Report Summary

The global substation automation market was valued at USD 122.2 billion in 2017 and is anticipated to grow at a CAGR of 6.1% during the forecast period.

Automation is an intelligent, interactive power distribution network automation solution providing increased performance and reliability of electrical protection. Substation automation is use of data from intelligent electronic devices providing automation within the substation. Substation automation offers detailed electrical fault analysis through advanced disturbance and event recording capabilities. It offers advanced automation functions, remote switching, and advanced supervisory control.

The growing demand for electricity, coupled with high demand for smart grids drive the growth of the substation automation market. The increasing need for efficient and low-cost solutions in the solar energy sector further supports market growth in the coming years. The growing adoption of smart cities is also expected to support market growth during the forecast period. Other factors driving the market include technological advancements, increasing demand for retrofitting conventional substations, growing demand for renewable energy projects in this market, and growing need to update existing networks. Growing demand from emerging economies, and increasing adoption for renewable energy sector are factors expected to provide numerous growth opportunities for the substation automation market in the coming years.

Segment Analysis

The global substation automation market is segmented on the basis of module, component, type, communication channel, and region. Based on module, the market is segmented into Communication Networks, Scada Systems, and Intelligent Electronic Devices. The intelligent electronic devices accounted for the highest market share in 2017 owing to increasing adoption of smart grids and growing demand from renewable energy sector.

On the basis of component, the market is segmented into Hardware, Software, and Services. The hardware segment dominated the global Substation Automation market in 2017, while the services segment is expected to grow at the highest rate during the forecast period.

The type segment is divided into Distribution Substations, and Transmission Substations. The distributed substation segment is expected to grow at the fastest rate during the forecast period.

The Communication Channel segment is categorized into Optical fiber communication, Ethernet, Copper wire communication, and others. The copper wire communication segment dominated the global market in 2017 owing to easy availability, and low costs associated with it.

Regional Analysis

Regionally, the substation automation market across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. North America accounted for the largest share in the global substation automation market in 2017.

Competitive Landscape

The leading players in the substation automation market include Schneider Electric SE, Cisco Systems, ABB Ltd., Siemens AG, Eaton Corporation Plc., General Electric, Honeywell International, Inc., Larsen & Toubro Limited, Crompton Greaves, and Schweitzer Engineering Laboratories, Inc. among others. These leading players in the market are introducing innovative products in the market to cater to the growing demand of consumers. Global players are entering new markets in developing regions to expand their customer base and strengthen market presence.