Packaged substation are mostly used in distribution networks to supply power to consumers. Major benefits associated with the use of this equipment are better voltage transformation, minimum space requirements, effective fault monitoring and control, lower losses as compared to, both aggregate technical & commercial, and remote access to information regarding supply and fault conditions. It is also very cost effective as compared to conventional substation as the equipment is assembled by the same manufacturer; hence the process of procurement is also very simplified.

The global packaged substation market is projected to exhibit high growth on account of growing urbanization and rise in the number of upgrades on electrical infrastructure, influenced by increasing energy demand. The market is expected to be valued at $6.89 million globally in 2014. It is projected to grow at a CAGR of 10.19% during the forecast period.

Asia-Pacific holds the major market share, followed by North America & Europe. In terms of individual countries, the U.S. is expected to dominate the market in 2014 on account of extensive electrical infrastructure upgrades and installation of distribution utilities. The U.S. alone is estimated to hold more than 15% of the global packaged substation market in 2014. Rapid growth in the BRIC nations' economies is expected to be the major driving factor for the development of power sector in these nations. China and India are the leading countries that are undergoing rapid transformation with huge developments in infrastructure and grid expansion.Packaged substations are expected to be used extensively in the new electrical distribution networks, which are expected to ensure minimum losses and uninterrupted power supply.

The industries application holds the major market share in 2014 as packaged substations are used extensively by industries. Along with the capacity enhancement trending worldwide, investment distributed generation and distribution are expected to drive the market.

Packaged Substation Market Share, by Region, 2014 (Units)

Source: MarketsandMarkets Analysis

The packaged substation industry is very fragmented and offers opportunities for consolidation. This can be seen as several major M&A activities are taking place in the industry, as well as subsidiary formation by big players. There are few industry leaders disconcerted over the optimal growth strategy for this market. In this industry, most players are global multinational companies, though there are growing number of local competitors that offer packaged substations with high customization and suitability of local requirements.

The top five companies in the packaged substation industry include ABB Ltd. (Switzerland), Eaton Corporation (Ireland), GE (U.S.), Siemens AG (Germany), and Schneider Electric SA (France).