Digital Substations Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Digital Substations Market grew at a CAGR of 5.8% between 2017-2021 and is estimated to be US$ 6,974.3 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 6.9% and is expected to reach a valuation of US$  13,591.8 Mn by 2032 end.

Throughout the projected period, the market is anticipated to grow in response to rising driven forward by causes such as expanding smart city infrastructure development, rising power demand with constrained space availability, rising need to replace aging substation infrastructure, and increasing interoperability and safety standards.

Market Dynamic

REPLACEMENT OF OLD ELECTRICAL SUBSTATIONS WITH DIGITAL SUBSTATIONS WILL DRIVE THE MARKET

The Digital Substation market is expected to witness substantial growth in the next few years. With the adoption of advanced technologies, there has been an increase in replacing conventional electrical equipment with advanced equipment. Growing energy demand with rising expenditure towards developing high voltage electric networks and restoration of existing infrastructure has reinforced the Global digital substation market size.

Additionally, increasing focus on replacing prevailing electrical infrastructure and its subparts with high-quality upgraded systems will enhance the industry’s growth.

HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH

A high initial investment, high purchase costs, and complex technologies characterize the digital substation market. Cyber security is a major competitive factor in this market that hampers growth. Nonetheless, several open challenges in digital substations with cyber security benefits offer opportunities for the market during the forecast period.

ADVANCEMENTS IN TECHNOLOGY WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

The adoption of Internet of Things (IoT) technology has been driving the digital substation market in North America. In the Power and utility industry, there has been an increase in the adoption of the digital substation, pushing the market growth. As digital technology is being integrated into the IoT, there has been high adoption of digital substations in industries, thereby driving the market.

Market Segments Covered in Report

By Component:

• Substation Automation System
• Communication Network
• Electrical System
• Transformer
• Busbar
• Protection System
• Monitoring and Controlling Device
• Human Machine Interface
• Programmable Logic Controller
• Other

By Architecture:

• Process
• Bay
• Station

By Application:

• Transmission
• Distribution

By End Use:

• Utility
• Industrial

By Connectivity:

• <33kV
• 33kV to 110kV
• 110kV to 550kV
• >550kV

By Voltage Level:

• High
• Medium
• Low

By Installation:

• New
• Refurbished

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are high-voltage AC substations projected to ensure the highest sales during the forecast period?

The demand for high-voltage AC substations will increase as the industry grows by 5.0% during the forecast period 2022-2032. This voltage range digital substation is used in various sectors such as Power, utilities, mining, and others. There have been developments in advanced digital substations which can withstand high-power monitoring applications; for instance, ABB has installed a 500 Kv Digital Substation at Kankaria. This enables Enel Green Power to deliver carbon electricity by extensive protective relays and programmable logic controllers.

Why is the utility segment expected to expand the fastest during the forecast period?

In 2021, the utility application market will rule. The primary driver of the expansion of the utility sector is the necessity to meet peak power consumption. In the event of an abrupt change in the energy supply, the utility BESS offers control services for power quality, frequency, and voltage.

When there is an excess of renewable energy, grid operators can reduce their power use thanks to Digital Substations devices. The growing need for renewable energy and the increasing requirement for a consistent and efficient power supply in most locations causes the increased demand for Digital Substations systems in the utility industry.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the North America Digital Substation market dominated with a market share of 38.5%, followed by Canada and Mexico. Early adoption of advanced technologies, a large number of players, a strong local presence, and increasing demand for high-speed data transmission is projected to drive the growth rate in this market during the forecast period.
• Asia-Pacific is projected to be the fastest-growing market for digital substations. This region’s industrial infrastructure has been rapidly modernizing, and this trend is projected to continue.

Competition Analysis

The market expansion has been aided by rising energy consumption due to increased spending on high-voltage electric networks for long routes and the restoration and refurbishment of home infrastructure.

Some of the key developments that have taken place in the Digital Substations Market include:

• In February 2020, Enel Green Power and ABB’s substation had an agreement for the So Gonçalo solar photovoltaic (PV) project in Piau, northeastern Brazil, to provide emission-free solar electricity to Brazil’s 500 kV transmission network. This is the world’s first digital substation rated at 500 kV AC.
• In January 2020, Increasing demand for renewable and green technology led Schneider Electric to announce the development of its UK manufacturing sites in Scarborough and Leeds.

A list of some of the key suppliers present in the market are:

• ABB Ltd.
• Cisco Systems, Inc.
• Eaton Corporation PLC
• Emerson Electric Co.
• General Electric Company
• Honeywell International, Inc.
• Larsen & Toubro
• NR Electric Co. Ltd.
• Schneider Electric SE
• Siemens AG

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.

• Report Includes

  Market Size Data

  • Global market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and region
  • Regional level market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and country
  • Country level market share data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment
  • Market attractiveness analysis based on market share index and CAGR index for each of the segments and regions
  • Incremental dollar opportunity generated in the forecast period would be indicated
  • Key Takeaways, Recommendations, and key investment pockets for the relevant segments would be highlighted

  Market Background

  • Macroeconomic factors that impact the market developments
  • Market dynamics (Drivers, Restraints, Opportunities) that positively or negatively influence market growth
  • Supply Side and Demand Side trends – trends witnessed from buyers and suppliers side
  • Production and Consumption Gap Analysis – analysis of gap between production and consumption in any geography to fulfil unmet demand
  • Trade analysis and analysis of key supply and demand hubs
  • Identification of hotbed opportunities existing in the market
  • Porter’s and PEST analysis to understand the business environment of the geography
  • Regulatory scenario – Identification of key sector specific and trade regulations, and assessment of whether it helps or hinder market development & growth

  Pricing Analysis

  • Regional-level product pricing analysis to set and benchmark your current or future product offerings across each product type
  • Historical and projected pricing trends of the product which helps in determining the product’s price and/or services beneficial for companies product lifecycle
  • Cost teardown analysis and key factors impacting pricing

  Value Chain Analysis

  • Country-wise list of raw material suppliers
    • Raw material price trends and buyers’ sentiment
    • Overview of Intelligent Sourcing Technique
    • Raw material procurement requirements
    • Vendor selection criteria
  • Country-wise list of product manufacturers
  • Country-wise list of distributors/traders
  • Country-wise list of end-users
    • End-Users/Customers consumption mapping
    • Key End-Users/Customers client list
  • Country-wise list of other key channel partners
  • Average profitability margins
  • Regional value chain dynamics

  Competition Analysis

  • Market shares and production capacities of key players
  • Tier structure analysis of market
  • Comprehensive competition dashboard representing the top 10-15 players in the market
  • Individual company profiles of top 15 to 20 manufacturers
    • Business Overview
    • Product Portfolio
    • Key Financials
    • Recent Developments
    • SWOT Analysis
    • Strategies

Country Coverage
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific

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