Substation Automation Market Trends

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