Asia-Pacific Package Substation Market Size Inclinations And...| MENAFN.COM

Tuesday, 27 September 2022 11:28 GMT

Asia-Pacific Package Substation Market Size Inclinations And Development Status Highlighted During Forecast Period 2022-2031


(MENAFN- America News Hour)

The market for package substation in Asia-Pacific region is expected to grow at a CAGR of over 6% during the forecast period. A packaged substation is employed to minimize space utilization, (step-up or step-down) transform voltage, and protect equipment in the event of abnormalities. Factors such as growing infrastructure development projects, smart cities projects, and increasing electricity demand, particularly in China and India, owing to rapidly increasing industrial and infrastructural development activities, are expected to drive the market in Asia-Pacific region during the forecast period. However, developments in automation substations and high costs associated with maintenance of the substations are expected to hinder the growth of the market studied.
– The power utility segment is expected to be the largest segment in Asia-Pacific region, during the forecast period. Many developing countries like China and India are expected to upgrade their power distribution sector, which is further expected to bolster the utility segment of packaged substation market.
– Packaged substations with better technologies such as integrated voltage transformation, equipment protection, metering and remote communication, and data logging provides enormous opportunities for growth of global packaged substation market.
– China is expected to be the largest market during the forecast period, owing to the factors such as rapid industrialization and urbanization electricity.

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Key Market Trends
Power Utilities Segment to Witness Significant Demand

– Power utilities are expected to increase the demand for packaged substation market, as packaged substation is an integral part of electric power distribution system. They form a crucial part in the power sector across distribution and equipment protection segments.
– Growing investments from power utilities to advance their transmission and distribution network is all set to fuel the demand for packaged substations in Asia-Pacific region during the forecast period.
– With Australia's ageing electricity infrastructure nearing the end of its lifespan, it has become crucial to refurbish/ renovate electricity distribution network for increasing renewable energy generation. Moreover, the country has been taking initiatives to modernize its energy infrastructure, for which, the government invests nearly USD 5 billion each year into the transmission distribution network.
– Furthermore, the Indian government plans to invest further in strengthening the electrical network, to build a strong and smart grid, and this, in turn, is expected to supplement the demand for packaged substation in the country.
– Packaged substations are preferred over conventional substations in utility sector, owing to the advantages such as improved logistics, easy specification, reducing overheads, and smaller foundations etc., which, in turn, drives the market during the forecast period.
– Therefore, with increasing urbanization and industrialization across the developing economies, the demand for packaged substation in Asia-Pacific region is expected to witness significant growth during the forecast period.
China to Dominate the Market
– In China, with electricity demand going up in the country, substantial investments in the power sector have been made, which are expected to boost the demand for package substation market during the forecast period.
– China has witnessed high rates of demand for electricity, owing to the unprecedented growth of economy, coupled with factors, such as rapid industrialization and urbanization electricity. The robust economic growth in China reached nearly 7%, and the gross electricity consumption grew by 6.6%, exceeding 6,000 TWh, for the first time in 2017.
– According to IEA, in 2018, China was the largest market for power sector investment, supported by increased demand for power in the industrial and commercial sectors. Also, the power transmission and distribution grid of China has been experiencing major upgradations and modifications for making it capable to transmit higher electricity and cope with the future demand.
– Utilities and governments in China are developing new generation projects, particularly renewable energy ones, to meet the rising electricity demand. Hence, to accommodate these projects, power infrastructure is required, which, in turn, is expected to drive the growth of packaged substation market in the country.
– In May 2018, the Chinese government abruptly decided to stop approving any new renewable projects until further notice. Back then, just half-way through the 13th five-year plan, the country had exceeded its official solar PV target of 105 GW by 2020 by nearly 47% I.e. as per sources, China is likely to install 23-31 GW of solar in 2020.
– Therefore, based on the above-mentioned factors, China is expected to have a positive impact on the packaged substation market in Asia-Pacific region during the forecast period.

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