Substations Market Report 2026

The substations market size has grown strongly in recent years. It will grow from $134.75 billion in 2025 to $142.01 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to expansion of national power grids, rising electricity demand, adoption of conventional substations, investments in transmission and distribution infrastructure, increasing industrial power consumption.

The substations market size is expected to see strong growth in the next few years. It will grow to $173.11 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to increasing investments in smart grid modernization, rising integration of renewable energy sources, expansion of urban distribution networks, growing demand for real-time grid monitoring, increasing focus on cyber-secure power infrastructure. Major trends in the forecast period include increasing adoption of digital substations, rising deployment of substation automation systems, growing integration of condition monitoring solutions, expansion of high-voltage transmission infrastructure, enhanced focus on grid reliability and safety.

The rising demand for electric energy is anticipated to significantly propel the growth of the substations market in the coming years. Electric energy, generated by the movement of electric charges through conductors, powers countless devices and systems across residential, commercial, and industrial sectors. This demand is intensifying as the adoption of electric vehicles (EVs) grows, leading to greater electricity consumption for regular vehicle charging. Substations play a critical role in electric energy distribution by stepping voltage levels up or down, enabling efficient transmission over long distances and safe delivery at usable voltages to homes and industries. For instance, in March 2025, the Solar Energy Industries Association (SEIA), a US-based non-profit trade association, reported that the US solar industry added nearly 50 gigawatts of direct current (GWdc) capacity in 2024, representing a 21% increase over 2023. Consequently, these growing electric energy demands are driving substantial growth in the substations market.

Key players in the substation market are focusing on developing innovative technologies, including prefabricated substations, to improve installation efficiency, reduce on-site labor, and shorten project timelines. Prefabricated substations are compact, factory-assembled power distribution units that integrate essential components - such as transformers, switchgear, and control systems - within a single modular enclosure. For example, in January 2025, CHINT Group Co., Ltd., a China-based photovoltaics company, launched a modular prefabricated substation designed for rapid deployment and high reliability. Built with proprietary components and validated through third-party certification, these substations offer customizable configurations suitable for urban, rural, and industrial environments. Engineered to operate efficiently under extreme conditions, they promote environmental sustainability and reduce both installation time and maintenance costs, making them an advanced, eco-friendly solution for modern power infrastructure.

In March 2025, Willdan Group, Inc., a US-based engineering services company, acquired Alternative Power Generation Inc., a strategic move aimed at enhancing its electrical engineering capabilities and accelerating growth in the energy transition sector. By integrating APG’s expertise in data center substations, microgrids, EV charging infrastructure, and renewable energy projects, Willdan Group plans to build a more resilient energy infrastructure and expand into new markets. Alternative Power Generation, Inc. specializes in providing utility-grade electric power solutions, including substations, further strengthening Willdan’s portfolio in this critical segment.

Major companies operating in the substations market are Hitachi Energy Ltd., Siemens AG, General Electric Company GE, Schneider Electric, Mitsubishi Electric Corporation, ABB Ltd., Toshiba Corporation, Eaton Inc., Bharat Heavy Electricals Limited BHEL, Hyundai Electric & Energy Systems Co. Ltd., KEC International Ltd., Schweitzer Engineering Laboratories Inc., Hyosung Heavy Industries Corporation, CG Power and Industrial Solutions Ltd., Sieyuan Electric Co. Ltd., Efacec Power Solutions, Voltamp Transformers Ltd., SGB-SMIT Group, Alstom Grid, Fuji Electric Co. Ltd.

Asia-Pacific was the largest region in the substations market in 2025. The regions covered in the substations market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the substations market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The substations market consists of revenues earned by entities by providing services such as voltage transformation, power direction and routing, switching operations, voltage regulation and control, and load balancing. The market value includes the value of related goods sold by the service provider or included within the service offering. The substations market includes sales of power transformers, switchgear (GIS and AIS), circuit breakers and relays, protection and control systems, and busbars and connectors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.