Data Center Substation Market Analysis and Forecast to 2031: By Component (Transformers, Switchgears, Relays, Others), Voltage Type (33KV-110KV, 111KV-220KV, 221KV-500KV, Above 500KV), and Region

Data Center Substation Market Analysis and Forecast to 2031: By Component (Transformers, Switchgears, Relays, Others), Voltage Type (33KV-110KV, 111KV-220KV, 221KV-500KV, Above 500KV), and Region

The global data center substation market was valued at US$ 9.8 billion in 2021 and it is anticipated to grow up to US$ 15.6 billion by 2031, at a CAGR of 4.8% during the forecast period.

A data center substation is a structure in the power network where transmission routes and distribution feeders are connected through circuit breakers/switches by busbars. This helps control the power flow across the network and general switching procedures for maintenance purposes. These enclosed zones mainly step up or down the voltage in transmission lines to a particular level suitable for the distribution system. Further, with the surge in the volume of structured and unstructured data, along with the increasing demand for cloud computing, is subsequently driving the demand for efficient and reliable substations.

Market Drivers and Trends

Data centers have become an essential component of the modern economy, from the servers operating in SMEs to the organization data centers supporting large businesses and the plantations running cloud computing services hosted by several technology giants, including Google, Amazon, Netflix, and Facebook. Moreover, different end users have emerged to distinguish themselves with varying data center requirements in this digital economy, which is challenged continually with staying ahead of customers’ IT roadmaps. Therefore, the requirement for data storage is also surging due to the rising demand for big data analytics and cloud-based services, including online content comprising movies, apps, videos, and social media. Thus, the growing need of data centers boosts the requirement for data center substations to get sufficient power supplies, which drives the demand for the data center substations.

Market Restraints and Challenges

On one side, the increasing demand for data center substations for technology giants is helping them in several ways. However, there are several disadvantages to owning own substation, which might create several challenges for substation owners. Firstly, when any user owns the substation, the user needs to operate and maintain it. Secondly, the user may need to install a remote operating system, combining it with their data center, to monitor and control their own substation. While it adds an additional system to their center, it also adds power assurance. Thirdly, if their substation goes down, the user and their maintenance subcontractor are responsible for running the data center again, so users need to establish monitoring and emergency procedures surrounding the substation and the data center itself. Thus, there are several disadvantages to owning own substation, which might create several challenges for substation owners.

Global Data Center Substation Market Segmental Overview

The report analyses the global data center substation market based on component, voltage type, and region.

Global Data Center Substation Market by Component

Based on component, it is segmented into transformers, switchgears, relays, and others. The switchgears segment is expected to be the largest segment in the data center substation market in 2021. Switchgear is an essential substation component and is essentially used to withstand fluctuating operating voltage in extremely volatile environmental situations. Developing new industrial and commercial facilities, including data centers for safe and reliable operations, is also estimated to drive the segment growth. Due to these factors mentioned above, the switchgears segment is expected to hold a major market share in 2021.

Global Data Center Substation Market by Voltage Type

Based on voltage type, it is segmented into 33KV-110KV, 111KV-220KV, 221KV-500KV, and above 500KV. The above 500KV segment is expected to be the largest segment in the data center substation market in 2021. Demand for high voltage substations played a major role in the market growth. Substations with high voltage (above 500KV) are designed to handle the high-power demands of mission-critical facilities such as data centers to provide reliable and quality power supply to server buildings. Substations with high voltage rating play a vital role in providing optimal power transmission and distribution for mission-critical facilities, such as data centers. Thus, the above 500KV segment will likely hold a major market share in 2021.

Geographical Analysis of Global Data Center Substation Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The North America market is expected to hold the majority of the market share in 2021. The growth is mainly due to the region's continuous growth in data center construction activities. Moreover, North America boosts the largest cloud computing market, creating a lucrative opportunity for data centers. This, in turn, offers avenues for energy transmission and distribution solutions such as data center substations. Further, data center colocation providers in North America are focused on making significant investments in constructing additional data center facilities. This, in turn, boosts the demand for data center substations in the North American region.

Major Players in the Global Data Center Substation Market COVID-19 Impact

In 2020, amidst the COVID-19 pandemic, the rise in data generation and consumption by individuals organizations fuelled data storage growth, resulting in the rising number of reliable and efficient data centers. Further, the increase in data generation and the need to improve the performance of data centers have boosted the demand for constructing new data centers. Thus, the number of data center restoration and construction projects will likely provide growth opportunities for the data center substation market. However, the data center substation market had seen a minor hit due to the disruptions in the supply chain and temporary suspension of manufacturing activities. However, the overall market witnessed a positive impact of the COVID-19 pandemic.

Similarly, in 2021, with the uplifting of lockdown and vaccination processes, the supply chain and manufacturing industries started to work fluently. Also, substations are required for continuous power supply demand in data centers. Therefore, the global data center substation market will also grow significantly during the forecast period.

Recent Developments

• January 2022, Hitachi Energy delivered a state-of-the-art 150-kilovolt digital substation, helping Indonesian utility PT Perusahaan Listrik Negara (PLN Persero) ensure reliable power and better support economic development in East Java, as well as contribute to broader long-term sustainability goals.
• October 2021, Schneider Electric announced that it expanded its micro data center solutions portfolio by introducing the easy micro data center series for standard IT and commercial environments.
• March 2021, Eaton had launched an industry-first data center solution, EnergyAware UPS using UPS-as-a-reserve (UPSaaR) in India. The solution will enable data centers to contribute to renewable energy and also earn from their UPS investments.

Frequently Asked QuestionsQ1. How big is the data center substation market?Ans. The global data center substation market size was US$ 9.8 billion in 2021 and is anticipated to reach US$ 15.6 billion in 2031, growing at a rate of 4.8% from 2022 to 2031.Q2. What is the data center substation market growth rate?Ans. The growth rate of the data center substation market is 4.8% from 2022 to 2031.Q3. Which region holds a major market share for the data center substation market?Ans. North America holds a major market share of the data center substation market in 2021.Q4. Which segment accounted for the largest data center substation market share?Ans. Based on component, it is segmented into transformers, switchgears, relays, and others. The switchgears segment is expected to be the largest segment in the data center substation market in 2021.Q5. Who are the key players in the data center substation market?Q6. What are the factors driving the data center substation market growth?Ans. The major factor driving the growth of the market is increasing need of data centers globally.Q7. What are the key growth strategies of data center substation market players?Ans. The key growth strategies of data center substation market players are product launch, partnerships, and government initiatives.Q8. Which region will provide more business opportunities for the data center substation market during the forecast period?Ans. The Asia Pacific region will provide more business opportunities for the data center substation market during the forecast period.

Please Note: This report will be delivered by publisher within 3-4 business days of order confirmation.