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Substation Automation Market

Substation Automation Market By Component Type (Hardware, Software), Control System (SCADA based, HMI based, Remote Input-Output), Application (Transmission Substation, Distribution Substation) & Region - Forecast 2021 -2031

Substation Automation Market By Component Type (Hardware, Software), Control System (SCADA based, HMI based, Remote Input-Output), Application (Transmission Substation, Distribution Substation) & Region - Forecast 2021 -2031

Substation Automation Market - Analysis, Outlook, Growth, Trends, Forecasts

Substation Automation Market Snapshot

[390 pages report] The substation automation market value is expected to top US$ 37.48 Bn in 2021. High demand for retrofit conventional substations will improve sales through 2031. Application of substation automation will remain high across manufacturing units. Future Market Insights (FMI) also projects sales in commercial & civic power utilities and oil & gas terminal to catch up over the assessment period.

Besides this, surging number of data centers intended to support the expanding digital activities worldwide post COVID-19 will enable the substation automation market size to grow by 6% CAGR between 2021 and 2031. As per FMI, substation automation market will account for 18% of sales in industrial automation market in 2021.

Substation Automation Market Base Year Value (2020A)

US$ 35.59 Bn

Substation Automation Market Estimated Year Value (2021E)

US$ 37.48 Bn

Substation Automation Market Projected Year Value (2031F)

US$ 67.29 Bn

Substation Automation Market Value CAGR (2021-2031)

8.20%

Collective Value Share: Top 3 Countries (2020A)

32.30%

2021-2031 Substation Automation Market Outlook Compared to 2016-2020

Increasing power generation globally has fueled the demand for automation products. Driven by this, the substation automation market will grow by 6.0% CAGR between 2021 and 2031 in comparison just 3.0% CAGR registered during 2016-2020.

The growth of the market is driven by substation automation system’s capabilities to optimize the management of capital assets and enhance operation and maintenance efficiencies with minimal human intervention.

Moreover, the number of failures gets reduced drastically by mere installation of a few automation devices. Automated substations installation reduces repair costs and avoids forced outages.

Disturbance analysis is an added advantage when these systems are implemented, as they have inherent capabilities to record the fault waveform and time stamp the measured operational data.

Power quality is an important factor in today’s power system operation scenario for two reasons. The quality of power deteriorates due to the in?ux of new power electronic devices which ?ood the system with harmonics and ripples. But quality power is a must for devices to operate optimally, and a large number of manufacturing facilities require quality power for precision manufacturing. To cater to this demand, substation automation systems are increasingly implemented in manufacturing facilities across various sectors.

According to the U.S. Energy Information Administration’s (EIA) International Energy Outlook 2019 (IEO2019), global electric power generation from renewable sources will increase by more than 20% between 2018 and 2050, providing almost half of the world’s electricity generation in 2050.

During the same period, global coal-fired power generation will decrease by 13%, representing only 22% of the generation mix in 2050. EIA also projects that the worldwide electricity generation will grow by 1.8% per year through 2050. With the increase in electricity generation be it from coal fired power plants or from renewable sources of energy the substation automation market will get benefitted owing to the immense merits attained from the automation.

Will Automation across Manufacturing Units Continue Driving Substation Automation Sales?

Key factors driving the demand for substation automation systems is the need to introduce more automation and intelligence to the power grid network to solve a variety of utility problems, cut operating expenditures, and satisfy new regulatory requirements.

Clients expect a device to provide protection, control, automation, monitoring, and communication capabilities. Customers have discovered that hybrid technology improves dependability, facilitates early problem detection and rapid diagnosis, and enhances worker safety and smart city infrastructure use.

The use of sophisticated electronic devices in power system metering, protection, and control, along with current communication networking techniques, has ushered in a new era of substation automation.

With supervisory operate and data acquisition, it is now feasible to remotely monitor and control power generation, transmission, and distribution systems. In order to discover probable reasons of problems, the client may watch and operate the cameras in real time. Field technicians may then obtain remote help from off-site employees by directing them to the camera and showing them the problem visually.

Using advanced technologies, substation automation system architecture can assist in cutting operational and maintenance costs while increasing plant output. It also ensures electrical power network's high performance, reliability, and safety by performing interlocking and smart load shedding operations.

Smart grids can reduce energy losses during transmission and distribution, increase reliability and productivity, and intelligently and cost-effectively manage energy demand. Technology can also be used to integrate new renewable energy sources while maintaining the stability and reliability of existing networks. Such programs are aimed at entirely digitizing a variety of operations in a variety of end-use industries.

What Is the Impact of Growing Safety Concerns on Substation Automation Market?

A smart grid must provide a safe and secure connection between suppliers and customers in order to protect essential applications and data. Besides this, it should provide providing defense against security breaches, while dealing with data confidentiality and integrity concerns.

Many power providers are focusing on system productivity in order to reduce costs and improve customer satisfaction, which typically necessitates replacing outdated infrastructure and implementing substation automation.

As companies usually try to preserve human safety and prevent equipment damage, protection entails detecting, isolating and recovering from an electric fault. These factors are pave scope for higher installation of substation automation systems.

What Is the Impact Of COVID-19 Crisis on Substation Automation Market?

Lockdown imposed across various countries has negatively impacted the substation automation market. Limited production and activities in supply chain has delayed e deliveries of products which has negatively affected the market.

The COVID-19 outbreak has had a huge impact on not only operations of substation automation market players, but also on firms across various end-use sectors. Shutdowns of various facilities and factories has had a severe impact on global supply chains, negatively impacting manufacturing, delivery schedules, and product sales worldwide. A few automation companies have already stated that product delivery may be delayed and that future sales of their goods may suffer.

Governments around the world have reduced spending in many sectors in order to focus more on strengthening the healthcare infrastructure. Furthermore, the demand for substation automation products and solutions from national grid projects are expected to shrink. These factors are expected to negatively impact the substation automation market.

Country-wise Insights

Why is Demand for Substation Automation Increasing in China?

Demand in the China substation automation market is expected to rise at nearly 6.8% CAGR over the forecast period. China is one of the leading markets for substation automation. Besides this, the country has significant presence of manufacturers for automation equipment, which makes it one of the lucrative markets in East Asia.

As per the report, China is expected to continue exhibiting high demand for substation automation through the forecast period. Moreover, rising research activities, presence of several Tier-2 players, and increasing population, which have resulted high electric vehicle sales, are creating attractive opportunities for substation automation aftermarket in the country.

How big is the U.S. Substation Automation Market?

North America is predicted to remain one of the fastest growing markets during the forecast period, according to Future Market Insights. The study predicts that the U.S. is expected to be the largest market in North America and reach US$ 6.8 Bn by 2031.  

The United States' highly developed infrastructure of automotive sector is one of the main factors supporting the market growth. Furthermore, the U.S. exhibits high demand for consistent electricity and power cuts are intolerable since power shortages lead to heavy losses both in terms of time and capital.

Considering this, substation automation market is expected to register growth at a steady rate in the U.S.

Why is Innovation Key to Succeed in the India Substation Automation Market?

India has been exhibiting high demand for substation automation systems. By 2031, it is expected to account for over 40% of substation automation sales within South Asia & Pacific.

Manufacturers in the country have a competitive advantage as they have access to cutting edge research to address the unmet challenges. Additionally, they are investing in order to expand their operations, which is resulting in a more promising future.

Category-wise Insights

Why the Demand for Software High in Substation Automation Market?

Based on component type, the software category accounted for 40% of market share in 2020. The segment is expected to register high demand for data monitoring and visualization over the assessment period.

This is because software provides better and intelligent power saving capabilities. Moreover, when implemented on an enterprise-wide unit, it brings a number of cost justifications that promise a good return on investment. These justifications include improved financial performance, improved customer service and improved organizational effectiveness.

Which type of Control System is Top-selling in Substation Automation Market?

SCADA based Control System are expected to hold the highest market share in Substation Automation Aftermarket and is expected to reach at the market value of US$ 34.0 Bn by 2031.

The primary reason behind the excessive demand for SCADA based control system is that modern SCADA systems replace the manual labor to perform electrical distribution tasks and manual processes in distribution systems with automated equipment.

SCADA maximizes the efficiency of power distribution system by providing the features like real-time view into the operations, data trending and logging, maintaining desired voltages, currents and power factors, generating alarms, etc.

Which is the Leading End-user of Substation Automation?

Manufacturing units will account for more than 20% of sales in the market in 2021. As the economies of scale rises and various manufacturing facilities aim for leadership, the procurement of substation automation equipment will increase.

More importantly, quality power is a must for many devices to operate optimally, and a large number of manufacturing facilities require quality power for precision manufacturing. Therefore, these systems are getting increasingly installed in manufacturing facilities across various sectors.

Competitive Landscape

Companies operating in the substation automation market are aiming at strategic collaborations and strategic partnerships with other manufacturers and local dealer & service providers to expand their product manufacturing/selling and address the demand of an expanding patient pool.

They also are focusing on the expansion of manufacturing facilities globally to maintain their global presence.

Scope of Report

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, East Asia, South Asia, & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, BENELUX, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, and South Africa

Key Segments Covered

By Capacity, By Design, By Application, End Use and Region

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Substation Automation Aftermarket by Category

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 Leve
  • 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 Control System:

  • 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)

Key Questions Answered in the Report

What is the Substation Automation Market Size?

The global substation automation market is expected to top US$ 35.59 Bn in 2021.
The substation automation market will grow by 6% CAGR between 2021 and 2031.
East Asia currently holds dominance, accounting for over more than 1/5th of the substation automation aftermarket in 2021.
Medium Voltage will remain top-selling rated voltage in the market, accounting for over 40% of revenue generated by 2031.
Some of the leading companies are General Electric, SIEMENS AG, Eaton, Mitsubishi Electric Automation, CISCO, Emerson Electric Co., ABB, Schneider Electric, Rockwell Automation, among others. As per FMI, over 65% of the market share is currently covered by the top 10 players.
Transmission substation segment is expected to dominate the market over the forecast period, generating revenue of US$ 39.8 Bn by 2031.
The demand for substation automation will increase at 5.5% CAGR in North America between 2021 and 2031.
The demand for substation automation will grow by 6% CAGR in Europe between 2021 and 2031.
The substation automation market in Japan and South Korea will grow by 5.9% CAGR and 6.2% CAGR, respectively between 2021 and 2031.

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