The global substation market is anticipated to register robust growth by 2027 owing to surging electricity demand worldwide.

A substation is an essential node in an electrical power system that enables reliable and continuous supply of electric power. This high voltage electric system facility is responsible for providing many industries with power to carry out operations. Increasing focus on renewable power generation and distribution is likely to augment market expansion in the forthcoming years.

Notably, industry players are implementing strategic initiatives to improve their market standing, which has been favorable for the business landscape. For instance, in September 2021, Linxon, a joint venture company set up by two major power corporations Hitachi ABB Power Grids and SNC-Lavalin/Atkins, partnered with the parent companies to develop floating substations.

The companies agreed to combine their expertise and research to develop the Linxon floating renewable offshore substation platform solutions with compact substation packages, including transformers, high-voltage switchgear, and equipment developed specifically for floating applications by Hitachi ABB Power Grids.

The global substation market has been segmented based on component, connectivity, technology, category, end use, application, voltage level, and region. In terms of component, the market has been categorized into electrical system, communication network, monitoring & control system, substation automation system, and others.

The communication network segment is expected to be worth over USD 26 billion by the end of 2027. The electrical system has been bifurcated into busbar, transformer, and protection devices. The busbar segment held a valuation of around USD 200 million in 2020 and is slated to grow at a steady pace over 2021-2027.

The protection devices electrical system segment is anticipated to progress at a CAGR of more than 5% over the forecast period. The protection devices segment has further been classified into protective relay, circuit breaker, and switchgear.

The circuit breaker segment was valued at over USD 115 million in 2020 and is calculated to witness optimistic growth through the assessment period. The protective relay segment is projected to exceed a valuation of USD 130 million by 2027. The switchgear segment is estimated to expand at around 4% CAGR over the review timeline.

The monitoring & control system segment has been divided into programmable logic controllers, human machine interface, and others. The human machine interface segment attained a valuation of nearly USD 75 million in 2020 and is speculated to amass significant gains over the study period. The programmable logic controllers segment is estimated to reach a valuation of USD 150 million by 2027. The others segment is foreseen to grow at nearly 2% CAGR over the projected period.

Meanwhile, the substation market from the others component segment garnered a valuation of over USD 19 billion in 2020 and is slated to gain considerable traction by 2027.

Based on connectivity, the market has been bifurcated into ??? 33 kV, > 33 kV to ??? 110 kV, > 110 kV to ??? 220 kV, > 220 kV to ??? 550 kV, and > 550 kV. The >33 kV to ??? 110 kV segment is expected to observe annual installation of over 1,400 units by the end of 2027. The > 110 kV to ??? 220 kV segment is set to expand at around 2% CAGR over the stipulated timeframe.

The > 220 kV to ??? 550 kV sub-segment was worth more than USD 14 billion in 2020 and is likely to observe notable growth over 2021-2027. The >550 kV sub-segment is anticipated to surpass a valuation of nearly USD 28 billion by 2027.

With respect to voltage level, the market has been categorized into high, medium, and low. The high segment is estimated to progress at a CAGR of approximately 2% over the analysis period.

On the basis of category, the market has been segregated into refurbished and new. The new segment is expected to generate revenue of above USD 95 billion by 2027.

From the regional perspective, the Europe substation market is speculated to record annual installation of 360,056 MVA by 2027. The Latin America substation market is projected to grow at a CAGR of about 5% over the estimated timeline.