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Digital Substation Market Size By Component (Substation Automation System, Communication Network, Electrical System {Transformer, Busbar, Protection Devices [Circuit Breaker, Protective Relay, Switchgear]}, Monitoring & Control System {Human Machine Interface, Programmable Logic Controller, Others}, Others), By Architecture (Process, Bay, Station), By Application (Transmission, Distribution), By Connectivity (< 33 kV, 33 kV to 110 kV, 110 kV to 220 kV, 220 kV to 550 kV, > 550 kV), By Voltage Level (Low, Medium, High), By End Use (Utility, Industrial), By Installation (New, Refurbished) Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI2441
  • Base Year: 2019
  • Report Format: PDF

Industry Trends

Digital Substation Market Size exceeded USD 8 billion in 2019 and is anticipated to grow at a rate of 5% through 2026. Increasing R&D investments by manufacturers and suppliers to enhance system portfolios as well as to incorporate a versatile technological platform will positively influence product demand. In addition, favorable consumer inclination toward product deployment with an aim to enhance life expectancy of the electric infrastructure coupled with safeguarding the living environment will propel the business scenario.

Digital Substation Market

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The digital substation is a term used to describe an electrical substation where operations are managed between various distributed intelligent electronic devices interconnected by the communications network. This substation holds major benefits in terms of design & engineering, installation, and operation. In addition, these units witness an upsurge on account of maximum availability, reliability, and smart grid communications abilities across the globe.

Rapid digitalization and technology advancements will lay the foundation of smart technologies

Digital Substation Market

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Incorporation of technology aided systems including monitoring hardware & software and PLC networks across substations to enhance the overall functionality has witnessed significant impetus in the current scenario. However, substantial number of automation systems has been installed across conventional substations with an aim to upscale & curb excessive cost incursions across new substation installation.

Emerging nations favored by appreciable economic growth have witnessed upsurge in the deployment of new substations. Moreover, incorporation of energy efficient electrical systems including transformers, busbar and other protection devices along with technologically advanced human machine interface will impel the overall industry potential.

Incorporation of renewable energy sources across the grid network will complement the business scenario

Integration of sustainable energy networks supported by regulatory schemes including net-metering, feed in tariffs, and similar incentivization will complement the business scenario. In addition, incorporation of grid connected renewable networks along with decentralized micro-grid infrastructure have led to the demand for technologically effective circuitry components to sustain varying frequency network integration.

Furthermore, renewable networks pose frequency volatility and varying wavelengths requiring effective circuit monitoring and control units which will drive the digital substation market outlook.

Ongoing investments toward the grid development along with repair and maintenance of electrical infrastructure will propel the digital substation industry trends

Rising investments toward the upgradation of the conventional transmission lines coupled with smart energy infrastructure establishment have infused a favorable business growth. For instance, in April 2020, Ukraine’s National Energy & Utilities Regulatory Commission (NEURC) announced to invest an amount worth USD 240 Million toward grid development by the end of the year.

In addition, continuous operations across power industry in COVID-19 pandemic in line with maintenance and repair of electrical infrastructure for stable operation of the grid will drive the product demand.

Increasing demand for advanced and upgraded control systems across the power distribution network will propel the business scenario

Low voltage based digital substation market is anticipated to exceed USD 1.5 billion by 2026. In addition, wide applicability of these systems across power and infrastructure sectors as well as process industries will drive the product demand. Growing demand for smart control systems in line with favorable power distribution reforms will further stimulate the business growth. Ongoing deployment of low voltage power distribution networks across the commercial and residential sectors have positively stimulated the product demand.

Rising energy demand as well as growing customer inclination toward sustainable electricity distribution network will fuel the market growth

Digital substation market has been influenced by various regulatory guidelines and mandates, which have laid various standards pertaining to the deployment and manufacturing of the product across the globe. In the recent years standalone areas have been a focal point for installers & regulators as these systems hold a significant potential for business expansion and industrial growth. In addition, the rising energy demand favored by ongoing consumer inclination to integrate a sustainable power infrastructure will complement the industry landscape.

Favorable regulatory norms toward integration and electrification of micro-grid power networks will fuel the product demand

Stringent regulatory and government directives toward utility aided grid networks pertaining to electric infrastructure deployment will complement the digital substation market demand. Favorable government regulations toward electrification and integration of micro-grid power networks across grid isolated zones have propelled the product demand.

In addition, integration of sustainable energy infrastructure across developing economies along with flow of funds from government and private authorities and institutions including IFC, world bank and similar organizations across upcoming regions will positively sway the industry dynamics.

Ongoing technological advancements toward replacement of conventional electrical equipment will drive the product adoption

Increasing energy demand on account of rising expenditure toward development of long-route high voltage electric networks as well as refurbishment and restoration of existing infrastructure have reinforced the digital substation market size. In addition, growing focus toward the replacement of prevailing electrical infrastructure and its subparts with upgraded high-quality systems will augment the industry growth. For instance, in 2019, Emerson launched its Mimic Field 3D, a virtual reality-based solution to cater to critical tasks during phases including- shutdowns, startups, outages and turnarounds.

Asia Pacific region is set to dominate the digital substation market trends

Asia Pacific Digital Substation Market

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Asia Pacific market is anticipated to exceed USD 3 billion by 2026. Paradigm shift toward replacement of overhead power lines with aerial bunched cables will foster the product penetration. Furthermore, growing economic scenario will lead to the growth of micro-grid infrastructure which in turn will boost the business outlook across the region.

However, impact of COVID-19 across the region has restricted the growth of the industry as well as project commissioning plans. Moreover, this situation might decline the operations and economic activity by third quarter of 2020.

Demand of smart and upgraded substation units will act as focal point for manufacturers and the industry players

Ongoing mergers and acquisition as well as joint ventures across the industry coupled with favorable regulatory norms toward the sustainable electricity supply will fuel the business outlook. Key players operating across the digital substation industry includes ABB, Texas Instruments, Locamation, Efacec, Tesco Automation, NetControl, Belden Inc, Emerson Electric, NR Electric, GE, Schneider, Eaton, Rockwell Automation, Siemens, L&T, Cisco, Open System International, Guodian Nanjing Automation Co and Beijing Sifang Automation Co.

Digital substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2015 to 2026, for the following segments:

By Component

  • Substation Automation System
  • Communication Network
  • Electrical System
    • Transformer
    • Busbar
    • Protection Devices
      • Circuit Breaker
      • Protective Relay
      • Switchgear
  • Monitoring & Control System
    • Human Machine Interface
    • Programmable Logic Controller
    • Others
  • Others

By Architecture

  • Process
  • Bay
  • Station

By Application

  • Transmission
  • Distribution

By Connectivity

  • < 33 kV
  • 33 kV to 110 kV
  • 110 kV to 220 kV
  • 220 kV to 550 kV
  • > 550 kV

By Voltage Level

  • Low
  • Medium
  • High

By End Use

  • Utility
  • Industrial

By Installation

  • New
  • Refurbished

The above information has been provided for the following regions and country:

  • North America
    • U.S
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Spain
    • Italy
    • UK
    • Austria
    • Netherlands
    • Sweden
    • Russia
    • Belgium
    • Denmark
    • Switzerland
  • Asia Pacific
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Philippines
    • New Zealand
    • Malaysia
    • Thailand
    • Singapore
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • Kuwait
    • Turkey
    • South Africa
  • Latin America
    • Brazil
    • Chile


Authors: Ankit Gupta, Riya Gupta

Frequently Asked Questions (FAQ) :

As per estimates, digital substation industry would account a crcr of 5% through 2026.

The overall digital substation industry is anticipated to acquire a revenue share of $9.9 Billion by the end of 2026.

Expansion of smart grid networks along with refurbishment and retrofit of conventional grid infrastructure will be key driving factors for the growth of the global industry.

APAC market for digital substation is expected to exceed USD 3 billion by 2026, as estimated by GMI.

ABB, Texas Instruments, Locamation, Efacec, Tesco Automation, NetControl, Belden Inc, Emerson Electric, NR Electric, GE, Schneider, Eaton, Rockwell Automation, Siemens, L&T, Cisco, Open System International, Guodian Nanjing Automation Co and Beijing Sifang Automation Co are the major players in the global market.

Major challenges likely to impact the global market size include slow paced technological evolution across developing regions along with high dependency on imports.

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Premium Report Details

  • Published Date: May 2020
  • Companies covered: 19
  • Tables & Figures: 1128
  • Countries covered: 34
  • Pages: 573

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