North America Digital Substation Market Size - By Component, By Architecture, By Application, By Connectivity (≤ 33 kV, > 33 kV to ≤ 110 kV, > 110 kV to ≤ 220 kV, > 220 kV to ≤ 550 kV, > 550 kV), By Voltage Level, By End Use, By Installation & Forecast, 2024 – 2032

North America Digital Substation Market Size

North America Digital Substation Market was valued at USD 2 billion in 2023 and is expected to grow at a CAGR of 6% between 2024 and 2032, driven by the increasing demand for reliable and efficient power supply, the modernization of aging grid infrastructure, and the integration of renewable energy sources.
 

Government initiatives and regulatory frameworks promoting smart grid development, along with substantial investments from utility companies in digital transformation projects, further fuel market expansion. Additionally, the rising focus on reducing operational costs and improving grid security and resilience against cyber threats is accelerating the adoption of digital substations in the region.

North America Digital Substation Market Trends

North America digital substation industry is witnessing several notable trends, including a strong push towards grid modernization and the integration of advanced communication technologies like IEC 61850 for enhanced interoperability and efficiency. The adoption of IoT and cloud-based solutions is rising, enabling real-time monitoring and predictive maintenance. There is also a growing emphasis on cybersecurity measures to protect critical infrastructure from increasing cyber threats. Additionally, the shift towards renewable energy sources is driving the need for flexible and adaptable substations that can manage variable power inputs. Investments in smart grid projects and the increasing deployment of automation and control devices are further shaping the market landscape.
 

North America Digital Substation Market Analysis

Based on components, the electrical systems segment is projected to surpass USD 1.1 billion by 2032. The growth is mainly attributed to the increasing research and development activities to enhance system portfolios as well as to incorporate a versatile technological platform that will positively influence the North America digital substation industry. Rising electricity complexity is demanding rapid growth in the electric power landscape, thereby boosting the prevalence of digital substations, which overcome the challenges related to cybersecurity.
 

The North America digital substation market from transmission networks is expected to grow at over 6% CAGR through 2032, due to the increasing investments by utilities and grid operators in upgrading and digitizing their transmission infrastructure to improve reliability, efficiency, and grid automation capabilities. The adoption of digital substation technologies, which enable advanced monitoring, control, and data analytics, is crucial for managing the complex and interconnected transmission networks in North America. As the region continues to integrate more renewable energy sources and modernize its aging grid, the demand for digital substations in transmission applications is poised to drive the overall growth.
 

U.S. digital substation market is projected to surpass USD 2.9 billion by 2032, driven by the need for efficient and reliable transmission and distribution networks. Additionally, the U.S. government's initiatives to invest in grid modernization and the increasing focus on renewable energy sources are expected to drive the growth of the digital substation market. According to the International Energy Agency (IEA), in 2022, the U.S. government allocated more than USD 89 billion towards electricity grid investments, with around 20% of this amount dedicated to digital transformation initiatives. Furthermore, the growing need for cybersecurity in the grid infrastructure is also expected to contribute to the growth of the market.
 

North America Digital Substation Market Share

ABB Ltd. holds a substantial market share in the North America digital substation market due to its extensive presence and strong brand reputation. The company's robust product portfolio, including its ABB Ability System 800xA and ABB Ability System 800xA with IEC 61850, has contributed to its significant market share in the region.
 

North America Digital Substation Market Companies

Major key players operating across the North America digital substation industry are:

• ABB
• CG Power & Industrial Solutions Ltd.
• Cisco
• Eaton
• Efacec
• Emerson Electric Co.
• Fuji Electric
• General Electric
• Hitachi Energy Ltd.
• Igrid T&D
• NR Electric Co., Ltd.
• One Energy Enterprises
• Rockwell Automation, Inc.
• Schneider Electric
• Siemens
• SIFANG
• Tekvel
• Texas Instruments Incorporated
• WEG
   

North America Digital Substation Industry News

• In March 2023, GE Digital and Siemens have announced a strategic partnership to enhance digital substation capabilities in North America. The partnership aims to integrate GE Digital's Predix platform with Siemens' digital substation solutions, enabling real-time monitoring and control of power grids. The collaboration is expected to improve grid reliability, efficiency, and security, and support the digital substation industry across the region.
   
• In February 2021, ABB and Hitachi Power Grids have announced the launch of their Smart Digital Substation in North America. This innovative solution combines ABB's digital substation technology with Hitachi's innovative Lumada APM solution. The Smart Digital Substation is designed to enhance the reliability, efficiency, and security of power grids in North America. It features advanced predictive, prescriptive, and prognostic capabilities to optimize grid operations and reduce downtime.
   

This North America digital substation market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 to 2032, for the following segments:

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Market, By Component

• Substation automation system
• Communication network
• Electrical system
• Monitoring & control system
• Others

Market, By Architecture

• Process
• Bay
• Station

Market, By Application

• Transmission
• Distribution

Market, By Connectivity

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

Market, By Voltage Level

• Low
• Medium
• High

Market, By End Use

• Utility
• Industrial

Market, By Installation

• New
• Refurbished

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico