The Global Prefabricated Substation Market is estimated to reach $13.9 billion by 2025, growing at a CAGR of 10.6% from 2020 to 2025. The prefabricated substation is power distribution equipment designed with varying voltages ranging from low to high with broad market prospects. The prefabricated substation is widely used in three phase systems for line distribution of electrical energy owing to its advantage of compact size. Prefabricated substations are widely used in various end use industries owing to their wide range of applications in these industries like high public and operator protection levels, enhancing equipment lifespan, moisture resistant along with natural air cooling.
Rust-proof, moisture-proof, dust-proof, fire-proof nature of prefabricated substations among others are the major factors aiding the growth of prefabricated substations in various industries thereby driving the growth of the market.
- Rise in industrialization and centralization along with surge in adoption of new flexible modular substations for different industrial uses are driving the growth of the market.
- Modular Substations have wide applications in Energy and Power Utilities owing to its flexible power transmission, space reduction and cost effectiveness.
- APAC is expected to dominate the global Prefabricated Substation Market in the forecast period 2020-2025 owing to the rise in T&D networks along with surge in adoption of modular substations for various applications.
- The Gas Insulated substations are more costly as compared to the Air Insulated Substations. There are many design related problems related with the Gas Insulated Substations along with the challenges related to operational flexibility. These challenges could hinder the growth of the market.
By Voltage- Segment Analysis
By Voltage Prefabricated Substation Market is segmented into high voltage substation, medium voltage substation and low voltage substation. High Voltage substations are witnessing significant growth in the market as many of the industries are adopting these products with different technologies including air-insulted switchgear substations, gas insulated switchgear substations, mixed technologies substations among others for various industrial applications. The high voltage prefabricated substation is used by wind and solar power stations for power distribution purposes along with grids in railway electrification. Owing to the safe and reliable performance, low fault rate, need in large electrical power transmission applications and others the market for prefabricated substation is rising rapidly.
By End User – Segment Analysis
By End User the market is segmented into Oil and Gas, Energy and Power Utilities, Semiconductors, Metal and Mining and others. Energy and Power Utilities are dominating the market. Expansion of T&D networks and advancements in smart grid are some of the factors making this sector dominating among others. Prefabricated substations are used for power distribution ranging from low to high ratings versatility. Furthermore, in energy and power utilities they are majorly used as a result of their safety and reliability, cost effectiveness, space reduction capabilities and others.
Geography – Segment Analysis
Global Prefabricated Substation Market is dominated by Asia Pacific by a share of 35.7% in 2019. Asia Pacific is dominating the market owing to modernization of power generation and transmission industries, increased T&D networks and ongoing surge in adoption of high-power infrastructure. The investments made in T&D systems for maintaining current capabilities and reliability along with use in new technologies are driving the growth of market in this region. Furthermore, digitization in manufacturing and services has also driven the growth of the market by providing digital technologies through which Asian economies are in transformation stage. In addition, surge in adoption of expandable design of equipment configuration to meet the requirements of various applications are also fuelling the growth of market in this region.
Drivers – Prefabricated Substation Market
- Rise in the growth of micro grid and power generation & transmission Technologies:
Surge in adoption of modular substation devices with adequate electrical installation owing to benefits like reduced power consumption, reduced cost of energy, better use of electrical equipment and others. The high voltage substations are used in various micro grid transmission industries owing to their property of pooling power from generating sources and load point delivery. The modular substations select the configuration of high voltage to make the power systems run reliably owing to which they are adopted in the energy and power industries globally.
- Growth in Industrialization and Centralization:
Deployment of modular substations in the industries owing to the rise in the industrialization and centralization are fueling the growth of the market. Along with the rise in industries like Energy and Power, Oil and Gas, Petrochemicals there is significant growth in use of modular substations for power transmissions owing to their flexibility, space reduction and cost effectiveness. The rapid growth of industrialization has led to the more demanding well equipped, fast and cost effective power transmission sources in which the modular substations fits the best thereby aiding the growth of the market.
Challenges – Prefabricated Substation Market
- Cost and reliability Challenges:
As modular substations are exposed to outside environment regular maintenance is required as compared to the indoor substations. The parts of modular substations include transformers, switchgears and others which require high cost when purchased. Outdoor switch yards are more vulnerable when it comes to the influence of pollution, saline environment and other factors. If dust particles appear in the compartment of the gas insulated substations it could result in flashovers. The air insulated substations are less reliable when it comes to the influence of wind, air lightening and other factors. Furthermore, the gas insulated substations are expensive as compared to ordinary conventional substations.
Service Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Prefabricated Substation Market are given in this report. Prefabricated Substation Market is dominated by major companies such as ABB Group, Siemens AG, Schneider Electric Corporation, Qingdao TGOOD Electric Company, Spark Corp., GE Corporation, Ningbo Tianan Co. Ltd., Modpower Solutions, Skema S.P.A, Crompton Greaves Limited among others.
- Acquisitions/Technology Launches
- September 19, 2018- Eaton Corporation new gas insulated switchgear to the end users like data centers, Oil and Gas, Mining, Process Industries and others to provide advantages in safety and reliability. .
- August 27, 2018- GE Company launched 72.5KV compact gas insulated switchgear for digital substations, power transformers.