Distribution Feeder Automation System Market Size, Share, and Industry Analysis By Product (Hardware & Software), By Application (Industrial, Commercial, and Residential), and Regional Forecast, 2024-2032

Distribution feeder automation systems refer to technologies and strategies that analyze, control, and optimize the operation of electrical distribution within a power distribution network. It offers flexibility and increases the efficiency and quality of the electric service. The key components of the distribution feeder system are the control center, feeder remote terminal unit, and feeder dispatch. Currently, research and development efforts are focused on communication technology to make distribution automation more cost-effective and efficient.

• For instance, the distribution feeder automation application supported by Hitachi Energy includes the automatic fault detection and rerouting, reducing voltage on the distribution circuit to reduce energy. It conserves energy when end-user devices draw less power.

A major factor influencing the growth of distribution feeder automation systems is the need for utilities to operate efficiently and continuously by reducing downtime and increasing service quality. This system also detects faults and restores the functions immediately. Moreover, the rapid increase in electricity prices and high consumption will contribute to the growth of the distribution feeder market. These benefits are expected to drive the demand for distribution feeder automation during the forecast period.

The distribution feeder automation system has a complicated procedure for integrating the existing infrastructure and a delay in implementing the distribution feeder due to high costs can hinder market growth. These costs include communication infrastructure, equipment, software and licensing, installation, and integration. Moreover, it carries the risk of frequent breakdowns and the overload of transformers due to the absence of monitoring.

The pandemic closed businesses worldwide, leaving energy demand lower than usual in most countries. However, household energy consumption rose slightly. In 2020, the pandemic impacted the market with various delays and disruptions to projects, supply chains, manufacturing, and construction activities. Lockdown measures and temporary factory closures have impacted facilities and caused logistical problems. Budget cuts and future uncertainty have harmed investment decisions.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Distribution Feeder Automation Market


• Key Industry Trends


• Regulatory Landscape for the Distribution Feeder Automation Market


• Key Industry Developments


• Impact of COVID–19 on the Market

SEGMENTATION

ANALYSIS BY PRODUCT

Based on product, the market is segmented into hardware and software.

The hardware segment is expected to dominate due to its high transmission cost and wide installation. The main aim of distribution feeder automation is a real-time adjustment to find faults in the transmission and distribution network. An efficient device ensures better customer service and minimal operating costs. With feed automation in place, industries have various benefits, such as progressive detection and correction of abnormal line conditions, less downtime, efficient automation recovery, and smoother remote command and control.

The software segment is expected to grow due to technological advancements in IoT and communication systems. Low maintenance costs, improved efficiency, and restoration time are expected to boost the  segment growth.

ANALYSIS BY APPLICATION

Based on application, the market is segmented into industrial, commercial, and residential.

The industrial segment is projected to grow significantly due to global energy demand from industries. According to the International Energy Outlook 2022, energy consumption in the industrial sector is projected to increase by 37% of global energy use in 2022, compared to 34% in 2002. Furthermore, the growing demand for efficient energy with minimal losses and the growing adoption of renewable energy in countries such as India and China will further contribute to the growth of the distribution feeder automation system in the coming years.

In the commercial market, these systems monitor and control electricity distribution networks in shopping centers, office buildings, and hotels. In the residential market, distribution automation systems ensure reliable and uninterrupted power supply to homes, which increases customer satisfaction. In general, these systems play a key role in managing and improving the performance of electricity distribution networks in various sectors.

REGIONAL ANALYSIS

The distribution feeder automation system is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

North America is projected to record a significant share of the distribution feeder automation system market. This is due to the increasing adoption of feeder automation systems in commercial and industrial sectors for the uninterrupted flow of electricity and the rising demand for reliable and uninterrupted power supply in the region.

Asia Pacific is also expected to grow immensely due to the high energy demand from countries such as China and India. Moreover, the increase in electricity consumption contributes to the adoption of advanced and smart power infrastructure systems, influencing the demand for distribution feeder automation systems.

Europe is projected to register a moderate market share considering the high current and anticipated rate of investment in power grids over the upcoming years. This evolution is driven by industrial growth and rising electricity demand, particularly in renewables and refurbishment. Germany, the U.K., and France are the leading countries in transmission and distribution.

The Middle East & Africa and Latin America markets are expected to grow during the forecast period as energy demand increases due to rapid urbanization and industrialization. This positively impacts the distribution feeder and automation for uninterrupted power supply for various applications, including fault detection voltage monitoring for industrial use.

KEY PLAYERS COVERED

The report includes the profiles of key players such as ABB, Siemens, GE, Cisco, Trilliant, G&W Electric Co., Eaton, Schneider Electric, Hitachi Energy, and Advanced Control Systems, LLC (ACS).

KEY INDUSTRY DEVELOPMENTS

• In October 2021, Sharika Enterprises Ltd received a contract to design, supply, install, commission, and maintain the feeder automation system as part of the distribution management system (DMS) to improve power distribution reliability in Jammu and Kashmir, India.


• In May 2021, Elexicon Energy collaborated with Marshall Homes and Opus to launch Altona Towns, a live smart grid trial in Canada. The Ontario Ministry of Energy is funding this project. This project aims to develop and launch the next generations of technology to transform power distribution networks.


• In March 2020, ABB launched an upgraded version of the REX640 protection relay, which enhanced communication security and flexibility in advanced power generation and distribution applications. REX640 can cover the full range of utility and industrial applications and evolve with the grid.