Substation Automation Market Size, Share, and COVID-19 Impact Analysis, By Module ( SCADA, IED, and Communication Network Technology ), By Component ( Reclose Controller, Programmable logical controller, Capacitor bank controller, Digital transducer/smart meter, Load tap controller, Communication channels, Digital Relays, and Others ), By Application ( Ethernet, Power Line Communication, Copper Wire Communication, and Optical Fiber Communication ), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS    

The global Substation Automation Market is projected to grow from USD 39.9 billion in 2021 to USD 62.5 billion by 2030 at a CAGR of 6.3% during the forecast period. As part of a full substation control and monitoring solution, substation automation includes control, protection, automation, monitoring, and communication capabilities. It refers to the ability to regulate and automate substation capabilities as well as power system components using commands from distant users. The usage of technology such as specialized software, unique sensors, and equipment that facilitates two-way communication is required to automate energy substations. Protective relays, programmable logical control, and a digital transducer are among the intelligent electrical equipment used. Substation equipment can be monitored and controlled using this type of device. Additionally, such equipment helps to lessen the frequency and length of power outages.   

The global substation automation market is expected to increase significantly during the projected period. The electrical system's substation automation is crucial. It is a grid building block that is essential for successful power generation, transmission, and distribution. The growing number of market players around the world is helping to drive the worldwide substation automation market forward, resulting in lucrative income potential for market participants.

COVID-19 ANALYSIS     

During the COVID-19, the governments around the world reduce expenditure in many sectors in order to focus more on upgrading healthcare infrastructure, demand for substation automation products and solutions from national grid projects is likely to decline. Furthermore, because commercial areas in most parts of the world will be operating at a greatly reduced capacity in 2020 and 2021, power consumption is predicted to drop significantly, and electric utilities may face a delay in modernizing their grid infrastructure. All of these reasons are projected to have a negative influence on the market for substation automation.

LATEST TREND

Increasing Investments in Smart Grid Infrastructure Propel Market Growth

Substation automation employs technology to cut operational and maintenance expenses while also increasing plant production. It provides energy efficiency, existing electrical supply reliability, high performance, electrical power network safety, and the integration of more renewable energy into the existing network. Smart grid technology maintains and protects distribution networks while also saving energy and reducing energy losses during transmission and distribution. As a result of significant losses incurred by traditional electrical networks, governments in numerous developing nations are now focusing their investments on smart grid technologies. Because of all of these advantages, smart grid development is receiving significant funding around the world.

DRIVING FACTORS   

Surge in Number of Major Key Players Focusing On Revenue Growth

Companies in the worldwide substation automation market are speeding up their services and pursuing new revenue streams. Performance, dependability, extensive electrical fault analysis, event recording capabilities, sophisticated disturbance, presentation of real-time substation information in a control center, and safety are all features of substation automation. The global substation automation market is predicted to grow in importance as people become more conscious of renewable energy sources. Market participants are concentrating their efforts on establishing a competitive advantage in the global power supply industry. To increase revenue prospects, key competitors in the worldwide substation automation market are focused on R&D, mergers, cooperation, joint ventures, and product innovation tactics.

RESTRAINTS                           

High Cost of Installation Hampering Market Growth  

The high cost of installation has been a major market constraint, resulting in a slow rate of investment in substation automation. Another factor impeding market growth is the rising number of cyber-attacks, which pose a serious threat to the substation automation market.

SEGMENTATION   

The Substation Automation Market is segmented by Module, Component, Application, and Region. Based on the Module, the market is categorized into SCADA, IED, and Communication Network Technology. Based on Component, the market is categorized into Reclose Controller, Programmable logical controller, Capacitor bank controller, Digital transducer/smart meter, Load tap controller, Communication channels, Digital Relays, and Others. Based on Application, the market is categorized into Ethernet, Power Line Communication, Copper Wire Communication, and Optical Fiber Communication. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.       

REGIONAL INSIGHTS   

The Global Substation Automation Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.         

North America is dominating the market due to the growing popularity and adoption of advanced intelligent electronic device and communication technologies. This is assisting the expansion of the substation automation market as well as the advancement of electrical technology in nations such as the United States and Canada. Due to rising demand for smart grids and increased adoption of renewable energy, European countries are emerging as important revenue-generating countries for substation automation industries. These factors will propel Europe to be the fastest-growing area during the projection period.

Asia pacific is projected to see highest growth in substation automation market due China, Japan, India, Malaysia, and Thailand are some of the key countries in the Asia-Pacific area that are focused on grid stability across their distribution networks. Furthermore, Asia Pacific is expected to develop at a strong rate throughout the forecast period, owing to rising demand for rural electrification and the adoption of equipment that improves substation safety and efficiency. The presence of enterprises bringing in electrical equipment innovations will also contribute to area growth.   

KEY INDUSTRY PLAYERS

Key industry players, such as ABB Ltd. (Switzerland), Trilliant Holdings Inc. (U.S.), ALSTOM (France), Schneider Electric (France), Cisco Systems, Inc. (U.S.), are focused on customer acquisition, mergers, and collaboration & new product launches.

KEY INDUSTRY DEVELOPMENTS:    

In September 2021, Relion relays from ABB helped Enel optimise and automate power distribution operations. Relion protection relays from ABB help to reduce the frequency of power outages and downtime. The time it takes to isolate the defective network part is expected to be reduced by about 20%. Relays are designed for digital substations and can exchange data through a communication network for increased operational safety. 

In February 2022, The GE Group is planned to supervise the deployment of the digital substation, which includes enhanced digital monitoring, controls, and software systems, which was announced by GE and Bond. Between the offshore wind farm and the point of connectivity to the New York power grid, GE would supply the necessary connection and power balance.

SEGMENTATION

By Module

• SCADA
• IED
• Communication Network Technology

By Component

• Reclose Controller
• Programmable logical controller
• Capacitor bank controller
• Digital transducer/smart meter
• Load tap controller
• Communication channels
• Digital Relays
• Others

By Application

• Ethernet
• Power Line Communication
• Copper Wire Communication
• Optical Fiber Communication

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa