Substation Automation Market: Current Analysis and Forecast (2021-2027)

Substation Automation Market: Current Analysis and Forecast (2021-2027)

The substation automation market has captured significant market demand and is expected to grow at a CAGR of 7% during the forecast period. This is mainly due to increasing digitization in the utility sector coupled with rising demand of uninterrupted power supply from residential and industrial sectors. This has also forced key stakeholders such as the government and utility companies to investing in expanding their existing electricity transmission and distribution systems. Furthermore, growing emphasis on effectively managing the interruption and customer service by automatically locating feeder faults coupled with decreasing the time required to restore service to unfaulted feeder sections are some other the key factors driving the substation automation demand. In addition, major players in the market are continuously testing and launching substation automation suitable for renewable energy power plants.

Substation automation refers to using data from intelligent electronic devices (IEDs) control & automation capabilities within the substation and control commands from remote users to control power system devices. Thus, rising investments in power transmission and distribution networks coupled with the growing augmentation and modernization of transmission and distribution networks across the globe, are expected to drive the market.

Furthermore, substation automation also offers benefits such as improved reliability by reducing outage duration, better fault detection and diagnostic analysis, and better management of system and component loading. Therefore, growing demand for energy coupled with increasing investment in automation activities by government and utility companies is expected to drive the global substation automation market at a robust CAGR during the forecast period.

ABB Ltd., General Electric Company, Siemens Energy AG, Eaton Corporation Inc., Schneider Electric SA, Schweitzer Engineering Laboratories Inc., CG Power and Industrial Solutions, Cisco Systems Inc., NovaTech Automation, and Trilliant Networks Inc. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report
"Amongst Offering, hardware category is expected to hold a significant share of the market in 2020”

Based on offering, the substation automation market is categorized into hardware, software, and service. Amongst these, the hardware category is expected to hold a significant share of the market in 2020 owing to its wide installation and high cost in transmission and distribution networks. However, these systems are extensively used for controlling the voltage throughout load differences in high voltage energy transmission systems through various software specially developed for this purpose. Furthermore, increasing consumption of electricity due to an increasing population, followed by an increasing number of consumers and rapid urbanization, has led to a rise in demand for electricity, thereby raising the growth of substation automations across the globe.
"Amongst Type, distribution substations category is expected to witness a robust CAGR during the forecast period”

Based on type, the market has been categorized into transmission substations and distribution substations. Amongst these, the distribution substations category is expected to witness a robust CAGR during the forecast period. It is mainly owing to the increasing energy demand from the industrial sector, across the globe. For instance, as per the International Energy Outlook, worldwide industrial sector energy consumption is projected to increase by an average of 1.2%/year, from 222 quadrillion British thermal units (Btu) in 2012 to 309 quadrillion Btu in 2040. Furthermore, the rising trend toward the adoption of a renewable energy mix coupled with the growing demand for efficient lines and towers with minimal energy losses is further expected to strengthen the demand for substation automation during the forecast period.
"Amongst Industry, utility sector accounted for the majority share in the global substation automation market”

Based on industry, the market is classified into utility, heavy industries, transportation, and others. In 2020, the utility sector accounted for the majority share in the market owing to increasing government investments in sponsoring renewable sources coupled with surging investment by energy service providers on the up-gradation of transmission and distribution networks across geographies. Moreover, factors such as surging population, coupled with investments in microgrid technology, renewables, and other advanced technologies are driving the transmission and distribution utilities. In addition, with rising investment in hydrogen, renewable natural gas, fuel cells, electric vehicle infrastructure, and carbon capture and storage transmission and distributions utilities require effective substation automation systems.
"APAC to witness significant growth during the forecast period”

APAC region has been witnessing some of the largest T&D expansions due to rapidly increasing demand in countries such as India and China. In addition, an upsurge in renewable power generation projects is expected to positively influence the market demand for substation automation systems. China is investing in expanding its existing electricity transmission and distribution systems to cater to the rising electricity demand due to rapid urbanization and industrialization in the country. Thus, the rise in the installation of new transmission lines and new substations to reduce the energy demand and supply gap in major economies of the region is expected to drive the market for substation.

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