2021-2030 Analysis and Review Digital Substation Market
Digital Substation Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021 – 2030
Increasing adoption of wired to optical communication along with data acquisition, processing systems and substation control can be observed in the global grid infrastructural developments. High degree of standardization, reduction in the risk of cable engineering and electrical hazard, cost effective maintenance and reduction in power outages are some crucial benefits observed due to digitization of substations. Global digital substation market is expected to grow at a CAGR of 7.4% during the forecast period 2022-2030. Operational efficiency, risk mitigation and need for steady energy supply has increased the demand of advanced management tools in the energy sector. Operational efficiency of energy sector companies is determined by their capability to make a steady supply of energy in the cost-effective manner. In order to increase operational efficiency, companies in energy sector rely largely upon effective management of their available resource. Effective utilization of resource that involves the use of utility tools including devices and software’s that automatically regulate the available resource to meet the expected outcomes.
Demand for Electricity to Raise Exponentially
Digital substation with the use of real-time data and remote-control capabilities provide greater flexibility and control over the electric network improving the overall efficiency of the network. According to international energy agency, Electricity demand is anticipated to rise by about 40% by the year 2040 compared to 2016 with India and China expected to demand majority of power generation. With the growing demand of electricity, the electric sector is set to witness a positive shift towards adoption of digital substation motivated by ability of digital substation to integrate diverse set of distributed energy sources, long term cost saving and automation capabilities.
Hardware Dominated the Module Segment in 2021
Global digital substation market has been segmented by module, by type, by voltage and by industry. Module type has been further segmented into Hardware, Fiber optical communication network and SCADA. Hardware is a dominating segment in the year 2021. Increasing advancements in the hardware technologies and surging upgradation of conventional substations into digital substation is fueling the growth in the market. integration of smart technologies in components of substations has resulted into introduction of GPS enabled monitoring systems that includes phasor monitoring units, smart battery monitoring systems, smart power transformer monitoring systems and smart power circuit breaker monitoring systems.
Utility to Dominate the Market
Global utility market comprises the market of digital substation utility in the electric power industry that is engaged in the generation and distribution of electricity for the purpose of sales usually in a regulated market. Utility leads the industry segment in global digital substation market by capturing largest market share of over 29.7% in 2021. Utility market is anticipated to rise at a highest CAGR of 7.7% during forecast period.
APAC Dominating in Terms of Revenue and Growth
Geographically, the global digital substation market has been segmented into North America, Europe, Asia Pacific and Rest of the world (ROW). Asia Pacific leads the global digital substation market by capturing largest market share in terms of revenue of 36.4% in 2021 growing at highest CAGR of 7.7% during the forecast period. Asia Pacific digital substation market is primarily driven by high investment in the renewable energy coupled with growing demand of electricity. As per The International Energy Agency (U.S.) the primary electricity demand of India, China and Asia is expected to double by 2040; reaching 14,833 terawatt hours (TWh) from 7259 TWh in 2016. Growing electricity demand is a result of growing industrialization, urbanization and improving living standards in the region.
Product Launch is The Key Strategy Among Competitors
Product launch is the primary strategy adopted by companies in global digital substation market. New and advanced products help to improve company’s market visibility while competing effectively with key competitors in the market. Several companies including General Electric (U.S.), Siemens AG (Germany), ABB (Switzerland), Schneider Electric (France) provide solutions in the digital substation market. Further, rising demand for cloud-based energy management system and increasing demand for substation automation has acted as the major factors for the growth of global digital substation market. The intensity of competitive rivalry in global digital substation market is expected to shift from moderate to high over the forecasted period of 2022 to 2030. Global digital substation market is highly competitive with the presence of international players dominating the market.
Competitive Rivalry is Expected to Intensify during the Forecast Period
Major companies are engaged in research and development activities to make their cost effective and for the consumers. Companies are trying to compete with each other by providing the same characteristics and similar price or by similar features at competitive prices. Companies are focusing on new product development, collaborative research and partnering with grid operating companies to explore the full potential of digital substation which is also increasing the competition. Owing to the above-mentioned reasons, the intensity of competitive rivalry is moderate in the digital substation market. However, during the forecast period, the growing installation base of the digital substation and increasing focus of the grid operators on substation automation, the competitive rivalry is expected to intensify even further.
Historical & Forecast Period
This research report presents the analysis of each segment from 2020 to 2030 considering 2021 as the base year for the research. Compounded annual growth rate (CAGR) for each respective segment are calculated for the forecast period from 2021 to 2030.
Report Methodology
Market revenues and CAGR were derived from primary and secondary research. Both quantitative and qualitative trends were considered for extrapolation of market revenues. the derived market estimates were further validated from top down, bottom strategies and primary research. the scope of the market is limited to the following segments of product categories and region.
By Module (2020-2030; US$ Mn)
By Type (2020-2030; US$ Mn)
By Voltage (2020-2030; US$ Mn)
By Industry (2020-2030; US$ Mn)
By Region (2020-2030; US$ Mn)
Global Impact of Covid-19 Segment (2020-2021; US$ Mn)
Key questions answered in this report
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