Summary
Major players in the digital substation market are ABB Group, NR Electric, Eaton Corporation Inc., Schneider Electric, General Electric, Larsen & Toubro, Siemens, Tekvel, Toshiba, Yamal LNG, DNV GL, Hitachi, Igrid T&D, Kalkitech, Locamation, and Panasonic Corporation.
The global digital substation market grew from $6.84 billion in 2022 to $7.59 billion in 2023 at a compound annual growth rate (CAGR) of 11.0%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The digital substation market is expected to grow to $11.65 billion in 2027 at a CAGR of 11.3%.
The digital substation market includes revenues earned by entities by providing solutions to convert analog measurement data and binary status into digital data in both station and process level using digitalization tools to provide secure and reliable method of data transmission with low operational cost and investment.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
The term digital substation refers to an electrical substation in which operation is controlled by distributed intelligent electronic devices (IEDs) linked by communication networks.It is possible by the use of computing technologies in the substation.
It is used to communicate between the relays in the control house and the instrument breakers, transformers, and merging units in the station yard. The digital substation brings digital technology into the substation.
Europe was the largest region in the digital substation market in 2022.Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in the digital substation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of digital substations are transmission and distribution.The transmission digital substations market segment consists of sales of digital substations by entities (organizations, sole traders, and partnerships) that refers to a structure, device, or equipment that is commonly positioned and built for voltage control, circuit protection, or switching that is required for the construction or operation of a proposed transmission line is referred to as a transmission digital substation.
By voltage level types of digital substations are low, medium, and high.Modules used in digital substations include fiber optics communication networks, supervisory control and data acquisition, and hardware.
The major uses of digital substations can be seen in power generation, metal and mining, oil and gas, transportation and logistics, defense and aerospace, process and manufacturing, and other industries.
The increasing demand for electricity is expected to propel the growth of the digital substation market.Digital substations are actively used in replacing 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.For instance, in November 2021, 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.
Strategic collaboration between companies is a key trend gaining popularity in the digital substation market.Companies that provide digital solutions are undergoing partnerships and collaborations to cope with the digital transformation that is occurring at a rapid pace.
For instance, in December 2020, ABB, a Sweden-based technology and industrial company that provides digital substations, partnered with CORYS, a manufacturing business established in France.The collaboration will develop digital twin modeling and simulation technology in the energy and industrial industries.
Furthermore, in September 2020, Siemens AG, a Germany-based engineering and manufacturing company that provides digital substations, partnered with Atos, a France-based information technology services and consulting firm, for a deal amount of $3.40 billion. Siemens’ digital goals in the areas of services modernization and digitalization, data-driven digital, cloud transformation, and cybersecurity are likely to be accelerated as a result of the relationship.
In February 2021, Kalpataru Power Do Brasil Participacoes Ltd., a Brazilian provider of power transmission and infrastructure EPC space, acquired a 51% stake in Fasttel Engenharia Ltd for $8.8 million. The acquisition allows Kalpataru Power to capitalize on the opportunity in Brazil and grow its position in the Latin American market. Fasttel Engenharia is a Brazilian firm that specializes in the engineering, procurement, construction, and maintenance of electricity transmission lines, substations, and distribution systems.
The countries covered in the digital substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The digital substation market research report is one of a series of new reports that provides digital substation market statistics, including digital substation industry global market size, regional shares, competitors with a digital substation market share, detailed digital substation market segments, market trends and opportunities, and any further data you may need to thrive in the digital substation industry. This digital substation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
