Packaged Substation Market Overview
The packaged substation market is expected to rise at a compound annual growth rate (CAGR) of 7.57% from 2021-to 2027. The post covid situations and conditions prevailing on the global scale are significant factors that are likely to derive a global and widespread demand for the market services and operations during the forecast period that ends in 2027. The packaged substation market was valued at USD 742.4 Million in 2017 and is expected to reach USD 445, 903. 21 Million by 2027. The base year considered for the study is 2020, and the forecast period is between 2018 and 2027. The goal of the report is to provide a detailed analysis of the packaged Substation market based on application and region. The study also covers qualitative information on various components used in a packaged substation.
The power sector offers a promising future with rising demands for electricity, following increasing urbanization and industrialization in the developed as well as developing nations. Packaged substations form a major part in the power sector across distribution and equipment protection segments. A packaged substation is employed to lower space utilization, (step-up or step-down) transform voltage, and protect equipment in the event of abnormalities.
COVID 19 Analysis
Apart from the emergency and panic created across the globe, especially where the rate of positive cases and transmission is high, the pandemic is being considered a leisure time to sit at home and recognize their talents, likes, and dislikes for things and events. During the pandemic, social media was filled with various trends that were copied and followed and helped people recognize their skills and talent. Games like Ludo, Ludo King, cricket, driving, and Pubg, amongst others, saw a significant footfall with the applications being downloaded on various platforms and devices. The substation is another source of entertainment that witnessed a massive increase in footfall with people playing the same with intentions like trying their luck, as a timepass, thinking of it as a source of entertainment, and others, who wished to gamble through various means and sources to invest less and incur a considerable amount of profit for different purposes.
The substation is not just related to the transfer of money and resources through various hands but includes other inclusions like betting, lottery, and bingo. The prominent global packaged Substation market players are enhancing their operations and offering various schemes to attract a larger audience to try what all the players have to offer. Also, the players are legalizing their business by providing authentic, clean services that cannot be questioned.
The packaged substation market share is set to expand during the ongoing forecast period of 2021-2027. With the widely functioning market segments and an array of services rendered by them targeting the interest of significant target audiences and substations, players are likely to present them with factors that will drive them towards an elaborated growth as per the predicted CAGR for the market. Virtual betting is one of the fastest-growing segments, while the market aims for global growth in the ongoing forecast period. Chabot, artificial intelligence, alongside the machine learning aspects, has taken over the market operations for the period well. Also, the presence of a considerable number of females in casinos, along with the maintenance of a convenience degree by rendering cashless modes of payment, promises good growth for the market and its operations from 2021 to 2027.
However, some target audience sections are growing addicted to the substation. To cater to their urge to win big, they invest hefty amounts in the game and its various segments but in vain. The loss is enormous, which pushes them to enter into the financial burden and subsequently give into debt traps. Hence, to reduce such repercussions and harmful effects associated with the packaged substation industry services, the government is intervening to limit the market's global growth. The governments of various global players across the globe are formulating stringent regulations that are likely to restrain the market operations that aim to expand their scale of operations during the ongoing forecast period. Also, the transportation norms set up by different regional authorities may be a challenge for players. For the US, the Department of Transportation (DOT) has made specific rules and regulations for the transportation of heavy electrical equipment.
packaged substation market trends are referred to as betting on casinos or sports-type games through devices and an internet connection. The temperament of substation varies from sports bets to casino-style games, which is more prominent among millennials who show interest in exploring the world of the substation.
To understand the market's revenue potential, it is imperative to have an idea about the market division based on its segments that are functional in major global regions. The packaged Substation market segments are as follows:
- North America
- The Middle East
- South & Central America
Asia-Pacific holds the major market share, followed by North America & Europe. In terms of individual countries, the U.S. had dominated the market in 2014 on account of extensive electrical infrastructure upgrades and the installation of distribution utilities. The U.S. alone is estimated to hold more than 15% of the global packaged substation market in 2014. Quick growth in the BRIC nations' economies is expected to be the major driving factor for the development of the power sector in these nations. China and India are the leading countries that are undergoing fast transformation with huge developments in infrastructure and grid expansion. Packaged substations are expected to be used extensively in the new electrical distribution networks, which are expected to ensure less losses and an uninterrupted power supply.
Apart from the basic load requirements, many nations are involved in advancing their power transmission and distributing infrastructure to increase the efficiency of power distribution and to minimize T&D losses. Such projects are said to complement the growth of package substations at the global level. For example, In July 2021, European Investment Bank (EIB) officially confirmed the financial support of EUR120 million to the discom of Romania, Electrica Group, for the up-gradation of the power division networks in the country. The development work will include constructing fresh power lines, refurbishment of power stations, and installing network automation components. Furthermore, in December 2020, the Asian Development Bank (ADB) approved a combined sovereign and non-sovereign loan of USD190 million for the modernization and up-gradation of power distribution systems in Bengaluru, in the state of Karnataka, India.
The global packaged substation market players are as follows:
- ABB Ltd. (Switzerland)
- GE (U.S.)
- Schneider Electric SA (France)
- Siemens AG (Germany)
- Eaton Corporation (Ireland)
- In January 2022, the World Bank forwarded a USD135 million loan to the Government of West Bengal, India to strengthen the power distribution network in the state. The installation and the upgradation of the power infrastructure are planned to improve the efficiency and dependency of power supply in the selected areas of the state.
- In January 2022, ENTSO-E (European Network of Transmission System Operators for Electricity) published the draft list of power infrastructure projects that will be evaluated to be included in the second edition of TYNDP (Ten-Year Network Development Plan) 2022. The selected projects will be implemented keeping in mind the power distribution targets for 2030 and 2040.
- Furthermore, it is predicted that the demand for solar PV-based power production in China will easily surpass 100GW in 2022, which is a massive overcapacity situation in the country. Thus, an efficient and huge power distribution network is in demand to balance the high renewable power production. Such a state of affairs is expected to ensure a bright future for the package substation market in the region.
- Component Suppliers
- Investors and Venture Capital Firms
- Integrated Device Manufacturers (IDMs)
- System Integrators
- Electric Hardware Equipment Manufacturers
- Assembly and Packaging Vendors
- Companies in the Electric Utilities Sector
- Analysts and Strategic Business Planners
- End-use Industries
- Governments, Financial Institutions, and Investment Communities
- Research Organizations
- Forums, Alliances, and Associations
The packaged substation market report helps in providing first-hand information related to the market dynamics like drivers and restraints that might impact the growth rate of the market and the market valuation during the ongoing forecast period of 2021-2027. The market operations are taken care by the key market players and market segments that help in pushing the market towards the predicted growth figures for the period. In addition, the report helps in discussing the recent developments during the period, which will impact the investor’s decisions to invest in the market or not.