Status : Published Published On : Nov, 2021 Report Code : VRSME9080 Industry : Semiconductor & Electronics Available Format : Page : 275

Global Substation Automation and Integration Market – Analysis and Forecast (2021-2027)

Industry Insight by Offering (Hardware (Reclose Controllers, Programmable Logical Controllers, Capacitor Banks, Smart Meters, Load Tap Changers, Digital Relays, Fiber-Optic Cables, and Others), Software (Production Management Software, Asset Management Software, and Performance Management Software), and Services (Installation and Commissioning, Up-Gradation and Retrofitting, and Testing, Repair, and Maintenance)), by Type (Transmission Substation and Distribution Substation), by Installation Type (New Installation and Retrofit Installation), by Component (IEDs (Intelligent Electronic Devices), Communication Networks, and SCADA Systems), by Communication (Ethernet, Power Line Communication, Copper Wire, and Optic Fiber), by End-User Industry (Utilities, Steel, Oil & Gas, Mining, Transportation, and Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global substation automation and integration market was USD 34.1 billion in 2020 and is anticipated to generate revenue of USD 58.2 billion by 2027, at a CAGR of 6.6% during 2021-2027. The growth of the substation automation and integration market is due to the increasing influence of smart grid infrastructure, aging infrastructure, technology development and integration of primary equipment with modern sensors, protective relays, reduction in transmission and distribution loss, cost-saving, and intelligent electronic device as it smoothly controls the functions and monitors across the substation. Moreover, the increasing requirement to retrofit conventional substations, rapid industrialization, government initiatives to promote substation automation, and R&D activities will drive the market growth of the global substation automation and integration market.

Substation Automation and Integration Market Highlights

The COVID-19 pandemic has led to a strict lockdown in various countries and various industries are affected by the outburst. The substation automation and integration market have grown owing to the rising demand for data centers that will support digital activities. However, electricity consumption is anticipated to reduce due to commercial spaces working at low capacity and electric utilities might witness a delay in upgrading their grid infrastructure, resulting in having an adverse impact on substation automation and integration market.

Market Segmentation

Insight by Offering

Based on offering, the global substation automation and integration market is segmented into hardware, software, and services. Hardware is further subdivided into reclose controllers, programmable logical controllers, capacitor banks, smart meters, load tap changers, digital relays, fiber-optic cables, and others. Software is further sub-divided into production management software, asset management software, and performance management software. Services are further subdivided into installation and commissioning, up-gradation and retrofitting, and testing, repair, and maintenance. The hardware segment holds the largest market share in 2020 owing to the introduction of the IEC 61850 standard for substations which incorporates all the control, measurement, and monitors in one protocol, resulting in proper interoperability between intelligent electronic devices (IEDs).

Insight by Type

Based on type, the global substation automation and integration market is divided into transmission substation and distribution substation. Transmission substations dominate the market owing to the rising electricity demand, there is a need to replace the aging infrastructure which cannot sustain the bulk power movements or inferior standards. Thus, investor-owned utilities are experiencing increased spending on transmission substations infrastructure.

Insight by Installation Type

Based on installation type, the global substation automation and integration market is bifurcated into new installation and retrofit installation. Among these segments, the new installation is anticipated to have a high CAGR owing to the rising demand for new power stations and smart grids in various industries. Moreover, the new installation can provide operational safety, reliability and requires low maintenance.

Insight by Component

Based on components, the global substation automation and integration is categorized into IEDs (Intelligent Electronic Devices), communication networks, and SCADA systems. IEDs are one of the major components in the substation automation and integration market and contain digital relays, programmable logic controllers, smart meters/digital transducers, load tap changer controller, capacitor bank controller, and reclose controller. IED offers barrier-free monitoring and control capabilities throughout the substation.

Insight by Communication

Based on communication, the global substation automation and integration market are divided into ethernet, power line communication, copper wire, and optic fiber. The copper wire segment is anticipated to have a high CAGR owing to its low attenuation and interference. Furthermore, the increasing investment in telecommunication and IT will contribute to this segment during the forecast period.

Insight by End-User Industry

Based on the end-user industry, the global substation automation and integration market are segmented into utilities, steel, oil & gas, mining, transportation, and others. The utility segment dominates the market because of the demand-supply gap in the energy sector in developed and developing economies. Moreover, the rising government initiatives towards modernizing power grids and rising investment in power generation through renewable resources will accelerate the growth of the segment.

Industry Dynamics

Growth Drivers

The major drivers of the global automation and integration market are the rising investment in smart cities, smart grid infrastructure development projects, growth in the intelligent electronic devices (IEDs), reduces operational and maintenance cost, rising demand for electric and hybrid vehicles, and improved plant productivity by upgrading technologies. In addition, it provides interlocking and smart load shedding features to ensure grid reliability, performance, and security. According to the International Railway Journal, the federal government of Germany has invested $ 80 million in developing digital applications to increase network capacity.

Challenges

The huge capital investment and rigorous governance will hamper the growth of the market. With the increasing use of advanced technologies such as microprocessors and service-oriented architecture (SOA), and the increasing need to integrate various IEDs in substations, the cost of purchasing these substations has increased. The COVID-19 outbreak has slowed down the growth of the power generation industry and renewable energy sector. For instance, China is the primary global producer of clean energy technologies like solar panels, wind turbines, and batteries. The renewable energy companies in China are not able to comply with their deadlines for equipment installation.

Opportunities

The increasing demand for renewable energy projects and the rising adoption of electric and hybrid vehicles are creating lucrative opportunities in the substation automation and integration market. Companies are focusing on investing in sustainable energy infrastructure, investing in solar and wind projects to meet the rising demand for electricity and minimize environmental impacts are the opportunities for the growth of the sustainable automation and integration market.

Geographic Overview

APAC is anticipated to be the fastest-growing region in the substation automation and integration market owing to the initiatives by the government to enhance the power and energy sector. For instance, the Indian Government is following a smart infrastructure vision wherein digitalization of the grid in industrial, commercial, and residential areas, the revival of power distribution utilities, and electrification of villages will take place. Furthermore, in 2020, the Chinese Government has invested $31 billion to revolutionize their grid infrastructure by installing automated substations.

Competitive Insight

The industry players are adopting strategies such as product launches and developments, partnerships, contracts, and mergers and acquisitions to have a strong foothold in the substation automation and integration market.

Hitachi ABB Power Grids launched the new Remote Terminal Unit (RTU) 530 that extends the life of existing power distribution networks and supports the migration to modern technologies with enhanced security features, including secure communication, encryption, and security logging.

Schneider Electric acquired a controlling stake in ETAP Automation Inc. (Dubai), the leading software platform for electrical power systems modeling and simulation, to accelerate and improve the integration of renewables, microgrids, fuel cells, and battery storage technologies to the power grid. The acquisition would pave the way for green data centers, resilient power grids, and decarbonized transport and energy generation.

Some of the key players operating in the substation automation and integration market: Schweitzer Engineering Laboratories, Inc., Siemens Energy, GE, Schneider Electric, Hitachi Energy Ltd., Encore Networks, Eaton, Cisco, NovaTech, LLC, and Honeywell International Inc.

Substation Automation and Integration Market Size and Market Analysis

Source: VynZ Research

Frequently Asked Questions

Based on the end-user industry, the global substation automation and integration market are segmented into utilities, steel, oil & gas, mining, transportation, and others.
Companies are focusing on investing in sustainable energy infrastructure, investing in solar and wind projects to meet the rising demand for electricity and minimize environmental impacts are the opportunities for the growth of the sustainable automation and integration market.
Asia-Pacific region is the fastest-growing region in the substation automation and integration market
Key players operating in the substation automation and integration market: Schweitzer Engineering Laboratories, Inc., Siemens Energy, GE, Schneider Electric, Hitachi Energy Ltd., Encore Networks, Eaton, Cisco, NovaTech, LLC, and Honeywell International Inc.
The global substation automation and integration market was USD 34.1 billion in 2020 and is anticipated to generate revenue of USD 58.2 billion by 2027, at a CAGR of 6.6% during 2021-2027.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Substation Automation and Integration Market