Authored By: Sarah
11 Jul 2024

 Digital Substation Market Size to grow by USD 3230.7 million between 2024-2028

According to a research report “ Digital Substation Market” by Type (Transmission, Distribution) Component (Hardware, Fiber-optic communication networks, SCADA systems) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 3230.7 million, at a CAGR of  7.22% during the forecast period. In the rapidly evolving industrial landscape, the implementation of Industrial Internet of Things (IIoT) or Industry 4.0 brings about significant challenges for digital substation design. IIoT offers numerous advantages, including real-time communication capabilities, enhanced reliability, and improved efficiency in industrial automation control systems. This technology facilitates smart maintenance, distributed intelligence, and predictive analytics for manufacturing and factory automation. However, the increasing adoption of IoT-enabled devices presents complexities in terms of cost reduction and maximizing the benefits of factory automation for manufacturers and system integrators.

Browse market data tables, figures, and in-depth TOC on “Digital Substation Market” by Type (Transmission, Distribution) Component (Hardware, Fiber-optic communication networks, SCADA systems) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample


By Type, the Transmission segment is projected to dominate the market size in 2024

The digital substation market's hardware segment encompasses a central processing unit (CPU) responsible for coordinating command, control, and communication functions. Some advanced digital substations integrate a human-machine interface (HMI) component, enabling operators to manage micro PLCs and controlled/monitored instruments. The HMI features a data display (graphic or alphanumeric) with a standard keyboard or touchscreen, and a programmable keyboard. Configuration of the HMI device depends on operational complexity. Communication devices, like built-in socket connections, are also integral hardware components for data input and output.

By Component, Hardware  segment is expected to hold the largest market size for the year 2024

In the power transmission sector, digital substations play a pivotal role in automating power system control and monitoring. These advanced systems, comprising devices such as Programmable Logic Controllers (PLCs), are increasingly being deployed in transformer substations to identify transmission irregularities and execute programmable sequential switching operations. The demand for digital substations is surging due to the imperative to minimize transmission and distribution losses in the power industry. Additionally, digital substations facilitate enhanced signal connectivity, server management, and data acquisition, making them indispensable in the power transmission landscape. The transition from traditional nuclear and coal-fired power generation towards renewable energy sources will further fuel the growth of the digital substation market during the forecast period.

APAC is forecasted to hold the largest market size by region in 2024

The Digital Substation market is experiencing significant growth due to the increasing adoption of smart grid technologies and automation in power distribution networks. Advanced communication systems, remote monitoring, and diagnostics are key drivers propelling market expansion. Leading players are investing in research and development to introduce innovative solutions, ensuring operational efficiency and reliability for utility companies. This trend is expected to continue, with the market projected to reach substantial growth in the coming years.

The Digital Substation Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ABB
  • Cadillac Automation and Controls
  • Cisco Systems Inc.
  • Eaton Corp. Plc
  • Efacec
  • Emerson Electric Co.
  • General Electric Co.
  • Honeywell International Inc.
  • iGrid T and D
  • Larsen and Toubro Ltd.
  • Locamation
  • Netcontrol Group
  • NovaTech LLC
  • NR Electric Co. Ltd.
  • Open Systems International Inc.
  • Schneider Electric SE
  • Siemens AG
  • Tekvel
  • Tesco Automation Inc.
  • Texas Instruments Inc.

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Research Analysis Overview

The Digital Substation Market is witnessing significant growth due to the increasing digitization of Transmission and Distribution systems in the electrical power industry. Transformers play a crucial role in this digital transformation, as they are integral components of both transmission and distribution systems. The adoption of advanced technologies such as adaptable and secure technologies is driving the product adoption in this market. Industrial development and the need for efficient and reliable electrical power systems are key factors contributing to the industry landscape. Technological platforms like Fiber-optic communication networks and SCADA systems are being widely used to digitize transmission and distribution systems. Electric utilities are increasingly investing in these technologies to improve the overall performance and efficiency of their systems. The Digital Substation Market is segmented based on Voltage segments, including High Voltage, Medium Voltage, and Low Voltage. The market is expected to grow at a robust pace due to the increasing demand for secure and reliable transmission and distribution systems. The market is also expected to witness significant growth in the adoption of SCADA systems and other advanced technologies to enhance the overall efficiency and productivity of electrical power systems.

Market Research Overview

The Digital Substation Market is witnessing significant growth due to the digitization of the power sector and the increasing adoption of automation and technological solutions in the industrial sector. Metal mining, transportation, power generation from non-renewable energy resources, and other major economies are investing in digitization to improve their transmission and distribution substations. Hardware modules such as transformers, transmission systems, and distribution systems are being upgraded with fiber optic cables and LAN communication technology for seamless integration of smart grid components. Key players in the market include ABB and Efacec, who are providing advanced technological solutions for transmission and distribution substations. The focus is on energy-efficient technologies, security systems, and improved platforms for revenue generation and business growth. The future of energy distribution lies in battery technology and smart grids, which offer resilience and improved service quality. Regulatory mandates and incentives from regulatory bodies are driving investments in digitization and smart energy infrastructure. The market for digital substations is also witnessing rapid digitalization, with technological advancements in areas such as fault detection, timely failure corrections, and feedback capabilities. Cybersecurity is a major concern, with the increasing use of communication technology in substations. The renewable energy sector is also adopting digital substations for voltage segments and SCADA systems, and the smart grid concept is gaining popularity for its ability to provide uninterrupted electricity and affordable electricity to consumers. Continuous investments in capital expenditure projects and R&D spendings are expected to drive the growth of the digital substation market, despite budget constraints and economic impact due to ongoing projects and social distancing measures. The industry landscape is becoming increasingly competitive, with adaptable and secure technologies such as Sulfur hexafluoride (SF6) and smart control systems becoming the norm. The market for digital substations is expected to grow significantly in developing economies, where aging infrastructure and power distribution reforms are creating opportunities for technology providers and utilities to invest in smart energy infrastructure.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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