Dublin, Feb. 13, 2025 (GLOBE NEWSWIRE) -- The "Digital Substation Market Report 2025" has been added to ResearchAndMarkets.com's offering.
The digital substation market size has grown strongly in recent years. It will grow from $7.85 billion in 2024 to $8.55 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to increase in energy demand, enhanced grid monitoring requirements, cost savings in operation and maintenance, regulatory compliance requirements.
Europe was the largest region in the digital substation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The digital substation market size is expected to see rapid growth in the next few years. It will grow to $14.45 billion in 2029 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to grid decentralization, electrification of transportation, standardization and interoperability, rapid urbanization and electrification. Major trends in the forecast period include increasing adoption of IoT and sensors, edge computing for real-time processing, artificial intelligence and machine learning applications, remote monitoring and maintenance, resilient communication networks.
The rising demand for electricity is projected to drive the growth of the digital substation market. For example, in 2023, the International Energy Agency reported that global electricity demand is expected to increase at a faster rate of 3% per year from 2023 to 2025, in contrast to the growth rate observed in 2022. This expected rise reflects the ongoing recovery of industrial and economic activities, alongside a growing demand for energy-intensive services and technologies worldwide. Thus, the increasing demand for electricity is propelling the growth of the digital substation market.
The rising demand for electricity generated from renewable sources is greatly contributing to the growth of the digital substation market in the future. For example, in 2023, the International Energy Agency (IEA), a France-based intergovernmental organization that analyzes and provides recommendations on global energy policy, reported that the demand for electricity from renewable sources increased by nearly 50% compared to 2022. This surge was coupled with the addition of 507 gigawatts (GW) of new renewable capacity to the global energy system. This notable growth underscores the ongoing shift toward sustainable energy sources worldwide. As a result, the rising demand for electricity from renewable sources is expected to drive 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 September 2023, Hitachi Ltd, a Japan-based electronics company partnered with East Japan Railway Company to develop full-digital substation system by 2025. The technology will enable dual configuration of transmission lines as well as protection and control functions in substation premises, allowing for stable railway transportation via a stable supply of power. Furthermore, by minimizing the size of facilities, it will improve construction efficiency. Furthermore, in March 2023, Tata Power, an India-based integrated power company partnered with Enel Group, an Italy-based green energy and artificial intelligence (AI) company to power digtalization and automation of India's power distribution network. The first pilot project will focus on increasing digitization and automation of secondary substations, with Tata Power joining Gridpertise's proprietary QEd - Quantum Edge Device international co-creation programme. This collaborative programme will virtualize grid functionality, allowing for network security and control, automation, real-time problem detection, and service restoration.
Major companies operating in the digital substation market are focusing on developing digital twins for operating substations and increasing substation efficiency. For instance, in March 2023, Danfoss, a Denmark-based technology company, launched autonomous Titan substation which Boasting unique digital twin technology that enables reliable cloud commissioning and continual performance optimization - in an increasingly demanding industry. The smart substation complements Danfoss' large district energy product line, enabling end-to-end optimization.
In 2023, Tata Power, an India-based energy company, joined forces with Enel Group, an Italy-based multinational energy firm, to collaborate on projects within the renewable energy sector. This partnership seeks to capitalize on Enel's expertise in green energy solutions alongside Tata Power's extensive footprint in India to strengthen clean energy infrastructure, develop new renewable projects, and expedite the transition to sustainable power. Through this collaboration, both companies aim to further their objectives of boosting clean energy production and contributing to global efforts to reduce carbon emissions.
The regions covered in the digital substation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
Report Scope
Markets Covered:
1) By Voltage Level: Low; Medium; High
2) By Type: Transmission; Distribution
3) By Module: Fiber Optics Communication Network; Supervisory Control and Data Acquisition; Hardware
4) By Industry Vertical: Power Generation; Metal & Mining; Oil & Gas; Transportation & Logistics; Defense & Aerospace; Process & Manufacturing; Other Industry Verticals
Subsegments:
1) By Low Voltage: Distribution Automation; Smart Metering Solutions; Protective Relays
2) By Medium Voltage: Circuit Breakers; Voltage Regulators; Substation Automation Systems
3) By High Voltage: Transformer Monitoring Systems; High Voltage Circuit Breakers; Advanced Protection and Control Systems
Key Companies Profiled: ABB Ltd.; NR Electric Co. Ltd.; Eaton Corporation Inc.; Schneider Electric SE; General Electric Company
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2025-2029 |
| Estimated Market Value (USD) in 2025 | $8.55 Billion |
| Forecasted Market Value (USD) by 2029 | $14.45 Billion |
| Compound Annual Growth Rate | 14% |
| Regions Covered | Global |
Companies Featured in this Digital Substation Market Report
- ABB Ltd.
- NR Electric Co. Ltd.
- Eaton Corporation Inc.
- Schneider Electric SE
- General Electric Company
- Larsen & Toubro Ltd.
- Siemens AG
- Toshiba Corporation
- DNV GL
- Hitachi Ltd.
- iGrid S.L.
- Kalki Communication Technologies Private Limited
- Locamation
- Panasonic Corporation
- Cisco Systems Inc.
- Honeywell International Inc.
- Emerson Electric Co.
- Mitsubishi Electric Corporation
- Schweitzer Engineering Laboratories Inc.
- G Power and Industrial Solutions Limited
- Arteche Group Corporation
- EFACEC Power Solutions SGPS SA
- Alstom Ltd.
- Hyundai Electric & Energy Systems Co. Ltd.
- Powell Industries Inc.
- Rittal GmbH & Co. KG
- Belden Inc.
- Beckwith Electric Co. Inc.
- ERLPhase Power Technologies Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/mwtbt
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