Mobile Substation Market Size, Share, Opportunities, COVID-19 Impact, And Trend By Component (Transformer, Switchgear, Surge Arresters, Protection And Control Equipment, Other Auxiliary Systems), By Type (Skid, Containerized, Trailer/Semi Trailer), By Industry Vertical (Oil & Gas, Metallurgy, Energy & Power, Telecommunication, Railways), And By Geography - Forecasts From 2022 To 2027

The mobile substation market is estimated to expand at a CAGR of 7.30% during the forecast period, to reach a market size of US$1,438.245 million in 2027 from US$878.420 million in 2020.

A mobile substation is an autonomous system that has the ability to address a range of contingencies that a utility might face. It ensures a temporary supply of energy during the time when the main station is undergoing maintenance or refurbishment. Similarly, it provides temporary power solutions in areas affected by natural disasters or events. The emphasis on providing and ensuring a continuous supply of power is significantly driving the growth of the mobile substation market. Simultaneously, the growing number of clean energy projects requires smooth integration of renewable energy into the electric grid, and the ability of the mobile substation to ensure an effective transition is further augmenting the demand for these substations.

Geographically, the North American and European regions are expected to hold a major share on account of the early adoption of technology coupled with the presence of major companies in the region, while the Asia-Pacific region is anticipated to witness exponential growth in the near future. Furthermore, the Middle East & Africa region is expected to be one of the fastest-growing regions owing to the availability of rich natural resources, such as oil & gas and metals & mining, and the untapped market for energy resources in some parts of the African region.

Increasing demand for reliable and effective transition systems is driving the global mobile substation market.

Having the ability to recover as quickly as possible following major weather events and natural calamities provides economic and public health and safety benefits for local businesses and communities. Moreover, rising electricity demand coupled with the continuous and expanded growth of the share of renewables in centralized and decentralized grids requires an effective new approach to transition management, making full use of mobile substations, thus, boosting the demand for the mobile substation during the given forecast period. In addition, with the higher occurrence of extreme weather conditions and catastrophic events, there is an increasing demand for mobile substations as they are useful for emergency response as backup units for a short period of time.

Industry Vertical

By industry vertical, the mobile substation market is segmented as oil & gas, metallurgy, energy & power, telecommunication, and railways. The energy & power industry is estimated to hold a significant share and is anticipated to grow at a steady pace on account of growing efforts by the governments of different countries to improve the power infrastructure. Simultaneously, the rising focus on improving and ensuring smooth operational efficiency by the oil & gas industry is projected to drive the market demand, while railways and metallurgy are anticipated to offer decent revenue generation opportunities during the course of the forecast period.

Geography

By geography, the mobile substation market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. North America accounted for a significant share of the global mobile substation market in 2020, owing to the high demand for mobile substations due to rising cases of power outages. In 2019, Israeli-based VRT Power, a manufacturer, and distributor of power transformers, signed a five-year framework agreement with one of the region’s major utilities in 2018 to design and supply mobile substations. Asia-Pacific (APAC) is projected to witness a substantial CAGR during the forecast period on account of rising demand for effective solutions for uninterrupted power supply for the growing population and growing industrial sector in APAC countries. 

The well-established industrial sector in the United States is driving up demand for electricity. However, this high demand is frequently hampered by major power outages caused by natural disasters or other events. As a result, rising energy outages in the United States are one of the major drivers of the country's mobile substation market. According to the U.S. According to the Department of Energy (DOE), weather-related power outages are the leading cause of power outages in the United States. Moreover, the aging grid infrastructure coupled with the very high cost of upgradation of aging facilities is boosting the demand for mobile substations across various industries.

Recent development and expansion

• In April 2022, TP Southern Odisha Distribution Limited (TPSODL), a joint venture between Tata Power and the Government of Odisha, introduced a mobile substation in its service area. to ensure that consumers have a consistent power supply,
• In February 2022, Zest WEG collaborated with Robustrade to design and build one of the largest mobile substations ever built in South Africa. It comes with three trailers of equipment and enables the end user to step down power from the main national grid at various geographic points as needed.
• In September 2020, Hitachi ABB Power Grids launched a world-first disaster recovery solution based on modular mobile substations. It is intended to ensure long-term grid stability and power quality in areas prone to unpredictable events and natural disasters such as storms, flooding, and earthquakes.

Covid 19 impact on Mobile Substation Market

The tremendous increase in virus spread compels governments all over the world to impose strict restrictions on human and vehicle movement. As a result of the nationwide lockdown, the supply chain and production of components, equipment, and systems, as well as the supply of raw materials for manufacturing components used in a mobile substation, are being disrupted. Limited production activities and decreased demand from end-use industries are limiting overall market revenue for the emergency mobile substation market, resulting in a decline in market growth over the next few years.