Distribution Automation Global Market Report 2024

The distribution automation market size has grown strongly in recent years. It will grow from $15.44 billion in 2023 to $16.97 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The expansion observed during the historic period can be attributed to several key factors, including favorable government regulations and mandates aimed at promoting distribution automation, the increasing share of renewable energy sources in the energy mix, improvements in reliable and efficient energy consumption practices, and reductions in power outage durations.

The distribution automation market size is expected to see strong growth in the next few years. It will grow to $24.26 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The anticipated growth in the forecast period can be attributed to several significant factors, including the rising need to digitalize the power sector, the increasing generation of renewable power, the integration of renewable energy sources into existing systems, efforts to enhance distribution system reliability and efficiency, the exponential growth in global electricity demand, and upgrades to grid infrastructures. Major trends expected during this period encompass technological advancements, progress in IoT and communication technologies, a growing reliance on electrical equipment, increased awareness of carbon footprint reduction measures, and initiatives to upgrade aging distribution infrastructure.

The surge in renewable power generation is expected to drive the expansion of the distribution automation market in the foreseeable future. Renewable power generation involves harnessing electricity from naturally replenished sources, contributing to a cleaner and more sustainable energy landscape. Distribution automation plays a pivotal role in facilitating the efficient, reliable, and sustainable integration of renewable energy sources into the power grid. This technology aids in managing and optimizing power distribution, thus supporting the transition towards a greener energy future. For example, data from the Energy Information Administration (EIA) indicates that wind and solar power collectively accounted for 14% of U.S. electricity generation in 2022, with projections suggesting an increase to 18% by 2024. Notably, solar and wind energy are anticipated to lead the growth in U.S. power generation over the next two years, with significant expansions in both sectors. Solar power generation is expected to surge by 75% from 163 billion kWh in 2023 to 286 billion kWh in 2024, while wind power generation is projected to increase by 11% from 430 billion kWh in 2023 to 476 billion kWh in 2024. This underscores the pivotal role of distribution automation in facilitating the integration of renewable energy sources into the power grid.

Leading entities within the distribution automation market are actively pursuing the development of innovative solutions to enhance power reliability and customer satisfaction. One notable innovation is the underground distribution restoration system, exemplified by solutions such as EdgeRestore. EdgeRestore represents a fully automated solution tailored to isolate faults in underground residential distribution circuits, enabling swift power restoration to homes. For instance, in February 2023, S&C Electric Company introduced EdgeRestore, an automated solution engineered to enhance crew safety and seamlessly integrate with existing systems. This technology streamlines fault isolation in underground lateral outages, thereby improving customer reliability, satisfaction, and overall service quality. By mitigating outage durations and enhancing crew safety, EdgeRestore exemplifies the transformative potential of distribution automation in optimizing power distribution networks and ensuring seamless energy delivery to consumers.

In March 2021, Eaton Corporation plc, a prominent US-based power management company, finalized the acquisition of Tripp Lite for $1.65 billion. This strategic acquisition bolsters Eaton's power quality business in the Americas, with a particular focus on enhancing its presence in the distribution automation market. Tripp Lite, headquartered in the United States, specializes in manufacturing power protection solutions and offers a diverse range of power distribution units (PDUs). These PDUs are equipped with essential features such as automated alerts, power redundancy, and remote management, which play a critical role in distribution automation systems.

Major companies operating in the distribution automation market report are Hitachi Ltd., Siemens AG, General Electric Company, Cisco Systems Inc., Mitsubishi Electric, Schneider Electric SE, ABB Ltd., Toshiba, Eaton Corporation Plc, American Electric Power, Xylem Inc., Hubbell Incorporated, Itron Inc., Schweitzer Engineering Laboratories Inc., Landis+Gyr, Ingeteam, S&C Electric Company, Cooper Power Systems LLC, G&W Electric, CE Power Engineered Services (US), Kalkitech, NovaTech LLC., Beckwith Electric, Trilliant Holdings, Minsait ACS, Aclara Technologies LLC, Advanced Control Systems Inc., Alstom SA, Atlantic City Electric Company, BPL Global Ltd., Crompton Greaves Limited.

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

Distribution automation (DA) encompasses a suite of technologies utilized by electric utilities to gather, automate, analyze, and optimize data, thereby enhancing the operational efficiency of their distribution power systems. It accelerates multiple critical processes within the distribution system, improving speed, cost-effectiveness, and accuracy in tasks such as fault detection, feeder switching, outage management, voltage monitoring and control, reactive power control, and load balancing.

The primary components of distribution automation include software, field devices, and services. Distribution automation involves the deployment of smart grid technologies and advanced control systems to automate various functions of electricity distribution. Wired and wireless communication technologies are utilized for distribution automation applications across public utility and private utility sectors, catering to industrial, commercial, and residential end-users.

The distribution automation market research report is one of a series of new reports that provides distribution automation market statistics, including distribution automation industry global market size, regional shares, competitors with a distribution automation market share, detailed distribution automation market segments, market trends and opportunities, and any further data you may need to thrive in the distribution automation industry. This distribution 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 distribution automation market consists of revenues earned by entities by providing services such as deployment of smart grids, remotely monitor, manage, and control distribution assets, and communication technology. The market value includes the value of related goods sold by the service provider or included within the service offering. The distribution automation market also includes sales of remote terminal units, intelligent electronic devices, switchgear and circuit breakers, sensors, and actuators. 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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