Packaged Substation Market Size

Packaged Substation Market Analysis

The packaged substation market is expected to record a CAGR of around 4.5% during the forecast period. The COVID-19 pandemic significantly impacted the market due to the decline in power demand from commercial and industrial (C&I) customer bases, like MSME industries, among other commercial places. As a result, distribution companies (discoms) faced financial challenges during the period. For instance, in FY 2021, the total discom losses in India were around INR 90,000 crores due to a crash in power demand from the C&I sector. The packaged substation market is likely to grow in the near future due to the requirement for efficient power distribution networks across the globe and the growing demand for the refurbishment of aging substation infrastructure. However, due to inadequate relative power handling capacity as compared to large outdoor substations, the market may face obstacles.

The power utility segment is expected to grow at a faster rate during the forecast period due to power demand growth in line with the global urbanization rate.

The increase in the renewable power generation capacity at the global level presents an opportunity for the package substation market. In order to reduce their carbon footprint, governments all over the world have set ambitious climate goals, including decarbonization in the industrial sector. The power industry is no exception to it. A huge distribution network of renewables-based power is being laid down in many countries.

The Asia-Pacific region is likely to hold the largest market share in the near future due to the high electrification rate in developing countries.