Substation Automation Market Size & Share, by Type (Transmission, Distribution); Communication Mode (Wired, Wireless); Stage (Retrofit, New); End-user (Utility, Electronics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3908
  • Published Date: Aug 09, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Substation Automation Market size is set to reach USD 62 Billion by the end of 2035, growing at a CAGR of 6% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of substation automation was around USD 28 Billion. The growth of this market is driven by the increasing investment in renewable energy sources to meet energy demands. Currently, solar and wind are the epicenter of power generation with most economies at least generating 20% of their electricity with these two sources. As per a report by International Energy Agency, in 2019 the global share of renewable resources in power generation reached 25%. By 2050, it is anticipated to offer a share of approximately 86% in global power generation.

Moreover, the increasing global population and higher electricity demand are estimated to boost the market expansion in the projected period. Electricity is becoming as crucial in people's daily lives as water and air. As per the research industrial, residential, and commercial domains each account for one-third of total electricity use.


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Substation Automation Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Investments in Smart Grids – Substation automation aids in reducing maintenance and operational cost along with this it enhances plant productivity with advanced technologies. It performs smart load-shedding functions and interlocking to make sure the reliability, enhanced performance, and security of electrical power networks.Smart grids help to reduce energy losses, increase productivity and dependability, and manage energy demand more cost-effectively and wisely during transmission and distribution. Owing to these benefits major authorities are offering investment in the development of smart grids. In 2018, an investment of USD 949,000 was offered to smart grid projects by Natural Resource Canada.
  • Shift from Transmission to Distribution Substation – To address a variety of utility concerns, including how to reduce operational costs and how to comply with new regulatory requirements, such as NERC-CIP (North American Electric Reliability Corporation - Critical Infrastructure Protection), the migration towards the future transmission and distribution substation is taking place. Over the next ten years, it is predicted by Smart Energy International that Europe will invest USD 23.9 billion in automating or monitoring secondary substations.Utilities in nations like France, Italy, and Spain are anticipated to make the largest investments in machinery and support services to enable substation automation.
  • Demand for Reliable Automation in Substations in Energy and Utility – Increasing demand for electric power in the past few decades has significantly raised the demand for reliable and efficient automation and protection for substations. This factor further is expected to boost the demand in the energy and utility section.

However, substation automation systems are the latest generation system designed in a way keeping in mind the functional needs and they perform functions of protection, automation, and control. These have become significant components in energy consumption systems. Therefore, these factors are projected to boost the demand for automation substations in the energy and utility section. 

Challenges

  • Higher Cost of Installation – The growing utilization of advanced technologies such as service-oriented architecture and microprocessors and the increasing requirement to incorporate various IEDs in substations has raised the installation cost of substations automation. This is predicted to hamper the market in the upcoming times.
  • Issues with Cyber Crimes and Hacking
  • Slowdown in Power Generation Sector

Substation Automation Market: Key Insights

Base Year

2022

Forecast Year

2023 – 2035

CAGR

~6%

Base Year Market Size

~USD 28 billion

Forecast Year Market Size

~USD 62 billion

  Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Substation Automation Segmentation

Substation Automation Segmentation

Stage (Retrofit, New)

Based on the stage, the new segment in the substation automation market is projected to observe the largest revenue by the end of 2035. This is attributed to the increasing need for new power plants and smart grids across numerous industries, as well as the growing need for automation, IED, improved communication technologies, HMIs, and SCADA systems.

As they offer higher operational safety and reliability at low maintenance prices, to propel the power flow, enhance the quality of the power supply, update power infrastructure, and improve electric reliability multiple companies have launched new installation projects. For instance, GE signed an agreement with Botswana Power Corporation for the supply, design, installation, testing, and commissioning of SCADA at the principal grid control center in the BPC main office and backup control center in Francistown in July 2018.

End User (Utility, Electronics)

Substation automation market from the utility segment is anticipated to dominate with a revenue share of 53% during the forecast timeframe. This growth of the segment is expected to rise as a result of increased government measures to modernize power systems and increased investments in renewable energy generation.

However, in the current situation, the demand for substations automation can be seen more in the wind industry due to the joining of government organizations and market players in wind farm projects.

 

Our in-depth analysis of the global market includes the following segments:

  Type

  • Transmission
  •  Distribution

  Communication Mode

  • Wired
  • Wireless

  Stage

  • Retrofit
  • New

  End User

  • Utility
  • Electronics

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Substation Automation Industry - Regional Synopsis

North American Market Forecast

The North American substation automation market is expected to dominate the market by registering the highest CAGR in the predicted period. This can be assumed owing to the rising adoption of advanced electronic devices. Moreover, escalating adoption of smart grids in the region is also estimated to boost market growth. For instance, over 90 million smart meters were installed throughout the U.S. in 2019.

APAC Market Statistics

The Asia Pacific market for substations automation is estimated to account for lucrative market value between 2023 – 2035. The expansion of the regional market can be attributed to changing energy infrastructure, which is supported by rising industrialization in developing countries. The growing demand for smart grids and smart electric meters to optimize energy utilization, along with the initiatives to promote the use of renewable is projected to promote market growth in the region.

Research Nester
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Companies Dominating the Substation Automation Market

top-features-companies
    • ABB Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis 
    • SAE IT-Systems GmbH & Co. KG
    • AMETEK, Inc.
    • Axiomtek Co. Ltd.
    • Toshiba Corporation
    • Texas Instruments Incorporated
    • Larsen & Toubro Ltd.
    • Cisco Systems, Inc.
    • Eaton Corporation PLC
    • General Electric Company

In-the-news

In The News

  • January 18, 2022: Eaton Corporation PLC launched advanced intelligent power management UPS in the North American market for power protection in IT environments.
     
  • July 20, 2021: ABB Ltd. announced the acquisition of ASTI Group, with the insight to drive the next generation of flexible automation.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3908
  • Published Date: Aug 09, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing investment in smart grids is estimated to boost market growth.

The market is anticipated to attain a CAGR of 6% over the forecast period, i.e., 2023 – 2035.

The major players in the market are AMETEK, Inc., Axiomtek Co. Ltd., Toshiba Corporation, Texas Instruments Incorporated, Larsen & Toubro Ltd., Cisco Systems, Inc., Eaton Corporation PLC, General Electric Company, and others.

The electronics segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Substation Automation Market Report Scope
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