Substation Automation Market Size (2024 - 2029)

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 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).