Global Data Center Substation Market

Global Data Center Substation Market Size, Share, Growth Analysis, By Component(Transformers, Switchgears), By Voltage Type(33kV - 110kV, 110kV - 220kV) - Industry Forecast 2022-2028


Report ID: SQSG45D2023 | Region: Global | Published Date: October, 2022 | Pages: 165

Global Data Center Substation Market Insights

Global Data Center Substation Market Size was valued at USD 10.1 billion in 2021, and it is expected to reach a value of USD 14.7 billion by 2028, at a CAGR of 5.5% over the forecast period (2022-2028).

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 2021 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.

Market snapshot

Global Market Size

USD 10.1 billion

Largest Segment

110 kV - 220 kV

Fastest Growth

110 kV - 220 kV

Growth Rate

5.5% CAGR

Global Data Center Substation Market 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
Global Data Center Substation Market Size by Voltage, 2021-2028 ($ Bn)
Global Data Center Substation Market Size by Voltage, 2021-2028 (%)

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Global Data Center Substation Market Segmental Analysis

Global Data Center Substation Market is segmented based on Component, Voltage Type, and Region. Based on Components the market is further sub-segmented into Transformers, Switchgears, Relays, Capacitors, Busbars, and Surge Arrestors. Based on Voltage Type the market is further sub-segmented into 33kV - 110kV, 110kV - 220kV, 220kV - 500kV, Above 500kV. Based on Region the market is further sub-segments into North America, Europe, Asia Pacific, Latin America, and MEA.

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.

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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Global 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
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Global Data Center Substation Market Dynamics

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.

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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Global 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:

Top Player’s Company Profiles

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.

Global 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.

Global 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 2021 USD 10.1 billion
Market size value in 2028 USD 14.7 billion
Growth Rate 5.5%
Base year 2021
Forecast period 2022-2028
Forecast Unit (Value) USD Billion
Segments covered
  • Component
    • Transformers, Switchgears, Relays, Capacitors, Busbars, Surge Arrestors
  • Voltage Type
    • 33kV - 110kV, 110kV - 220kV, 220kV - 500kV, Above 500kV
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
Customization scope

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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 Global 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
  • 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 Global 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
  • 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
  • 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(%)

Methodology

For the Global 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 Global 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 Global 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 Global 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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FAQ's

Global Data Center Substation Market Size was valued at USD 10.1 billion in 2021, and it is expected to reach a value of USD 14.7 billion by 2028, at a CAGR of 5.5% over the forecast period (2022-2028).

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:'Eaton(Ireland)','General Electric(US)','Hitachi ABB Powergrids Inc.(Switzerland)','NEI Electric Power Engineering, Inc.(US)','NR Electric Co., Ltd.(US)','S&C Electric Company(US)','Tesco Automation Inc.(US)','Hyosung Heavy Industries(South Korea)','Schneider Electric(France)','Siemens Energy(Germany)'

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.

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.

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Global Data Center Substation Market

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