Digital Substation Market Size - By Voltage (Low Voltage, Medium Voltage), By Mounting (Flush Mounting, Surface Mounting), By End Use (Residential, Commercial, Industrial, Utility) & Forecast, 2023 – 2032

Digital Substation Market Size

Digital Substation Market was valued at USD 7.2 billion in 2022 and is estimated to register a CAGR of over 7.2% between 2023 and 2032. The integration of advanced, secure, and adaptable technologies has revolutionized the industry landscape. Growing R&D spendings by several manufacturers and suppliers to improve their product offerings and adopt versatile technological platforms will influence product adoption.

In the past few years, the industry has experienced significant growth owing to the rising demand for electricity and favorable regulatory reforms aimed at expanding the current grid infrastructure. In addition, providing affordable and uninterrupted electricity are key regulators which leading to the implementation of various reforms and policies. Extensive industrial strategies and the swift integration of efficient products and cost-competitive will complement the industry potential.
 

COVID-19 Impact

The pandemic has caused delays in the implementation of digital substation projects. Restrictions on movement, social distancing measures, and disruptions in the supply chain have hindered the installation and commissioning of digital substations. Many ongoing projects experienced delays, leading to a slowdown in market growth. The economic impact of the pandemic has resulted in budget constraints for many industries. This has affected investment decisions, including those related to digital substations. Companies and utilities have become more cautious in allocating funds for capital expenditure projects, including the implementation of digital substations.
 

Digital Substation Market Trends

The digital substation industry is experiencing continuous investments in distribution networks, including smart meters and smart grids, to address various challenges and replace aging infrastructure while ensuring high-quality services. Developing economies, which currently have insufficient electric infrastructure, are actively working towards improving their networks. Furthermore, the industry is benefiting from advancements in product offerings, and key players are leveraging mergers and acquisitions as a strategic approach to strengthen their positions and drive further growth in the market.
 

Digital Substation Market Analysis

The electrical system component market is expected to reach USD 4.5 billion by 2032, due to the rapid digitalization and technological advancements. There is a growing consumer preference for smart and optimized electrical infrastructure, which is shaping a competitive landscape. The integration of communication technology enables effective feedback capabilities, allowing for timely failure corrections and fault detection, which has gained significant traction in substation units. Furthermore, these systems have become essential for utilities and technology providers, who collaborate to monitor electrical transactions and streamline supply and demand across load centers effectively.
 

The transmission application market is projected to register CAGR of over 7% through 2032. The increased investments in the development of existing transmission lines and the establishment of smart energy infrastructure have created a conducive environment for business growth. Moreover, regulatory bodies across the key economies are making substantial investments in modernizing energy grid infrastructure and constructing transmission infrastructure to connect new and clean generation resources while mitigating network congestion which is expected to bolster digital substation market growth.
 

The > 33 kV to ≤ 110 kV connectivity market was valued at USD 2.5 billion in 2022 and is estimated to attain about 6% CAGR through 2032. The growing emphasis on connectivity and the Internet of Things (IoT), digital substations are being designed to seamlessly integrate with other smart grid components. The market has experienced significant influence from regulatory mandates and guidelines that establish standards for the deployment and manufacturing of substation products worldwide.
 

The low voltage substation market is predicted to hit USD 2.5 billion by 2032. The wide applicability of substation systems in power, infrastructure, and process industries will be a significant driver of product demand. The increasing demand for smart control systems in association with favorable power distribution reforms will further boost business growth.
 

The industrial sector is projected to excel at a CAGR of over 7% till 2032. The growth of manufacturing and process industries is crucial for investments and revenue generation in major economies. Developed economies, particular in heavily rely on manufactured and processed products, which has led to the utilities and installers for the integration of efficient electric networks in their operations.
 

Europe digital substation market is anticipated to observe gains at nearly 6.5% up to 2032, On account of largely rising adoption of energy-efficient technologies. The increasing electricity demand in the region will have a notable impact on investments in the retrofitting of transmission and distribution systems, which in turn will influence the digital substation industry in the foreseeable future. Furthermore, ongoing investments in electric networks including smart meters and smart grids in conjunction with the replacement of aging infrastructure while ensuring service quality will further enhance the overall industry landscape.
 

Digital Substation Market Share

The digital substation industry is highly competitive owing to the presence of key players such as:

• Toshiba Energy Systems & Solutions Corporation
• SIFANG
• Cisco Systems Inc.
• Eaton
• Schneider Electric
• GE
• Hitachi Energy Ltd.
• NR Electric Co. Ltd.
• Texas Instruments Incorporated
• Tesco Automation Inc.
• Netcontrol Group
• Efacec
• Locamation
• Siemens
• ABB

Significant investments in R&D to gain technological competitiveness and aggressive business strategies including technological launches as well as collaborations and long-term agreements with clients to capture market share are positively impacting market growth.
 

Digital Substation Market News

• In January 2022, Efacec announced the NEXTSTEP project, supported by the COMPETE 2020 under RDT Incentive System, aimed to design a prototype Transformer Station with the technological solutions appropriate to the next generation of Transformer Stations. The project focused on expanding automation and incorporating the Smart Grid concept into the LV distribution network, thereby enhancing its resilience. In addition, with an investment of approximately USD 2.91 million and an ERDF incentive of around 1.72 million, the NEXTSTEP project sought to advance the capabilities of distribution substations and contribute to the development of improved platforms for future energy distribution.
   

This digital substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD Million” from 2019 to 2032, for the following segments:

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By Component

• Substation Automation System
• Communication Network
• Electrical System
  • Transformer
  • Busbar
  • Protection Devices
    • Circuit Breaker
    • Protective Relay
    • Switchgear
• Monitoring & control system
  • Human machine interface
  • Programmable logic controller
  • Others
• Others

By Architecture

• Process
• Bay
• Station

By Application

• Transmission
• Distribution

By Connectivity

• ≤ 33 kV
• > 33 kV to ≤ 110 kV
• > 110 kV to ≤ 220 kV
• > 220 kV to ≤ 550 kV
• > 550 kV

By Voltage Level

• Low
• Medium
• High

Digital Substation Market

• Utility
• Industrial

By Installation

• New
• Refurbished

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Spain
  • Italy
  • UK
  • Austria
  • Netherlands
  • Sweden
  • Russia
  • Belgium
  • Denmark
  • Switzerland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
  • Philippines
  • New Zealand
  • Malaysia
  • Thailand
  • Singapore
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Chile