Substation Automation Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 34.39 Billion |
| Market Size (2029) | USD 47.13 Billion |
| CAGR (2024 - 2029) | 6.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Substation Automation Market Analysis
The Substation Automation Market size is estimated at USD 34.39 billion in 2024, and is expected to reach USD 47.13 billion by 2029, growing at a CAGR of 6.5% during the forecast period (2024-2029).
With the widening supply and demand gap, the power management has become one of the most critical worldwide concern areas. Energy consumption is increasing at one of the fastest rates globally; hence, the requirement of substation automation systems in the present-day substations to efficiently control and deliver power is highly sought.
- Substation automation provides protection, control, automation, monitoring, and communication capabilities as a part of comprehensive substation control and monitoring solution. Today, the substation layout is much cleaner. One can probably eliminate entire writing racks and cabinets or make them much smaller depending on how users handle their I/Os to the IEDs (intelligent electronic devices). High-speed microprocessor-based remote terminal units or smart electronic devices are used for substation automation and protection.
- The migration toward the future transmission and distribution substation is taking place because of the desire to bring more automation and intelligence to the power grid network to address a myriad of utility concerns, such as how to reduce operational expenses to ways to meet new regulatory requirements, such as NERC-CIP (North American Electric Reliability Corporation - Critical Infrastructure Protection).
- According to Smart Energy International, it is estimated that Europe will spend USD 23.9 billion to automate or monitor secondary substations over the next decade. Utilities in countries including France, Italy, and Spain are expected to be the highest investors in equipment and services, enabling the automation of substations.
- The smart electric substation's role in smart cities has become more critical than the traditional one. The key benefits derived from substation automation are increased reliability, early detection of faults and quick diagnosis, improved worker safety, and enhanced utilization of the smart city infrastructure.
- Further, the companies are allying to help digitize the grid and make it data-driven to meet carbon neutrality. For instance, recently, Enedis, Capgemini, and Minsait have joined the edge for smart secondary substations alliance, formed to develop a standard, flexible, manageable, and interoperable platform for next-generation smart grids.
- Additionally, the Indian government allocated INR 6,450 crore (~USD 868 million) for the smart cities mission under Union Budget 2021-2022, compared to INR 3,400 crore (~USD 457 million) in FY2021.
- Furthermore, COVID-19 impacted the electric grid usage patterns in the initial stage. But as things started to get regular and the market gained traction, the demand for electricity increased, thereby increasing the need for the market studied. As per IEA, electricity consumption globally was 25,300 terawatt-hours in 2021 and 23,966 terawatt-hours in 2020.
Substation Automation Market Trends
This section covers the major market trends shaping the Substation Automation Market according to our research experts:
High Demands Of Smart Grid to Drive the Market Growth
- The increasing demand for efficient electricity transmission, reduced operations, and management costs for utilities, and ultimately lower power costs for consumers drive the growth of smart grids in the market. Additionally, the increasing integration of large-scale renewable energy systems and improved security, among others, are fueling the growth of smart grids in substation automation.
- Innovative grid communication technology provides predictive data and recommendations to utilities, suppliers, and customers on how best to manage power. Moreover, smart grids are deployed by applying modern technologies in substations and power networks.
- To reach the intelligent grid, one needs complete information from substations in the transmission network to analyze and manage it. The trends towards upgrading and retrofitting the old conventional substations besides new modern substations are driving the market.
- Owing to the need for upgradation and replacing an aging energy infrastructure, the smart grid is one of the best solutions used in substation automation as it allows for automatic rerouting when equipment fails or outages occur and minimizes outages, and minimizes the effects. These Grid technologies are expected to further drive the market growth for substation automation.
- In Nov 2022, National Renewable Energy Laboratory (NREL) and Sacramento Municipal Utility District (SMUD) entered into a partnership to launch an automation tool for interconnecting customer solar to the grid. NREL developed PRECISE, a device that performs fast and automated interconnection assessments and seamlessly integrates with SMUD's existing business interconnection workflow.
North America To Hold Significant Market Share
- According to the US Department of Energy, automation in switchgears (circuit breakers) and reclosers is categorized under the concept of distribution automation. It is estimated that with more than 60,000 distribution substations, 205,000 distribution circuits, and six million miles of distribution lines in operation, the United States has enormous potential for automation in its distribution network.
- The Public Utility Commission of Ohio has granted US utility AES Ohio approval to implement the first phase of its USD 249 million smart grid program that will help ensure the development of a modern, robust and efficient grid network with fewer customer outages.
- Furthermore, various industrial companies are expanding their substation with new development and partnership ecosystems, which leverages the market's growth. In Oct 2022, Potomac Edison, a subsidiary of FirstEnergy Corp. has, begun planning a new high-voltage transmission substation that will provide power for the first phase of Quantum Frederick, Quantum Loophole's 2,100-acre data center campus under development in Frederick, Maryland. The 230-kilovolt substation is expected to support the 240 megawatts of power anticipated for its first phase.
- Additionally, in September 2022, Siemens Smart Infrastructure and Shell Global Solutions International BV signed an MoU to collaborate on developing low-carbon and highly efficient energy solutions that support energy transition. The agreement will focus on projects that produce green hydrogen for industrial applications at Shell and its customers.
Substation Automation Industry Overview
The global substation automation market appears to be highly competitive. Market leaders are investing in research and development to innovate their products continuously and increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, and a cost-effective product portfolio. Some of the key developments in the market are:
- November 2022 - Hitachi Energy signed an agreement with Equinor to collaborate within electrification, renewable power generation, and low-carbon initiatives. The agreement depicts the commitment of both companies to accelerate the energy transition and advance a more sustainable, flexible, and secure energy system.
- April 2022 - ABB India announced the inauguration of its expanded digital substation products and digital systems factory in Vadodara, Gujarat. The new factory will meet the demand for a range of digital substation products and solutions in India and more than 50 countries.
Substation Automation Market Leaders
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ABB Limited
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Siemens AG
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Schneider Electric SE
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General Electric Co
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Cisco Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Substation Automation Market News
- October 2022 - DAMAC Properties announced that the company had awarded a contract to Danway EME to develop electrical substations at its master-planned community, DAMAC Lagoons. The substations will be built as per the highest quality standards and in compliance with DEWA's strictest regulations and specifications and are expected to accelerate the development of DAMAC Lagoons and provide power supply to the first stage of development.
- January 2022 - Indonesian Utility, PT Perusahaan Listrik Negara (PLN Persero), deployed a 150 kV digital substation developed by Hitachi Energy to boost grid reliability to ensure reliable power in East Java, Indonesia. The digital substation connects the 200-hectare Sidoarjo Industrial Estate to PLN's grid, ensuring that many large manufacturing companies can access stable power.
Substation Automation Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Need to Upgrade the Existing Networks
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5.2 Market Restraints
- 5.2.1 High cost of installation
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Transmission
- 6.1.2 Distribution
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6.2 By Module
- 6.2.1 IED
- 6.2.2 RTU
- 6.2.3 BCU
- 6.2.4 SCADA
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6.3 By Communication
- 6.3.1 Wired
- 6.3.2 Wireless
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6.4 By Stage
- 6.4.1 Retrofit
- 6.4.2 New
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6.5 End user
- 6.5.1 Utility
- 6.5.2 Industry
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6.6 Geography
- 6.6.1 North America
- 6.6.2 Europe
- 6.6.3 Asia Pacific
- 6.6.4 Rest of the World
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 ABB Limited
- 7.1.2 Siemens AG
- 7.1.3 Schneider Electric SE
- 7.1.4 General Electric Co
- 7.1.5 Cisco Systems Inc.
- 7.1.6 Eaton Corporation
- 7.1.7 Corporacion SA
- 7.1.8 Schweitzer Engg Lab
- 7.1.9 Alstom SA
- 7.1.10 Amperion Inc
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySubstation Automation Industry Segmentation
Substation automation includes using data from intelligent electronic devices (IEDs) to control & automation capabilities within the substation and control commands from remote users to control power system devices. The features of substation automation are monitoring and controlling of substation devices using modules such as intelligent electronic devices) (IEDs) and two-way communications through remote access. The aim is to monitor and control the substation instruments to reduce the incidence and duration of power outages.
The scope of the study covers different types of substations and their uses in various end-user industries. The report further covers the major vendors operating in the market and their strategies to expand their market presence. The study further analyzes the overall impact of COVID-19 on the ecosystem and encompasses market sizing and forecast for segmentation by type, module, communication, stage, end-user industry, and geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | Transmission |
| Distribution | |
| By Module | IED |
| RTU | |
| BCU | |
| SCADA | |
| By Communication | Wired |
| Wireless | |
| By Stage | Retrofit |
| New | |
| End user | Utility |
| Industry | |
| Geography | North America |
| Europe | |
| Asia Pacific | |
| Rest of the World |
Substation Automation Market Research FAQs
How big is the Substation Automation Market?
The Substation Automation Market size is expected to reach USD 34.39 billion in 2024 and grow at a CAGR of 6.5% to reach USD 47.13 billion by 2029.
What is the current Substation Automation Market size?
In 2024, the Substation Automation Market size is expected to reach USD 34.39 billion.
Who are the key players in Substation Automation Market?
ABB Limited, Siemens AG, Schneider Electric SE, General Electric Co and Cisco Systems Inc. are the major companies operating in the Substation Automation Market.
Which is the fastest growing region in Substation Automation Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Substation Automation Market?
In 2024, the North America accounts for the largest market share in Substation Automation Market.
What years does this Substation Automation Market cover, and what was the market size in 2023?
In 2023, the Substation Automation Market size was estimated at USD 32.29 billion. The report covers the Substation Automation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Substation Automation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Substation Automation Industry Report
The report on the Global Substation Automation Market provides an extensive analysis of market trends and industry statistics. The market size and industry report cover various segments, including type, module, communication, stage, end user, and geography. The industry research highlights the market growth and the market forecast outlook. Additionally, the report delves into market segmentation and market value, providing a comprehensive market overview.
The industry analysis reveals insights into market data and market predictions. The market report includes a review of market leaders and their market outlook. The report pdf offers detailed industry information and industry reports, including industry sales and industry size. This market research serves as a valuable resource for understanding the market trends and market review.
The industry overview and market forecast are crucial for stakeholders looking to understand the market dynamics. The industry outlook and market growth rate are essential for predicting future market developments. The report example and research companies' insights further enrich the analysis, making this a critical document for those involved in the substation automation market.
