Chicago, Jan. 08, 2026 (GLOBE NEWSWIRE) -- The global substation automation market was valued at US$ 43.98 billion in 2025 and is projected to reach USD 82.56 billion by 2035, growing at a CAGR of 6.50% during the forecast period 2026–2035.
Global power infrastructure is undergoing a massive transformation driven by renewable generation. The substation automation market is expanding rapidly to accommodate the 585 GW of renewable capacity added in 2024. Forecasts for 2025 predict a record addition of 793 GW globally. Solar energy dominates this landscape and will exceed 600 GW of new installations in 2025. Wind energy also contributes significantly, with projections reaching approximately 120 GW in 2025.
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North America remains a critical region for these developments. The US grid will add 63 GW of new utility-scale generating capacity in 2025. Utility-scale solar in the US accounted for 30 GW in 2024 and is expected to rise to 32.5 GW in 2025. Furthermore, the US expects to add 7.7 GW of wind capacity in 2025. These generation spikes create an urgent need for advanced interconnection infrastructure within the substation automation market.
Key Findings
- North America held market leadership throughout 2025.
- The Asia Pacific region anticipates accelerated expansion in upcoming years.
- In modules, the intelligent electronic devices category claimed dominance in 2025.
- For components, hardware secured the top position in 2025.
- Regarding types, distributed substation expects the most rapid growth rate across the forecast horizon.
- On installations, new setups prevailed in the market during 2025.
- Among end-users, utilities project the swiftest growth over the evaluation period.
By Module, Communication Networks Secured Moderate Market Share at 24% by Enabling Cyber Resilient Data Ecosystems
In 2024, the Communication Network module captured a moderate 24% market share in the substation automation market. The market position is driven not just by connectivity needs but by the urgent militarization of Operational Technology (OT) security. While previous adoption was spurred by standardization, the 2024 surge was catalyzed by the implementation of "Zero Trust" architectures within the substation environment. Utilities pivoted toward advanced communication modules because modern grids are now prime targets for cyber warfare.
Consequently, the demand shifted toward communication hardware with embedded encryption and deep packet inspection capabilities. This segment’s leadership was further cemented by the convergence of IT and OT; utilities required networks capable of supporting high-bandwidth video surveillance and predictive maintenance data streams alongside control signals. The dominance here is justified by the network’s evolution from a passive data pipe to an active, intelligent firewall that segregates critical protection traffic from public networks, ensuring grid sovereignty in a hyper-connected world.
By Component, Hardware Components Commanded Revenue Dominance Through Edge Computing and Climate Hardening
Generating the lion's share of substation automation market revenue, Hardware components is projected to continue holding the leading position in the market. This dominance was propelled by a newfound focus on "Edge Intelligence" and physical ruggedization. Unlike earlier cycles where hardware was simply a vessel for software, 2024 saw the deployment of high-performance computing units capable of processing Artificial Intelligence algorithms directly at the substation level.
The capital allocation toward hardware was also a direct response to climate resilience. With extreme weather events becoming frequent, operators invested heavily in hardened physical assets designed to withstand higher temperature thresholds and physical trauma. The revenue spike was further supported by the supply chain strategies of major utilities, which stockpiled critical automation hardware to buffer against geopolitical trade disruptions. Thus, the hardware segment remained the financial anchor of the market, driven by the need for assets that are computationally powerful yet physically indestructible.
By Type, Distributed Architectures Projected to Seize Highest Future Share by Reducing Cabling Costs and Single Points of Failure
Distributed substation architectures are rapidly ascending in the global substation automation market. This growth trajectory is fueled by a compelling economic argument: the drastic reduction of copper usage. In 2024, the skyrocketing price of copper made traditional centralized architectures financially burdensome. Distributed systems, which utilize fiber optics to link bay-level controllers, offered a significant reduction in material costs and installation labor.
Furthermore, the shift toward this architecture is driven by the desire to eliminate single points of failure. In a centralized model, a master controller failure can blind the entire substation. Distributed architectures offer modular redundancy, ensuring that if one bay controller fails, the rest of the station remains operational. This architectural resilience is becoming the primary requisite for critical infrastructure projects, pushing distributed designs from a niche option to a mainstream standard.
By Installation, New Installations Captured Highest Share Driven by High Voltage DC Superhighways and Smart City Integration
New Setups (Greenfield) dominated the installation landscape in the substation automation market. This prevalence was largely driven by the construction of High Voltage Direct Current (HVDC) superhighways required to transport wind and solar energy over continental distances. These mega-projects require distinct, state-of-the-art automation logic that cannot be grafted onto legacy AC substations, necessitating entirely new builds.
Additionally, the dominance of greenfield projects is tied to the rise of Smart City initiatives globally. Urban planners are mandating that new power infrastructure be IoT-native from day one to interface with electric vehicle charging networks and smart building management systems. Financing also played a critical role; "Green Bonds" and sustainable infrastructure loans in 2024 were preferentially awarded to new, verifiable low-carbon projects, incentivizing utilities to build fresh rather than patch old assets.
India Accelerating Transformation Capacity To Support Aggressive Renewable Evacuation Targets
India is executing a massive transmission supercycle that heavily involves the substation automation market. The country commissioned 86,433 MVA of transformation capacity in Fiscal Year 2025, rising significantly from 70,728 MVA in Fiscal Year 2024. Long-term goals remain ambitious, with the National Electricity Plan targeting 1,847,280 MVA total capacity by 2027. To facilitate this, developers commissioned 6,490 MW of inter-regional transfer capacity by March 2024 to move power efficiently across state lines.
Specific high-value projects highlight the sheer scale of this expansion. A major 2.5 GW HVDC link was awarded in 2024/2025 to manage bulk power transfer. The nation also set a target to add 16,667 ckm of transmission lines in FY2025. Furthermore, the Green Energy Corridor Phase-II aims to add 27,546 MVA of capacity by 2026. These metrics confirm India as a high-growth region for the global substation automation market.
China Cementing Global Hegemony Through Record Ultra High Voltage Investments
China continues to dominate the global substation automation market through massive Ultra-High Voltage (UHV) investments. State Grid Corporation of China earmarked a record 650 billion yuan for 2025, up substantially from 500 billion yuan in 2024. The network already boasted 38 UHV lines by 2024, creating a vast energy backbone. Engineers successfully completed 3 new UHV power lines in 2024 alone. Simultaneously, another 6 UHV AC lines were scheduled for completion within the same timeframe.
Regional players are also ramping up spending to complement these national lines. China Southern Power Grid plans to invest 195.3 billion RMB between 2024 and 2027. Storage integration remains vital, exemplified by the Fengning pumped storage plant which became fully operational in 2024 with an investment of 19.24 billion yuan. These consistent capital flows sustain China's leadership in the market and grid modernization.
Cross Border Interconnectivity Projects Driving European Substation automation market Expansion Strategies
Europe is accelerating cross-border integration to unify its energy landscape and drive the market. The EU Grid Action Plan aims to add 23 GW of transmission capacity by 2025 to facilitate sharing. Policymakers allocated €6 billion for Projects of Common Interest to fund this vision. Significant contracts define the market here, such as the Korridor B project featuring two 2 GW HVDC links. Contracts for these stations awarded in late 2024/early 2025 are valued at over €2 billion.
Strategic partnerships are further securing the supply chain for these massive undertakings. GE Vernova won a 2025 contract to modernize the 380 kV Kühmoos substation. In the UK, a £1 billion contract was awarded in 2024 for the Eastern Green Link 1. Hitachi Energy also announced a USD 700 million deal with E.ON in 2025 to support German infrastructure. These figures illustrate the vibrant activity within the European substation automation market.
Offshore Wind Capacity Surge Creating Specialized High Value Substation Demand
Offshore wind expansion creates a specialized demand segment within the substation automation market. Global operational capacity reached 83 GW by 2025, necessitating complex sea-based infrastructure. Investors reached Final Investment Decision on 5.6 GW of new projects in 2025 to continue this trend. The US market is particularly active, with 4,097 MW under active construction as of May 2024. The massive Coastal Virginia Offshore Wind project accounts for 2,587 MW of this domestic pipeline.
Other significant US projects include Vineyard Wind 1 contributing 806 MW and Revolution Wind adding 704 MW. European activity remains strong as well, where Poland is advancing the MFW Bałtyk II and III projects to add 1,440 MW. Every offshore gigawatt requires complex offshore substations, driving high-value engineering opportunities in the substation automation market.
Transport Electrification and Battery Storage Necessitating Distribution Grid Substation Upgrades
Electrification of transport is stressing distribution grids and stimulating the substation automation market. Globally, 1.3 million public charge points were installed in 2024 to support new fleets. The total count exceeded 5 million by 2025, with the EU alone surpassing 1 million charge points. To manage these loads, grid flexibility is paramount because large flexible loads are estimated to consume 54 TWh in 2025.
Battery storage is being deployed rapidly to balance this volatility. The US added 10.3 GW of battery storage capacity in 2024 to support the grid. Forecasts suggest US storage additions will jump to 18.2 GW in 2025. These distributed energy resources require upgraded substation equipment to handle bidirectional flows. Therefore, the EV boom is a direct multiplier for substation automation market demand.
Record Order Backlogs and Digital Adoption Defining Competitive Substation Landscape
Leading manufacturers are reporting record backlogs due to the booming substation automation market. Siemens Energy held a €123 billion backlog in fiscal 2024, seeing €58.9 billion in new orders and €39.1 billion revenue in 2025. Hitachi Energy’s backlog tripled to exceed USD 30 billion by 2024, prompting a USD 4.5 billion investment plan. Linxon secured USD 1 billion in 2024 orders, including the 400/220 kV ICAD-4 project. GE Vernova joined National Grid’s £24.6 billion framework in 2025.
Technology adoption accompanies this growth as utilities modernize. Over 45,000 substations had digital upgrades by 2024, utilizing 12 million IEDs. Digital tech supported 350 new renewable projects in 2024. IEC 61850 standards now cover 7 million kilometers of lines. Hitachi reached 150 GW of installed HVDC links in 2024 and won a 950 km India link. USD 70 billion in US clean investment in Q4 2024 further fuels this digitized substation automation market.
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Substation Automation Market Major Players:
- ABB
- Cooper Industries
- Eaton Corporation
- General Electric
- Grid Net
- Larsen & Toubro Limited
- Power system Engineering
- SAE IT-Systems GmbH & Co.KG
- Schneider Electric
- Siemens AG
- Tropos Network Ltd.
- Other Prominent Players
Key Market Segmentation:
By Module
- Communication Networks
- Scada Systems
- Intelligent Electronic Devices
By Offering
- Hardware
- Software
- Services
By Type
- Distribution Substations
- Transmission Substations
By Installation Type
- New Installations
- Retrofit Installations
By End-user
- Utilities
- Steel
- Oil and Gas
- Mining
- Transportation
By Component
- IEDs
- Communication Networks
- SCADA Systems
By Communication Channel
- Optical Fiber Communication
- Ethernet
- Copper Wire Communication
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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