Substation Automation Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 34.94 Billion |
| Market Size (2029) | USD 47.59 Billion |
| CAGR (2024 - 2029) | 6.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Substation Automation Market Analysis
The Substation Automation Market size is estimated at USD 34.94 billion in 2024, and is expected to reach USD 47.59 billion by 2029, growing at a CAGR of 6.38% during the forecast period (2024-2029).
- A substation automation system is usually referred to as a collection of hardware and software components integrated to control or monitor an electrical system, both locally and remotely. Substation automation systems are also used to automate tedious, repetitive, and error-prone activities to increase the overall productivity and efficiency of the comprehensive system.
- Substation automation provides protection, control, automation, monitoring, and communication capabilities as a part of a comprehensive substation control and monitoring solution. A substation layout should be clean so that the user can eliminate entire writing racks and cabinets or make them much smaller depending on how the user handles 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.
- A smart grid is an electricity network that employs digital and other advanced technologies to monitor and manage electricity transport from all generation sources to meet the electricity needs of end users. To operate every system component as efficiently as possible, smart grids coordinate the needs and capabilities of all generators, grid operators, end users, and electricity market stakeholders. This maximizes system reliability, resilience, flexibility, and stability while minimizing costs and environmental impacts.
- The surge in demand for electricity is supported by factors such as the increasing propensity of consumers to low-carbon alternatives to traditional products, such as heat pumps and electric vehicles. Furthermore, companies operating in heavily polluting industries, including steel, plastics and polymers, and transportation, are also looking for electrification to enhance sustainability.
- Although the demand for substation automation is growing, cost continues to remain among the major challenging factors for the market’s growth. For instance, installing a full-scale automation system in a substation requires significant initial investment considering the large number of components being used, including SCADA, sensors, RTUs, IEDs, HMIs, servers, etc.
- In September 2023, Moxa introduced the new MGate5119 Series IEC 61850 gateway, simplifying system integrations and enhancing communication security for power substations. This substation gateway provides DNP3/IEC 101/IEC 104/Modbus-to-IEC 61850 protocol conversions, easy-to-use functions to simplify configuration and troubleshooting, security-hardened features based on the IEC 62443 and NERC CIP standards, and a protocol encryption function to enhance communication security. With these features, the MGate5119 Series IEC 61850 gateway is perfect for substation retrofit projects.
Substation Automation Market Trends
The Industrial Sector is Expected to Witness Significant Growth
- Substation automation systems are commonly utilized in industries where energy availability is of utmost importance, including oil and gas, transportation, mining, steel, and others. Employing substation automation systems can benefit companies by preventing power outages, minimizing maintenance expenses, enhancing plant productivity, promoting worker safety, and more.
- Due to the increasing demand from various industries such as utility, steel, mining, and others, suppliers of substation automation equipment are expected to benefit significantly in the future. In the metal and mining industry, it is utilized to monitor and regulate power distribution systems. The oil and gas industry also gains advantages from substation automation as it allows for remote monitoring and control of electrical infrastructure.
- In addition, transportation industries rely on this service to manage power systems in their facilities effectively. Furthermore, other sectors use this application for efficient power management and control.
- The emergence of industry 4.0 trends has significantly enhanced the demand for automation and robotics solutions for different industrial applications, creating a favorable ecosystem for the market’s growth by influencing the electricity demand. For instance, according to the World Robotics Report 2023 by the International Federation of Robotics, the annual installation of industrial robots is anticipated to witness growth globally. However, demand across the Asia-Pacific region is expected to remain the highest, growing from 385 thousand units in 2021 to 539 thousand by 2026.
- Artificial intelligence is poised to transform the industrial substation automation market significantly. AI drives significant growth and innovation through predictive maintenance, improved decision-making, and optimized integration of renewable energy sources. A survey released by IBM in 2024 revealed that 74% of surveyed industrial companies have either already implemented or are considering AI integration in their operations. With industrial users and renewable energy providers increasingly embracing AI solutions, the substation automation market is poised for significant growth, solidifying AI's role in shaping the future power grid.
Asia-Pacific is Expected to Witness the Fastest Growth
- Asia-Pacific will experience robust growth in the future, primarily driven by the rising need for rural electrification and the adoption of renewable energy sources, contributing to the enhanced safety and efficiency of stations. Moreover, the presence of companies dedicated to promoting top-quality electronic products will further bolster the progress.
- The growth of smart grids in the market is driven by factors such as the rising demand for efficient electricity transmission, the need for reduced operations and management costs for utilities, and the objective of lower power costs for consumers. Moreover, the growth of smart grids in substation automation is fueled by the increasing integration of large-scale renewable energy systems and enhanced security measures.
- To cater to the diverse electricity requirements of end users, a smart grid is an electricity network that utilizes digital and other advanced technologies to effectively monitor and regulate the transportation of electricity from different sources of generation. Smart grids aim to optimize the functioning of every element within the system by coordinating the needs and capabilities of generators, grid operators, end users, and stakeholders in the electricity market. This approach enhances the system's reliability, resilience, flexibility, and stability while reducing costs and environmental impacts.
- China is recognized as the largest market globally for power transmission and distribution (T&D) and is also on track to become a significant adopter of smart grid technology. This aligns with its commitment to reducing carbon emissions and promoting sustainable development. China aspires to become a global leader in electrical power equipment by 2025, as stated in its national strategy outlined in the Technology Roadmap (2017) of the Made in China 2025 program. The program strongly emphasizes innovation and technology, with substantial funding allocated toward supporting its development.
- Moreover, India has taken the lead in mobilizing global action for long-term development. To combat climate change, the country has taken significant steps to reduce its national carbon footprint and reliance on fossil fuels. As a result, it is only natural that the country accelerates its efforts toward smart metering and the digitalization of its grid networks. India has set a goal of achieving net zero emissions by 2070 and obtaining 50% of its energy needs from renewable sources by 2050, raising the possibility of the national electricity grid being developed to handle demand-side flexibility and integration variability.
Substation Automation Industry Overview
The substation automation market is fragmented and appears to be highly competitive. Market leaders are investing in research and development to innovate their products continuously and are increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, and a cost-effective product portfolio. Some of the key players in the market include ABB Limited, Siemens AG, Schneider Electric SE, General Electric Co., Cisco Systems Inc., and Eaton Corporation.
November 2023: Eaton announced the opening of its new Global Innovation Center near Montreal in Brossard, Quebec, worth USD 3 billion. It focuses its efforts on accelerating R&D in Distributed Energy Resources Technology to promote the development of technologies that enable electricity grids to generate power from renewable energy sources. The company continuously invests in high-growth, high-margin businesses to meet the customers' changing needs and strengthen its product portfolio.
June 2023: GE Grid Solutions secured a contract with Larsen & Toubro to supply three 380 kV T155 gas-insulated switchgear (GIS) substations for the largest utility-scale green hydrogen plant in Saudi Arabia. By the end of 2026, NEOM Green Hydrogen Company intends to produce carbon-free hydrogen using wind and solar energy at its plant, with a production capacity of up to 600 tons per day.
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 2023: Eaton announced an investment of USD 100 million in its Nacogdoches, Texas, production facility. To meet the demand for solutions to accelerate grid modernization, this project will double the production capacity of Eaton's voltage regulators and three alternating current transformers.
- September 2023: Arteche announced that it was working with Red Eléctrica, Spain's transmission system operator (TSO), and Elewit, a technology platform within the Redeia group, to introduce Zero Emission Portable Auxiliary Source (ZEPAS). The innovative solution aims to revolutionize the way auxiliary services are operated in substations while prioritizing efficiency and environmental sustainability at the same time. To reduce emissions and foster sustainability, the solution is a compact and environmentally friendly portable system designed to supply electricity to auxiliary services in substations directly from high-voltage lines, thereby eliminating the need for traditional generator sets.
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 INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Need to Upgrade the Existing Networks
5.1.2 Innovations in Substation Automation Components/Technologies
5.2 Market Restraint
5.2.1 High Cost of Installation and Cyber Security Concerns
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Transmission
6.1.2 Distribution
6.2 By Module
6.2.1 Intelligent Electronic Devices (IED)
6.2.2 Remote Terminal Unit (RTU)
6.2.3 Bay Control Unit (BCU)
6.2.4 Supervisory Control and Data Acquisition (SCADA)
6.3 By Communication
6.3.1 Wired
6.3.2 Wireless
6.4 By Stage
6.4.1 Retrofit
6.4.2 New
6.5 By End User
6.5.1 Utility
6.5.2 Industry
6.6 By Geography***
6.6.1 North America
6.6.2 Europe
6.6.3 Asia
6.6.4 Australia and New Zealand
6.6.5 Latin America
6.6.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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 NovaTech LLC
7.1.8 Belden Inc.
7.1.9 ARTECHE
7.1.10 Honeywell International
7.1.11 Schweitzer Engineering Laboratories
7.1.12 Hitachi Energy Ltd
7.1.13 Ingeteam
7.1.14 Ashida Electronics Pvt. Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Substation Automation Industry Segmentation
Substation automation includes using data from intelligent electronic devices (IEDs) to control and automate functions within the substation. It also allows remote users to send control commands to power system devices. The features of substation automation include monitoring and controlling substation devices with the help of two-way communications through remote access and modules, such as intelligent electronic devices (IEDs). The goal is to control and monitor the substation instruments to reduce the incidence and duration of power outages.
The substation automation market is segmented by type (transmission and distribution), module (intelligent electronic devices [IED], remote terminal unit [RTU], bay control unit [BCU], and supervisory control and data acquisition [SCADA]), communication (wired and wireless), stage (retrofit and new), end user (utility and industry), and geography (North America, Europe, Asia-Pacific, and Latin America, and the Middle East and Africa). The report offers market sizes and forecasts for all the above segments in value terms (USD).
| By Type | |
| Transmission | |
| Distribution |
| By Module | |
| Intelligent Electronic Devices (IED) | |
| Remote Terminal Unit (RTU) | |
| Bay Control Unit (BCU) | |
| Supervisory Control and Data Acquisition (SCADA) |
| By Communication | |
| Wired | |
| Wireless |
| By Stage | |
| Retrofit | |
| New |
| By End User | |
| Utility | |
| Industry |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Substation Automation Market Research FAQs
How big is the Substation Automation Market?
The Substation Automation Market size is expected to reach USD 34.94 billion in 2024 and grow at a CAGR of 6.38% to reach USD 47.59 billion by 2029.
What is the current Substation Automation Market size?
In 2024, the Substation Automation Market size is expected to reach USD 34.94 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 32.71 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.
