The data center substation market revenue totaled US$ 10,427.4 million in 2023. The adoption of data center substations is likely to expand at a healthy 6.5% CAGR, pushing the market valuation to US$ 19,634.5 million in 2033.
Drivers:
Restraints:
Opportunities:
Trends:
| Attributes | Details |
|---|---|
| Data Center Substation Market Value in 2023 | US$ 10,427.4 million |
| Data Center Substation Market Value by 2033 | US$ 19,634.5 million |
| Data Center Substation Market Value-based CAGR (2023 to 2033) | 6.5% |
As per Future Market Insights (FMI), sales of data center substations currently represent nearly 20% of the total data center market. Substations with gas-insulated switchgear (GIS) are unrivaled in terms of compactness, reliability, safety, efficiency, and providing maximum power availability. The rising demand for electrical power systems that are automated, smart, and can help reduce the carbon footprint catalyzes growth in the market.
Recent developments in key substation components such as power transformers, gas-insulated switchgear, fiber-optic current sensors, and high-voltage circuit breaker have been observed. These developments have enabled their digitization, which consequently drives the market.
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The data center substation demand is estimated to rise at 6.5% CAGR between 2023 and 2033 in comparison to the 4.4% CAGR registered from 2018 to 2022. Increasing establishments of enterprises have considerably increased data generation, which is expected to boost the demand for data center substations across the globe in the forthcoming years.
The increasing use of social media and a surge in online video content streaming have resulted in increased data volumes that are managed by data centers. This is fueling the growth in the market.
Driven by crucial factors, the global data center substation industry size is anticipated to expand from US$ 10,427.4 million in 2023 to US$ 19,634.5 million by 2033.
The increasing replacement of traditional electrical substation infrastructure with high-quality, upgraded, smart, and digital systems is expected to boost the growth of the data center substation industry.
In March 2021, Hitachi ABB Power Grids launched its smart digital substation offering. This offering brings together the latest advancements in digital substation technology with the prescriptive, predictive, and prognostic capabilities of Hitachi’s Lumada Asset Performance Management solution.
Smart digital substation increases reliability, integrates new forms of clean energy, and delivers energy services in smart and safe ways which are required for navigating the shift toward distributed and less predictable renewable power generation.
Countries in South Asia Pacific and the Middle East and Africa, such as India, Thailand, Mexico, and Brazil, are expected to witness growth opportunities due to the factors such as:
In January 2022, CtrlS announced the deployment of Asia’s notable gas-insulated substation (GIS) in Mumbai, which is unique in the Indian data center industry. The gas-insulated substation is currently equipped with 300MW and can scale up to 700MW. It is backed by three different sources and diversified paths ensuring 100% availability of power. This happens to be the first of its kind deployment of power infrastructure by any data center company in the Asia Pacific region. Such developments are expected to create key opportunities for players operating in the global data center substation market over the assessment period.
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The data center substation market in the United States is booming, accounting for a 24.6% share in 2022. The country's well-developed IT infrastructure, coupled with the high adoption rate of advanced technologies, is driving the demand for data centers. Several data-driven industries, such as finance, healthcare, and retail, are also boosting the demand for data centers, increasing the deployment of data centers across the country.
The increasing demand for cloud-based solutions and edge computing, coupled with the adoption of renewable energy solutions, is driving growth in the market in the United States. The United States government's push toward energy efficiency and sustainable solutions is also creating opportunities. These opportunities are for investment in renewable energy sources and energy-efficient solutions for data centers.
Germany is the fourth notable market for data centers globally, accounting for 4.5% of the market share in 2022. The country has a well-developed IT infrastructure, and a high level of digitalization in industries such as automotive, manufacturing, and healthcare, which is driving the demand for data centers. With the increased adoption of renewable energy solutions, particularly in wind and solar power, Germany is witnessing growth in the data center substation market.
Japan is estimated to account for nearly 3.4% share of the global data center substation industry in 2033. The country is predicted to remain one of the most attractive markets during the forecast period. A few of the key factors increasing the demand for data centers substation in the country are:
Numerous players are investing in data center infrastructure in Japan either by building their own data centers or acquiring large wholesale space within global data center service providers. These include financial services firms, IT companies, and global multimedia and content providers, which are expected to continue fueling sales over the forecast period.
The data center substation demand in Finland is expected to account for nearly 13.0% of Europe’s market share through 2033. Increasing investments by colocation service providers in Europe’s colocation market are driving sales of data center substations. In addition to this, growth in the number of cloud service providers and information technology providers are boosting sales in the country.
Businesses in Finland enjoy one of the best digital infrastructures in the world, ranked second in the Network Readiness Index by the World Economy Forum. The ultra-fast optic cable between Germany and Finland (C-Lion1) brings the Nordic digital markets to the heart of Central Europe. Thus, the low cost of operation combined with the state-of-the-art connectivity makes Finland a prominent pocket in Europe’s data center substation industry.
The sales in the India data center substation industry are projected to increase at an impressive 10.3% CAGR between 2023 and 2033. Growing internet user base, increasing data generation, and government initiatives such as the Digital India mission are transforming India into a significantly growing data center substation hub.
India is a good fit for global data center operators looking for expansion in Asia due to its large domestic consumer base. As the world’s second-most populous country with an ever-increasing smartphone adoption rate, India is an attractive market for hyper scalers to entities. Further, it provides large-scale internet, networking, and cloud services to organizations.
Surging Demand for Gas-Insulated Switchgear to Fuel Growth
Based on components, sales in the switchgear segment accounted for 22.7% of the total data center substation industry share in 2022.
As data center substations have complex and massive systems architectures, power failure in the substation may affect the productivity of the overall system. The growing need to avoid power disruption in data center operations and to control the electrical supply in the data centers is anticipated to drive the market over the forecast period.
Switching devices such as switchgear is used in the data center substation architectures to control the power supply and protect the devices in case of electricity breakdown. Backed by the aforementioned factors, sales are expected to gain traction in this segment over the assessment period.
In terms of voltage, the above 500kV segment is projected to hold nearly 34.5% share of the market during the forecast period. The segment is likely to witness growth at a CAGR of 7.4% through 2033. Substations with high voltage are designed to handle the high-power demand of mission-critical facilities such as data centers to provide reliable and quality power supply to server buildings. In addition, surging demand for high-voltage substations is likely to fuel sales in the market.
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The competition in the data center substation industry is intense, and it's no surprise that the leading players like ABB Ltd. and Siemens AG are continuously working to maintain their market positions. These companies invest notably in research and development to bring innovative solutions to the market that can cater to the evolving needs of data centers.
Apart from the leading players, several small companies and startups are trying to enter the market by offering niche products and services. These new entrants are leveraging technology to disrupt the market and carve out a niche for themselves.
Competition is not the only challenge that companies in the industry face. One of the biggest challenges is the complexity of the data center substation infrastructure, which requires high levels of technical expertise to design and implement. Companies need to have a deep understanding of the unique requirements of data centers to provide customized solutions that meet the specific needs of their clients.
One trend that is gaining traction in the data center substation industry is the push toward green energy. With the growing awareness of climate change and the need to reduce carbon emissions, companies are exploring new technologies and solutions that can help them achieve their sustainability goals. This presents a significant opportunity for companies to differentiate themselves in the market by offering green solutions that align with the changing needs of the industry.
Leading data center substation industry players are increasing their investments in research and development to support future technologies. It demonstrates strong competition amongst key players and calls for constant development and innovation in data center substation designs. For instance:
In March 2021, Eaton introduced EnergyAware UPS for data center operations. EnergyAware is designed for data center applications and can be used in any high-capacity IT load, whether industrial or manufacturing.
| Strategies to Expand | Description |
|---|---|
| Diversify product range | Expand the range of products and services offered to cater to a wide audience and gain a competitive edge. |
| Invest in research and development | Invest in research and development to come up with innovative solutions to meet the changing needs of customers. |
| Target emerging markets | Identify and target emerging markets to tap into new customer bases and increase sales revenue. |
| Strengthen customer service | Focus on providing excellent customer service to build brand loyalty and increase customer retention. |
| Build partnerships | Collaborate with other industry players to expand reach and access new markets. |
| Leverage digital marketing | Utilize digital marketing tools such as social media and search engine optimization to increase brand awareness and lead generation. |
| Offer value-added services | Offer value-added services such as maintenance and support to provide customers with a complete solution and increase customer satisfaction. |
The global market is moderately competitive, with tier-1 manufacturers accounting for 35% to 40% of the total market share. Some leading participants are DSM, DuPont, Roquette Freres, Cargill Incorporated, Ingredion Incorporated, Tate and Lyle Plc., SunOpta, ADM Company, and Ajinomoto Inc.
To grow their worldwide reach, players are investing in mergers, acquisitions, collaborations, and partnerships. In addition, players are taking a variety of measures, such as utilizing new technologies. To generate novel products and improve sales and distribution channels.
For example,
Some key companies are as follows:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | US$ million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Segments Covered | Component, Voltage, and Region |
| Key Companies Profiled |
General Electric; Schneider Electric; Siemens Energy; ABB Group; Eaton; Hitachi ABB Powergrids Inc.; NR Electric Co., Ltd; NEI Electric Power Engineering, Inc.; Tesco Automation Inc.; S&C Electric Company; Kirby Group; Mortenson Company; Sify Technologies Limited; Black & Veatch Holding Company; Hyosung Heavy Industries |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market value for 2023 is US$ 10,427.4 million
Through 2033, data center substation sales will rise at a 6.5% CAGR.
The market rose at a 4.4% CAGR from 2018 to 2022.
Huge maintenance cost will hinder growth.
Switchgear will be the key components segment through 2033.
1. Executive Summary | Data Center Substation Market 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2023 to 2033 5.3.1. MV/LV Transformers 5.3.2. Switchgears 5.3.3. Relays 5.3.4. Power Distribution Unit 5.3.5. UPS systems 5.3.6. Busbars 5.3.7. Surge Arrestors 5.3.8. Others 5.4. Y-o-Y Growth Trend Analysis By Component, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Component, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Voltage 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Voltage, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Voltage, 2023 to 2033 6.3.1. 33kV - 110kV 6.3.2. 110kV - 220kV 6.3.3. 220kV - 500kV 6.3.4. Above 500kV 6.4. Y-o-Y Growth Trend Analysis By Voltage, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Voltage, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 7.3.1. North America 7.3.2. Latin America 7.3.3. Europe 7.3.4. South Asia 7.3.5. East Asia 7.3.6. Oceania 7.3.7. MEA 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By Component 8.2.3. By Voltage 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Component 8.3.3. By Voltage 8.4. Key Takeaways 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Component 9.2.3. By Voltage 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Component 9.3.3. By Voltage 9.4. Key Takeaways 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. United Kingdom 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Europe 10.2.2. By Component 10.2.3. By Voltage 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Component 10.3.3. By Voltage 10.4. Key Takeaways 11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. India 11.2.1.2. Malaysia 11.2.1.3. Singapore 11.2.1.4. Thailand 11.2.1.5. Rest of South Asia 11.2.2. By Component 11.2.3. By Voltage 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Component 11.3.3. By Voltage 11.4. Key Takeaways 12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. China 12.2.1.2. Japan 12.2.1.3. South Korea 12.2.2. By Component 12.2.3. By Voltage 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Component 12.3.3. By Voltage 12.4. Key Takeaways 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. Australia 13.2.1.2. New Zealand 13.2.2. By Component 13.2.3. By Voltage 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Component 13.3.3. By Voltage 13.4. Key Takeaways 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By Component 14.2.3. By Voltage 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Component 14.3.3. By Voltage 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2022 15.1.2.1. By Component 15.1.2.2. By Voltage 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2022 15.2.2.1. By Component 15.2.2.2. By Voltage 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2022 15.3.2.1. By Component 15.3.2.2. By Voltage 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2022 15.4.2.1. By Component 15.4.2.2. By Voltage 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2022 15.5.2.1. By Component 15.5.2.2. By Voltage 15.6. United Kingdom 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2022 15.6.2.1. By Component 15.6.2.2. By Voltage 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2022 15.7.2.1. By Component 15.7.2.2. By Voltage 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2022 15.8.2.1. By Component 15.8.2.2. By Voltage 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2022 15.9.2.1. By Component 15.9.2.2. By Voltage 15.10. India 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2022 15.10.2.1. By Component 15.10.2.2. By Voltage 15.11. Malaysia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2022 15.11.2.1. By Component 15.11.2.2. By Voltage 15.12. Singapore 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2022 15.12.2.1. By Component 15.12.2.2. By Voltage 15.13. Thailand 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2022 15.13.2.1. By Component 15.13.2.2. By Voltage 15.14. China 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2022 15.14.2.1. By Component 15.14.2.2. By Voltage 15.15. Japan 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2022 15.15.2.1. By Component 15.15.2.2. By Voltage 15.16. South Korea 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2022 15.16.2.1. By Component 15.16.2.2. By Voltage 15.17. Australia 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2022 15.17.2.1. By Component 15.17.2.2. By Voltage 15.18. New Zealand 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2022 15.18.2.1. By Component 15.18.2.2. By Voltage 15.19. GCC Countries 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2022 15.19.2.1. By Component 15.19.2.2. By Voltage 15.20. South Africa 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2022 15.20.2.1. By Component 15.20.2.2. By Voltage 15.21. Israel 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2022 15.21.2.1. By Component 15.21.2.2. By Voltage 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Component 16.3.3. By Voltage 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. General Electric 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.2. Schneider Electric 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.3. Siemens Energy 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.4. ABB Group 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.5. Eaton 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.6. Hitachi ABB Powergrids Inc. 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.7. NR Electric Co., Ltd 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.8. NEI Electric Power Engineering, Inc. 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.9. Tesco Automation Inc. 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.10. S&C Electric Company 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Data Center Substation Market
