USD 9.5 billion
Data Center Substation Market Size, Share, Growth Analysis, By Component(Transformers, Switchgears, Relays, Capacitors), By Voltage Type(33kV - 110kV, 110kV - 220kV, 220kV - 500kV, Above 500kV), By Region - Industry Forecast 2024-2031
Report ID:
SQSG45D2023 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|Tables:
67
|Figures:
71
Data Center Substation Market Insights
Global Data Center Substation Market size was valued at USD 9.5 billion in 2019 and is poised to grow from USD 10.09 billion in 2023 to USD 17.34 billion by 2031, growing at a CAGR of 6.2% in the forecast period (2024-2031).
Throughout the projection period, it is predicted that the market would expand due to the rising demand for uninterrupted and smooth electrical transmission and distribution to power data center facilities. In a power network, a substation is a building where circuit breakers or switches are used to connect distribution feeders and transmission channels. This makes it possible to regulate the network's power flow and perform standard switching operations for maintenance. The voltage in transmission lines is primarily increased or decreased in these confined zones to a specific level suited for the distribution system. The demand for efficient and dependable substations will be fueled by the rapid increase in the volume of organized and unstructured data as well as the rising demand for cloud computing. The international data center market is expanding as a result of the Internet of Things (IoT), social media, and digitization. The increasing use of these applications and technology in recent years has boosted the demand for larger, more environmentally friendly data centers. In addition, the increased use of social media and the rise in online video streaming has increased the amount of data that data centers handle, encouraging businesses to invest in dependable and dedicated data centers to prevent information loss and guarantee business continuity, energy transmission, and distribution, and security. The need for electricity to power them is rising at an unprecedented rate as a result of the construction of data centers. In turn, it is expected that this will increase demand for data center substations.
The COVID-19 pandemic outbreak, accompanying supply chain disruptions, and temporary stoppage of production operations have had a significant negative impact on the market for data center substations. In addition, as commercial activity slowed during the pandemic, the need for electricity decreased. There have been very few investments made in the substation industry in 2019 as a result of the decline in power consumption. The building environment was also slowed down by the epidemic, with data center construction projects taking the most hit. To make sure that lockdown and social distancing procedures were followed and to protect worker safety, several data center construction projects were temporarily placed on hold or halted. This shutdown caused a little drop in the market's activity.
In the upcoming years, the industry is expected to prosper thanks to the rising adoption of digital substations. Digital substations contribute to lower maintenance costs, longer asset life, and smaller environmental impact. These substations connect to control panels using fiber optic cables instead of copper ones, which eliminates the need for copper control cables and lowers the cost of installation as well as decommissioning and recycling expenses. The increased emphasis on replacing outdated electrical substation infrastructure with modernized, superior, intelligent, and digital systems is expected to accelerate market growth.
The market has also benefited from the increased spending on the extension of long-route high voltage networks as well as the rising energy demand for infrastructure renovation and modernization. However, some obstacles must be overcome for data center substation construction projects, including a high initial investment, challenges acquiring land, lengthy project cycles, tiresome maintenance and repair work, and complex substation facilities that cannot be successfully integrated into their surroundings. Nevertheless, it is expected that the costs-related difficulties will be outweighed by the long-term advantages connected with a substation's life cycle. As a result, the market expansion is expected to benefit from ongoing research and development efforts to produce novel, energy-efficient, digital or modular substations.
US Data Center Substation Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
110 kV - 220 kV
Fastest Growth
110 kV - 220 kV
Growth Rate
6.2% CAGR
Global Data Center Substation Market 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
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Data Center Substation Market Segmental Analysis
Global Data Center Substation Market is segmented based on Component, Voltage Type, and Region. Based on Components the Data Center Substation Market is further sub-segmented into Transformers, Switchgears, Relays, Capacitors, Busbars, and Surge Arrestors. Based on Voltage Type the Data Center Substation Market is further sub-segmented into 33kV - 110kV, 110kV - 220kV, 220kV - 500kV, Above 500kV. Based on Region the Data Center Substation Market is further sub-segments into North America, Europe, Asia Pacific, Latin America, and MEA.
Data Center Substation Market Analysis by Component
In 2021, the switchgear segment held the largest market share with over 35.0%. One of the crucial parts of a substation is the switchgear, which is primarily used to withstand fluctuating operating voltage in highly unstable environmental conditions. It is expected that the segment growth will also be fueled by the construction of new industrial and commercial facilities, including data centers for secure and reliable operations. Air Insulated Switchgear (AIS) and Gas Insulated Switchgear are two more divisions of the switchgear segment (GIS). In 2021, the GIS sub-segment controlled a revenue share of more than 60%. GIS is more dependable, environmentally friendly, and adaptable than AIS. Additionally, compared to AIS, GIS requires less maintenance and installation time.
Over the forecast period, the CAGR for the transformer segment is expected to surpass 5%. Transformers aid in the efficient distribution of electrical power throughout the building housing the data center. They are crucial parts of the substation because they help transmit power between networks with the least amount of loss and without varying the frequency. Additionally, throughout the forecast period, growth in the transformers segment is expected to be fueled by the upgrade and renewal of existing substations.
Data Center Substation Market Analysis by Voltage Type
According to voltage type, the market share for products above 500 kV was over 35.0% in 2021. The market is expected to continue growing at a CAGR of 7.2% during the forecast period, maintaining its leadership. Increased demand for high voltage substations was a major factor in the market's expansion. High-voltage substations are made to handle the high power requirements of mission-critical buildings like data centers, providing server buildings with a dependable and high-quality power supply. In the upcoming years, high and medium-voltage substations are likely to experience significant growth. The increase in data center construction across developing economies is primarily responsible for the growth. To provide mission-critical facilities, like data centers, with the best possible power transmission and distribution, substations with voltage ratings of 220kV to 500kV and above are crucial. However, because of the COVID-19 pandemic, most data center projects came to a halt in 2021, which had a detrimental effect on the market's expansion. The market will begin to slowly recover in 2021, but it won't take long for it to return to its pre-pandemic growth rates.
Global Data Center Substation Market Share By Voltage, 2021 (%)
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Data Center Substation Market Regional Insights
Due to the presence of significant players like Eaton and General Electric, North America became the market leader and had 38.0% of the worldwide market share in 2021. The US., which has shown consistent growth in data center construction activities, is mostly driving regional expansion. Additionally, North America is home to the largest cloud computing market, which presents a profitable opportunity for data centers. This opens up opportunities for energy distribution and transmission systems, like data center substations. The construction of additional data center facilities is the primary emphasis of North American data center colocation providers, which is also expected to drive the market's expansion.
With a CAGR of 7.6% during the expected period, Asia Pacific is expected to become the region with the quickest rate of growth for data center substations. The regional market is expanding as a result of the rising demand for cloud-based applications and data storage. In addition, the expansion of data center building in this region is due to the use of cloud-based services in industries including IT, education, and healthcare, as well as growing government backing. The wide availability of smartphones and the internet, as well as the rising desire for mobility, are all expected to raise the need for data center development in this region, which will consequently fuel the market's expansion.
Global Data Center Substation Market By Geography, 2021 - 2028
- Largest
- Fastest
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Data Center Substation Market Dynamics
Data Center Substation Market Driver
- From the servers operating in SMEs to the organization of data centers supporting large business corporations and the plantations running cloud computing services hosted by various technology giants like Amazon, Facebook, and Google, data centers have grown to be an increasingly important part of the modern economy. Diverse end users have evolved to set themselves apart with different data center requirements in the wake of a globally snowballing digital economy and the data center sector, which is always tasked with staying ahead of customers' IT roadmaps. The growing demand for big data analytics and cloud-based services, including online content like movies, apps, videos, and social media, is also driving up the demand for data storage. As a result, the market for data center substations is expanding due to the rising demand for data center substations to obtain enough power supply.
Data Center Substation Market Restraint
- Data centers must overcome several obstacles to switch to an on-site power supply. The biggest barrier for businesses is frequently the initial investment necessary for on-site energy. Moving power on-site requires a lot of money and resources in the short term, which eventually deters many businesses from adopting data center substations.
- In addition, year-to-year variations in fuel prices make long-term planning challenging, which leaves the company's leadership unsure of whether or not to implement these systems. There are many different factors to take into account when building a data center. Engineering, permissions, permits, enclosures for generators, conduit and cabling for generators, lighting for data centers, lighting protection, HVAC, fire suppression, and other issues are all taken into consideration.
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Data Center Substation Market Competitive Landscape
The existence of both large-scale and medium-scale data center substation players defines the market. It highlights the fierce competition among the major companies and advocates for ongoing innovation and development in data center substation designs. Market participants use a variety of inorganic techniques, such as joint ventures and mergers and acquisitions, to survive in a cutthroat market. To acquire a competitive edge in the market, businesses are also creating and presenting new items. For instance, Eaton purchased a 50% share in Jiangsu YiNeng Electric, a Chinese busway manufacturer, in June 2021. It is expected that this acquisition will aid Eaton in improving its market share in the commercial and data center sectors while broadening the range of its power distribution products in the Asia Pacific region. The following are a few of the leading companies involved in the global data center substation market:
Data Center Substation Market Top Player’s Company Profiles
- Eaton
- General Electric
- ABB Ltd.
- Siemens AG
- Schneider Electric SE
- Toshiba Corporation
- Mitsubishi Electric Corporation
- Vertiv Co.
- Black & Veatch Holding Company
- Hitachi, Ltd.
- Cisco Systems, Inc.
- Cummins Inc.
- Intel Corporation
- Delta Electronics, Inc.
- Rittal GmbH & Co. KG
- Panduit Corp.
Legrand SA
Huawei Technologies Co., Ltd.
Schneider Electric SA
Caterpillar Inc.
Data Center Substation Market Recent Development
- In March 2021, ABB introduced a purpose-built substation to offer tailored solutions to the rapidly growing data center industry. The substation is designed to be safe and highly reliable while enabling efficient operation and maintenance during the entire lifecycle. The new substation is around 30% smaller in size and utilizes 50% lesser copper on control cables.
Data Center Substation Key Market Trends
- The Internet of Things (IoT), social media, and digitalization are three major trends in the Data Center Substation market as a whole. Additionally, in recent years, larger and more environmentally friendly data centers had to be built due to the increasing use of these applications and technology. Additionally, the increased use of social media and the rise in online video content streaming has increased the amount of data handled by data centers, which has led businesses to invest in dependable and dedicated data centers to protect against data loss and guarantee business continuity, energy transmission and distribution, and security. The demand for electricity to power data centers has increased as a result of their growth.
Data Center Substation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to the analysis, the switchgear segment dominated the global Data Center Substation Market in 2021 and is expected to maintain its dominance throughout the forecast period. In 2021, North America dominated the global Data Center Substation Market owing to the region's highly aware and economically stable population.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 9.5 billion |
| Market size value in 2031 | USD 17.34 billion |
| Growth Rate | 6.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Data Center Substation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Data Center Substation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Data Center Substation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Substation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Substation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Substation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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