Global Distribution Automation Market Size, Share & Industry Trends Analysis Report

Global Distribution Automation Market Size, Share & Industry Trends Analysis Report By Communication Technology, Utility (Public, and Private), By Component, By Regional Outlook and Forecast, 2023 - 2030

The Global Distribution Automation Market size is expected to reach $35.9 billion by 2030, rising at a market growth of 11.8% CAGR during the forecast period.

Ethernet networks are highly scalable, making them suitable for distribution automation systems that require expansion or integration with other devices and systems. Hence, Ethernet is poised to register 2/5th share of the market by 2030. It allows adding new devices and services without major disruptions or reconfiguring the entire network. Ethernet supports various security protocols, such as virtual local area networks (VLANs), encryption, and authentication mechanisms, which help safeguard communication and data integrity in distribution automation systems. These security features protect against unauthorized access, data tampering, and network vulnerabilities.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2022, GE Grid Solutions came into partnership with LineVision to provide the world's first integrated portfolio of Grid Enhancing Technologies, offering utilities with a complete Dynamic System Rating. Additionally, In September, 2021, Siemens signed a partnership with Digi-Key Electronics to deliver a broad range of automation and control products.

Based on the Analysis presented in the KBV Cardinal matrix; ABB Group, Schneider Electric SE, Siemens AG, and Eaton Corporation PLC are the forerunners in the Market. In October, 2022, ABB came into an agreement with Insta Automation Oy to strengthen their distribution channels, enhance industry knowledge and maximize lead generation across various industries, consisting of water, food and beverage, pharmaceuticals, and energy. Companies such as General Electric Company and Itron, Inc. are some of the key innovators in the Market.

Market Growth Factors

Intensifying incorporation of renewable energy

Demand response, energy storage, distributed generation, and renewable energy are all included in the electric transmission and distribution system. Reduced carbon emissions, enhanced asset utilization due to the incorporation of distributed systems, and improved reliability and resiliency from microgrid uses, which aid in lowering peak loads and the price of electricity, are just a few benefits of integrating renewable energy. In order to reduce carbon emissions in the power distribution system and ensure environmental protection, several utilities strongly emphasize integrating renewable energy. Hence, the rising usage of renewable energy will help support the expansion of the market.

Advancement of IoT and communication technologies

Communication infrastructure is necessary for distribution automation. WiMAX, cellular, fiber optic, radio-frequency (RF) mesh, and ethernet are, in a general sense, the primary communication technologies that are deployed in distribution automation. IoT and distribution automation communication technologies enable two-way communication between software and field devices, allowing quick and effective access to user needs. As a result, the smart grid is more resilient, and the communication sector has a new chance for growth.

Market Restraining Factors

Cost and technical challenges because of increased data processing and analyzing

Implementing distribution automation systems involves significant upfront costs. This includes the installation of sensors, communication infrastructure, advanced metering equipment, and control devices. Analyzing and processing huge amounts of brand-new data generated by automated equipment is necessary for the adoption of distribution automation. In order to process, analyze, store, and error-check distribution system issues, several smart monitoring devices collect enormous volumes of data. Therefore, the high initial investment required to upgrade and modernize existing distribution networks can be a barrier for utilities and distribution system operators, particularly those with limited financial resources.

Communication technology Outlook

By communication technology, the market is divided into wired and wireless. The wired segment procured the maximum revenue share in the market in 2022. Wired communication technologies, such as fiber optic cables or dedicated copper lines, provide high reliability. This reliability ensures consistent and uninterrupted data transmission, which is critical for real-time monitoring and control of distribution automation systems.

Wired Outlook

Based on wired communication technology, the market is segmented into fiber optic, ethernet, powerline carrier, and IP. The fiber optic segment recorded the highest revenue share in the market in 2022. Electromagnetic interference (EMI) as well as radio frequency interference (RFI) cannot affect fiber optic connections in any way. This characteristic makes fiber optics highly reliable in environments where there are electromagnetic fields, high-voltage equipment, or heavy electrical interference.

Component Outlook

Based on component, the market is characterized into field devices, software, and services. The field devices segment garnered the highest revenue share in the market in 2022. The segment is growing due to the rising deployment of field devices in distribution automation systems. This equipment handles losses from voltage variations and power interruptions and is a crucial component of the distribution network.

Field devices Outlook

On the basis of field devices, the market is classified into remote fault indicators, smart relays, automated feeder switches/reclosers, automated capacitors, automated voltage regulators, transformer monitors, feeder monitors, remote terminal unit, and others. The automated feeder switches/reclosers segment acquired the largest revenue share in the market in 2022. In order to find issues as quickly as possible, automated feeder switches are utilized in the grids as in case of a problem, they open and close. In the event of a fault, switches that are part of the power system can also be set up to open and close.

Utility Outlook

By utility, the market is bifurcated into public and private. The private segment recorded a remarkable growth rate in the market in 2022. The rise in funding and subsidies provided by government agencies to private entities for these systems has been credited for the growth. Strong demand for power is also seen in countries like China and India due to their rapid urbanization.

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed the highest revenue share in the market in 2022. Due to rising electricity consumption from remote areas and the rising need for integrating renewable energy sources, the market in this region is expanding, as seen by increased expenditures in smart grids. Countries like China, Japan, and Australia are responsible for a substantial portion of the region's growth.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ABB Group, Schneider Electric SE, Siemens AG, Eaton Corporation PLC, General Electric Company, Itron, Inc., Toshiba Corporation, Xylem, Inc., G&W Electric, and S&C Electric Company

Recent Strategies Deployed in Distribution Automation Market

Partnerships, Collaborations and Agreements:

Feb-2023: Siemens AG partnered with EnergyHub, a leading grid-edge DERMS provider. Through this partnership, both companies would interface their supportive solutions to allow utilities to go toward a comprehensive next-generation DER management solution. Moreover, the companies would be coordinating on supportive suite elements for next-generation DER management by integrating Siemens’ network skill with EnergyHub’s proven grid-edge abilities.

Dec-2022: GE Grid Solutions came into partnership with LineVision, a company with expertise in Dynamic Line Ratings. The partnership aims to provide the world's first integrated portfolio of Grid Enhancing Technologies, offering utilities with a complete Dynamic System Rating.

Oct-2022: ABB came into an agreement with Insta Automation Oy, an independent specialist in industrial automation and digitalization solutions, to grow its control systems business across Finland. ABB and Insta would work together to strengthen their distribution channels, enhance industry knowledge and maximize lead generation across various industries, consisting of water, food and beverage, pharmaceuticals, and energy.

Aug-2022: Eaton joined hands with CyberArk, an information security company offering identity management. The collaboration aims to improve the security of utility transmission and distribution devices and networks.

Jul-2022: Siemens AG came into partnership with Esri, GIS, and location intelligence solution provider. Through this partnership, Siemens intends to stretch its environment of partners for its grid software business. Moreover, this partnership would increase the ability for planning, working, and service power networks at grid operators by integrating Esri’s strong mapping and geographical analytics software. Under this partnership, both companies aimed to raise the induction of Distributed Energy Resources (DER) to the grid, such that the net zero can be attained quicker.

Jun-2022: ABB announced a partnership with Think Gas, a city gas distribution company. Under this partnership, The ABB Ability Genix Industrial Analytics and AI package would be utilized in THINK Gas' digital architecture, combining various sources of real-time data from THINK Gas operations across its network.

Jun-2022: Schneider Electric joined hands with Hitachi Energy, a market and technology pioneer in transmission, distribution, and grid automation solutions. Through this collaboration, the company aimed to assist users to deploy green electricity solutions, which are essential in the battle against climate change.

May-2022: Itron joined hands with Microsoft, an American multinational technology corporation. This collaboration aimed to boost cloud adoption and the next generation of consumer and grid-edge solutions for the utility and smart cities industries.

Mar-2022: Itron teamed up with Utilismart Corporation, a provider of meter data management-driven analytics. This collaboration aimed to benefit cooperatives and municipal electric utilities from Utilismart’s turn-key solution that comprises project management, cellular data, meter data reading services, and safe customer web portals.

Sep-2021: Siemens signed a partnership with Digi-Key Electronics, a company engaged in providing the largest selection of in-stock and ready-to-ship electronic and automation components. The partnership would aim to deliver a broad range of automation and control products.

Product Launches and Product Expansions:

Jun-2023: Itron, Inc. released the Itron Edge Gateway product line. The Edge Gateway would broaden the abilities of utilities to achieve sustainability goals and decarbonization and manage critical infrastructure as the expanded adoption of distributed energy resources.

Feb-2023: ABB announced the launch of ABB Ability™ Symphony® Plus distributed control system. This launch would further support digital transformation for power generation and water industries. The latest version of Symphony® Plus would further support customers’ digital journey through an easy and protected OPC UA1 connection to the Edge and Cloud, without interfering with core control and automation functionalities.

May-2022: Schneider Electric announced the launch of Grid Operations Platform as a Service. Through this launch, the company would provide a deployment environment that allows grid planning and operations solutions to be organized and controlled on the cloud.

Feb-2022: G&W Electric introduced Viper-HV Recloser up to 72.5kV. The launched product supports faster overcurrent security through fault isolation and automatic restoration for temporary faults on overhead sub-transmission lines.

Aug-2021: Schneider Electric expanded its product line with new capabilities in its EcoStruxure Advanced Distribution Management System (ADMS) as part of the ADMS 3.9 release. This expansion aimed to offer good outage response, enhanced grid operations, and distributed energy resource (DER) management. This new feature allows utilities to make a big leap forward by delivering smart grid capabilities and enhancements that make them more efficient and reactive and aid them to overcome the many industry challenges they face.

Jul-2021: General Electric introduced ADMS's advanced distribution management system. This product aimed to provide reliability, productivity, and efficiency through modular architecture, adaptive algorithms, and predictive analytics for autonomous and improved distribution grid and renewables operations.

Jun-2021: ABB launched REX610, the latest addition to its Relion® product family. The product is developed to support smart, sustainable, and safe electrification. Additionally, REX610 is designed to streamline the protection and control of basic power distribution applications.

Acquisitions and Mergers:

Dec-2021: General Electric completed the acquisition of Opus One Solutions Energy Corporation, a software company that assists electric utilities to optimize energy planning, operations, and market management. This acquisition would enable the company to assist the users to move to a sustainable grid.

Mar-2021: Siemens took over C&S Electric, a manufacturer of electrical equipment & exports. This acquisition aimed to strengthen Siemens’ position as the main supplier of low-voltage power distribution and electrical installation technology in one of the world’s fastest-growing economies.

Mar-2021: Eaton Corporation Plc completed the acquisition of Tripp Lite, an American manufacturer of power protection and connecting electrical devices. Through this acquisition, the addition of Tripp Lite's complementary product suite would improve the breadth of its edge computing and distributed IT product suite and broaden Eaton's single-phase UPS business.

Scope of the Study

Market Segments covered in the Report:

By Communication Technology

• Wired
• Fiber Optic
• Ethernet
• Powerline Carrier
• Wireless

By Utility

• Public
• Private

By Component

• Field Devices
• Automated Feeder Switches/Reclosers
• Remote Fault Indicators
• Smart Relays
• Automated Capacitors
• Automated Voltage Regulators
• Transformer Monitors
• Remote Terminal Unit
• Feeder Monitors
• Others
• Software
• Services

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• ABB Group
• Schneider Electric SE
• Siemens AG
• Eaton Corporation PLC
• General Electric Company
• Itron, Inc.
• Toshiba Corporation
• Xylem, Inc.
• G&W Electric
• S&C Electric Company

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