Global Secondary Unit Substation Liquid-Filled Transformer Market Insights, Size, and Forecast By Cooling Type (Oil-Filled, Natural Ester, Synthetic Ester), By Application (Electric Power Distribution, Industrial Applications, Renewable Energy Integration, Commercial Facilities), By Voltage Rating (Up to 15 kV, 16 kV - 25 kV, 26 kV - 36 kV), By Insulation Type (Conventional Insulation, Advanced Insulation, Environmentally Friendly Insulation), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Secondary Unit Substation Liquid-Filled Transformer Market is projected to grow from USD 9.8 Billion in 2025 to USD 17.5 Billion by 2035, reflecting a compound annual growth rate of 6.2% from 2026 through 2035. This market encompasses the design, manufacturing, and deployment of liquid-filled transformers specifically designed for secondary unit substations, crucial components in power distribution networks that step down voltage for end-user consumption. Key market drivers include the escalating global demand for electricity, fueled by rapid urbanization and industrialization, particularly in emerging economies. The ongoing modernization and expansion of aging power grids worldwide, coupled with the increasing integration of renewable energy sources, are further propelling market growth as these require robust and reliable transformer infrastructure. Furthermore, the stringent regulatory landscape surrounding grid stability and energy efficiency mandates the adoption of advanced transformer solutions. However, the market faces restraints such as the significant initial capital investment required for these transformers and the fluctuating prices of raw materials like copper and steel, which can impact manufacturing costs and project viability. The long operational lifespan of transformers can also lead to slower replacement cycles, thus impacting new unit sales.
Global Secondary Unit Substation Liquid-Filled Transformer Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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Despite these challenges, significant opportunities exist within the market. The growing focus on smart grid initiatives and digitalization across the energy sector presents a demand for transformers equipped with advanced monitoring and control capabilities. The increasing adoption of electric vehicles globally will necessitate substantial upgrades to existing grid infrastructure, including secondary unit substations, to support the increased load. Moreover, the rising demand for reliable power in remote and off-grid areas, particularly in developing countries, opens avenues for innovative and efficient transformer solutions. The market is segmented by application, cooling type, voltage rating, and insulation type, with the Oil-Filled segment currently holding the dominant share due to its proven reliability and cost-effectiveness.
Asia Pacific stands out as both the dominant and fastest-growing region in this market. This prominence is attributed to the region's burgeoning industrial and residential development, massive infrastructure projects, and significant investments in expanding and upgrading power generation and distribution networks. Countries within Asia Pacific are experiencing rapid economic growth and population expansion, leading to a substantial increase in electricity consumption and a corresponding need for enhanced secondary unit substation capabilities. Key players in this competitive landscape include Eaton, SGBSMIT, Honeywell, Schneider Electric, General Electric, Meralco, Larsen & Toubro, Hitachi, Altra Industrial Motion, and ABB. These companies are actively engaged in strategic initiatives such as product innovation, mergers and acquisitions, and geographical expansion to strengthen their market positions and cater to the evolving needs of the global power sector. Their strategies often revolve around developing more energy-efficient and environmentally friendly transformer solutions, integrating advanced digital technologies for enhanced grid management, and offering comprehensive service and maintenance packages to optimize asset performance and extend operational lifespans.
Quick Stats
Market Size (2025):
USD 9.8 BillionProjected Market Size (2035):
USD 17.5 BillionLeading Segment:
Oil-Filled (72.8% Share)Dominant Region (2025):
Asia Pacific (41.2% Share)CAGR (2026-2035):
6.2%
Global Secondary Unit Substation Liquid-Filled Transformer Market Emerging Trends and Insights
Sustainable Fluids Driving Transformer Innovation
Transformer innovation in global secondary unit substations is increasingly driven by sustainable fluid adoption. This trend sees utilities and industrial operators prioritizing biodegradable, non toxic, and less flammable dielectric fluids over traditional mineral oil. These advanced fluids, often ester based, significantly reduce environmental risk and enhance fire safety within substations.
Their superior thermal properties allow for higher load capacity or smaller transformer footprints, optimizing space and material use. The longer lifespan and reduced maintenance associated with these fluids contribute to lower total cost of ownership. Regulations and corporate sustainability goals are major catalysts, pushing manufacturers to develop and implement transformer designs specifically optimized for these next generation, eco friendly insulating liquids. This shift fundamentally redefines transformer performance and environmental responsibility.
Smart Grid Integration of Secondary Units
Smart grid integration is a significant driver for secondary unit substations, particularly those utilizing liquid filled transformers. This trend centers on enhancing grid resilience and efficiency by incorporating these substations into modern energy management systems. Historically, these units operated in isolation, serving as passive nodes for local power distribution. Now, with advanced sensors and communication capabilities, they are becoming active participants in smart grids.
This transformation enables real time monitoring of transformer health, load profiles, and grid conditions. It facilitates remote control for voltage optimization, fault isolation, and reactive power compensation, contributing to a more stable and responsive electrical network. Furthermore, smart grid integration supports the seamless onboarding of distributed energy resources like solar panels and wind turbines, which often connect through secondary substations. This proactive management capability ultimately leads to improved grid reliability, reduced energy losses, and optimized asset utilization within the secondary unit substation infrastructure.
Modular Substation Designs Gaining Traction
Modular substation designs are gaining significant traction in the secondary unit substation market due to their inherent flexibility and speed of deployment. These prefabricated, standardized components allow for rapid assembly and expansion, drastically reducing onsite construction time and associated labor costs. Utilities and industrial facilities increasingly favor modular solutions for their ability to adapt to changing power demands and accommodate future growth with minimal disruption. The factory controlled environment for manufacturing ensures higher quality and consistent performance compared to traditional stick built substations. This approach also simplifies the design process, leading to more efficient project execution and quicker commissioning of new substations, which is a key driver for adoption.
What are the Key Drivers Shaping the Global Secondary Unit Substation Liquid-Filled Transformer Market
Rapid Expansion of Renewable Energy Integration and Grid Modernization Initiatives
The global shift towards renewable energy sources like solar and wind power necessitates significant upgrades to existing electrical grids. This rapid expansion of intermittent generation creates new demands on substations for voltage stabilization power quality management and bidirectional power flow capabilities. Secondary unit substations are crucial for integrating these distributed renewable sources efficiently into local grids ensuring reliable electricity delivery to end users. Furthermore grid modernization initiatives focusing on smart grid technologies and enhanced resilience require more sophisticated and robust transformers within these substations. The need for advanced transformers capable of handling variable loads and supporting intelligent grid operations directly fuels the demand for liquid filled transformers in these vital secondary units.
Increasing Demand for Reliable and Efficient Power Transmission Infrastructure
The global need for consistent and powerful electricity transmission is escalating. Industrial expansion, urbanization, and a general rise in energy consumption worldwide are fueling this demand. As older infrastructure ages and renewable energy sources integrate into grids, a robust and efficient power transmission system becomes paramount. Liquid filled transformers, particularly within secondary unit substations, are critical components in this infrastructure. They safely and effectively step down high voltage electricity for distribution to end users, minimizing power loss and ensuring grid stability. The push for reliable power delivery to homes, businesses, and critical facilities directly drives investment in these essential transformers, supporting the modernization and expansion of global electricity networks to meet growing energy requirements.
Growing Industrialization and Urbanization Driving Electricity Consumption
Rapid industrialization fuels the expansion of manufacturing plants, data centers, and various industries, all demanding significant electricity. This necessitates robust electrical infrastructure, including secondary unit substations and their liquid filled transformers, to manage and distribute power efficiently. Concurrently, increasing global urbanization leads to population growth in cities, requiring extensive residential, commercial, and public utility development. Each new building, transportation system, and public service adds to the overall electricity load. These burgeoning urban and industrial areas require upgraded and expanded power grids to meet the escalating energy demands. This continuous growth in both sectors directly drives the need for more transformers to ensure reliable and stable electricity supply.
Global Secondary Unit Substation Liquid-Filled Transformer Market Restraints
Stringent Environmental Regulations on Liquid-Filled Transformers
Stringent environmental regulations on liquid filled transformers pose a significant restraint on the global secondary unit substation liquid filled transformer market. These regulations, often focusing on fire safety, biodegradability, and toxicity of transformer fluids, necessitate the use of more expensive and specialized dielectric liquids. Manufacturers face increased costs for research, development, and production to comply with evolving standards for dielectric fluids like mineral oil, silicone fluid, or natural esters. Disposal and recycling of traditional transformer oils also come under strict scrutiny, leading to additional financial burdens and logistical complexities for companies. This regulatory pressure can slow product innovation and market penetration, as the industry grapples with meeting increasingly demanding environmental compliance requirements for liquid filled transformer technology.
High Initial Investment and Maintenance Costs Compared to Dry-Type Alternatives
Liquid filled transformers, while robust, present a significant financial barrier due to their high upfront costs. The specialized materials, complex manufacturing processes, and rigorous safety standards for oil containment and fire prevention contribute to a greater initial expenditure compared to dry type alternatives. Beyond the acquisition, these units demand substantial ongoing maintenance. Regular oil testing, filtration, and occasional replacement are essential to ensure optimal performance and longevity, adding to operational expenses. There is also the cost associated with managing potential oil leaks and their environmental implications, requiring specialized containment and cleanup procedures. This combined high initial outlay and continuous upkeep can make them less attractive for budget conscious purchasers, especially in scenarios where space and environmental considerations might favor dry types despite their own limitations.
Global Secondary Unit Substation Liquid-Filled Transformer Market Opportunities
Modernization of Aging Grid Infrastructure Driving Demand for Efficient Liquid-Filled Transformers
Aging grid infrastructure worldwide presents a substantial opportunity for efficient liquid-filled transformers in secondary unit substations. Decades of operation have led to outdated and inefficient power distribution networks prone to energy losses and reliability issues. Governments and utilities are increasingly prioritizing grid modernization initiatives to enhance operational efficiency, reduce carbon footprints, and improve power quality for consumers and industries. This global push involves replacing obsolete transformers with advanced, more reliable liquid-filled models. These modern units offer superior performance, lower maintenance, and enhanced safety features critical for supporting smart grid technologies and integrating renewable energy sources. The urgent need to upgrade and expand electricity networks, particularly across rapidly developing economies in Asia Pacific, is a primary catalyst. Investment in resilient and efficient grid components, including these specialized transformers, is essential for meeting growing energy demands and ensuring stable, secure power delivery. This ongoing modernization cycle guarantees sustained demand.
Urbanization and Renewable Energy Integration Fueling New Secondary Unit Substation Deployments
Rapid global urbanization, particularly in developing economies, is driving a surge in electricity demand within expanding cities. This necessitates robust and localized power distribution infrastructure to serve new residential, commercial, and industrial developments. Concurrently, the accelerating integration of renewable energy sources, such as solar and wind, into national grids requires modernized distribution systems. These decentralized generation assets introduce complex power flow dynamics, demanding agile substations capable of managing intermittent supply and ensuring grid stability.
This twin impetus of urban expansion and green energy transition is directly fueling widespread new deployments of secondary unit substations. Liquid filled transformers, renowned for their efficiency, reliability, and cooling capabilities, are critical components within these new substations. They are essential for effectively stepping down power to meet localized urban demand and seamlessly integrating diverse renewable energy inputs. This significant grid modernization and expansion effort presents a substantial growth opportunity for the liquid filled transformer market as societies build more resilient and sustainable power networks.
Global Secondary Unit Substation Liquid-Filled Transformer Market Segmentation Analysis
Key Market Segments
By Application
- •Electric Power Distribution
- •Industrial Applications
- •Renewable Energy Integration
- •Commercial Facilities
By Cooling Type
- •Oil-Filled
- •Natural Ester
- •Synthetic Ester
By Voltage Rating
- •Up to 15 kV
- •16 kV - 25 kV
- •26 kV - 36 kV
By Insulation Type
- •Conventional Insulation
- •Advanced Insulation
- •Environmentally Friendly Insulation
Segment Share By Application
Share, By Application, 2025 (%)
- Electric Power Distribution
- Industrial Applications
- Commercial Facilities
- Renewable Energy Integration
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Why is Oil-Filled dominating the Global Secondary Unit Substation Liquid-Filled Transformer Market?
Oil-Filled transformers hold a substantial majority share due to their proven reliability, cost effectiveness, and widespread acceptance as a standard technology in secondary unit substations for decades. Their established manufacturing processes and readily available maintenance expertise make them a preferred choice for numerous applications, despite growing interest in alternative cooling types.
Which application segment significantly drives demand in this market?
Electric Power Distribution stands as a primary application driver for secondary unit substation liquid filled transformers. The ongoing need for grid modernization, expansion to serve new residential and commercial areas, and replacement of aging infrastructure continuously fuels demand for these critical components to ensure stable and efficient power delivery across urban and rural landscapes.
What trends are influencing the insulation type segment within this market?
While Conventional Insulation remains prevalent, there is a clear trend towards Advanced Insulation and Environmentally Friendly Insulation. Drivers include increasing regulatory pressure for eco conscious solutions, enhanced safety requirements, and the desire for improved performance characteristics such as higher temperature resistance and longer operational lifespan, influencing purchasing decisions for modern substation deployments.
Global Secondary Unit Substation Liquid-Filled Transformer Market Regulatory and Policy Environment Analysis
The global secondary unit substation liquid filled transformer market navigates a complex regulatory landscape primarily focused on safety environmental performance and energy efficiency. International Electrotechnical Commission IEC standards significantly influence national regulations guiding transformer design manufacturing and testing for electrical and fire safety. Environmental policies are paramount addressing insulating fluid composition prohibiting polychlorinated biphenyls PCBs and increasingly promoting biodegradable or less flammable alternatives like natural esters. Strict directives govern fluid containment leak prevention and end of life disposal including recycling mandates for oil and metallic components across regions. Energy efficiency regulations such as those from the European Union United States and various Asian nations impose minimum efficiency performance requirements impacting transformer losses and design choices. Grid codes and interconnection standards also dictate technical specifications ensuring system compatibility and reliability. Compliance with these diverse regulations necessitates robust certification processes and local market specific adaptations creating both barriers and opportunities for manufacturers.
Which Emerging Technologies Are Driving New Trends in the Market?
Innovations across the global secondary unit substation liquid filled transformer market are significantly enhancing grid reliability and operational efficiency. The widespread integration of smart transformer technologies, featuring advanced sensors and IoT connectivity, enables real time performance monitoring, predictive maintenance, and optimized asset management. This digitalization provides unprecedented operational visibility and facilitates remote diagnostics, crucial for modern grid demands.
Emerging technologies focus heavily on advanced dielectric fluids, particularly biodegradable natural and synthetic esters. These offer superior fire safety, reduced environmental impact, and extended transformer lifespan compared to traditional mineral oils. Furthermore, sophisticated condition monitoring systems, leveraging artificial intelligence and machine learning for analyzing partial discharge and gas composition, are becoming standard. These advancements promise greater energy efficiency through improved core materials and winding designs, supporting sustainable, resilient, and intelligent power distribution networks globally.
Global Secondary Unit Substation Liquid-Filled Transformer Market Regional Analysis
Global Secondary Unit Substation Liquid-Filled Transformer Market
Trends, by Region
Asia-Pacific Market
Revenue Share, 2025
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Dominant Region
Asia Pacific · 41.2% share
Asia Pacific stands out as the dominant region in the Global Secondary Unit Substation Liquid-Filled Transformer Market, commanding a substantial 41.2% market share. This impressive lead is fueled by rapid urbanization and industrialization across key economies like China and India. Extensive infrastructure development projects, particularly in power transmission and distribution networks, drive robust demand for these transformers. The region's growing population and expanding commercial sectors necessitate continuous upgrades and expansions of electricity grids, further solidifying its top position. Government initiatives promoting rural electrification and renewable energy integration also contribute significantly to the sustained growth and leadership of Asia Pacific in this vital market segment.
Fastest Growing Region
Asia Pacific · 7.9% CAGR
Asia Pacific emerges as the fastest growing region in the global secondary unit substation liquid filled transformer market, projected to expand at an impressive CAGR of 7.9% from 2026 to 2035. This robust growth is primarily fueled by rapid industrialization and urbanization across countries like China and India. Significant investments in power infrastructure development, coupled with an increasing demand for reliable and efficient electricity supply, are key drivers. The region’s expanding manufacturing sector and the proliferation of data centers further necessitate enhanced grid stability and capacity, boosting the adoption of these critical transformers. Government initiatives promoting smart grid technologies and renewable energy integration also contribute substantially to market expansion in Asia Pacific.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical tensions escalate demand for resilient infrastructure, impacting the secondary unit substation market. Sanctions and trade disputes alter global supply chains for transformer components like copper and specialized steel, leading to price volatility and potential delays. Geopolitical shifts towards renewable energy sources in some regions directly influence the need for grid modernization, including substation upgrades and new installations. Conversely, resource nationalism could impact raw material availability.
Macroeconomic factors like global inflation drive up manufacturing costs for liquid-filled transformers. Interest rate hikes by central banks increase borrowing costs for utilities, potentially delaying or reducing capital expenditure on grid improvements. Economic slowdowns in key industrializing nations might curb overall electricity demand growth, impacting substation expansion plans. Conversely, robust economic growth, particularly in developing economies, stimulates urbanization and industrialization, creating sustained demand for secondary unit substations.
Recent Developments
- March 2025
ABB announced a strategic initiative to enhance its smart grid solutions for secondary unit substations, focusing on advanced monitoring and predictive maintenance for liquid-filled transformers. This initiative aims to integrate AI-driven analytics to improve operational efficiency and extend transformer lifespan, directly impacting the global market's technological adoption.
- January 2025
Eaton launched a new line of eco-friendly liquid-filled transformers for secondary unit substations, featuring biodegradable dielectric fluids and enhanced fire safety measures. This product launch responds to increasing regulatory pressures and customer demand for sustainable and safer transformer solutions in urban and industrial environments.
- November 2024
Schneider Electric entered a partnership with SGBSMIT to co-develop advanced digital twin technology for liquid-filled transformers within global secondary unit substations. This collaboration aims to provide comprehensive lifecycle management, from design and manufacturing to operation and maintenance, leveraging both companies' expertise in smart grid solutions.
- September 2024
Hitachi completed the acquisition of a specialized sensor technology firm, aiming to integrate cutting-edge diagnostic capabilities directly into its liquid-filled transformers for secondary substations. This acquisition will allow Hitachi to offer more sophisticated condition monitoring and fault detection features, enhancing product reliability and reducing downtime for customers.
Key Players Analysis
Eaton, Schneider Electric, and ABB are market leaders, innovating in smart grid integration and digitalization for enhanced efficiency and reliability. SGBSMIT and Hitachi offer specialized high performance transformers. Honeywell provides crucial control and monitoring systems. General Electric and Larsen & Toubro leverage extensive engineering capabilities for large scale projects. Meralco focuses on regional distribution network upgrades. Altra Industrial Motion contributes critical component expertise. Strategic initiatives include R&D in eco friendly fluids and advanced sensor technology, driving market growth through grid modernization and increased energy demand.
List of Key Companies:
- Eaton
- SGBSMIT
- Honeywell
- Schneider Electric
- General Electric
- Meralco
- Larsen & Toubro
- Hitachi
- Altra Industrial Motion
- ABB
- W transformers
- Mitsubishi Electric
- Bharat Heavy Electricals Limited
- Siemens
- Toshiba
- CG Power and Industrial Solutions
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 9.8 Billion |
| Forecast Value (2035) | USD 17.5 Billion |
| CAGR (2026-2035) | 6.2% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 2: Global Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 3: Global Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 4: Global Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 5: Global Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 7: North America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 8: North America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 9: North America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 10: North America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 12: Europe Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 13: Europe Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 14: Europe Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 15: Europe Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 17: Asia Pacific Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 18: Asia Pacific Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 19: Asia Pacific Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 20: Asia Pacific Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 22: Latin America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 23: Latin America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 24: Latin America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 25: Latin America Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 27: Middle East & Africa Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Cooling Type, 2020-2035
Table 28: Middle East & Africa Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Voltage Rating, 2020-2035
Table 29: Middle East & Africa Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Insulation Type, 2020-2035
Table 30: Middle East & Africa Secondary Unit Substation Liquid-Filled Transformer Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035