The digital substation market size was valued at US$ 6.5 Bn in 2021 and is expected to be worth US$ 14.11 Bn by 2032, growing at a 7.3% CAGR from 2022 to 2032.
The global digital substation market has grown at a rapid pace in recent years, and it is expected to do so again over the next several years. This is because leading industry players have begun introducing new products with enhanced capabilities.
In addition, the increased demand for energy from renewable resources in developed countries to support sustainable development has boosted digital substation market growth even more.
The rising demand for energy and the rapid use of non-renewable energy resources have shifted the demand for power generation to renewable energy sources. Furthermore, the integration of renewable energy with digital substations has been made possible by the advent of automation in power generation, distribution, and management.
The global digital substation market is driven by the use of digital substations for generating renewable energy and delivering improved dependability, efficiency, and safety in power distribution and the emergence of automation and higher standards of connectivity. However, greater upfront costs make it harder to replace traditional substations, limiting the expansion of the digital substation market.
The adoption of digital substations for generating renewable energy and improving reliability, efficiency, and safety in power distribution, and the emergence of automation and higher connectivity standards are the factors driving the global digital substation market. However, higher initial investments make it difficult to replace traditional substations, limiting the growth of the digital substation market.
· Based on voltage, the 220 kV voltage segment is predicted to hold the largest share of the digital substations market.
· The utility industry segment is expected to account for a large portion of the global digital substations market.
· Due to the widespread use of digital substations in utilities, this segment accounted for most of the digital substation market in 2019.
· By 2026, the hardware module segment is expected to be worth more than US$ 7,500 million. Digital substations are widely used in all industry verticals, particularly utilities and oil and gas, all over the world.
· Throughout the forecast period (2022-2032), the transmission substations segment is expected to hold the largest share of the digital substations market. The market for digital substations in North America is expected to exceed USD 2.5 billion by 2028.
· Due to ongoing commercial and industrial infrastructure developments, rising energy demand in the United States will drive the regional digital substation market even further.
ABB, Texas Instruments, Locamation, Efacec, Tesco Automation, NetControl, Belden Inc, Emerson Electric, NR Electric, GE, Schneider, Eaton, Rockwell Automation, Siemens, L&T, Cisco, Open System International, Guodian Nanjing Automation Co, and Beijing Sifang Automation Co. are among the key players in the digital substations market. In addition, ongoing acquisitions and joint ventures among various service providers and favorable incentives for deploying renewable technologies will boost the digital substations market outlook.
· ABB and CORYS signed a memorandum of understanding for a digital collaboration project in December 2020.
· Siemens and Atos signed a five-year extension of their strategic partnership in September 2020 to bring together their joint digital solutions.
· Eaton and the US Department of Energy expanded their collaboration on innovative energy solutions at the National Renewable Energy Lab in January 2018.