may face obstacles.
The power utility segment is expected to grow at a faster rate during the forecast period due to power demand growth in line with the global urbanization rate.
The increase in the renewable power generation capacity at the global level presents an opportunity for the package substation market. In order to reduce their carbon footprint, governments all over the world have set ambitious climate goals, including decarbonization in the industrial sector. The power industry is no exception to it. A huge distribution network of renewables-based power is being laid down in many countries.
The Asia-Pacific region is likely to hold the largest market share in the near future due to the high electrification rate in developing countries.
Packaged Substation Market Trends
This section covers the major market trends shaping the Packaged Substation Market according to our research experts:
Power Utilities Segment to Witness Significant Growth
With the rapid expansion in the urbanization of many semi-urban and rural areas globally, the power demand has steadily increased. The global power production capacity in 2020 was recorded as 26823 TWh, an increase of 24% over the last ten years.
The high rate of power production led to strong demand for upgradation of the power distribution infrastructure. Numerous types of power distribution equipment like substations for stepping up or stepping down voltages as per the application requirement are currently being established in many cities or towns to respond to the variable power load requirements. The package substations are generally needed in the case of low-to-medium voltage applications.
Apart from the basic load requirements, many nations are involved in advancing their power transmission and distribution infrastructure to increase the efficiency of power distribution and minimize T&D losses. Such projects are expected to complement the growth of package substations at the global level.
In July 2021, European Investment Bank (EIB) officially confirmed financial support of EUR 120 million to the discom of Romania, Electrica Group, for the upgradation of the power distribution networks in the country. The development work will include constructing new power lines, refurbishing power stations, and installing network automation components.
Furthermore, in December 2020, the Asian Development Bank (ADB) approved a combined sovereign and non-sovereign loan of USD 190 million for the modernization and upgradation of power distribution systems in Bengaluru, in the Indian state Karnataka.
Such initiatives at the national and international levels are likely to provide robust growth to the market over the coming years.
Asia-Pacific Expected to Witness Highest Growth
The Asia-Pacific region is blessed with enormous resource potential for electricity generation, particularly sustainable energy sources. Thus, almost all the countries in the region are currently on the track to adopting greener resources for power generation. However, the pace of energy transition varies from one country to another, which creates a huge demand for power grid connectivity.
The region has witnessed a continuous increase in the number of power substation installations to expand the grid connectivity or the electrification rate in economically emerging nations. Those projects have generally been the outcome of government initiatives to integrate renewable power generation into the central grid.
In August 2020, Japan's Economy, Trade, and Industry Ministry issued rules to reassess the use of power transmission lines in order to promote the expansion of renewable power generation in the country. It will also explore ways to avoid the disadvantageous treatment of renewable energy as compared to coal power with regard to power transmission lines.
Furthermore, it predicted that the demand for solar PV-based power production in China would easily surpass 100 GW in 2022, which will lead to a massive overcapacity situation in the country. Thus, an efficient and vast power distribution network will be required to balance the high renewable power production.
Such factors are expected to create a promising future for the package substation market in the region.
Packaged Substation Industry Overview
The packaged substation market is moderately fragmented. Some of the major players include Eaton Corporation PLC, General Electric Company, Larsen & Toubro Limited, Schneider Electric SE, and Kirloskar Electric Company Ltd, among others.
Packaged Substation Market Leaders
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General Electric Company
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Schneider Electric SE
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Kirloskar Electric Company Ltd
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Eaton Corporation Plc.
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Larsen & Toubro Ltd.
*Disclaimer: Major Players sorted in no particular order
Packaged Substation Market News
In January 2022, the World Bank forwarded a USD 135 million loan to the Indian state West Bengal's government to strengthen its power distribution network. The installation and upgradation of the power infrastructure are planned to improve the efficiency and reliability of power supply in selected areas of the state.
In January 2022, European Network of Transmission System Operators for Electricity (ENTSO-E) published the draft list of power infrastructure projects that will be evaluated to be included in the second edition of the Ten-Year Network Development Plan (TYNDP), 2022. The selected projects will be enforced, keeping in mind the power distribution targets for 2030 and 2040.
Packaged Substation Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Voltage
5.1.1 High
5.1.2 Medium
5.1.3 Low
5.2 Application
5.2.1 Power Utilities
5.2.2 Commercial & Industrial
5.2.3 Other Applications
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Eaton Corporation PLC
6.3.2 General Electric Company
6.3.3 Schneider Electric SE
6.3.4 Larsen & Toubro Ltd
6.3.5 ABB Ltd
6.3.6 Kirloskar Electric Company Ltd
6.3.7 Lucy Group Ltd
6.3.8 Alfanar Group
6.3.9 C&S Electric Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Packaged Substation Industry Segmentation
The packaged substation market report includes:
| Voltage | |
| High | |
| Medium | |
| Low |
| Application | |
| Power Utilities | |
| Commercial & Industrial | |
| Other Applications |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Packaged Substation Market Research FAQs
What is the current Packaged Substation Market size?
The Packaged Substation Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Packaged Substation Market?
General Electric Company , Schneider Electric SE , Kirloskar Electric Company Ltd, Eaton Corporation Plc. and Larsen & Toubro Ltd. are the major companies operating in the Packaged Substation Market.
Which is the fastest growing region in Packaged Substation Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Packaged Substation Market?
In 2024, the Asia-Pacific accounts for the largest market share in Packaged Substation Market.
What years does this Packaged Substation Market cover?
The report covers the Packaged Substation Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Packaged Substation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Packaged Substation Industry Report
Statistics for the 2024 Packaged Substation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Packaged Substation analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Packaged Substation Market Report Snapshots
