Digital Substation Market Research Report– Forecast to 2027

Digital Substation Market Report by Module (Hardware, Fiber Optic Communication Network and SCADA), by Type (Transmission Substation, and Distribution Substation), by Voltage (Up to 220 kV, 220-550 kV, and Above 550 kV), by Industry (Utility, Metal, Mining, Oil & Gas and Transportation) and by Region - Global Forecast to 2027

ID: MRFR/E&P/3920-HCR | February 2021 | Region: Global | 111 pages

Digital Substation Market Scenario:


Digital substation market is expected to grow at ~7.5% CAGR during the forecast period.


Global digital substation market has witnessed phenomenal growth in recent years, and is expected to witness the same growth in the forecast period. The industrial development across the globe has increased digitization in many sectors. Innovation in the digitization market is not only related to the invention of new products, but also to the upgrades of the available products and technologies. One such innovation is digital substations. Substations are a part of electrical generation, distribution, and transmission systems. They transform current from high voltage to low voltage and vice versa with the help of transformers. Digital substations comprise the introduction of intelligence into the substation systems. The transformation of the power generation from a wired to an optical network, is the reason for the evolution of digital substations. Also, it is a stable supply system for power generation. Digital substations are governed by the International Electro-technical Commission (IEC) code IEC 61850. Bay level, process level and station level are the three main functional levels of digital substations. Signals are transmitted from the process work station. The system protection and control processes are performed in the bay level work station. At the station level, the engineering and report activities are accomplished. An optical coherence tomography (OCT) is used to build the digital substations, and requires a lot less space compared to the analogue substations. Digital substations enhance the measurement accuracy and recording of the generated information. With the installation of digital substations, material cost can be reduced substantially as fewer cables and less space are required. The maintenance of digital substations is easier than that of traditional substations due to the integrated standardized interface. The integration of advanced technology and innovative practices such as the use of Ethernet in digital substations has increased the security system of digital substations.


Key Players:


The key players of global digital substation market are ABB Ltd. (Switzerland), Siemens AG (Germany), General Electric Company (U.S.), Schneider Electric (France), Honeywell International Inc. (U.S.), Cisco Systems, Inc. (U.S.), Eaton Corporation plc (Ireland), Emerson Electric Co. (U.S.), NR Electric Co., Ltd. (China) and Larsen & Toubro (India).


Global digital substation market has been segmented based on module, type, voltage, industry and region. Based on module the market is segmented into hardware, fiber optic communication network and SCADA. Among these the hardware, is projected to dominate the digital substation market through 2023. The hardware module includes components such as transformers, bus bars, protection devices, and interfacing units. Transformers form a major part of the market, as they are the primary components that are installed in the substation. These hardware components have the largest share of the overall market, owing to their extensive use in digital substations.


Based on type the market is segmented as transmission substation, and distribution substation. Distribution substation dominated the market in 2016 and is projected to be the fastest-growing segment for digital substation. Distribution substation typically operates at low voltage, and deliver electric energy directly to industrial and residential sector. The phenomenal growth in urbanization and industrialization across the world is expected to boost the growth for distribution substation market during the forecast period. Based on the Voltage, the market is segmented into up to 220 kV, 220–550 kV, and above 550 kV. Above 550 kV dominated the market in 2016 and is projected to be the fastest-growing Voltage over the next five years. The suitability of above 550 kV substation is favorable in all industry applications.


Based on the industry, the market has been segmented into utility, metal, mining, oil & gas and transportation. Utility sector dominated the market in 2016 and is projected to be the fastest-growing application over the next five years. The utility industry is one of the booming application areas pertaining to digital substations, owing to the high demand-supply gap in energy in most of the developing and developed nations. Its growth can be attributed to the increase in demand for renewable energy sources, such as wind, solar, and hydro to meet the consumers demand for power generation. Digital substations have a large scope in the utility industry as these systems are used in transmitting and distributing power.


The digital substation market is expected to have a huge number of advancements over the forecast period, owing to continuous developments in power industry coupled with growing technological advancement preferences for high end features in transmission and distribution system. The market is also expected to have high expansion activities by multinationals and well-established companies.


Market Segmentation:


 Digital Substation


Global Digital Substation Market:


The global digital substation market is expected to witness a remarkable growth during the forecast period. This is due to the considerable increase in transmission & distribution network and growing demand for power. Asia Pacific is expected to remain the dominant region in terms of demand for digital substation. The power sector holds a strong ground in Asia Pacific, owing to a high demand of energy coupled with growing conventional and non-conventional power generation plants. The digital substation market in Asia Pacific is also being pushed towards providing advance and reliable solution for transmission and distribution activity.



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   7.5% CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Module, Type, Voltage and Industry
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   ABB Ltd. (Switzerland), Siemens AG (Germany), General Electric Company (U.S.), Schneider Electric (France), Honeywell International Inc. (U.S.), Cisco Systems, Inc. (U.S.), Eaton Corporation plc (Ireland), Emerson Electric Co. (U.S.), NR Electric Co., Ltd. (China) and Larsen & Toubro (India)
  Key Market Opportunities   New product launches and R&D amongst major key players
  Key Market Drivers   Continuous developments in power industry


Frequently Asked Questions (FAQ) :


The module, type, voltage, industry are the segments.

The market’s CAGR is calculated as 7.5%.

Siemens AG (Germany), ABB Ltd. (Switzerland), Schneider Electric (France), Honeywell International Inc. (U.S.), General Electric Company (U.S.), Cisco Systems are the leading companies of the market.

Asia Pacific is to remain the dominant region by the demand for digital substation.

Global Forecast of the market is recorded to be 2023.