Global Industrial Digital Substation Market Overview:
As per MRFR analysis, the Industrial Digital Substation Market Size was estimated at 8.45 (USD Billion) in 2022.The Industrial Digital Substation Market Industry is expected to grow from 9.32(USD Billion) in 2023 to 22.5 (USD Billion) by 2032. The Industrial Digital Substation Market CAGR (growth rate) is expected to be around 10.29% during the forecast period (2024 - 2032).
Key Industrial Digital Substation Market Trends Highlighted
Fast forward into the next decade, and the global Industrial Digital Substation market will undergo certain positive changes mainly due to new construction and reconstruction of the existing substations that comply with the new technological advancements, new investments in digital technologies, and the increasing need for effective and efficient power distribution. Notably, the global scenario of power distribution has evolved with modern digital substations deploying state-of-the-art sensing, monitoring, and control systems providing better asset performance, improved grid monitoring and lower maintenance expenditures. In addition, the growing penetration of renewable energy sources and the simultaneous increasing need for remote control of electricity are further enhancing the adoption of a digital substation.
There is also a new trend in the market whereby subordinate system of distribution needs to be enhanced by the electric power systems containing AI, ML, and blockchain technology within the substations to improve their work, cut down energy wastage, and enhance security. However, combining these technologies will bring new fronts of development that can address the needs of the fast changes currently being experienced in power distribution sectors. Also, since trends towards sustainability are rising, there will always be such trends that will induce more effective solutions making the construction and operations of digital substations more environmentally friendly.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Industrial Digital Substation Market Drivers
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Increasing Adoption of Smart Grid Technologies
Smart grid technologies are witnessing an increasing demand due to the increasing focus on the development of the grid and more use of renewable energy sources. In the context of smart grid networks, industrial digital substations provide an important function by enabling real-time monitoring, control, and protection. Utilities benefit from these by increasing the efficiency of the grid and increasing its reliability; they also aid in the integration of distributed energy resources.
The rapid adoption of smart grid technologies is most likely going to support the incorporation of industrial digital substations in the near term.
Government Initiatives and Regulations
Many worldwide governments continuously implement such initiatives and regulations. The main targets they consider are still connected with the idea of carbon emission reduction. Furthermore, such measures also influence the energy efficiency of available infrastructural solutions and the level of grid development and resilience. The example of the EU can illustrate such an approach. The union has recently announced its ambitions regarding the role of digital substations on its territory.The forthcoming projects of the EU are closely connected with the deployment of renewable energy resources and the enhancement of electricity grids.
Advancements in Digitalization and Automation
The rapid advancements in digitalization and automation technologies are transforming the industrial landscape. Industrial digital substations leverage these technologies to improve operational efficiency, reduce maintenance costs, and enhance safety. The integration of sensors, communication networks, and data analytics enables remote monitoring and control of substations, leading to reduced downtime and improved asset utilization. The ongoing advancements in digitalization and automation are expected to continue driving the adoption of industrial digital substations.
Industrial Digital Substation Market Segment Insights:
Industrial Digital Substation Market Voltage Level Insights
The Global Industrial Digital Substation Market is segmented into different voltage levels, including Medium Voltage (1 kV - 36 kV), High Voltage (36 kV - 150 kV), and Extra-High Voltage (150 kV and above). Each voltage level presents unique requirements and applications within the industrial digital substation market. Medium Voltage (MV): The MV segment is expected to witness significant growth in the coming years, driven by increasing adoption in various industrial applications. The MV range is commonly used in industrial facilities, commercial buildings, and distribution networks.
Market research estimates that the Global Industrial Digital Substation Market for MV will reach approximately 5.2 billion USD by 2027, exhibiting a steady growth rate. High Voltage (HV): The HV segment holds a substantial market share and is expected to continue its growth trajectory. It caters to industries with higher power demands, such as manufacturing plants, mining operations, and transportation systems. The HV range is crucial for transmitting power over longer distances with minimal losses. The Global Industrial Digital Substation Market for HV is projected to reach around 3.8 billion USD by 2027, indicating promising growth prospects.
Extra-High Voltage (EHV): The EHV segment represents a niche market, yet it is gaining traction in various applications. EHV digital substations are designed to handle extremely high voltage levels, enabling efficient power transmission over vast distances. The demand for EHV substations is expected to rise in regions with growing energy consumption and a need for reliable power infrastructure. The growth of the Industrial Digital Substation Market for different voltage levels is influenced by factors such as increasing demand for electricity, modernization of aging infrastructure, and government initiatives promoting smart grid technologies.
Digital substations offer numerous advantages, including enhanced reliability, improved efficiency, reduced maintenance costs, and better grid management. As industries continue to seek ways to optimize their power distribution systems, the adoption of digital substations is likely to accelerate, driving growth across all voltage segments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Industrial Digital Substation Market Component Insights
The Global Industrial Digital Substation Market is segmented by Component into Intelligent Electronic Devices, Substation Automation Systems, Communication Networks, Cybersecurity Solutions, and Sensors and Transducers. The IEDs segment is expected to hold the largest market share in 2023, as the adoption of IEDs is increasing in digital substations to increase the reliability and efficiency of power distribution networks. The SAS segment is expected to exhibit remarkable growth during the forecast period because of rising demand for advanced substation automation systems.
The Communication Networks segment is expected to play an important role in the growth of the Industrial Digital Substation Market as the need for reliable and secure communication networks is increasing. Cybersecurity Solutions is also expected to have significant growth as concerns regarding cybersecurity threats to digital substations are enabling their adoption. The Sensors and Transducers segment is expected to witness consistent growth as the demand for accurate and reliable sensors and transducers for monitoring and control of digital substations is rising.
Industrial Digital Substation Market Application Insights
The Global Industrial Digital Substation Market is segmented by application into Electricity Generation and Transmission, Industrial Facilities, Oil and Gas Operations, Transportation Infrastructure, and Data Centers and IT Facilities. Among these, the Electricity Generation and Transmission segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of digital substations in power plants and transmission networks.
The Industrial Facilities segment is expected to witness significant growth due to the rising demand for digital substations in industries such as manufacturing, mining, and chemical processing. The Oil and Gas Operations segment is also expected to grow steadily, driven by the increasing adoption of digital substations in offshore and onshore oil and gas facilities. The Data Centers and IT Facilities segment is expected to grow rapidly due to the increasing deployment of digital substations in data centers and IT facilities to improve efficiency and reliability.
Industrial Digital Substation Market Deployment Model Insights
The Global Industrial Digital Substation Market is segmented by deployment model into on-premise, cloud-based, and hybrid. The on-premise segment is expected to hold the largest market share in 2023 due to the high cost of cloud-based and hybrid deployment models. However, the cloud-based segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing adoption of cloud computing technologies in the industrial sector. The hybrid segment is expected to grow at a moderate CAGR during the forecast period, as it offers a balance between the benefits of on-premise and cloud-based deployment models.
In 2023, the on-premise segment is expected to account for approximately 60% of the Global Industrial Digital Substation Market revenue, followed by the cloud-based segment with a share of approximately 25%. The hybrid segment is expected to account for the remaining share of approximately 15%. By 2032, the cloud-based segment is expected to account for the largest market share, with a share of approximately 40%. The on-premise segment is expected to account for a share of approximately 35%, while the hybrid segment is expected to account for the remaining share of approximately 25%.
The growth of the Global Industrial Digital Substation Market is attributed to the increasing adoption of digital technologies in the industrial sector. Digital substations offer several benefits over traditional substations, such as improved efficiency, reliability, and safety. Additionally, the growing demand for renewable energy sources is also driving the growth of the market, as digital substations are essential for the efficient integration of renewable energy sources into the grid.
Industrial Digital Substation Market Regional Insights
Regionally, North America held the largest revenue share in 2023, with a market size of USD 2.83 billion. Europe followed with a market value of USD 2.41 billion, while APAC held a share of USD 2.19 billion. South America and MEA are expected to witness significant growth in the coming years, with CAGRs of 11.2% and 10.6%, respectively. These regions are experiencing rapid industrialization and urbanization, leading to increased demand for reliable and efficient power distribution systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Industrial Digital Substation Market Key Players And Competitive Insights:
Key players in the Industrial Digital Substation Market industry are continuously striving to gain a competitive edge by introducing innovative products and solutions in the market. Leading Industrial Digital Substation Market players are focusing on strategic collaborations and partnerships to expand their market reach and enrich their product portfolio. The Industrial Digital Substation Market growth is primarily driven by the growing demand for efficient and reliable power distribution systems. The industry is slated to witness a highly competitive outlook in the forthcoming years, with leading players looking at product innovation, strategic partnership and geographical reach.
Schneider Electric - Schneider Electric is a world-renowned company offering digital substation solutions. The company offers a wide range of products and services, which include digital relays, protection systems, automation systems, and substation management systems. The company has a strong global presence and has executed several successful digital substation projects across the globe. Schneider Electric is highly focused on research and development and teams at the company are working relentlessly to introduce new products and solutions in tune with the changing requirements of the industry.
ABB - ABB is a global leader in power and automation technologies. The company offers a comprehensive range of products and solutions ranging from digital control systems, protection systems, and automation systems to substation management systems. The company is known for its innovative products and solutions and has introduced several pioneering technologies. ABB is highly committed to providing its customers with the latest and best solutions.
Key Companies in the Industrial Digital Substation Market Include:
- Schweitzer Engineering Laboratories
- Alstom Grid
- AREVA
- Itron
- Rockwell Automation
- Eaton
- S Electric
- Mitsubishi Electric
- Alstom
- ABB
- Siemens
- Schneider Electric
- Hitachi
- Toshiba
- General Electric
Industrial Digital Substation Market Industry Developments
The Industrial Digital Substation Market is projected to reach USD 22.5 billion by 2032, exhibiting a CAGR of 10.29% during the forecast period (2024-2032). The increasing adoption of digital technologies in the energy sector, government initiatives to modernize power grids, and the growing need for reliable and efficient power distribution are driving the market growth. Additionally, the rising demand for renewable energy sources, such as solar and wind power, is creating new opportunities for digital substations, as they can integrate these sources into the grid more effectively. Furthermore, the integration of advanced technologies like artificial intelligence (AI) and the Internet of Things (IoT) is enhancing the capabilities of digital substations, making them more efficient, reliable, and secure.
Industrial Digital Substation Market Segmentation Insights
- Industrial Digital Substation Market Voltage Level Outlook
- Medium Voltage (1 kV - 36 kV)
- High Voltage (36 kV - 150 kV)
- Extra-high voltage (150 kV and above)
- Industrial Digital Substation Market Component Outlook
- Intelligent Electronic Devices (IEDs)
- Substation Automation Systems (SAS)
- Communication Networks
- Cybersecurity Solutions
- Sensors and Transducers
- Industrial Digital Substation Market Application Outlook
- Electricity Generation and Transmission
- Industrial Facilities
- Oil and Gas Operations
- Transportation Infrastructure
- Data Centers and IT Facilities
- Industrial Digital Substation Market Deployment Model Outlook
- On-Premise
- Cloud-Based
- Hybrid
- Industrial Digital Substation Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
8.45(USD Billion) |
| Market Size 2023 |
9.32(USD Billion) |
| Market Size 2032 |
22.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
10.29% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Schweitzer Engineering Laboratories, Alstom Grid, AREVA, Itron, Rockwell Automation, Eaton, S Electric, Mitsubishi Electric, Alstom, ABB, Siemens, Schneider Electric, Hitachi, Toshiba, General Electric |
| Segments Covered |
Voltage Level, Component, Application, Deployment Model, Regional |
| Key Market Opportunities |
Advanced metering Realtime monitoring Predictive maintenance Cybersecurity Distributed energy resources |
| Key Market Dynamics |
Increasing demand for digitalization, government initiatives advancements in technology growth in renewable energy, and focus on grid stability and optimization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Industrial Digital Substation Market is expected to be valued at USD 9.32 billion in 2023.
The Industrial Digital Substation Market is expected to be valued at USD 22.5 billion by 2032.
The Industrial Digital Substation Market is projected to grow at a CAGR of 10.29% from 2024 to 2032.
North America is expected to hold the largest share of the Industrial Digital Substation Market in 2023.
The power generation segment is expected to hold the largest share of the Industrial Digital Substation Market in 2023.
Key competitors in the Industrial Digital Substation Market include Siemens, ABB, General Electric, Schneider Electric, and Eaton.
Key growth drivers of the Industrial Digital Substation Market include the increasing demand for electricity, the need for improved grid reliability, and the growing adoption of digital technologies in the power industry.
Key challenges facing the Industrial Digital Substation Market include the high cost of implementation, the lack of skilled labor, and the security risks associated with digital technologies.
Key opportunities for the Industrial Digital Substation Market include the growing demand for renewable energy, the increasing adoption of smart grids, and the development of new digital technologies.
Key trends in the Industrial Digital Substation Market include the increasing use of artificial intelligence, the development of new sensor technologies, and the growing adoption of cloud-based solutions.
