Data Center Substation Market Size, Trends and Growth Analysis by 2027

The global data center substation market is projected to expand from US$ 9,784.42 million in 2021 to US$ 13,947.91 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.2% during the period from 2021 to 2028.

This growth can be attributed to several factors, including the significant increase in internet usage, advancements in sophisticated software and application systems, and the rising number of connected devices such as smartphones, laptops, tablets, and computers. These developments contribute to a surge in the volume and diversity of structured, semi-structured, and unstructured data across both public and private networks. Consequently, organizations are increasingly adopting advanced storage and processing solutions to manage the vast amounts of data, which in turn drives the demand for modern data centers. The proliferation of data centers further escalates the need for efficient and reliable substations, thereby fostering the growth of the data center substation market.

The COVID-19 pandemic presented significant challenges across various sectors in 2020. With lockdowns in place, many individuals were required to work from home, leading to a rapid transition from physical offices to virtual environments. This shift in corporate operations, coupled with the digitization of work and its migration to cloud platforms, resulted in heightened demand for high-capacity servers across multiple industries. Although the data center substation market faced a slight downturn at the onset of the pandemic due to supply chain disruptions affecting the availability of components, the situation improved in 2021 as restrictions eased and supply chains began to stabilize. Substations are essential for ensuring a continuous power supply to data centers, which has contributed to the significant growth of the data center substation market in the Middle East and Africa (MEA) region, where the overall market experienced a positive impact from the pandemic.

In the Asia Pacific region, the adoption of data center substations is particularly noteworthy. As of 2021, China led the world with approximately 854 million internet users, followed by India with 560 million and Japan with 118.63 million. Additionally, South Korea had around 47 million internet users in 2020, with projections indicating growth to approximately 48.1 million by 2026. The increasing number of internet users directly correlates with a rise in the volume and variety of data, prompting companies to implement advanced storage and processing solutions to handle this data influx. This trend is a key driver of the growth of the data center substation market in the Asia Pacific region.

Key players in the data center substation market include Eaton, General Electric, Hitachi ABB Powergrids Inc, NEI Electric Power Engineering, Inc, NR Electric Co., Ltd, S&C Electric Company, TESCO Automation Inc., HYOSUNG Heavy Industries, Schneider Electric, and Siemens Energy. The report also includes secondary research on other companies that hold a significant share of the market.

The overall size of the data center substation market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide an overview and forecast of the data center substation market across all segments within the region. Furthermore, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the data center substation sector.