Future Market Insights expects the value of the global substation automation market to be $29.12 billion this year, followed by further growth to $55.59 billion by 2032, driven by increasing demand for electric and hybrid vehicles, coupled with the rising use of digital technology to improve grid efficiency.
Substation automation is a method of using data from intelligent electronic devices to control and automate substations and controlling power systems devices through commands from remote users.
The overall demand for the tech, as forecast by Future Market Insights in Substation Automation Market Snapshot (2023 to 2033), will grow by a CAGR of 6.7% between now and 2032.
The key driver of this market, states the research company, is to reduce human intervention and improve the operating efficiency of the system. Increasing developments in SCADA and communication technologies, along with rising demand for renewable energy projects, are also determinants in the market’s growth.
Smart grid investments
The report outlines how heavy investments within the smart grid space have been developing, indicating the growing recognition of this tech as much needed. Namely, it will help reduce operational as well as maintenance costs, increase plant productivity and ensure high performance, reliability and safety of electrical power network performance.
For instance, in May 2018, they state, Natural Resource Canada announced an investment of $949,000 for a next-generation smart grid project.
The grid project focuses on promoting the adoption of renewable sources of energy and the implementation of technology to integrate new sources of clean energy without compromising the stability and reliability of existing grids.
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Key market players
The North American substation automation market was forecast by the market report to accumulate the highest market share of 36.0% in 2022. On a geographic basis, North America is anticipated to be the largest market for substation automation, owing to the increasing popularity and adoption of advanced intelligent electronic device and communication technologies.
Factors such as increasing investment in energy infrastructure by different governments due to increasing urbanisation and higher energy demand is one of the major factors that is expected to boost this growth over the report’s forecast period.
In addition, increasing dependence on electricity, demand from the power system for advanced technology, requirements to reduce maintenance and operating costs and implementation of government incentives are primary drivers for the country’s market size.
In the Asia Pacific, the market is expected to accumulate a market share of 32.5% this year and is expected to continue to maintain the trend over the forecast period.
The Government of India in particular was found by the research to have launched several schemes to revive power distribution utilities and electrify villages, indicating a strong smart infrastructure vision for the country.
Such rural electrification and the presence of companies bringing in advancements in electrical equipment are expected to strengthen regional growth in the market for the Asia Pacific.
According to the report, in Europe, the market is expected to accumulate a share value of 30% this year. Specifically, the research lists increasing demand for smart grids and increasing adoption of renewable as resulting in major revenue-generating countries across the continent.