Digital Substation Market Research Report‚Äď Forecast to 2030

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 2030

ID: MRFR/E&P/3920-HCR | 111 Pages | Author: Anshula Mandaokar | June 2023         

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Digital Substation Market

Digital Substation Market is expected to be valued at USD 9.5 Billion, with a CAGR of 7.5% Forecast by 2030

By Module Hardware Fiber Optic Communication Network SCADA
By Type Transmission Substation Distribution Substation
By Voltage Up to 220 kV 220-550 kV Above 550 kV
By Industry Utility Metal Mining Oil & Gas Transportation
Key Players
Companies Profiled   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)
Market Driving Forces   Continuous developments in power industry    New product launches and R&D amongst major key players
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The digital substation market will reach a 7.5 % CAGR in the forecast period and a significant value in the forecast period by 2030.

Digital Substation Market Scenario:

A digital substation is an essential part of the entire distribution system. The devices are used in the substation to upgrade communication using digital signals. It is also connected with fibre-optic communication networks. The rapid growth of infrastructure development of smart cities is driving the market's growth. The growing demand for limited space availability and replacement of traditional substation infrastructure and higher interoperability and safety are the propelling growth factors of the digital substation market. Renewable energy projects for battery technology for electricity generation are setting huge market opportunities.

The rise in transmission and distribution networks and power demand in countries of Asia Pacific will make the region the dominating one of the markets. The power sector in the Asia Pacific is diversified in demand for energy with the presence of conventional and non-conventional power generation plants. The digital substation market will notice a good growth rate due to the advanced and reliable solution for transmission activity. The higher usage of smart meters to monitor status to access data consumption in homes, connected with substations load distribution management. These growth factors will lead the digital substation market to reach its estimated valuation.

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.

Digital Substation Market 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).

Recent Developments

January 2022

  • Hitachi Energy, a Japanese energy technology company, has launched a 150 kV digital substation to PT Perusahaan Listrik Negara (PLN Persero) Indonesian utility for reliable power in East Java, Indonesia.

  • According to Hitachi Energy, the digital substation is built on 1.5 hectares, the largest of its kind in East Java. It connects Sidoarjo Industrial Estate of 200-hectare to PLN's grid, for many large manufacturing companies have access to stable power.

April 2022

  • ABB India has declared the launch of its expanded Digital Systems and Digital Substation Products factory in Vadodara, Gujarat.

  • It is situated within ABB India's largest manufacturing campus, and it will meet the demand for digital substation products and solutions in India and other 50 countries.

Digital Substation Market Segments Analysis

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 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.

 Digital Substation

Global Digital Substation Market Regional Analysis

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   2030: Significant Value
  CAGR   7.5% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  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) :

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.

The market’s CAGR is calculated as 7.5%.

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

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

Global Forecast of the market is recorded to be 2023.

Key Questions Answered

  • ✅ Global Market Outlook
  • ✅ In-depth analysis of global and regional trends
  • ✅ Analyze and identify the major players in the market, their market share, key developments, etc.
  • ✅ To understand the capability of the major players based on products offered, financials, and strategies.
  • ✅ Identify disrupting products, companies, and trends.
  • ✅ To identify opportunities in the market.
  • ✅ Analyze the key challenges in the market.
  • ✅ Analyze the regional penetration of players, products, and services in the market.
  • ✅ Comparison of major players‚Äô financial performance.
  • ✅ Evaluate strategies adopted by major players.
  • ✅ Recommendations
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