Product ID: SQSG45D2023
Global Data Center Substation Market Size, Share, Growth Analysis, By Component(Transformers, Switchgears), By Voltage Type(33kV - 110kV, 110kV - 220kV) - Industry Forecast 2024-2031
Report ID:
SQSG45D2023 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|
Tables:
67 |
Figures:
71
Global Data Center Substation Market Insights
Global Data Center Substation Market size was valued at USD 9.5 billion in 2019 and is poised to grow from USD 10.09 billion in 2023 to USD 17.34 billion by 2031, growing at a CAGR of 6.2% in the forecast period (2024-2031).
Throughout the projection period, it is predicted that the market would expand due to the rising demand for uninterrupted and smooth electrical transmission and distribution to power data center facilities. In a power network, a substation is a building where circuit breakers or switches are used to connect distribution feeders and transmission channels. This makes it possible to regulate the network's power flow and perform standard switching operations for maintenance. The voltage in transmission lines is primarily increased or decreased in these confined zones to a specific level suited for the distribution system. The demand for efficient and dependable substations will be fueled by the rapid increase in the volume of organized and unstructured data as well as the rising demand for cloud computing. The international data center market is expanding as a result of the Internet of Things (IoT), social media, and digitization. The increasing use of these applications and technology in recent years has boosted the demand for larger, more environmentally friendly data centers. In addition, the increased use of social media and the rise in online video streaming has increased the amount of data that data centers handle, encouraging businesses to invest in dependable and dedicated data centers to prevent information loss and guarantee business continuity, energy transmission, and distribution, and security. The need for electricity to power them is rising at an unprecedented rate as a result of the construction of data centers. In turn, it is expected that this will increase demand for data center substations.
The COVID-19 pandemic outbreak, accompanying supply chain disruptions, and temporary stoppage of production operations have had a significant negative impact on the market for data center substations. In addition, as commercial activity slowed during the pandemic, the need for electricity decreased. There have been very few investments made in the substation industry in 2019 as a result of the decline in power consumption. The building environment was also slowed down by the epidemic, with data center construction projects taking the most hit. To make sure that lockdown and social distancing procedures were followed and to protect worker safety, several data center construction projects were temporarily placed on hold or halted. This shutdown caused a little drop in the market's activity.
In the upcoming years, the industry is expected to prosper thanks to the rising adoption of digital substations. Digital substations contribute to lower maintenance costs, longer asset life, and smaller environmental impact. These substations connect to control panels using fiber optic cables instead of copper ones, which eliminates the need for copper control cables and lowers the cost of installation as well as decommissioning and recycling expenses. The increased emphasis on replacing outdated electrical substation infrastructure with modernized, superior, intelligent, and digital systems is expected to accelerate market growth.
The market has also benefited from the increased spending on the extension of long-route high voltage networks as well as the rising energy demand for infrastructure renovation and modernization. However, some obstacles must be overcome for data center substation construction projects, including a high initial investment, challenges acquiring land, lengthy project cycles, tiresome maintenance and repair work, and complex substation facilities that cannot be successfully integrated into their surroundings. Nevertheless, it is expected that the costs-related difficulties will be outweighed by the long-term advantages connected with a substation's life cycle. As a result, the market expansion is expected to benefit from ongoing research and development efforts to produce novel, energy-efficient, digital or modular substations.
US Data Center Substation Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Data Center Substation Market Report Snapshots
Want to customize this report?
Our industry expert will work with you to provide you with customized data in a short amount of time.
REQUEST FREE CUSTOMIZATION
USA (+1) 351-333-4748
