Digital Substations Market Forecasts to 2028 – Global Analysis By Type (Transmission Substation, Distribution Substation), Voltage (Below 66kV Segment, Up to 110 kV, Up to 220 kV , 220–550 kV) and By Geography

Digital Substations Market Forecasts to 2028 – Global Analysis By Type (Transmission Substation, Distribution Substation), Voltage (Below 66kV Segment, Up to 110 kV, Up to 220 kV , 220–550 kV) and By Geography

According to Stratistics MRC, the Global Digital Substations Market is accounted for $7.61 billion in 2022 and is expected to reach $12.84 billion by 2028 growing at a CAGR of 9.1% during the forecast period. Digital substation is an amalgamation of switchgear, transformers, substation automation, monitoring & diagnostics and the standard process bus process, and acts as the backbone of smart grids. They even grant real time phases measurement data, increasingly, required to control the power flow and keep the grid stable, despite the quickly rising share of alternating renewable energy sources.

According to the International Energy Agency’s semi-annual Power Market Report, the global electricity demand is expected to climb by 5% in 2021 and 4% in 2022. The amount of electricity generated by renewables is expected to rise as well, by 8% in 2021 and over 6% in 2022. Therefore, the increase in demand for electricity is driving the digital substation market.

Market Dynamics:

Driver:

Growing demand for electricity

Digital substations are vigorously used in substituting traditional copper cable with advanced fiber optics transmitters to covert electrical signals to optical signals. Digital substations are also used in power grids and transformers to minimize losses during transmission of electricity. The amount of electricity generated by renewables is expected to rise as well, by. Therefore, the increase in demand for electricity is driving the market.

Restraint:

High cost

Technological advancements in the transmission infrastructure segment are expected to play a dynamic role in efficient network upgrade and expansion. This is expected to help in meeting the government’s objective of 24×7 power for all, maintaining a congestion-free transmission network and ensuring grid stability. Because of this technological advancement, the initial cost essential for setting up a digital substation is high. This is owing to the increased number of intelligent electronic devices (IEDs) used in substations, which increases the purchase cost of substations. The increasing use of technologies such as the microprocessor and service-oriented architecture (SOA) technologies, as well as the rise in the number of embedded IEDs in substations, has increased the purchase costs of these substations.

Opportunity:

Investments in smart cities and smart grid infrastructure development

A smart city is enabled with multiple hardware and software systems, which communicate with each other to deliver data in real time. Energy generation and transmission are carried out by the use of technology. Utilities have long been dependent on workers to read meters, examine equipment, and manage the daily operations of the electrical grid. Today, utility systems use smart meters to monitor status across the grid, accessing consumption data in homes, connecting with substations to manage load distribution, and analyzing demand curves and production forecasts to balance renewable generation with traditional power sources. A digital substation is a critical part of the entire distribution system. As every device in the substation is upgraded to communicate using digital signals, substations are connected with fiber-optic communication networks.

Threat:

Lack of human capital management

There is a challenge of human capital management, since digital substations demand skills that go beyond the IEC 61850 standard, also requiring knowledge of network infrastructure, cyber security and other technologies. From this point of view, it is necessary to expand the field of knowledge of the personnel participating in a substation and thus change the way in which one works with electrical substations.

Impact of covid-19

COVID-19 is having an especially negative impact on the renewables sector. One of the main problems is related to the delivery of equipment to power plants. China was majorly impacted due to COVID-19 and is the main global producer of many clean energy technologies, such as solar panels, wind turbines, and batteries. Since COVID-19 has delayed deliveries from China, renewable energy companies are not able to comply with deadlines for equipment installation. For instance, in India alone, 3,000 MW of solar and wind energy projects face delays due to the lockdown. BYD (China), the world’s leading producer of rechargeable batteries, was unable to complete tests of new models of rechargeable batteries due to the pandemic, and this has led to a reduction in delivery volumes of rechargeable batteries for the European market
The utility segment is expected to be the largest during the forecast period.

The utility segment is expected to be the largest during the forecast period. The utility industry is one of the booming application areas pertaining to digital substations, due to the high demand-supply gap in energy in most of the developing and developed nations. Its growth can be attributed to the increase in demand for renewable energy sources, such as wind, solar, and hydro to meet the consumers demand for power generation. Digital substations have a large scope in the utility industry as these systems are used in transmitting and distributing power.

The 220kV to 550kV segment is expected to have the highest CAGR during the forecast period

The 220kV to 550kV segment is expected to have the highest CAGR during the forecast period. 220kV to 550kV digital substation market segment is anticipated to show a high growth rate due to rising investments by companies in the utility sector, chiefly in the transmission infrastructure. These systems are mainly used in space-restricted places such as metropolitan and industrial areas.

Region with highest share:

North America is projected to hold the largest market share during the forecast period due to the rising energy demand across the U.S. credited to on-going commercial & industrial infrastructure developments will further drive the regional product penetration. The growth is mainly due to the increased acceptance of digital substations with the presence of well-established players across the region, especially across the U.S. and Canada.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period Asia Pacific digital substation market is expected to grow at a high rate owing to the increasing power allocation networks in countries including India, Singapore, Indonesia, Malaysia, and Taiwan. The province has witnessed an increase in the electricity utilization owing to the huge customer base and fast industrialization. Asia Pacific is witnessing high adoption of digital substations due to the increasing demand for energy to support the local manufacturing units.

Key players in the market

Some of the key players profiled in the Digital Substations Market include Webtrends, AT Internet, Verto Analytics, Talend, Splunk,Oracle, Microsoft, Jumpshot, IBM,HPE, Google, Connexity, SAP, Adobe and Vlocity.

Key Developments:

In April 2022, ABB India had launched its expanded Digital Systems and Digital Substation Products factory in Vadodara, Gujarat. It is situated within ABB India's largest manufacturing campus, and it will meet the demand for digital substation products and solutions in India and other 50 countries.

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.

Types Covered:
• Transmission Substation
• Distribution Substation

Voltages Covered:
• Below 66kV Segment
• Up to 110 kV
• Up to 220 kV
• 220–550 kV
• Above 550 kV

Modules Covered:
• Supervisory Control and Data Acquisition (SCADA) Systems
• Hardware
• Fiber Optic Communication Network

End Users Covered
• Metal
• Oil & Gas
• Transportation
• Utility
• Mining
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements