Substation Maintenance Market: Global Market Industry Analysis and Forecast 2022 – 2029

Substation Maintenance Market was valued at USD 33216.09 Million in 2021 and is expected to reach USD 57251.15 Million by 2029, exhibiting a CAGR of 7.04% during the forecast period (2022-2029)
Substation Maintenance Market Overview:
Substation maintenance is a main part of any utility/plant maintenance program. Equipment failures generally result in significant downtime owing to long delays in equipment replacement. The majority of these failures, however, may be identified and avoided. An overview of substation equipment and equipment operations is provided in this course. The focus of the labs and instructions is on medium voltage circuit breakers (air and vacuum) and switchgear, which are designed to assist the technician in identifying weak or malfunctioning parts in the substation systems. The course is made to assist highly qualified substation maintenance personnel who are in charge of inspecting and maintaining industrial and utility substations.



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Various companies operate in the substation maintenance market globally. Major companies like ABB Ltd. and Schneider Electric offer maintenance, repair, and upgrade services in addition to installation services. Smaller companies in the industry concentrate only on offering substation maintenance and repair services. Businesses must be certified in order to do substation maintenance. Others are certified to do so for low voltage substations, while certain organisations are licenced to provide services to extra-high voltage substations.
Substation Maintenance Market Dynamic:
The Global Substation Maintenance Market dynamics are thoroughly studied and explained in the report, which helps reader to understand emerging market trends, drivers, restraints, opportunities, and challenges at global and regional level for the Global Substation Maintenance Market. Some of the drivers and restraints are illustrate below, their detailed explanation is discussed in the report with other supporting:

Demand For Electricity is growing:

The substation maintenance market is expected to increase as a result of the rise in energy demand. To convert electrical impulses into optical signals, digital substations are actively employed to replace conventional copper wire with cutting-edge fibre optic transmitters. To reduce losses during electricity transmission, transformers and power grids both require substation maintenance. For instance, the global energy consumption is expected to rise by 5% in 2021 and 4% in 2022, according to the International Energy Agency's semi-annual Power Market Report published in November 2021. Renewable energy sources are expected to generate more electricity, by over 6% in 2022 and 8% in 2021. Therefore, the market for substation maintenance is being driven by the rise in demand for power.

Power Grid Infrastructure Adoption:

The world's emerging and developed countries have started to make investments in the renovation or replacement of their power grid infrastructure. An increasing amount of aging infrastructure is attempting to obstruct the smooth and effective operation of electrical networks. As electrical infrastructure retrofitting operations continue to rise across many nations worldwide, this is a positive indication for the substation market. In order to maximise efficiency while extending the life of the infrastructure, it can be renovated and retrofitted.

Ageing Transmission and Distribution Infrastructure Needs Upgraded:

Existing substations must be managed manually, which can have a significant financial impact and reduce productivity, particularly when there are outages. In North America, transmission and distribution investments are receiving more attention in order to address the region's deteriorating and outdated infrastructure.

Intelligent electronic devices (IEDs) are becoming more popular because they contain one or more processors that may receive or transmit data or control to or from an external source (e.g., digital meters, digital relays, and controllers). It is not feasible to immediately replace the ageing substation entirely. However, it is a step-by-step process that begins with the integration of intelligent electronic devices (IEDs), then moves on to the integration of substations with central systems, and finally, full automation.
Substation Maintenance Market Segment Analysis:
In 2021, SCADA Systems Segment Held the Largest Substation Maintenance Market Share of nearly 46%:

SCADA Systems segment held the largest market share of 46% in 2021 and is projected to grow at the highest CAGR of 8.70% over 2022-2029. SCADA systems are primarily used in a variety of industries, including power plants, oil and gas refining, water and waste management, telecommunications, etc., to build monitoring and control systems of equipment or plants. Some of the key factors driving the growth of Substation Maintenance Market include the rising demand for automated industrial control solutions and the rising investment in the installation of automated and connected process & control systems to gain efficiency over human labor-based activities. To increase production and lower expenses, many businesses are investing in automation technologies. The development of cloud-based SCADA systems, which allow improved cooperation and control over various operations, will also increase demand for SCADA systems in the upcoming years.



Up to 220kV Voltage Expected to Hold Significant Share

Based on Voltage, Up to 220kV segment was valued USD 18740.16 million in 2021. Substations designed for the conversion or supply of low voltage power are typically placed close to end customers including homes, businesses, and industries.

Utility Industry Segment Is Expected to Grow at A CAGR Of 8.27% from 2022 To 2029

In 2021, Utility industry commanded the largest share of the substation maintenance market, with market size of USD 17804.75 Mn. Since they are the main distributors of power in the majority of the countries, the utility industries make up the largest section of the digital substation market, which comprises national, public, and privately owned cooperatives. In several applications, such as processing and extraction, heating metals, and arcing, high voltage applications are necessary in sectors like oil & gas, metals, and transportation. This has a favourable effect on the electricity industry and drives up demand for substation maintenance.

The market need for digital substations will be increased by strict regulatory compliances and government directions toward utility-aided grid networks in terms of the construction of electric infrastructure. In addition, employing reliable, easy-to-install, and energy-efficient intelligent technology is one of the elements that will enhance end-user implementation.

Distribution Substation is expected to account for the largest 65% market share by 2029.

Thanks to the continuously increasing demand for electricity around the world and the resulting need for effective power distribution networks, the distribution segment is predicted to continue to dominate the market until 2029. Owing to increasing pressure on the current energy infrastructure and rising demand for effective electrical grids in various developing nations, the distribution segment is expected to experience substantial growth during the forecast period.
Substation Maintenance Market Regional Analysis:
Geographically, in 2021, Europe Substation Maintenance Market accounted for the largest share of 27.20%. More than 50% of the electricity would be produced by RES, with the majority of them being connected to the MV and LV grids, according to the European Union's renewable energy objective for 2030 (32% of all energy consumed). Furthermore, in order to meet variable demand, EU policies have promoted the growth of decentralised electricity generation, electric vehicles, and energy storage. As a result, it is anticipated that the European Substation Maintenance market will develop profitably throughout the duration of the forecast period.

APAC region is expected to grow at the largest CAGR of 8.70% during the forecast period. This growth is attributed to entry of new companies, rapid industrialization, and modernization of new grid infrastructure to growing the demand for power sector industries. The utility sector and power utilities will benefit from increased investment in digital substations, driving up demand for the substation maintenance market. Aside from that, the government has sponsored numerous promotional initiatives and NGOs to manage electricity waste, which has decreased consumer awareness and increased the demand for substation repair.
Substation Maintenance Market Country-wise Analysis:
The US Energy Information Administration expects that the US government spent USD40 billion on electric transmission lines in 2019 and that this investment is continuing to rise. There are roughly 245 substations with a substation capacity of 371,912 MVA in India. The country's rapid industrialization and urbanisation, along with new substation development projects, are anticipated to drive the expansion of the substation maintenance market. A nation's strategy to adopting renewable energy sources through the integration of automation is anticipated to have an impact on the growth of the substation maintenance market. More than 100 substations countrywide will have IEC 61850-based grid substation automation by 2020 thanks to the Power Grid Corp. of India, which encouraged the rise in automation. Companies should be able to increase their operational efficiency with the help of this deployment.

Major substation maintenance growth markets include China and India. China currently produces more electricity than the US and the EU27 put together. Substations are part of the expanding electrical infrastructure that India and many other smaller nations are investing in.

China's growth is still going strong right now, but it could eventually slow down. Many nations will keep constructing their electrical infrastructure as long as they have the funding to do so in order to increase reliable access to power. The IEC 61850 standard will be used by equipment and control systems in new substations, which can help to minimise the substation's footprint and expenses. The market for substation maintenance is progress of the project overall, but there are significant regional variances. The replacement of outdated analogue devices and controls, as well as several new software applications that enhance substation management and address issues to grid stability, are the driving forces behind upgrades to established substations.

Substation Maintenance Market: Strategic Collaboration between Companies

A significant trend that is becoming more and more prevalent in the digital substation industry is corporate strategic collaboration. To deal with the rapidly unfolding digital transition, businesses that offer digital solutions are forming alliances and collaborating. For instance, in December 2020, ABB, a Swedish industrial and technology corporation that sells digital substations, teamed together with CORYS, a French manufacturer. The partnership will advance digital twin modelling and simulation software for the industrial and energy sectors. Additionally, for a $3.40 billion deal, Siemens AG, a German engineering and manufacturing company that sells digital substations, teamed up with Atos, a French information technology services and consulting company, in September 2020.

The research report covers Substation Maintenance industry statistics including current Substation Maintenance Market size, Substation Maintenance Market Share, and Growth Rates (CAGR) by segments and sub-segments at global, regional, and country levels, with an annual forecast till 2029. The study provides a clear insight into market penetration by different types, applications, and sales channels of Substation Maintenance with corresponding future potential, validated by real-time industry experts. Further, Substation Maintenance market share by key metrics such as manufacturing methods/technology and raw material can be included as part of customization. This enables the client to identify the most potential segment from their growth rates along with corresponding drivers and restraints. The research considered 2017, 2018, 2019, and 2020 as historical years, 2021 as the base year, and 2022 as the estimated year, with an outlook period from 2022 to 2029. The report identifies the most profitable products of Substation Maintenance market, dominant end uses and evolving distribution channel of the Substation Maintenance Market in each region.
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Global Substation Maintenance Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 33216.09 Mn.


Forecast Period 2023 to 2029 CAGR:
7.04%
Market Size in 2029:
US $ 57251.15 Mn.


 Segments Covered:
by Module
• Hardware
• Fiber-optic Communication Networks
• SCADA Systems


by Type
•Transmission Substation
• Distribution Substation


by Installation Type
• New Installations
• Retrofit Installations


by Voltage
• Up to 220kV
• 220-500kV
• Above 500kV


by Industry
• Utility
• Heavy Industries
• Transportation



Global Substation Maintenance Market Key Players are:
• Myriant(United States)
• Genomatica(United States)
• Natureworks LLC (United States)
• Dow Chemicals (United States)
• Cargill (United States)
• BioAmber Inc. (Canada)
• Methanex (Canada)
• Abengoa (Spain)
• BASF SE(Germany)
• Corbion NV(Netherlands)
• Novozymes A/S(Denmark)
• Mitsubishi Chemical Corporation (Japan)
• Mitsui & Co. Ltd. (Japan)
• Zhejiang Hisun Biomaterials Co. (China)
• Other

Frequently Asked Questions:

1] What is the growth rate of the Global Substation Maintenance Market?
Ans. The Global Substation Maintenance Market is growing at a significant rate of 7.04 % during the forecast period.

2] Which region is expected to dominate the Global Substation Maintenance Market?
Ans. APAC region is expected to dominate the Substation Maintenance Market during the forecast period.

3] What is the market size of the Global Substation Maintenance Market by 2029?
Ans. The market size of the Substation Maintenance Market by 2029 is expected to reach USD 57251.15 Mn.

4] Which are the top key players of the Global Substation Maintenance Market?
Ans. The major key players of the Global Substation Maintenance Market are Myrian, Dow Chemicals and Others

5] What factors are driving the growth of the Global Substation Maintenance Market in 2021?
Ans. The substation maintenance market is expected to increase as a result of the rise in energy demand.