Increasing Number of Internet Users Worldwide to Provide Growth Opportunities for Data Center Substation Market During 2021–2028
According to our latest market study on “Data Center Substation Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component, Voltage Type, and Geography,” the market is expected to grow from US$ 9784.42 million in 2021 and is projected to reach US$ 13947.91 million by 2028; it is expected to grow at a CAGR of 5.2% from 2021 to 2028.
The number of internet users is increasing worldwide due to growing population. There are 4.66 million internet users globally (i.e., 59% of the global population), of which 92.6% (4.32 million) users access the internet through mobile devices. Denmark, the UAE, and Sweden have the highest internet penetration rate across the world. Further, till 2020, APAC recorded the largest number of online users with over 2.5 million, whereas Europe was ranked second with approx. 728 million internet users. In 2020, China held the leading market share of internet users worldwide, followed by India and the US. China has more than 854 million internet users, whereas India has around 560 million online users. Digitalization and internet penetration are in the initial phase across a few MEA countries, such as Oman, Qatar, and Kuwait. Industries are transforming their business to digital platform due to continuous growth in internet users. Thus, the rising amount and variety of data on social media create the need for data centers, which, in turn, create lucrative opportunities for the data center substation market to offer smooth transmission and distribution of continuous electric power supply.
Based on component, the data center substation market is segmented into transformer, switchgears, relays, and others. In 2020, the switchgears segment led the data center substation market, accounting for the largest share in the market. Based on voltage type, the data center substation market is segmented into 33KV–110KV, 111KV–220KV, 221KV–500KV, and above 500KV. In 2020, the above 500KV segment accounted for the largest share of the data center substation market. Geographically, the data center substation market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global data center substation market.
Impact of COVID-19 Pandemic on Data Center Substation Market
The COVID-19 pandemic has shaken several industries including manufacturing, retail, construction, and automotive. The tremendous growth in the spread of the novel coronavirus has urged governments worldwide to impose strict restrictions on vehicular and human movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has negatively affected economies and countless industries in various countries. The lockdown imposition has resulted in the lesser production of commodities, goods, and services.
In 2020, even though the COVID-19 pandemic caused a large-scale impact on economies across the globe, leading to many challenges, the data center substation market continued to expand. Amidst the pandemic, the exponential rise in data generation and consumption by individuals and organizations fuelled the demand for data storage, resulting in the rising number of reliable and efficient data centers. Globally, data centers evolve as computational hubs for several enterprises and end users with the increasing number of work-from-home jobs. As a result, the unprecedented rise in data generation and the need to improve the performance of data centers have boosted the demand for constructing new data centers and restoring the existing ones. Thus, an increase in the number of data center restoration and construction projects is likely to provide growth avenues for the data center substation market in the coming years. However, the market has seen a minor hit due to the disruptions in the supply chain and temporary suspension of manufacturing activities. Besides, the electricity demand dropped during the pandemic as business activities slowed down. Therefore, there have been very few investments made in the substation industry in 2020. However, the overall data center substation market witnesses a positive impact of the COVID-19 pandemic.
In 2021, with the ease in restrictions and vaccination processes being driven on widescale, the supply chain and manufacturing industries started to work fluently. Also, for continuous power supply demand in data centers, substations are required. Therefore, the global data center substation market would grow significantly during the forecast period.
Siemens Energy; Schneider Electric SE; Hitachi ABB Power Grids Group; General Electric; Eaton Corporation plc; NEI Electric Power Engineering, Inc.; NR ELECTRIC CO., LTD; SANDC ELECTRIC COMPANY; TESCO AUTOMATION INC.; and HYOSUNG HEAVY INDUSTRIES are among the major companies operating in the data center substation market.
Data Center Substation Market — by Geography, 2020 and 2028 (%)
Data Center Substation Market Size | Global Report 2028
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Data Center Substation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Transformer, Switchgears, Relays, and Others) and Voltage Type (33KV-110KV, 111KV-220KV, 221KV-500KV, and Above 500KV)
Data Center Substation Market Size | Global Report 2028
Download Free SampleData Center Substation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Transformer, Switchgears, Relays, and Others) and Voltage Type (33KV-110KV, 111KV-220KV, 221KV-500KV, and Above 500KV)
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