Distribution Automation Market Size, Regional Outlook, Application Growth Potential, COVID-19 Impact Analysis, Competitive Market Growth & Forecast, 2021 – 2027
Report ID: GMI3613
Distribution Automation Market size is slated to undergo rapid growth and transformation during the analysis timeframe 2021-2027. The future developments in the industry will be largely influenced by the ever-increasing electricity demand and the need to upgrade the existing transmission and distribution networks to improve energy efficiency. The market is also driven by the growing trend of distributed power generation which is gaining momentum in developing countries.
The rise in renewable energy generation and the upgradation of aging electrical infrastructure will bolster the distribution automation industry outlook. Distribution automation solutions are witnessing rapid adoption to meet the demand for greater energy efficiency, protection, and immediate fault detection in the transmission and distribution network across public and private utility applications.
Superior performance benefits such as improved speed, better accuracy, and lower cost will propel the distribution automation market forward through 2027. These solutions encompass a range of technologies including sensors, information & communication networks, processors, and switches which allow utilities to acquire, analyze, optimize, and automate data to improve the operational efficiency of distributed power systems.
The distribution automation software industry is witnessing robust demand as these solutions can enhance the efficiency and reliability of numerous distribution processes including fault detection, voltage management & control, outage management, feeder switching, and reactive power management. They are also known to improve grid integration of distributed energy resources and preventive maintenance of critical equipment.
Considering the communication technology, the wireless segment is anticipated to capture a notable share of the distribution automation market by 2027. Wireless technology is in demand as it helps lower maintenance costs and allows easy access of data from remote locations. The wireless communication technologies used for distribution automation include WiMAX, cellular networks, and radio frequency mesh, among others.
North America distribution automation industry is projected to grow at a healthy CAGR over the forecast period powered by increasing investments in grid control and automation to handle the growing complexity of the power infrastructure. The region is witnessing rapid adoption of distribution automation solutions to keep pace with the increasing power demand. For instance: In June 2021, Ohio state regulators had approved Dayton-based utility AES Ohio’s plans to build a smart grid in the region. As per the plan, the utility will invest more than USD 109 million in distribution automation, advanced distribution management, substation automation, and other technologies.
Earlier in April, Minnesota-based Austin Utilities had selected Aclara’s RF network, which supports distribution automation and other applications, for its end-to-end AMI (advanced metering infrastructure) for multiutility services. Aclara’s AMI network would enable Austin Utilities to collect and manage data from gas, electric, and water meters efficiently and cost-effectively. The aforementioned examples highlight that North America will be a lucrative market for distribution automation between 2021 and 2027.
ABB Ltd, Siemens AG, Eaton, Schneider Electric, General Electric, Schweitzer Engineering Laboratories, Duke Energy Corporation, Landis + Gyr, G&W Electric Company, and Cisco Systems are some of the leading players in the distribution automation industry. These companies are relying on partnerships, acquisitions, and other strategies to strengthen their position in the global market. Back in February 2019, for example, ABB had partnered with Intel to develop next-generation distribution automation systems.
How has COVID-19 impacted distribution automation market trends?
During the coronavirus crisis, the distribution automation industry has been mainly affected due to delays in electric infrastructure revamp activities and renewables projects. Strict government restrictions, workforce shortages, and supply chain concerns are some of the key factors responsible for these delays. The global economic slowdown has also posed several challenges for the market players. Gradual resumption of public infrastructure development and refurbishment activities will bolster the distribution automation market scope post-COVID 19 pandemic.
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