Data Center Substation Market Size to hit $13.94Bn, Globally by 2028 – Exclusive Report by The Insight Partners

The data center substation market is expected to grow from US$ 9.78 billion in 2021 and is projected to reach US$ 13.94 billion by 2028; it is expected to register a CAGR of 5.2% from 2021 to 2028.


New York, Aug. 10, 2022 (GLOBE NEWSWIRE) -- The Insight Partners published latest research study on “Data Center Substation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Transformer, Switchgears, Relays, and Others) and Voltage Type (33KV-110KV, 111KV-220KV, 221KV-500KV, and Above 500KV)”, the global data center substation market growth is driven by growing number of data centers across globe surging volume of structured and unstructured data.

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Market Size Value in US$ 9.78 billion in 2021
Market Size Value by US$ 13.94 billion by 2028
Growth rate CAGR of 5.2% from 2021 to 2028.
Forecast Period 2021-2028
Base Year 2021
No. of Pages 160
No. Tables 61
No. of Charts & Figures 75
Historical data available Yes
Segments covered Component and Voltage Type
Regional scope North America; Europe; Asia Pacific; Latin America; MEA
Country scope US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Impact of COVID-19 Pandemic on Data Center Substation Market

The COVID-19 pandemic has shaken several industries including manufacturing, retail, construction, and automotive. The tremendous growth in the spread of the novel coronavirus has urged governments worldwide to impose strict restrictions on vehicular and human movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has negatively affected economies and countless industries in various countries. The lockdown imposition resulted in the lesser production of commodities, goods, and services.

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Data Center Substation Market: Competitive Landscape and Key Developments

Siemens Energy; Schneider Electric SE; Hitachi ABB Power Grids Group; General Electric; Eaton Corporation plc; NEI Electric Power Engineering, Inc.; NR ELECTRIC CO., LTD; SANDC ELECTRIC COMPANY; TESCO AUTOMATION INC.; and HYOSUNG HEAVY INDUSTRIES are among the key market players in the global data center substation market. The leading companies are focusing on the expansion and diversification of their market presence, and acquisition of new customer base, thereby tapping prevailing business opportunities.

In June 2021, Schneider Electric announced the availability of an EcoStruxure Modular Data Center All-In-One Module that is liquid cooled. The new prefabricated module, which is integrated by Avnet and has chassis-level precision immersion cooling from Iceotope, will allow the most CPU and GPU-intensive high-performance computing (HPC) edge applications to be deployed in harsh and remote situations with improved reliability.

Data Center Substation Market: Component Overview

Based on component, the data center substation market is segmented into transformer, switchgears, relays, and others. In 2020, the switchgears segment led the data center substation market, accounting for the largest share in the market.

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Growing Trend for Cloud-Based Platform to Propel Data Center Substation Market

With the digital transformation, the adoption of the cloud-based platform is rising due to the reduction in the deployment cost and the simplification of the deployment time. Further, the internet infrastructure is matured in developed countries and is flourishing in several developing countries across the world, which allows businesses in other countries access the cloud-based platform. Technological advancements are crucial to enhance the adoption of cloud-based platform by companies and customers. For instance, most of the financial institutions use financial analytics to ensure optimal performance, make crucial decisions, and gain insights. Financial analytics helps the banking sector enhance the customer experience and assist in risk management. For the analytics, the data is extracted from the data fabric solution. Most leading analytics technology companies develop a complete cloud-based suite to enhance their digital properties. Therefore, the increasing use of cloud-based platforms by most companies would propel the need for data centers, which is expected to drive the growth of the data center substation market in the coming years.

The substation connects the data center to its electric supply, usually a public utility system, although distributed power generation sources such as fuel cells or solar arrays are also considered. A substation is a structure in the power network where transmission routes and distribution feeders are connected via circuit breakers or switches by busbars. This allows controlling the power flow across the network and general switching procedures for maintenance purposes. These enclosed zones mainly step up or step down the voltage in transmission lines to a particular level suitable for the distribution system. The rapid growth in the volume of structured and unstructured data along with the increasing demand for cloud computing is expected to propel the market growth, subsequently driving the demand for efficient and reliable substations. The growing demand for interrupted and smooth transmission and distribution of electricity to power data center facilities is anticipated to drive the growth of the market over the forecast period. For instance, 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. The substation replaces copper cables with fiber optics and reduces the physical connections through digitization. The rising focus on replacing old electrical substation infrastructure with upgraded, high-quality, modular, digital, and gas-insulated systems is also expected to augment the data center substation market growth.

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