Substation Automation Global Market Report 2024

The substation automation market has grown strongly in recent years. It will grow from $34.23 billion in 2023 to $36.74 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The expansion observed in the historical period can be ascribed to factors such as heightened awareness of weight management, dietary restrictions and preferences, an increase in the adoption of gluten-free and low-carb diets, government initiatives focusing on sugar reduction, and the widespread embrace of a healthy lifestyle.

The substation automation market is expected to see strong growth in the next few years. It will grow to $49.27 billion in 2028 at a compound annual growth rate (CAGR) of 7.6%. The anticipated expansion in the forecast period can be linked to factors such as the increasing prevalence of diabetes and obesity, a growing aging population, the surge in e-commerce, educational initiatives promoting sugar awareness, considerations for sustainability, and a rising interest in plant-based diets. Key trends expected in the forecast period encompass inventive flavor profiles, the emphasis on clean label and natural ingredients, innovations in packaging, the growth of e-commerce and direct-to-consumer sales, and a focus on personalization and customization.

The surge in the demand for electric power is poised to drive the growth of the substation automation market in the future. Electric power, measured as the amount of energy transferred per unit of time, has seen an increased need for more efficient management within the electrical grid system. Substation automation plays a crucial role in automating tasks such as monitoring and controlling power supply at substations. Its functions ensure a consistent and stable electricity supply, real-time detection and resolution of faults, and prevention of power outages. For instance, a January 2022 report by the International Energy Agency (IEA) highlighted a 6% increase in global electricity demand from renewable sources in 2021, marking the largest recorded surge of over 1,500 terawatt-hours. Coal-fired electricity generation rose by 9%, gas-fired electricity generation increased by 2%, and nuclear electricity generation grew by 3.5%. Hence, the escalating demand for electric power propels the substation automation market's growth.

The growing emphasis on integrating renewable energy is anticipated to boost the substation automation market in the foreseeable future. Renewable energy, derived from naturally replenishing sources, is being integrated into substation automation to create a more flexible, resilient, and efficient electrical grid. This integration enables operators to address challenges related to the variability and unpredictability of renewable energy sources. For example, as of January 2023, the Energy Information Administration forecasts that 16% of total energy generation in 2023 will come from renewable sources such as wind and solar, up from 14% in 2022. Thus, the heightened focus on integrating renewable energy drives the growth of the substation automation market.

The increasing digitization of substation automation systems is a prominent trend gaining traction in the substation automation market. Leading market players are directing their efforts toward developing digitized substation automation systems for real-time monitoring and analysis of the electrical power grid system. For instance, in May 2022, Doble Engineering Company, a US-based provider of diagnostic testing solutions for the electric power industry, introduced the Doble F6880 Digital Network Analyzer. This device is designed to identify and resolve communication and network performance issues in IEC 61850 digital substation systems. The F6880 connects to station networks using copper or optical fiber Ethernet cables, digitizes the data, and checks for deviations from baseline engineering designs using IEC 61850 sampled values and Generic Object Oriented Substation Events (GOOSE). This enables efficient troubleshooting of malfunctioning digital signals.

Major companies in the substation automation market are introducing innovative solutions, such as smart substation control, to maintain their market position. Smart substation control involves implementing advanced technologies, intelligent devices, and automated systems to enhance the monitoring, control, and management of electrical substations. For example, in January 2023, ABB Ltd., a Switzerland-based digital technology provider, unveiled the first virtualized protection and control solution with Smart Substation Control and Protection SSC600 SW. This allows customers to use their preferred hardware while still accessing reliable control and protection features. The SSC600 SW represents a significant innovation poised to transform the design, operation, and maintenance of substations. With increased flexibility, reduced costs, and improved efficiency, this virtualized solution is set to play a pivotal role in the future of power grids.

In November 2023, Hubbell Inc., a US-based manufacturer and seller of electrical and electronic products, completed the acquisition of Systems Control for $1.1 billion. This strategic acquisition creates significant value for both companies and their stakeholders, strengthening the utility solutions portfolio and expanding market reach. Systems Control is a US-based manufacturer specializing in substation control and relay panels.

Major companies operating in the substation automation market report are Schneider Electric SE, Siemens AG, General Electric Co., DIGI International Inc., ZTE Corporation, Cisco Systems Inc., Black & Veatch Holdings Company, Valiant Communications, ABB Limited, Omicron Electronics GmbH, Hitachi Energy Limited, Motorola Solutions Inc., Telefonaktiebolaget LM Ericsson, Milsoft Utility Solutions, Honeywell International Inc., Rockwell Automation Inc., Texas Instruments, Power Systems Engineering, Eaton Corporation, NovaTech LLC, Crompton Greaves Ltd., Mitsubishi Electric Corporation, GE Grid Solutions, Emerson Electric Co., Efacec Power Solutions, Arteche, Schweitzer Engineering Laboratories, Yokogawa Electric Corporation, Applied System Engineering Inc., Enel S.p.A.

North America was the largest region in the substation automation market in 2023. Asia-pacific is expected to be the fastest-growing region in the global substation automation market during the forecast period. The regions covered in the substation automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the substation automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key elements of substation automation include hardware and software. Hardware refers to both external and internal devices and equipment that facilitate essential operations such as input, output, storage, communication, and processing. In the context of substation automation, hardware is utilized to oversee and control the electrical equipment within substations. Substation automation is applicable across various voltage levels, including low voltage, medium voltage, and high voltage, utilizing communication channels such as optical fiber, power line, copper wire, Ethernet, and others. The modules it incorporates include SCADA (supervisory control and data acquisition), IED (intelligent electronic devices), communication networks, and other modules catering to the needs of industries such as utilities, steel, oil and gas, mining, and transportation.

The substation automation market research report provides substation automation market statistics, including substation automation industry global market size, regional shares, competitors with a substation automation market share, detailed substation automation market segments, market trends and opportunities, and any further data you may need to thrive in the substation automation industry. This substation automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The substation automation market consists of revenues earned by entities by providing substation automation services such as planning, designing, and engineering of substation automation systems, and testing and maintenance of systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The substation automation market also includes sales of Remote Terminal Units (RTUs), Programmable Logic Controllers (PLCs), Human Machine Interfaces (HMIs) and Power Quality Monitoring devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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