Hyderabad, Feb. 18, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the substation automation market size was valued at USD 40.04 billion in 2026 and is projected to reach USD 57.59 billion by 2031, registering a compound annual growth rate (CAGR) of 7.54% during the forecast period. The market is witnessing steady expansion as utilities and energy operators increasingly prioritize grid reliability, operational efficiency, and real-time monitoring capabilities.
The ongoing shift toward digital substations, combined with growing electricity consumption, renewable energy integration, and aging grid infrastructure replacement, is driving substation automation market growth globally. Utilities are adopting advanced supervisory control and data acquisition (SCADA), intelligent electronic devices (IEDs), and communication protocols to enhance asset performance and reduce outage risks, reinforcing long-term substation automation market forecast momentum.
Substation Automation Market Trends & Technology Adoption
Automation Upgrades Driven by Renewable Energy Integration
As renewable power sources become a larger part of electricity grids, traditional substation control systems are no longer sufficient. Wind and solar generation create rapid fluctuations in voltage and frequency, pushing utilities to adopt smarter, automated control technologies. Modern substations are increasingly equipped with intelligent electronic devices, advanced communication standards, and digital control schemes that allow faster response, better coordination with energy storage systems, and improved grid stability. Regulatory pushes and large-scale digital substation rollouts across major economies are further accelerating investments in automation solutions designed specifically to support high renewable penetration.
Regulatory Push Accelerating Smart Substation Adoption
Stricter reliability and smart-grid regulations are pushing utilities to modernize substation operations faster than before. Grid operators are being required to respond more quickly to faults, strengthen cybersecurity across equipment supply chains, and enable real-time coordination between substations and distributed energy resources. As compliance expectations expand across regions, utilities are shortening upgrade cycles and accelerating the adoption of advanced protection, control, and communication systems, reinforcing sustained demand for substation automation solutions.
Table of Contents (Partial) - Substation Automation Industry
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET LANDSCAPE
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Ageing Grid-Infrastructure Replacement Cycle Accelerates
- 4.2.2 Renewable-Energy Integration Needs Advanced Control
- 4.2.3 Mandatory Reliability and Smart-Grid Regulations
- 4.3 Market Restraints
- 4.3.1 High Capex and Integration Complexity
- 4.3.2 Escalating Cybersecurity Compliance Costs
- 4.3.3 Supply-Chain Pinch in Grain-Oriented Electrical Steel
- 4.3.4 And more
- 4.4 Industry Value Chain Analysis
- 4.5 Regulatory Landscape
- 4.6 Technological Outlook
- 4.7 Impact of Macroeconomic Factors on the Market
- 4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Buyers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SIZE AND GROWTH FORECASTS (VALUE)
- 5.1 By Type
- 5.1.1 Transmission
- 5.1.2 Distribution
- 5.2 By Module
- 5.2.1 Intelligent Electronic Devices (IED)
- 5.2.2 Remote Terminal Unit (RTU)
- 5.2.3 Bay Control Unit (BCU)
- 5.2.4 and more
- 5.3 By Communication Technology
- 5.3.1 Wired
- 5.3.1.1 Fiber-Optic
- 5.3.1.2 Ethernet
- 5.3.1.3 Power-Line
- 5.3.2 Wireless
- 5.3.2.1 and more
- 5.4 By Stage
- 5.4.1 Retrofit
- 5.4.2 New-Build
- 5.5 By End User
- 5.5.1 Utilities
- 5.5.2 Industrial (Oil and Gas, Metals, Mining, Petro-Chem)
- 5.5.3 Transportation (Rail, Airports, Ports)
- 5.5.4 Data Centres and Cloud Campuses
- 5.6 By Geography
- 5.6.1 North America
- 5.6.1.1 United States
- 5.6.1.2 Canada
- 5.6.1.3 Mexico
- 5.6.2 Europe
- 5.6.2.1 Germany
- 5.6.2.2 United Kingdom
- 5.6.2.3 France
- 5.6.2.4 Italy
- 5.6.2.5 Spain
- 5.6.2.6 Russia
- 5.6.2.7 Rest of Europe
- 5.6.3 Asia Pacific
- 5.6.3.1 China
- 5.6.3.2 Japan
- 5.6.3.3 India
- 5.6.3.4 South Korea
- 5.6.3.5 ASEAN
- 5.6.3.6 Australia and New Zealand
- 5.6.3.7 Rest of Asia Pacific
- 5.6.4 South America
- 5.6.4.1 Brazil
- 5.6.4.2 Argentina
- 5.6.4.3 Rest of South America
- 5.6.5 Middle East
- 5.6.5.1 Saudi Arabia
- 5.6.5.2 UAE
- 5.6.5.3 Turkey
- 5.6.5.4 Rest of Middle East
- 5.6.6 Africa
- 5.6.6.1 South Africa
- 5.6.6.2 Nigeria
- 5.6.6.3 Rest of Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Company Profiles (includes Global-Level Overview, Market-Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank / Share, Products and Services, Recent Developments)
- 6.4.1 ABB Ltd
- 6.4.2 Siemens AG
- 6.4.3 Schneider Electric SE
- 6.4.4 General Electric Co.
- 6.4.5 Hitachi Energy Ltd
- 6.4.6 Eaton Corp.
- 6.4.7 Honeywell International Inc.
- 6.4.8 Schweitzer Engineering Laboratories, Inc.
- 6.4.9 Belden Inc.
- 6.4.10 and more
7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
- 7.1 White-Space and Unmet-Need Assessment
For details on other market segments and the full table of contents, visit - https://www.mordorintelligence.com/industry-reports/substation-automation-industry?utm_source=globenewswire
Substation Automation Market Regional Outlook
In North America, substation automation adoption is being driven by large-scale grid modernization programs and tighter operational standards for renewable-heavy power systems. Utilities across the region are upgrading protection, control, and communication systems to improve fault response, support distributed energy resources, and enhance overall grid reliability. These initiatives are accelerating retrofit activity across both transmission and distribution substations.
In Asia-Pacific, rapid electrification, renewable energy expansion, and cross-border power connectivity are fueling strong demand for digital and automated substations. Major utilities are prioritizing advanced control architectures and interoperable communication frameworks to manage growing grid complexity. As a result, the region continues to emerge as the fastest-moving market for substation automation deployments.
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