- Power utilities account for an estimated 43.5% market share in the modular substation market.
- Asia-Pacific was the largest market for modular substation.
- Industrialization & urbanization are the driving force of the modular substation market.
Global modular substation market is estimated to be at $10.78 billion in 2015 and is projected to reach $16.48 billion by 2020, at a CAGR of 8.85% from 2015 to 2020. Modular substations replace the conventional substation with modernized equipment and better power distribution in the networks. Major advantages of these solutions are lesser land requirement, automated solutions with minimal human interference, can be employed at areas with extreme environmental conditions, and lesser power theft.
Modular substation is an ideal solution for smart cities as well as traditional networks which require technical upgrades. It proves to be cost effective and increases the reliability on the Transmission and Distribution networks with reduced downtimes and power outages.
Modular or compact substation generally finds its application in power utilities, commercial, and industries. Significant presence of such equipment can be observed in smart grid and solar & wind applications. Apart from these markets, there are temporary installations of substations in restoration, construction or load sharing application. Skid or trailer mounted modular substation is a suited solution for such applications with effortless transportation and installation.
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Power Utilities: The major end user of modular substation
Power utilities started to utilize modular substations to a great extent, and currently are the largest consumers of such equipment. Modular substation help utilities to efficiently operate their power related infrastructure for power generation, transmission, and distribution purposes. Moreover, these solutions help utilities in integration of distributed generation with the central grid, thereby reducing power losses. Expansion of T&D networks and capacity additions are proportionately pushing the demand for modular substation in power utilities segment. Power utilities account for an estimated 43.5% market share in the modular substation market.
Asia-Pacific: The largest market for modular substation
Asia-Pacific was the largest market for modular substation, driven largely by the developments in fast growing economies such as China, India and other countries in the Southeast Asia. These developments are due to rapid urbanization and growing energy needs. Moreover, the adoption of smart grid & substation projects and focus on industrialization projects require modernized grid facilities that reduce environmental impact and improve reliability by using equipment such as modular substation.
Industrialization & urbanization are the driving force of the modular substation market
Continuous urbanization and industrialization is leading to new capacity additions in the developing regions such as the Middle East and Asia-Pacific, and replacement/upgrade of aging power infrastructure in the developed regions such as North America and Europe. The U.S. is expected to be the largest market for modular substation because of the country’s plans to improve and refurbish its existing power infrastructure.
On the other hand China is the fastest growing market for modular substations. This growth is attributed to the huge demand for power solutions in the country due to huge investments in capacity addition. Moreover, India is also expected to witness increase in demand for smart solutions in power sector because of its plans for rural electrification and high rate of urbanization.
Leading players in the industry, based on their recent developments and other strategic industrial activities, include ABB Ltd. (Switzerland), Eaton Corporation (Ireland), Siemens AG (Germany), General Electric Company (U.S.), and Crompton Greaves Ltd. (India).