Substation Automation Market Snapshot (2023 to 2033)

The global substation automation market is expected to be valued at USD 29.12 billion in 2023. With the increasing demand for electric and hybrid vehicles, coupled with the rising use of digital technology to improve grid efficiency in smart cities, the overall demand for substation automation is projected to grow at a CAGR of 6.7% between 2023 and 2033, totaling around USD 55.69 billion by 2033.

Substation automation is a method of using data from intelligent electronic devices. It refers to controlling and automating the capabilities within the substation and controlling power systems devices through commands from remote users. To automate the electricity substations, equipment such as specific software, special sensors, and equipment that facilitate two-way communication is entailed.

Data Points Key Statistics
Substation Automation Market Value 2023 USD 29.12 billion
Substation Automation Market Projected Value (2033) USD 55.69 billion
Substation Automation Market CAGR (2023 to 2033) 6.7%

In addition, intelligent electronic devices such as protective relays, programmable logical control, and a digital transducer are used. Such type of equipment helps in the monitoring and controlling of substation equipment. Also, with the help of such equipment, the incidences and duration of power outages are reduced.

The key market driver of this market is to reduce human intervention and improve the system's operating efficiency. Also, increasing developments in SCADA and communication technologies and rising demand for renewable energy projects drive the market growth.

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Substation Automation Demand Analysis (2018 to 2022) Vs Market Outlook (2023 to 2033)

The global demand for substation automation is projected to increase at a CAGR of 6.7% during the forecast period between 2023 and 2033, reaching a total of USD 55.69 billion in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 4.1%.

According to Future Market Insights, a market research and competitive intelligence provider, the substation automation market was valued at USD 27.29 billion in 2022.

The increasing demand for efficient electricity transmission, reduced operations and management costs for utilities, and, ultimately, lower power costs for consumers drive the growth of smart grids in the market. Also, the increasing integration of large-scale renewable energy systems and improved security, among others, are fueling the growth of smart grids in substation automation.

Smart grid communication technology provides predictive data and recommendations to the utilities, suppliers, and customers on how best to manage power. Moreover, smart grids are deployed by applying modern technologies in substations and power networks.

To reach the smart grid, one needs complete information from substations in the transmission network to analyze and manage it. The trends towards upgrading and retrofitting the old conventional substations besides new modern substations are boosting the market growth.

Attributed to the need for the upgradation and replacement of an aging energy infrastructure, the smart grid is one of the best solutions used in substation automation as it allows for automatic rerouting when equipment fails or outages occur, minimizes outages, and minimizes the effects. These Grid technologies are expected to further drive the market growth for substation automation.

Additionally, digitization and automation have been the focus areas for the Indian power grid over the last decade. During this period, the Power Grid Corp. of India Ltd (POWERGRID), the central transmission utility for India, deployed IEC 61850-based grid substation automation in more than 100 substations. For a fully digitalized substation, the 220 kV Greenfield Chandigarh substation is currently under construction.

Which Drivers Underpin Substation Automation Industry Expansion?

Increasing Investments in Smart Grid Infrastructure Development to Fuel the Market Growth

Substation automation assists with reducing operational as well as maintenance costs and increases plant productivity using enhanced technologies. It also ensures high performance, reliability, and safety of electrical power network performing interlocking and smart load shedding functions.

Smart grids can reduce energy losses during transmission and distribution, improve reliability and productivity, and manage energy demand smartly and cost-effectively.

Considering all these benefits, heavy investments are being made for the development of smart grids across the world. For instance, in May 2018, Natural Resource Canada announced an investment of USD 949,000 for a next-generation smart grid project.

The grid project focuses on promoting the adoption of renewable energy sources and the implementation of technology to integrate new sources of clean energy without compromising the stability and reliability of existing grids.

The Government of Germany is making multiple initiatives to completely digitalize various operations in the railway sector; for example, the automatic operation of trains on the mainline network using automated substations. According to the International Railway Journal, the Government of Germany has invested USD 80 million in developing digital applications to increase the network capacity.

Huge Prospects for Substation Automation to Augment the Market Growth

Solar and wind are currently the mainstream options in the power sector, with most countries generating more than 20% of their electricity using solar and wind energy sources. According to the International Energy Agency (IEA), the share of renewable sources in world electricity generation reached 25% in 2019.

By 2050, renewable power will be able to provide the bulk of global power demand, which would be approximately 86%. Companies across the world are focusing on investing in sustainable energy infrastructure than in fossil fuels.

According to the IEA's World Energy Investment 2020 report, total investment in renewable energy sources amounted to USD 259 billion and USD 226 billion in 2019 and 2020, respectively. The decline in 2020 was much because of the economic crisis due to the outbreak of the COVID-19 pandemic.

Countries worldwide are trying to develop new renewable electricity generation projects. They are also investing in solar and wind projects to meet the growing electricity demand and minimize the environmental impacts, along with investments in generating power using non-renewable sources at the same time.

Increase in Population and the Subsequent Rise in Electricity Demand boding well for Substation Automation Expansion

Electricity has gained significant importance in daily life, similar to air and water. Residential, commercial, and industrial users each account for roughly one-third of the nation's electricity use.

On average, the biggest single uses of electricity in the residential sector are space heating and cooling (air conditioning), lighting, water heating, space heating, home appliances, and electronics. Demand for electricity in the residential sector increases on hot summer afternoons due to the rise in ACs, fans, and coolers.

The commercial sector comprises government organizations, service-providing facilities and equipment, and other public and private entities. Usually, the substantial single uses of electricity in the commercial sector are lighting, heating, ventilation, and air cooling & conditioning.

Electricity requirements in the commercial areas rise during operating business hours and may reduce substantially on nights and weekends. Electricity use in the industrial sector generally does not fluctuate through the day or year, as in the case of residential and commercial sectors, particularly at manufacturing facilities that operate round-the-clock.

For instance, in 2019, according to IEA, the world's total electricity final consumption reached 22 848 TWh, up 1.7% from 2018. In 2019 (OECD Organization for Economic Cooperation and Development), the total electricity final consumption stood at 9 672 TWh, 1.1% lower than in 2018, while final electricity consumption in non-OECD countries was 13 176 TWh, an increase of 3.8% from 2018.

High Installation Cost of IEDs in Substations to Act a Market Restraint

The initial phase of automating the substation is capital-intensive, which may restrain the growth of the global substation automation market. The increasing use of advanced technologies such as microprocessors and service-oriented architecture (SOA) and the rising requirement to embed several IEDs in substations have increased the purchase costs of these substations.

Moreover, effective deployment of smart substations requires strong coordination across customary organizational boundaries, significant process change, and rigorous governance. High investments in the fruitful deployment of smart substations could add to the government's economic burden. After the deployment, high operational and maintenance costs are also a big concern for utility providers.

Nikhil Kaitwade
Nikhil Kaitwade

Principal Consultant

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Region-Wise Insights

Will North America Continue Dominance in the Global Substation Automation Market?

Increasing Investment in Energy Infrastructure in the Region

The North American substation automation market is expected to accumulate the highest market share of 36.0% in 2023. On a geographic basis, North America is anticipated to be the largest market for substation automation, owing to the increasing popularity and adoption of advanced intelligent electronic device & communication technologies.

This is helping the substation automation market growth along with the technology development in the electrical field in countries like the United States and Canada.

Factors such as increasing investment in energy infrastructure by different governments owing to increasing urbanization and higher energy demand are some of the major factors that are expected to boost the growth of the Substation Automation Market in the region over the analysis period.

In addition, increasing dependence on electricity, demand from the power system for advanced technology, requirements to reduce maintenance and operating costs, and implementation of government incentives are primarily driving North America's substation automation market size.

Where does the growth of the Asia Pacific Substation Automation Market Stand?

Government Initiatives to Improve Power & Energy Sector in the Region

The substation automation market in the Asia Pacific is expected to accumulate a market share of 32.5% in 2023 and is expected to continue to maintain the trend over the forecast period as well. Several initiatives have been taken by various governments in APAC countries to improve the power and energy sector, driving the growth of the substation automation market.

The Government of India has launched several schemes to revive power distribution utilities and electrify villages. The Indian government is following the smart infrastructure vision in its country.

The smart power infrastructure includes digitization of the grid, which helps distribute uninterrupted electricity to the industrial, residential, and commercial end users. Additionally, in 2020, the Government of China invested USD 31 billion to modernize its grid infrastructure by installing automated substations. Similarly, countries such as Indonesia and South Korea are also investing in grid modernization projects.

For instance, in November 2019, CG Power Systems Indonesia, a subsidiary of CG Power and Industrial Solutions (CG), was awarded a contract from the Indonesian state utility PT PLN (Persero) to manufacture and supply 25 units of power transformers valued at USD 24 million.

The order will support PLN's ambitious goal to enhance its transmission grid performance. All these factors are placing the substation automation market in APAC towards a positive growth trajectory.

Furthermore, Asia Pacific is projected to have healthy growth during the forecast period owing to the increasing demand for rural electrification and adoption of equipment facilitating safety and better operation of the substation. Also, the presence of companies bringing in advancements in electrical equipment will further add up to the regional growth.

How will the Growth of the Substation Automation Market unfold in Europe?

Increasing Demand for Smart Grids in the Region

The European substation automation market is expected to accumulate a market share value of 30% in 2023. The European renewable target for 2030 (32% of total energy consumed) means that more than 50% of electricity would be generated from RES, most of which would be connected to the MV and LV grids.

Furthermore, policies formulated by the EU have encouraged the development of decentralized electricity generation, electric vehicles, and energy storage to cater to flexible demand.

Moreover, the European countries are emerging as major revenue-generating countries for substation automation markets, owing to the increasing demand for smart grids and an increase in the adoption of renewable energy. These factors are anticipated to accelerate the European Substation Automation Market during the forecast period.

Category-Wise Insights

By Component, which Substation Automation Category will remain prominent?

Substation Automation Hardware to beat Competition in Untiring Markets

Hardware is estimated to account for the largest market share of the substation automation market in 2023, accumulating 65% revenue. The market growth can be attributed to the introduction of the IEC 61850 standard for substations, which enables the incorporation of all control, measurement, and monitoring functions in one protocol and facilitates interoperability between intelligent electronic devices (IEDs).

The demand for substation automation systems is also driven by the increasing need to retrofit conventional substations to incorporate modern-day monitoring and control capabilities.

Various government bodies and companies worldwide plan to install SCADA systems in their substations. Utilities and heavy industries are increasingly adopting SCADA systems to achieve improved control and complete view of substations, increasing operational efficiency.

By Control System, which Substation Automation Category to dominate?

SCADA Segment to Drive the Substation Automation Market

Based on the control system, the SCADA segment is expected to witness significant growth over the forecast period, at a CAGR of 6.3%, owing to increased reliability, greater customer satisfaction, and improved utilization witnessed over its installation across various industries.

Moreover, rising implementations and demand for SCADA systems, especially from pharmaceutical and food & beverage sectors, drive the market growth. Besides, the increasing adoption of SCADA technology in energy & power and the oil & gas industries worldwide creates substantial market demand.

SCADA systems are witnessing increasing adoption in major industries, such as energy, oil & gas, recycling, transportation, water & wastewater, food & beverage, and manufacturing. Also, SCADA adoption among industrial organizations and private companies is growing to control & maintain the efficiency of communication systems across facilities, make data-driven smarter decisions, and help mitigate downtime issues.

Over recent years, SCADA systems have emerged as crucial solutions for simple configurations and large, complex installations for many different types of enterprises in many modern industries. Also, developments in the Industrial Internet of Things (IIoT) and burgeoning sectors worldwide boost market demand.

By End-User, which Substation Automation Category to dominate?

Commercial and Civic Power Utilities Segment to Dominate the Substation Automation Market

Commercial and civic power utilities are expected to be the primary end user of the substation automation market at present, likely to flourish at a CAGR of 6.5% until 2033. The market growth can be attributed to the increasing government initiatives towards modernization of power grids and growing investments towards power generation through renewable sources.

According to the World Energy Investment 2020 report published by the International Energy Agency (IEA), total investment in renewable sources of power amounted to USD 259 billion and USD 226 billion for 2019 and 2020, respectively.

In the current scenario, the demand for substation automation solutions is more in the wind industry; government organizations and power generation companies join hands to bring automation to wind farm projects.

In June 2019, General Electric (GE) signed a contract with DTEK to supply high-voltage equipment for the 150 kV central power distribution station and two 150/35/10 kV substations, which would ensure the transmission of electricity from the first stage of Prymorska wind farm (Zaporizhia region) to the Ukrainian power grid. The digital substation will be installed at the wind farm.

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The Startup Ecosystem

How are Key Players Opening Frontiers for Future Growth?

Substation Automation Market such as BluWava-ai, Envelio, Novogrid, Grid4C, Solarify, Stem, Octopus Energy, Arcadia, Uplight, BBOXX, Autogrid, Origami Energy, Leap, Enervee, SparkMeter, Power Ledger, Electrify, Innowatts, SALT Energy - Micro-CHP Plants, Synthica Energy - Renewable Natural Gas, Gaia Wind - Small Wind Turbines, and VOLTA - Battery Backup Generators, among others, are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,

  • Established in 2016, the Indian startup Solarify provides photovoltaic systems to mount on the rooftops of either residential or commercial buildings. Their rooftop PV installations function at the tail-end of the grid, enhance the stability of the grid, reduce energy loss, and save costs. The startup executes end-to-end solar energy installations and offers grid-tied, grid-interactive, and off-grid solutions.
  • Founded in 2013, the Canada-based BluWave-ai develops a SaaS-based AI-powered grid energy optimization platform. BluWave-ai Edge at utility substations aggregates information from the substation service area, providing AI-assisted predictions of demand at the substation level, predictions of upcoming peaks, and optimization recommendations to assist in improving stability and smoothing peaks. At the utility back office, the BluWave-ai Center manages customers in the network using predictions from BluWave-ai Edge and pushing requests and alerts for load shaping.

Who Are The Leading Players In The Substation Automation Market?

Prominent players in the substation automation market are General Electric, SIEMENS AG, Eaton, Mitsubishi Electric Automation, CISCO, Emerson Electric Co., ABB, Schneider Electric, Rockwell Automation, Fuji Electric Co., Ltd., and Nari Group, among others.

Recent Developments:

  • In February 2022, Schneider Electric and Enedis announced the launch of revolutionary solutions for new-generation substations. Both companies are expected to launch a project around the next generation of MV/LV substation devices as an alternative to the use of SF6 gas. This gas is used in MV electrical devices for its high insulation and dielectric properties.
  • In February 2022, GE and Bond announced to build a digital substation for the offshore wind farm. The GE Group is expected to coordinate the digital substation implementation, including advanced digital substation monitoring systems, controls, and software systems. GE would provide the connection and power balance needed between the offshore wind farm and the point of interconnection to the NY power grid.
  • In February 2021, Hitachi ABB Power Grids unveiled its smart digital substation offering that brings together the latest in digital substation technology with the predictive, prescriptive, and prognostic capabilities of Hitachi's industry-leading lumada asset performance management (APM) solution.
  • In January 2021, SEL launched the new SEL-3350 Automation Controller designed for applications that require midlevel I/O and computation. SEL-3350 can withstand harsh environments in utility substations, industrial control, and automation systems.

Report Scope

Report Attribute Details
Growth Rate CAGR of 6.7% from 2023 to 2033
Market Value in 2023 USD 29.12 billion
Market Value in 2033 USD 55.69 billion
Base Year for Estimation 2021
Historical Data 2018 to 2022
Forecast Period 2023 to 2033
Quantitative Units Revenue in USD Million and CAGR from 2023 to 2033
Report Coverage Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered Component, Site, Rated Voltage, Control System, Application, End-Use Industry, Region
Regions Covered North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East and Africa (MEA)
Key Countries Profiled USA, Canada, Brazil, Mexico, Germany, UK, France, Spain, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC, South Africa, Israel
Key Companies Profiled General Electric; SIEMENS AG; Eaton; Mitsubishi Electric Automation; CISCO; Emerson Electric Co.; ABB Group; Schneider Electric; Rockwell Automation; Fuji Electric Co., Ltd.; Nari Group; Toshiba Energy Systems & Solutions Corporation; Ingeteam; SAE-IT Systems GmbH & Co. KG; OHB System AG; ARTECHE; ZIV; Korenix Technology; TRC Companies Inc.; Aixotek Co. Ltd.; ENTEC Electric & Electronic
Report Customization & Pricing Available upon Request

Key Segments Covered in the Substation Automation Industry Analysis

By Component:

  • Hardware
  • IEDs
  • Bay Controller
  • Feeder and Motor
  • Protection Relay
  • Tele controller / IECs
  • Circuit Breaker Control & Management
  • Line Differential
  • Others
  • Software
  • Data Visualization and Monitoring
  • Data Analysis

By Site:

  • Process Level/ Electric Control unit
  • Bay Level
  • Substation Level

By Rated Voltage:

  • Low Voltage
  • Medium Voltage
  • High Voltage

By Control System:

  • SCADA based
  • HMI based
  • RI/O (Remote Input-Output) based

By Application:

  • Transmission Substation
  • Distribution Substation

By End User:

  • Commercial and Civic Power Utilities
  • Oil & Gas terminals
  • Mining & Metallurgy
  • Manufacturing Unit
  • Railways

By Region:

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

Frequently Asked Questions

How Much the Substation Automation Market is Slated to Attain?

The market is slated to attain USD 29.12 billion in 2023.

At What Speed, the Market is Expected to Expand?

The market is expected to expand at a CAGR of 6.7% through 2033.

Which Factors are Stimulating Market Growth?

Surging investments in smart grid infrastructure and budding substation automation.

Which Region Holds a Notable Share in the Market?

North America holds a notable market share.

Which Component Aces the Marketplace?

Hardware is expected to ace the marketplace in future.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component
    • 5.1. Hardware
      • 5.1.1. IEDs
      • 5.1.2. Bay Controller
      • 5.1.3. Feeder and Motor
      • 5.1.4. Protection Relay
      • 5.1.5. Tele controller / IECs
      • 5.1.6. Circuit Breaker Control & Management
      • 5.1.7. Line Differential
      • 5.1.8. Others
    • 5.2. Software
      • 5.2.1. Data Visualization and Monitoring
      • 5.2.2. Data Analysis
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Site
    • 6.1. Process Level/ Electric Control Value (USD Million)
    • 6.2. Bay Level
    • 6.3. Substation Level
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Rated Voltage
    • 7.1. Low Voltage
    • 7.2. Medium Voltage
    • 7.3. High Voltage
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Control System
    • 8.1. SCADA Based
    • 8.2. HMI Based
    • 8.3. RI/O (Remote Input-Output) Based
  • 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
    • 9.1. Transmission Substation
    • 9.2. Distribution Substation
  • 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User
    • 10.1. Commercial and Civic Power Utilities
    • 10.2. Oil & Gas Terminals
    • 10.3. Mining & Metallurgy
    • 10.4. Manufacturing Unit
    • 10.5. Railways
  • 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 11.1. North America
    • 11.2. Latin America
    • 11.3. Western Europe
    • 11.4. Eastern Europe
    • 11.5. South Asia and Pacific
    • 11.6. East Asia
    • 11.7. Middle East and Africa
  • 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 18. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 19. Key Countries Market Analysis
  • 20. Market Structure Analysis
  • 21. Competition Analysis
    • 21.1. General Electric
    • 21.2. SIEMENS AG
    • 21.3. Eaton
    • 21.4. Mitsubishi Electric Automation
    • 21.5. CISCO
    • 21.6. Emerson Electric Co.
    • 21.7. ABB Group
    • 21.8. Schneider Electric
    • 21.9. Rockwell Automation
    • 21.10. Fuji Electric Co., Ltd.
    • 21.11. Nari Group
    • 21.12. Toshiba Energy Systems & Solutions Corporation
    • 21.13. Ingeteam
    • 21.14. SAE-IT Systems GmbH & Co. KG
    • 21.15. OHB System AG
    • 21.16. ARTECHE
    • 21.17. ZIV
    • 21.18. Korenix Technology
    • 21.19. TRC Companies Inc.
    • 21.20. Aixotek Co. Ltd.
  • 22. Assumptions & Acronyms Used
  • 23. Research Methodology
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