Power Grid Automation Systems Market Report 2026

The power grid automation systems market size has grown strongly in recent years. It will grow from $31.64 billion in 2025 to $33.81 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to aging grid infrastructure modernization, expansion of high voltage transmission networks, increasing electricity demand in urban areas, adoption of digital substations, need for reduction of transmission losses.

The power grid automation systems market size is expected to see strong growth in the next few years. It will grow to $44.49 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to growth of smart grid investments, increasing renewable energy penetration, rising need for grid cybersecurity, expansion of EV charging infrastructure, development of decentralized power generation. Major trends in the forecast period include increasing deployment of scada and rtu systems across transmission networks, growing integration of renewable energy sources into automated grids, rising adoption of advanced relays and intelligent electronic devices, expansion of hybrid deployment models for grid monitoring software, demand for real-time fault detection and self-healing grid capabilities.

The growing integration of renewable energy sources is expected to stimulate the growth of the power grid automation systems market going forward. Renewable energy sources are energy supplies derived from naturally replenishing resources such as solar, wind, hydro, biomass, and geothermal energy. The use of renewable energy sources is increasing to reduce greenhouse gas emissions and address climate change by replacing fossil fuels with cleaner alternatives. Power grid automation systems reinforce renewable energy integration by managing generation variability, optimizing energy distribution, and maintaining grid stability as solar and wind output fluctuates. For instance, in December 2024, according to Eurostat, a Luxembourg-based government agency, renewable energy represented 24.5% of total energy consumption in the EU in 2023, up from 23% in 2022. Therefore, the growing integration of renewable energy sources is driving the growth of the power grid automation systems market.

Key companies operating in the power grid automation systems market are emphasizing the development of innovative solutions, such as AI-enabled grid management, to enhance real-time monitoring, predictive maintenance, and automated decision-making across electricity networks. AI-enabled grid management refers to the integration of artificial intelligence into power grids to optimize energy distribution, anticipate demand fluctuations, detect anomalies, and automate operational decisions for a more resilient and efficient electricity network. For example, in October 2024, Schneider Electric SE, a France-based provider of automation and energy management solutions, launched a new smart grid solution at Enlit Europe 2024 to strengthen grid resiliency, flexibility, and net-zero capabilities. The solution integrates intelligent substation automation, advanced distribution management, and edge-enabled analytics to support faster fault detection, predictive maintenance, and efficient integration of renewable energy sources. Designed to address net-zero requirements, the offering improves visibility across grid assets, enhances energy flow optimization, and enables scalable deployment to support electrification, decentralization, and increasing grid complexity.

In August 2025, Hitachi Energy Ltd., a Switzerland-based technology company, acquired Eks Energy for an undisclosed amount. With this acquisition, Hitachi Energy Ltd. aims to combine its advanced power electronics technology and specialized talent to deliver scalable, grid-stabilizing solutions amid rising global demand for battery energy storage systems (BESS). Eks Energy is a Spain-based company that delivers advanced power grid automation systems, specializing in power electronics and control solutions for energy storage and renewable energy applications.

Major companies operating in the power grid automation systems market are Hitachi Energy Ltd., Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., Mitsubishi Electric Corporation, GE Vernova Inc., ABB Ltd., Larsen & Toubro Limited, Toshiba Corporation, Eaton Corporation plc, Emerson Electric Co., Rockwell Automation Inc., Yokogawa Electric Corporation, Landis+Gyr AG., Schweitzer Engineering Laboratories Inc., Itron Inc., CG Power and Industrial Solutions Ltd., S&C Electric Company, G&W Electric Co., Kalkitech Pvt. Ltd., Trilliant Holdings Inc., Kyland Technology Co. Ltd.

Tariffs on electronic components, communication equipment, and power control hardware have raised procurement costs for power grid automation system providers, particularly affecting hardware segments such as relays, sensors, and switchgears sourced from Asia-Pacific manufacturing hubs. These cost pressures have slowed project deployments in transmission and distribution utilities across North America and Europe while increasing system integration expenses. In response, vendors are localizing manufacturing, forming regional supplier partnerships, and redesigning systems to reduce dependency on imported components. In some regions, tariffs have stimulated domestic production of automation hardware, supporting long-term resilience in grid modernization initiatives.

Power grid automation systems refer to integrated solutions that use digital monitoring, control, and communication technologies to manage the generation, transmission, and distribution of electricity. They enable real-time data collection, analysis, and automated decision-making to enhance grid reliability, efficiency, and safety. These systems help optimize electricity flow, detect faults, and reduce operational losses by integrating intelligent technologies across the power network.

The primary types of power grid automation systems include hardware, software, and services. Hardware refers to physical devices and equipment such as controllers, sensors, and communication modules that support automation, monitoring, and control of power grid operations. These systems can be deployed through cloud deployment, on-premises deployment, or hybrid deployment modes. The technologies involved include supervisory control and data acquisition, programmable logic controller, remote terminal unit, distributed control system, and human-machine interface. The various applications involved include power generation, power transmission, power distribution, renewable energy integration, and grid management, serving end users such as transmission utilities, distribution utilities, generation utilities, and industrial consumers.

The power grid automation systems market includes revenues earned by entities by providing services, such as installation and configuration services, integration and deployment services, maintenance and support services, performance optimization services, and consulting and advisory services. The market value includes the value of related goods sold by the service provider or included within the service offering. The power grid automation systems market also consists of sales of power grid automation equipment, supervisory control and data acquisition systems, intelligent electronic devices, communication and networking equipment, and power monitoring and management software. 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.

The power grid automation systems market research report is one of a series of new reports that provides power grid automation systems market statistics, including power grid automation systems industry global market size, regional shares, competitors with a power grid automation systems market share, detailed power grid automation systems market segments, market trends and opportunities, and any further data you may need to thrive in the power grid automation systems industry. This power grid automation systems 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.

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