Substation Automation Market

2021 Analysis and Review: Substation Automation Market by Automation Type – Transmission Substations and Distribution Substations for 2021-2031

About the Report

Substation automation system, a collection of hardware and software components for monitoring and controlling electrical system, is widely used in optimizing the efficiency and cost-effectiveness of electricity distribution system. While substation automation equipment manufacturers are thriving on rise in demand from utilities, oil & gas, transportation, electrical, and other industries, the rise in investment from government and various organizations is forecast to drive their growth further in the coming years. The countries such as the United States, Germany, India, China, France, and a few others are expected to remain in the limelight for suppliers in this industry.

A recent study by the Future Market Insights (FMI) provides a holistic overview of the global substation automation market along with its significant drivers, demand-supply trajectories, and latest trends across the globe during the forecast period of 2021 to 2031.

Historical & Future Outlook of Substation Automation Market

The advancement in substation automation market became prominent over the past years owing to the steady rise in demand from transportation, mining, electrical & electronics, and other key industries. The growing popularity for new and retrofit installations of substation automation has further propelled the growth of suppliers in this sector during the last five years from 2016 to 2020.

With the advancement in electrical & electronics, transportation, and other industries getting prominent, the stakeholders in the substation automation market are expected to come across more opportunities. On the other hand, manufacturers in this industry are coming up with new launches frequently in order to increase their sales footprint further. According to FMI, the global substation automation market is anticipated to grow at over 5.5% CAGR through 2031.

How the Increase in Requirement for Efficient Electricity Distribution Fuelling Sales?

Substation automation is capable of maintaining efficient electricity distribution in cost-effective ways and hence has high requirement in electrical & electronics sector. No doubt that with the expansion in electrical & electronics industry, the demand for substation automation solutions is increasing further.

According to the report published by Select USA on 17th July, 2019, manufacturing of electronic and electrical equipment has been one of the fastest growing industries in the U.S, while the FDI (Foreign Direct Investment) stock in high-tech industries amounted to more than US$ 1.6 trillion in 2016. This indicates growing opportunity for stakeholders in substation automation industry.

Rise in Demand from Transportation Industry Spurring Growth

The transportation industry has witnessed substantial growth globally over the past years. The increase in investment by government, and various initiatives taken to strengthen transportation infrastructure has catered to its growth. This in turn has been fuelling the sales of substation automation since the past decade.

According to the report titled “Transport in the European Union- Current Trends & Issues” published by the European Commission (EC), in March, 2019, the EC has taken several initiatives to further foster the development of ‘Single European Transport Area’, while some of the initiatives included are-

  • The 4th Railway Package
  • The Blue Belt Initiatives for Maritime Transport
  • The Proposed Single European Sky II
  • The EU Aviation Strategy

Definitely this will help in increasing the sales footprint of substation automation manufacturers.

What are the Restraining Factors for Substation Automation Equipment Manufacturers?

Though the demand for substation automation are high, there are a few constraints coming in the way of manufacturers to grow further. The installation, execution, and maintenance of various substation automation such as transmission substations, and distribution substations require handling by expert and higher cost.

Additionally, the highly sought-after installations such as retrofit installations and others incur more costs and often not affordable by small and medium industrial sectors. However, the advantages of substation automation are unlimited, while the frequent launching of cost-effective products by manufacturers aims at resolving those few restraints.

Country-Wise Analysis

Why the United States is Highly Lucrative for Substation Automation Market Players?

Presently, the United States is the leading country in the world’s largest market of substation automation, North America. Rise in demand from the highly advanced industries such as transportation, utility, oil, and others are fuelling sales in the U.S.

According to the report titled “Energy Industry Spotlight” published by the Select USA, the United States is a leader in the production, supply, and consumption of energy, and the U.S. energy companies further transmit, distribute, and store energy through complex infrastructure networks that are supported by emerging products and services such as smart grid technologies. This gives a glimpse of ample of opportunities awaiting for stakeholders in the substation automation industry in the U.S.

What’s Driving Adoption of Substation Automation in Germany?

Germany is the key player in the world’s second largest market for substation automation, Europe, and is expected to maintain the lead during the forecast period. Steady growth in transport, utility, and other key industries is propelling growth in Germany.

According to the report published by the Federal Ministry of Transport and Digital Infrastructure Germany, mobility is a key prerequisite of ensuring economic growth, safeguarding jobs and guaranteeing social inclusion. As per the report, quality of public transport being a benchmark for quality of life, several governmental funds and initiatives are aiming to strengthen the transportation industry further. This in turn will pave new paths for manufacturers and suppliers in the substation automation industry in the unforeseeable future.

Why Key Players in Substation Automation Industry are Targeting China?

China being in the focal point of the world’s third largest and fastest-growing market Asia-Pacific, is projected to further growth through 2031. Highly advanced manufacturing hubs coupled with the exponentially growing demand from utility, ICT, electronics, and transportation industries is spurring the growth in China.

According to the report titled “Technology and ICT China” published by the Export Government on 30th July, 2019, China’s information and communication technology (ICT) industry is among the most dynamic sectors in the economy, while China’s ICT imports in 2017 totaled US$ 528 billion and exports reached US$ 781 billion. As per the report, the ICT industry in China is projected to reach US$ 8.1 trillion by 2021, representing 55% of China’s GDP.

India Substation Automation Market to Emerge Potential

India has emerged as another lucrative market for substation automation in Asia Pacific and is predicted to remain in the dominant position throughout the forecast period. Backed by the highly developed oil & gas, mining, and other key industries, India holds high potential for stakeholders in substation automation sector.

According to the report published by the India Brand Equity Foundation (IBEF) on 10th February, 2021, the India oil & gas industry is highly progressive and forecast to attract US$ 25 billion investment in exploration & production by 2022. As per the report, the diesel demand in India is expected to double to 163 MT by 2029-30, while the Government of India has allowed 100% Foreign Direct Investment (FDI) in upstream and private sector refining projects. These figures not only signify the potential of India oil & gas industries, but the rapidly growing opportunities for manufacturers of substation automation equipment.

Category-Wise Insights

Which Type of Substation Automation is Increasing the Sales Footprint of Manufacturers?

Presently, transmission substations are highly sought-after by the diverse end users owing to its high efficiency in controlling electrical dissipation while minimizing the possibility of outrages. Also, this type of substation automation is cost-effective and comparatively easily installable resulting in higher demand around the world.

Which Module Type of Substation Automation has the Highest Demand?

Currently, intelligent electronic devices are highly sought-after in the global industry owing to its several benefits such as- 1. highly efficient in providing smart grid control 2. convergence of multiple functions into a single unit results in more compact design 3. cost-effective. As a result, this segment is gaining fast traction. Other key segments in this category which are fueling sales are communication network, and SCADA.

Competitive Landscape

The global substation automation market is expanding fast while making the competition tougher for key players. In order to sustain in positions and excel further, the top companies in the market are emphasizing on launching products of wider variety. For instance,

  • General Electric Company launched its new extensive range of substation automation solutions such as Multifunction Servers, Gateways & RTUs Solution, Seamless & Scalable Substation Automation Solutions, and others during the last 5 years
  • Alstom Grid Substation Automation Solutions (SAS) Business unveiled their new DAP IO modules for Smart Grid Applications in January, 2015

Some of the key players operating in the global substation automation market are-

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, South Asia, East Asia, Middle East & Africa, and Oceania

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Automation Type, End User, and Region

Key Companies Profiled

  • Echelon Corporation
  • Encore Networks, Inc.
  • ABB Limited
  • General Electric Company
  • Cisco Systems, Inc.
  • NovaTech LLC
  • Schneider Electric SE
  • Alstom SA
  • Eaton Corporation Plc
  • Siemens AG

Report Coverage

Market Forecasts, Brand Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in Report

  • Which are the top companies operating in the substation Automation market?

    Some of the top companies competing in the global substation automation landscape are Echelon Corporation, Encore Networks, Inc., NovaTech LLC, and Alstom SA.

  • Which are some of the lucrative markets for Substation Automation?

    The United States, Germany, China, United Kingdom, Japan, France, Canada, and a few others are lucrative markets for substation automation.

  • What are some potential end-use industries of substation automation?

    Some of the potential end-use industries of substation automation are electrical & electronics, utility, and transportation which are catering to the high demand for various substation automation.

  • What are the popular automation type for substation automation manufacturers?

    Presently, transmission substations and distributions substations are highly sought-after by suppliers and manufacturers in this industry.

Enquiry before Buying

Is this research conducted by FMI?

Yes, the research has been conducted by expert analysts of FMI, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by FMI?

FMI follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

Who are the respondents for primary research?

FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

What are the sources of secondary research?

FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request

Is a sample of this report available for evaluation?

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Substation Automation Market Segmentation by Category

Automation Type

  • Transmission Substations
  • Distribution Substations

End User

  • Electrical & Electronics
  • Transportation
  • Oil & Gas
  • Utility

Region

  • North America
  • Latin America
  • Europe
  • Middle East and Africa (MEA)
  • East Asia
  • South Asia
  • Oceania

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