Global Modular Substation Market Size, Demand, Forecast To 2031

(MENAFN- Straits Research) Introduction

A modular substation is a prefabricated and compact electrical substation designed for simplicity of construction, scalability, and power distribution flexibility. These substations often transform and distribute electrical power in various settings, including utility networks, industrial facilities, commercial buildings, and renewable energy installations. Continuous transmission capacity growth to meet rising electricity demand may benefit the market.

Furthermore, the market is likely to be fueled by rising urbanization and widespread industrialization. As a result, utility operators are looking for cost-effective electrical equipment for power transmission and distribution, and modular substations offer a modest design with low production costs, potentially expanding the market. A single component failure can cause large blackouts, affecting the entire system; thus, ongoing maintenance is required, which may impede market growth. The considerable initial expenditure required slows the market. As a result, these elements are expected to impact the modular substation market share.

Market Dynamics Rapid Urbanization and Industrialization Drive the Global Market

Dependable and scalable electrical infrastructure is needed due to global urbanization and industrialization. Modular substations are appropriate for urban areas with limited space and rapid deployment. Modular substations are in demand because expanding cities and industrial zones need efficient power delivery. Electrical power demand has increased in India due to urbanization. The country is urbanizing and growing rapidly. Urbanization increases the need for efficient power distribution systems to address urban concerns.

By 2050, half of India's population will be urban, according to the UN. To serve growing metropolitan areas, a solid electrical infrastructure is needed. The "Smart Cities Mission" and "Make in India," launched by the Indian government, aim to build sustainable infrastructure, including electrical systems. Scalable, fast-to-implement power distribution technologies are needed as cities and industries grow. This affects modular substation market trends.

Integrating smart grid technologies and advanced technology in modular substations could alter power distribution networks. Innovative features and digital intelligence in modular substations improve grid performance, dependability, and renewable energy integration.

Modular substations with advanced metering infrastructure (AMI) and real-time connectivity have helped US utilities adopt demand response programs. These solutions allow utilities to regulate and reduce peak demand energy consumption remotely, reducing grid stress and energy bills. According to the US Department of Energy, AMI systems linked to smart grid projects have reduced peak demand by 5% to 15% in pilot programs, saving money and improving grid stability. However, modular substations have been installed in wind turbine-heavy parts of Germany. These substations optimize wind power integration into the grid. Wind energy that exceeds local demand can be stored or transmitted to other places to improve renewable energy use.

Regional Insights

The prediction predicts Asia-Pacific to have the largest modular substation market . China is expected to be the fastest-growing Asia-Pacific market due to power generation capacity expansions driving power solution demand. This is due to urbanization and rising energy needs. Rural electrification efforts in Asia-Pacific may boost modular substation demand.

Additionally, Chinese utilities and governments are building new generation projects, including renewable energy, to meet rising electricity demand. These improvements may require power infrastructure, boosting the modular substation business. The Indian government also plans to upgrade the electrical network for a smart grid. With KfW funds, Madhya Pradesh wants to expand and upgrade its electricity network in early 2022 by installing smart meters and grids. This should boost modular substation demand.

North America is projected to dominate the modular substation market due to its ongoing electrical infrastructure repair. The U.S. grid upgrades increase modular substation sales. States, utilities, and regulators are upgrading the electrical grid. These projects need modular substations for speedy deployment, scalability, and smart grid compatibility. By 2023, the US Department of Energy expects USD 50 billion in grid upgrading investment. This includes upgrading substations for grid reliability and resilience.

Furthermore, traditional urban substations in the U.S. and Mexico have space constraints. Small, adaptable modular substations can offer reliable electricity in densely populated metropolitan areas. They can save space in underground vaults or rooftops. According to the UN, 82% of Americans and 79% of Mexicans live in cities. Compact modular substations solve urban power distribution difficulties.

Key Highlights

• The global modular substation market size was valued at
  USD 18.36 billion in 2022 . It is estimated to reach
  USD 36.1 billion by 2031 , growing at a
  CAGR of 7.8%
  during the forecast period (2023–2031).
• Voltage is further classified as 11kV-33kV, 33kV-400kV, and over 400kV. The market growth is influenced by voltages ranging from 33kV to 400kV.
• The market is divided into two segments based on insulation: air and gas. Air was the market leader.
• The market is divided into skid/trailer mounted and fixed. The market is dominated by skid/trailer-mounted vehicles.
• By application, the segment can be divided into Power Utilities, Commercial, and Industrial. The market's greatest revenue generator is power utilities.
• Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Asia-Pacific is the most significant global market shareholder and is estimated to grows at a healthy CAGR over the forecast period.