Substation Automation Market Research Report - Forecast to 2027

Substation Automation Market Research Report: by Component (Load Tap Controller), Module (Communication Network), Communication Channel (Ethernet, copper wire, power line, and optical fiber communication), Industry (Utility) - Forecast till 2027

ID: MRFR/SEM/0510-HCR | February 2021 | Region: Global | 100 pages

Substation Automation Market Overview


The Substation Automation Market is expected to grow at a higher CAGR of 6% in the global market to account for a higher market share value of approximately USD 51 billion by the end of the forecasted period.


Substation automation is a monitoring and controlling solution that provides communication, monitoring, automation, control, and protection. By eliminating the entire cabinets and writing racks, it can make the layout much more cleaner making it flexible for users in handling their I/Os to the IEDs) Intelligent electronic devices. For the protection and automation of substations, high-speed microprocessors-based intelligent electronic devices and remote terminal units are used.


COVID 19 Analysis


The global pandemic of COVID 19 has affected a major chunk of the population. Many people have lost their livelihood because of this global pandemic. It has affected the dynamics and growth of several industries. Owing to the shortage of vaccines, everyone is concerned about their immunity and follows social distancing. During the lockdown situation, operational activities of various end-user industries were halted which resulted in demand shrink for the substation automation market which further leads to decreased sales revenue. The supply chain networks were also disrupted which lead to a decline in profit margin.


However, the substation automation market is expected to recover from this global pandemic by the end of the third quarter of the coming year by properly strategizing according to the needs of the market.


Market Dynamics


Drivers


Numerous factors drive the market growth rate. Increasing investment by the government, as well as individuals in smart grid infrastructure development projects coupled with increasing investment for the making of smart cities, drives the Substation Automation Market demand in the global market. Moreover, it also helps in reducing maintenance and operational cost. It also results in increased plant productivity which boosts the market growth rate. Additionally, it provides safety of electrical power, reliability, and high performance.


Opportunities


The rise in demand for substation automation drives the global market. Increasing investment in renewable energy projects to fulfill the need for energy provides various growth opportunities in the global market during the forecasted period. According to the reports of the International Energy Agency (IEA), 25% of the world’s electricity generation is done through renewable resources in 2019. Heavy investment in various wind and solar energy-producing plants drives the Substation Automation Market demand.


Restraints


Though the substation automation market is increasing tremendously in the global market some factors restrict its growth. The initial cost required for installing a substation automation system is very high which cannot be afforded by all and hence hampers the market demand. Moreover, increasing the use of service-oriented architecture (SOA) and microprocessors has substantially increased the purchase cost, restricting the market growth. Lack of awareness is another restraining factor.


Value Chain Analysis


The substation automation market is increasing at an incredible rate in the global market owing to various benefits associated with it. It helps in improving the operating efficiency of the system as it reduces human intervention. Moreover, it produces a renewable source of environmentally friendly electrical energy. It mainly used wind and solar energy generating system which does not produce any harmful substances as residue. The government of various emerging countries is taking initiatives for adopting substation automation systems.


Market Segmentation


The global substation automation market has been divided all across the globe based on the component, communication channel, module, and industry.


Based on the Component



  • The market has been divided all across the globe based on the component into load tap controller, smart meter, capacitor bank controller, recloser controller, and many others.


Based on the Communication



  • The market has been divided all across the globe based on the communication into optical fiber communication channel, power line communication channel, copper wire communication channel, Ethernet, and many others.


Based on the Module



  • The market has been divided all across the globe based on the module into communication networks, intelligent electronic devices, SCADA, and many others.


Based on the Industry



  • The market has been divided all across the globe based on the industry into the steel industry, mining industry, transportation industry, and utility industry, and many others.


Regional Analysis


The substation automation market has been categorized all across the globe based on the region into North American region, Asia-Pacific region, European region, Latin American region, and the Middle East and African region. The largest market share in the substation automation market all across the globe is held by the North American region owing to the increasing popularity of communication technologies coupled with an advanced intelligent electronic device that drives the market demand in this region. Moreover, the presence of various giant key players in this region drives the market demand.


The second-largest market share in the substation automation market all across the globe is held by the European region as this is an emerging region during the forecasted period. Moreover, increasing demand for smart grids and well-established technology infrastructure drives the market demand towards this region.


The third-largest market share in the substation automation market all across the globe is held by the Asia-Pacific region owing to the presence of countries like India, China, and Japan who have major key players which drive the market demand. Moreover, initiatives are taken by various emerging countries for building smart cities also drive the market demand.


The least market share is held by the Latin American region and the Middle East and African region owing to the presence of low infrastructure in both these regions. Low per capita disposable income is another factor that restricts the market growth in these regions.


Competitive Landscape


The most prominent major key players in the substation automation market all across the globe are mentioned :



  • SAE IT-Systems GmbH & Co. KG (Germany)

  • Ametek (US)

  • Toshiba Corporation (Japan)

  • Axiomtek Co. Ltd. (Taiwan)

  • Texas Instruments (US)

  • Power System Engineering, Inc. (US)

  • Larsen & Toubro Limited (India)

  • Cooper Industries (US)

  • Cisco Systems, Inc. (US)

  • Grid Net (US)

  • Encore Networks (US)

  • EATON Corp. (US)

  • Tropos Network (US)

  • General Electric (US)

  • ABB Group (Switzerland)

  • Siemens AG (Germany)

  • Schneider Electric (France)


These major key players use various strategies to sustain their market position in the substation automation market in the global market by going for mergers, and acquisitions, by collaborating, establishing a partnership, developing a new production process, setting up a new joint venture, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the substation automation all across the globe.


Recent Developments



  • In December 2020, for enhancing the life of the existing power distribution network a new Remote Terminal Unit (RTU) 530 has been launched by the Hitachi ABB Power Grids. It helps in improving security logging, encryption, and secure communication.

  • In November 2020, to provide maintenance of 116 high-voltage substations, a contract was made by Kuwait’s Ministry of Electricity and Water (MEW) for Siemens Energy. It will help in lowering the operating cost, more reliable networks, and improvement of performance.

  • In November 2020, a controlling stake of a leading software platform called ETAP Automation Inc. (Dubai) has been acquired by Schneider Electric for electrical power systems simulation and modeling.

  • Power System Engineering, Inc. (US) is spending a huge of money on research and development to get an upper edge over its competitors. This will help the company by increasing the sales revenue.


Report Overview


The substation automation market research report consists of the following elements mentioned below:



  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Value Chain Analysis

  • Market Segmentation

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments


This market research report contains factors that drive the growth of the substation automation market in the global market along with the factors that restrict its growth in the global market. The technical analysis for the growth estimation during the forecasted period is mentioned. The impact of COVID 19 on the substation automation market all across the globe is mentioned. The future growth rate in the substation automation market during the forecasted period is estimated and mentioned.


Intended Audience


System integrators, technology investors, technology standards organizations, solution providers, market research and consulting firms, research and development companies, professional service providers, managed security service providers, technical universities, substation automation providers, substation automation companies, government bodies and departments, customer experience solution providers, cloud service providers, associations, organization, forums, and alliances.



Frequently Asked Questions (FAQ) :


The global substation automation market is expected to record a substantial market valuation of up to USD 51 billion by 2023.

The global substation automation market is projected to register a moderate 6% CAGR in the forecast period.

The smart meter segment is slated to expand as the fastest-growing segment.

The SCADA module segment is expected to witness substantial growth.

A few major market players operating in the global substation automation market are Schneider Electric (France), Siemens AG (Germany), ABB Group (Switzerland), Ametek (U.S.), Toshiba Corporation (Japan), SAE IT-systems GmbH & Co. KG (Germany), among others.