Digital Substation Market Trends

Global Digital Substation Market Overview:

Digital Substation Market Size was valued at USD 5.9 Billion in 2023. The Digital Substation market industry is projected to grow from USD 6.34 Billion in 2024 to USD 10.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2024 - 2032). Enhanced communication and safety in the transmission and distribution of power, smart grid integration, enhanced reliability and reduced downtime, remote monitoring and control, integration of renewable energy sources, cybersecurity considerations, optimized asset management, scalability and flexibility, regulatory initiatives, cost savings, data analytics and AI integration, global electrification trends, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Digital Substation Market Trends

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  Enhanced reliability and reduced downtime is driving the market growth

  
  

The digital substation market is driven by improved dependability and decreased downtime as they address fundamental issues with conventional substations in the power distribution and management industry. The age-old issue of maintaining a reliable and uninterrupted power supply has a revolutionary answer thanks to the integration of cutting-edge technologies in digital substations.

Utilities can take preventive action, plan maintenance tasks for the most convenient times, and replace or repair components before they break by proactively identifying these anomalies. By switching from reactive to proactive maintenance, unplanned outages are drastically decreased, improving the overall reliability of the power distribution network. This increased stability is crucial for companies and sectors including healthcare, data centers, manufacturing, and essential infrastructure that depend significantly on a steady supply of electricity.

Reduced downtime has significant economic advantages. For both enterprises and utilities, downtime can result in lost productivity, operations that are disrupted, and decreased income. Every minute of unplanned downtime can cost a lot of money in industries like manufacturing. By guaranteeing that possible problems are discovered early and resolved within predetermined maintenance times, digital substations reduce these losses. In addition to avoiding unexpected outages, this improves resource usage and lessens the need for urgent repairs, which are frequently more time-consuming and expensive.

Digital substation deployment fits in with the overarching trend of grid modernization and incorporation of renewable energy sources. The complexity of the grid rises as solar, wind, and other renewable energy sources are used more frequently because of their fluctuation. The adaptability needed to handle these variations in power output and demand is provided by digital substations. They make it possible to dynamically alter power flows, reorganize distribution channels, and seamlessly incorporate distributed energy resources. As a result, the grid is improved in terms of responsiveness and flexibility, adding to its overall reliability.

It's crucial to remember that improved reliability and less downtime provide advantages outside of traditional industries. By implementing digital substations right once, developing areas that are rapidly industrializing and urbanizing can get ahead of historical infrastructure. These areas can use cutting-edge construction techniques to create their power distribution networks, preventing the need for future expensive retrofits and laying the groundwork for long-term economic growth. Thus, driving the Digital Substation market revenue.

Digital Substation Market Segment Insights:

Digital Substation Module Insights

The Digital Substation Market segmentation, based on Module, includes Hardware, Fiber Optic Communication Network and SCADA. The hardware segment dominated the market in 2022. To automate complex control activities, digital substations need cutting-edge hardware elements such intelligent electronic devices (IEDs), relays, and controllers. These parts make fault isolation, restoration, and fault detection efficient, which lowers downtime and increases grid reliability.

Digital Substation Type Insights

The Digital Substation Market segmentation, based on Type, includes Transmission Substation, and Distribution Substation. The distribution substation category generated the most income in 2022. Distribution substations must be able to handle bidirectional power flows due to the increase in renewable energy sources at the consumer level, including solar panels and wind turbines. Digital technologies make it possible to control and coordinate these DERs more effectively, which optimizes their integration into the grid and upholds stability.

Figure 1: Digital Substation Market, by type, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Digital Substation Voltage Insights

The Digital Substation Market segmentation, based on Voltage, includes Up to 220 kV, 220-550 kV, and Above 550 kV. The 220-550 kV segment dominated the market in 2022. Population expansion, urbanization, and industrialization are all contributing factors to the ongoing increase in electricity demand. In order to increase the capacity and effectiveness of their transmission networks, electricity utilities are under pressure. Better control, monitoring, and management of the power flow in the 220-550 kV range are made possible by digital substations, guaranteeing that the rising demand is dependable.

Digital Substation Industry Insights

The Digital Substation Market segmentation, based on Industry, includes Utility, Metal, Mining, Oil & Gas and Transportation. The utility segment dominated the market in 2022. Utilities have access to digital substations that provide real-time equipment health monitoring and data analytics-based failure prediction. Predictive maintenance techniques increase asset longevity, eliminate unplanned outages, and improve maintenance schedules.

Digital Substation Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Digital Substation Market dominated this market in 2022 (45.80%). Advanced control and monitoring skills at the distribution level are required due to the expansion of distributed energy resources like rooftop solar panels, energy storage systems, and electric car charging stations. Utilities can effectively control these decentralized resources thanks to digital substations. Further, the U.S. Digital Substation market held the largest market share, and the Canada Digital Substation market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Digital Substation Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Digital Substation market accounts for the second-largest market share. Europe is evolving toward a more decentralized energy generation plan with a focus on distributed energy resources (DERs). Digital substations enable utilities to effectively manage and operate a broad range of DERs, including rooftop solar panels, miniaturized wind turbines, and energy storage devices. Further, the German Digital Substation market held the largest market share, and the UK Digital Substation market was the fastest growing market in the European region

The Asia-Pacific Digital Substation Market is expected to grow at the fastest CAGR from 2023 to 2032. Distributed energy resource (DER) implementation is accelerating throughout Asia Pacific. Digital substations help utilities manage decentralized energy sources like rooftop solar panels and small-scale wind turbines more effectively. Moreover, China’s Digital Substation market held the largest market share, and the Indian Digital Substation market was the fastest growing market in the Asia-Pacific region.

Digital Substation Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Digital Substation market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Digital Substation industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Digital Substation industry to benefit clients and increase the market sector. In recent years, the Digital Substation industry has offered some of the most significant advantages to medicine. Major players in the Digital Substation market, including 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 others, are attempting to increase market demand by investing in research and development operations.

ABB Ltd (ABB) provides technology and solutions for automation and electricity. The company offers products, systems, services, and solutions for industrial automation, motion, and electrification. Its products increase energy efficiency, increase industrial production, and harness power reliability. Its solutions also include engineering expertise and software. As distributors, installers, wholesalers, machine manufacturers, original equipment manufacturers, and system integrators, ABB provides its products both directly to consumers and through third-party channel partners. The business provides customers with industrial equipment and systems that are digitally connected and enabled across Asia, the Americas, the Middle East, Africa, and Europe in the utilities, industry, transportation, and infrastructure sectors. ABB's corporate headquarters are in Zurich, Switzerland.

Business of energy management and automation Power distribution-related technologies and solutions are developed by Schneider Electric SE (Schneider Electric), formerly known as Schneider Electric SA. Its main goods and services include grid automation, low voltage products and systems, solar and energy storage, medium voltage distribution, and basic power, cooling, and racking. Additionally, the company offers field and automation, cloud, consulting, training, and services for energy and sustainability. The company provides services to a variety of industries, such as banking and finance, food and beverage, healthcare, life sciences, marine, metals, minerals, and cement, mining, oil, and gas, retail, as well as automotive and mobility. The corporation conducts business throughout Africa, Europe, Asia-Pacific, the Middle East, South America, and North America. Rueil-Malmaison, France is home to Schneider Electric's corporate headquarters.

Key Companies in the Digital Substation market include

• 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)

Digital Substation Industry Developments

Hitachi Energy announced the SAM600 3.0 on January 24, 2024, as a process interface unit (PIU) to enhance digital substation technology. This modular unit is designed to serve as an integrating unit or switchgear control unit, or indeed, it can be both of them at the same time. Besides reducing operational carbon footprint and hence promoting the adoption of digital substations by transmission utilities at a faster rate, it simplifies installation and commissioning with one device that enhances device flexibility and maintainability.

On January 31, 2024, Hitachi Energy introduced SAM600 3.0, which is another version of PIU to improve digital substation technology. The SAM600 combines these three points together in order to simplify as either merging unit switchgear control unit or a combination of two types of transformers. Streamlined engineering processes and testing practices allow clients to enjoy improved device flexibility, maintainability, and reduced carbon footprints across sites. Higher safety standards, lower capital costs for infrastructure development initiatives and sustainability have made the transition from analog substations feasible through the SAM600 system.

One Energy Enterprises Inc. announced on September 05, 2023, that it has completed its first-ever entirely digital plug-and-play transmission voltage level substation in America. Located at One Energy’s Findlay headquarters, this station will power a Megawatt Hub in the future timescale. It features a self–an extinguishing containment pad raised up for digital transformers as well breakers and transformers. HITACHI ENERGY aims at re-inventing traditional designs by enhancing security resilience and real-time condition monitoring during emergencies., all designed by Hitachi Energy. The CEO, Jereme Kent, however, noted there was a need for a paradigm shift in sub-station design since they have been dormant, indicating vulnerability and inefficiency due to non-change.

The Biden Administration committed $3.5bn towards enhancing the resilience of the US electric grid while the private sector injected $4.7bn on October 18, 2023. With the Bipartisan Infrastructure Law, this funding is part of the Grid Resilience and Innovation Partnerships Program. This financing will support 58 projects around the country focused on modernizing obsolete infrastructure, including microgrid systems to integrate more than 35 GW of clean energy.

Adani Transmission Limited (ATL) announced in March 2022 that it was building a transmission line and substation from Kharghar to Vikhroli, expected to add an extra 1,000 MW by the end of 2023.

WHA Industrial Zone, together with Nghe An Electricity Company and Northern Power Construction, has recently commissioned a new 110kV substation in WHA Industrial Zone I.

In December 2020, ABB signed up for a digital collaboration project under a memorandum of understanding with CORYS.

In September 2020, Siemens put pen to paper in finalizing their five-year extension for a strategic partnership agreement collaborating with Atos on joint digital solutions.

Digital Substation Market Segmentation:

Digital Substation Module Outlook

• Hardware


• Fiber Optic Communication Network


• SCADA

Digital Substation Type Outlook

• Transmission Substation


• Distribution Substation

Digital Substation Voltage Outlook

• Up to 220 kV


• 220-550 kV


• Above 550 kV

Digital Substation Industry Outlook

• Utility


• Metal


• Mining


• Oil & Gas


• Transportation

Digital Substation Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America