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Data Center Substation Market is Anticipated to Increase at a Healthy 6.2% CAGR from 2022 to 2032 | FMI
Data Center Substation Market
Growing demand for energy to restore the existing infrastructure is projected to fuel growth opportunities in the data center substation market.
Data centers are a vital part of the IT infrastructure. New data-intensive technologies and high-speed wireless networks have led to high demand for data centers among businesses of all sizes, right from major electricity-intensive industries to limited enterprise computing centers.
The rising focus on the replacement of old electrical substation infrastructure with upgraded, high-quality, modular, digital, and gas-insulated systems is also expected to augment the growth in the market.
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Increasing volume of structured and unstructured data coupled with the growing demand for cloud computing is anticipated to drive the growth of data center substation market. North America is expected to hold the largest share of the global cloud computing market, thereby creating a lucrative opportunity for data centers. This, in turn, offers avenues for energy transmission and distribution solutions such as data center substations.
Datacenter colocation providers in developed countries are focusing on making significant investments for constructing additional data center facilities, which is further expected to boost sales across the globe.
However, increasing adoption of data centers and virtualization of enterprises is posing as a threat to the critical data gathered by an enterprise. This is increasing the awareness about the security of this data among enterprises of all sizes.
Thus, owing to the high growth opportunities associated with the market, major vendors are partnering with various channel partners established across the globe. This is enabling solution providers to invest and expand their business in the global data center substation market.
"With growing adoption of advanced data center solutions and development of new business models after the advent of industry 4.0, countries in South Asia Pacific and Middle East and Africa, such as India, Thailand, Mexico, and Brazil, are expected to witness potential growth opportunities" says the FMI analyst.
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Key Takeaways
By component, the switchgears segment is expected to account for 23% of the total market share in 2022.
By voltage, the above 500kV segment is anticipated to expand at a 7.4% CAGR over the forecast period.
Sales in the Finland data center substation market are expected to account for nearly 13% of the Europe market share through 2031.
The market in Japan is expected to grow at a CAGR of around 8.3% through 2032.
In India, sales are expected to increase at a CAGR of 10.2% over the forecast period.
Competition Landscape
Leading players operating in the global data center substation market are investing in research and development to comply with growing demand for digital data solutions. Besides this, players are investing in mergers, acquisitions, and collaborations to expand thwir global footprint. For instance:
In October 2019, Schneider Electric launched EcoStruxure micro data center C-Series 43U with intelligent cooling technology. It is the latest addition, adding more capacity, more savings, and more built-in features to address the unique challenges of commercial environments.
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More Valuable Insights on Data Center Substation Market
Future Market Insight's report on the data center substation industry research is segmented into three major sections - component (MV/LV transformers, switchgears, relays, power distribution units (PDU), UPS systems, busbars, surge arrestors, and others), voltage (33kV - 110kV, 110kV - 220kV, 220kV - 500kV, and above 500kV), and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in the data center substation demand outlook.
Data Center Substation Market Outlook by Category
By Component:
MV/LV Transformers
Switchgears
Relays
Power Distribution Units (PDU)
UPS systems
Busbars
Surge Arrestors
Others
By Voltage:
33kV - 110kV
110kV - 220kV
220kV - 500kV
Above 500kV
By Region:
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East and Africa (MEA)
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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.
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