Digital Substation Market Size, Share & Industry Analysis, By Module (Hardware, Fibre Optic Communication Network, SCADA), By Type (Transmission, Distribution), By Voltage (Up to220kV, 220V-550kV,Above 550kV), By Industry (Utility, Oil & Gas,Transportation, Mining, Others) and Regional Forecast, 2024-2032

With the technological advancements taking place in the field of electricity transmission and distribution, the need to secure safety in operation is the utmost priority for the organizations. Also, the cost savings is the other priority that is looked upon by the electricity organizations.

The digital substations serve the purpose of ensuring safety and ensuring cost savings with integrating multiple functionalities into singular devices and therefore resulting in fewer devices required to perform the same function as traditional devices. Digital substations also help in improving the efficiency and stability of the substation.

Digital substations are flexible to accommodate and changes in the system, and they reduce the cabling present in the system as the embedded diagnostics are used to ensure the system’s integrity. Rising electricity demand will see the global digital substation market to grow at a healthy rate during the given forecast period.

Key Market Driver -

Key Market Driver – Replacement of aging power distribution networks.

Key Market Restraint -

Key Market Restraint – High capital cost and regular maintenance.

Based on the module, the global digital substation market can be segmented into hardware, fiber optic communication network, and SCADA. The hardware segments dominate the global digital substation market owing to the presence of transformers, protective relays, and other critical hardware used in the substation. Based on the type of substation the global digital substation market can be segmented into transmission and distribution. The distribution segment holds the largest market share owing to the increasing demand to make electricity reach difficult locations.

Based on the voltage, the global digital substation market can be segmented into up to 220V, 220V-550V, above 550V. The 220V is the required voltage for the residential locations, 220V holds the largest market share and this trend is set to continue during the given forecast period. Based on the industry the global digital substation market can be segmented into utilities, oil & gas, transportation, and others. The utility sector will dominate the market owing to the increasing number of new grids being set up in a number of countries.

The key market driver for the global digital substation market is the ongoing replacement of the aged power distribution and transmission networks in major countries across the globe. Also, the increase in demand for electricity with a growing need to curb the carbon emissions has seen renewable sources being increasingly used for power generation, which has seen new grids to come up.

Key market restraint for the global digital substation market is the high capital cost involved in the installation of the digital substations. The regular maintenance required by these substations to ensure proper working of the equipment can also hinder the growth of the global digital substation market.

Key Players Covered

Key players operating in the global digital substation market are Eaton, Siemens, GE, ABB, DNV GL, Locamation, Toshiba America Electronic Components, Inc., Hitachi, Mitsubishi Electric Display Solutions, Schneider Electric, Kalkitech, and Helinks LLC.

Regional Analysis

The global digital substation market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The rising electricity demand in the Asia Pacific region with the increasing population has been the driving factor for the growth of the digital substation market in the region.

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The increased urbanization observed in recent years with the growing adoption of renewable energy, which has led to setting up new grids has driven the market growth in region. Replacement of the aging electrical infrastructure with the latest technological advancements has driven the market growth in North America and Europe region. Europe is swiftly drifting towards renewables for energy generation and therefore has seen the adoption of a digital substation in the region.

Segmentation

 Key Industry Developments

• In September 2019, Siemens announced about the collaboration with Norwegian Distribution system operator Glitre Energi Nett, to build a digital substation to pilot internet of things analytics and applications for power grids. The cloud application will make the previously inaccessible data fully available and help to process grid data for the first time in the cloud with zero engineering effort.


• In September 2019, POWERGRID signed MOU with Bharat Heavy Electronics Limited for a digital substation collaborative R and D project. As a part of the deal Intelligent electronic devices(IEDs) and optical current transformers(OCTs) will be developed and evaluated at POWERGRID Advanced Research & Technology Centre and further field trials will be carried out at Bhiwadi sub-station of POWERGRID.