Digital Substations Market Size Analysis
According to a recent survey conducted by ChemView Consulting, the Global Digital Substations Market grew at a CAGR of 5.8% between 2017-2021 and is estimated to be US$ 6,974.3 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 6.9% and is expected to reach a valuation of US$ 13,591.8 Mn by 2032 end.
Throughout the projected period, the market is anticipated to grow in response to rising driven forward by causes such as expanding smart city infrastructure development, rising power demand with constrained space availability, rising need to replace aging substation infrastructure, and increasing interoperability and safety standards.
REPLACEMENT OF OLD ELECTRICAL SUBSTATIONS WITH DIGITAL SUBSTATIONS WILL DRIVE THE MARKET
The Digital Substation market is expected to witness substantial growth in the next few years. With the adoption of advanced technologies, there has been an increase in replacing conventional electrical equipment with advanced equipment. Growing energy demand with rising expenditure towards developing high voltage electric networks and restoration of existing infrastructure has reinforced the Global digital substation market size.
Additionally, increasing focus on replacing prevailing electrical infrastructure and its subparts with high-quality upgraded systems will enhance the industry’s growth.
HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH
A high initial investment, high purchase costs, and complex technologies characterize the digital substation market. Cyber security is a major competitive factor in this market that hampers growth. Nonetheless, several open challenges in digital substations with cyber security benefits offer opportunities for the market during the forecast period.
ADVANCEMENTS IN TECHNOLOGY WILL CREATE MORE OPPORTUNITIES FOR THE MARKET
The adoption of Internet of Things (IoT) technology has been driving the digital substation market in North America. In the Power and utility industry, there has been an increase in the adoption of the digital substation, pushing the market growth. As digital technology is being integrated into the IoT, there has been high adoption of digital substations in industries, thereby driving the market.
Market Segments Covered in Report
By End Use:
By Voltage Level:
By Region and Country:
Why are high-voltage AC substations projected to ensure the highest sales during the forecast period?
The demand for high-voltage AC substations will increase as the industry grows by 5.0% during the forecast period 2022-2032. This voltage range digital substation is used in various sectors such as Power, utilities, mining, and others. There have been developments in advanced digital substations which can withstand high-power monitoring applications; for instance, ABB has installed a 500 Kv Digital Substation at Kankaria. This enables Enel Green Power to deliver carbon electricity by extensive protective relays and programmable logic controllers.
Why is the utility segment expected to expand the fastest during the forecast period?
In 2021, the utility application market will rule. The primary driver of the expansion of the utility sector is the necessity to meet peak power consumption. In the event of an abrupt change in the energy supply, the utility BESS offers control services for power quality, frequency, and voltage.
When there is an excess of renewable energy, grid operators can reduce their power use thanks to Digital Substations devices. The growing need for renewable energy and the increasing requirement for a consistent and efficient power supply in most locations causes the increased demand for Digital Substations systems in the utility industry.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
The market expansion has been aided by rising energy consumption due to increased spending on high-voltage electric networks for long routes and the restoration and refurbishment of home infrastructure.
Some of the key developments that have taken place in the Digital Substations Market include:
A list of some of the key suppliers present in the market are:
Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2032|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Component, Architecture, Application, End Use, Connectivity, Voltage Level, Installation, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Frequently Asked Questions
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 6.9%.
The market for digital substations is expected to increase due to the advanced nations’ increasing requirement for power generation from renewable sources to support sustainable development.
Major global Digital Substations Market players are ABB Ltd., Cisco Systems, Inc., Eaton Corporation PLC, Emerson Electric Co., General Electric Company, Honeywell International, Inc., Larsen & Toubro, NR Electric Co. Ltd., Schneider Electric SE, Siemens AG.
Market growth is constrained by the high capital investment needed to deploy Digital Substations systems.
The Asia Pacific region is expected to account for the largest market revenue share in the Global Digital Substations market.
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