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Countries worldwide are increasingly prioritizing smart grid initiatives to address issues such as reducing transmission and distribution (T&D) losses, enhancing asset management, improving service quality, ensuring reliability, and enhancing accessibility. Within these smart grid initiatives, utilities are deploying a significant number of Intelligent Electronic Devices (IEDs) to implement advanced automation systems. However, the challenge lies in the realization of the high maintenance costs associated with these devices. Initially perceived as primarily capital-intensive, projects in the electrical sector are experiencing a shift towards higher operational costs. Utilities are now grappling with the complexities of commissioning, consistent firmware updates, and security patches required for these devices. In response, electrical substation management solutions have emerged as a key strategy to remotely manage substation secondary devices, effectively reducing operational costs.
According to Market Research Future (MRFR), the global electrical substation management market has witnessed substantial growth in recent years and is projected to reach USD 1,565.45 million by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 11.1% during the forecast period from 2022 to 2030.
The global electrical substation management market is anticipated to grow at a CAGR of 11.1% during the forecast period (2022-2030). In 2021, the Asia-Pacific region led the market, capturing a share of 37.52%, followed by North America and Europe with shares of 30.1% and 24.25%, respectively. The Asia-Pacific region's dominance can be attributed to the high demand for electrical substation management in various sectors such as utilities, steelworks, oil & gas, transportation, and others, contributing to the overall market growth.
The market segmentation is based on components, applications, sources, verticals, and regions. Within the component segment, which is further divided into hardware, software, and services, software accounted for the largest market share, reaching USD 402.61 million in 2021. This segment is projected to grow at a CAGR of 11.5% during the forecast period. In terms of application, Distribution Substations held the largest market share, valued at USD 291.14 million in 2021, and is expected to grow at a CAGR of 11.4%. Among sources, Non-renewable sources dominated the market, with a market value of USD 472.81 million in 2021, and is projected to grow at a CAGR of 10.5% during the forecasted period. Finally, in the vertical segment, Utilities emerged as the leading market share holder, accounting for USD 427.39 million in 2021 and is expected to grow at a CAGR of 10.8% during the forecasted period.
The increasing adoption of electrical substation management solutions underscores the critical role they play in addressing the evolving challenges faced by utilities in managing complex networks efficiently. These solutions not only facilitate remote management of substation secondary devices but also contribute to significant cost reductions in operations. As the market continues to evolve, with a strong focus on software solutions, distribution substations, and non-renewable energy sources, the forecasted growth suggests a promising trajectory for the electrical substation management market.
The global landscape of electrical substation management is witnessing a transformative phase driven by the need for efficient, cost-effective solutions in the face of evolving challenges in the electrical sector. With smart grid initiatives gaining momentum worldwide, the demand for intelligent solutions, particularly in the form of electrical substation management, is on the rise. As the market continues to expand and innovate, the forecasted growth rates indicate a positive outlook, positioning electrical substation management as a key player in shaping the future of the electrical infrastructure sector.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 0.8 Billion |
| Market Size Value In 2023 | USD 0.8888 Billion |
| Growth Rate | 11.10%(2023-2032)Base Year2022Market Forecast Period2023-2032Historical Data2018- 2022Market Forecast UnitsValue (USD Billion)Report CoverageRevenue Forecast, Market Competitive Landscape, Growth Factors, and TrendsSegments CoveredComponent, Application,Sources, Verticals, and RegionGeographies CoveredNorth America, Europe, AsiaPacific, and the Rest of the WorldCountries CoveredThe U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and BrazilKey Companies Profiled Tarigma Corporation, Eaton Corporation Plc, IPS Energy, Kalkitech, General Electric Company, Siemens AG, Aclara Technologies LLC, Omicron, Novatech LLC, Schneider Electric, ABB Ltd, Subnet Solutions INC., Schweitzer Engineering Laboratories Inc., Tekvel, Sentient Energy Inc, Ingrid T&DKey Market OpportunitiesIncreasing renewable energy projects are expected to open lucrative revenue streams for the market during the projected period.Key Market DynamicsThe stringent regulatory standards are expected to be the major growth driver. |
Electrical Substation Management Market Highlights:
Global Electrical Substation Management Market Overview:
Electrical Substation Management Market Size was valued at USD 0.89 billion in 2023. The Electrical Substation Management market industry is projected to grow from USD 0.99 Billion in 2024 to USD 2.06 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.63% during the forecast period (2024 - 2032). Increasing renewable energy projects and a growing number of electricity generation projects across developing nations are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Electrical Substation Management Market Trends
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The stringent regulatory standards are driving the market growth
The stringent regulatory standards for promoting substation automation and monitoring control system technologies are a major factor driving the growth of the electrical substation management market. In addition, uninterrupted electricity, a preference for improved energy efficiency, and technological advancements are shortly driving the growth of the Electrical Substation Management market. Major players in electric substation management comprise ABB, Siemens, Eaton, Schneider, General Electric, and many others. These companies are implementing strategic initiatives such as acquisitions, mergers, collaborations, partnerships, and the development and the presence of a stringent regulatory framework are expected to fuel the growth of the electrical substation management market CAGR.
Additionally, increasing renewable energy projects are expected to open lucrative revenue streams for the market during the projected period increasing renewable energy projects across the globe due to technology improvements and decreasing costs of renewable energy resources, with the increased competitiveness of battery storage, which creates lucrative revenue streams for the market over the projected period. Countries across the globe are coming up with new renewable projects for electricity generation. Also, they are investing in wind and solar projects, growing electricity demand, and minimizing the environmental impacts, with investments in generating power using non-renewable sources. Thus this factor drives the Electrical Substation Management market revenue.
Electrical Substation Management Market Segment Insights:
Electrical Substation Component Insights
The Electrical Substation Management market segmentation, based on components, includes hardware, software, and services. The hardware segment dominated the market; the demand for substation automation systems is also driven by the increasing need to retrofit conventional substations to incorporate modern-day monitoring and control capabilities. Various government bodies and companies worldwide plan to install SCADA systems in their substations. Utilities and heavy industries are increasingly adopting SCADA systems to achieve improved control and a complete view of substations, increasing operational efficiency.
Figure1: Electrical Substation Management Market, by Component 2024 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Electrical Substation Application Insights
Based on application, the Electrical Substation Management market segmentation includes generation substations, transmission substations, and distribution substations. The distribution substations segment dominated the market because the electricity demand is soaring rapidly across the world, and this could trigger the demand for smooth distribution networks across the globe. The expansion of existing energy infrastructure, along with increasing demand for efficient electricity grids across several developing countries, drives the growth of the distribution segment of this market during the forecast period.
Electrical Substation Source Insights
Based on sources, the Electrical Substation Management market segmentation includes non-renewable and renewable. The renewable segment dominated the market; Renewable energy is currently the mainstream option in the power sector. Most countries use solar and wind energy sources to generate more than 20% of their electricity. According to the International Energy Agency (IEA), the share of renewable sources in world electricity generation reached 25% in 2022. By 2050, renewable power will be able to provide the bulk of power demand, which would be approximately 86%.
February 2022: Schneider Electric and Enedis announced the launch of revolutionary solutions for new-generation substations. Both companies are expected to launch a project around the next generation of MV/LV substation devices as an alternative to using SF6 gas. This gas is used in MV electrical devices for its high insulation and dielectric properties.
February 2022: GE and Bond announced to build of a digital substation for the offshore wind farm; the GE Group is expected to coordinate the implementation of the digital substation, including advanced digital substation monitoring systems, controls, and software systems. GE would provide the connection and power balance needed between the offshore wind farm and the interconnection point to the NY power grid.
Electrical Substation Management Verticals Insights
Based on verticals, the Electrical Substation Management market segmentation includes utilities, steelworks, oil & gas transportation, and others. The utilities segment dominated the market in 2022. The utility segment is experiencing high demand with surging uninterrupted power supply and increasing installation of efficient power grids.
The industrial segment is likely to witness significant growth during the forecast period. The demand for uninterrupted electricity supply is widely increasing across the industrial sector due to rapid industrialization across developing countries. The paradigm shift from conventional to electric vehicles also increases the demand for smooth and efficient grids from transportation industries. This will likely drive growth in the industrial segment in the coming years.
Electrical Substation Management Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Electrical Substation Management Market area will dominate this market due to the extensive electricity-producing and consuming Region with significant growth in demand. Moreover, China’s Electrical Substation Management market held the largest market share, and the Indian Electrical Substation Management market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Electrical Substation Management Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Electrical Substation Management market accounts for the second-largest market share due to the policies formulated by the EU that have encouraged the development of energy storage, electric vehicles, and decentralized electricity generation to serve elastic demand. Further, the German Electrical Substation Management market held the largest market share, and the UK Electrical Substation Management market was the fastest-growing market in the European Region.
North Americais expected to grow at the fastest CAGR from 2023 to 2032. This is due to the substantial adoption of substation automation solutions is the main parameter supporting the growth of the regional market. The growing level has been cybersecurity and compliance with the NERC CIP standards is another crucial aspect boosting the regional market's growth.
Electrical substation management Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the electrical substation management market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The electrical substation management industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Electrical Substation Management industry to benefit clients and increase the market sector. The Electrical Substation Management industry has recently offered some of the most significant advantages. Major players in the Electrical Substation Management market, including Tarigma Corporation, Eaton Corporation Plc, IPS Energy, Kalkitech, General Electric Company, Siemens AG, Aclara Technologies LLC, Omicron, Novatech LLC, Schneider Electric, ABB Ltd, Subnet Solutions INC., Schweitzer Engineering Laboratories Inc., Tekvel, Sentient Energy Inc, Ingrid T&Dand others, are attempting to increase market demand by investing in research and development operations.
Alstom is a French multinational rolling stock manufacturer which operates worldwide in rail transport markets. It is active in passenger transportation, signaling, and locomotives, producing high-speed, suburban, regional, and urban trains and trams.Alstom was awarded substation automation contracts for three of DONG Energy's offshore wind farms. The systems would be fitted at the Race Bank project off the Norfolk Coast, the Walney Extension in the Irish Sea, and the Burbo Bank Extension in Liverpool Bay.
Schneider Electric SE is a French multinational company specializing in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries, by combining energy technologies, real-time automation, software, and services.Schneider Electric and Enedis announced the launch of revolutionary solutions for new-generation substations. Both companies are expected to launch a project around the next generation of MV/LV substation devices as an alternative to using SF6 gas. This gas is used in MV electrical devices for its high insulation and dielectric properties.
Key Companies in the electrical substation management market include
- Tarigma Corporation
- Eaton Corporation Plc
- IPS Energy
- Kalkitech
- General Electric Company
- Siemens AG
- Aclara Technologies LLC
- Omicron
- Novatech LLC
- Schneider Electric
- ABB Ltd
- Subnet Solutions INC.
- Schweitzer Engineering Laboratories Inc
- Travel
- Sentient Energy Inc
- Ingrid T&D
Electrical Substation Management Market Developments
February 2021: Hitachi ABB Power Grids unveiled its smart digital substation offering that combines the latest in digital substation technology with the predictive, prescriptive, and prognostic capabilities of Hitachi's industry-leading lumada asset performance management (APM) solution.
February 2020: Alstom was awarded substation automation contracts for three of DONG Energy's offshore wind farms. The systems would be fitted at the Race Bank project off the Norfolk Coast, the Walney Extension in the Irish Sea, and the Burbo Bank Extension in Liverpool Bay.
April 2022: ABB India announced the inauguration of its expanded digital substation products and digital systems factory in Vadodara, Gujarat. The new factory will meet the demand for various digital substation products and solutions in India and more than 50 countries.
Electrical Substation Management Market Segmentation:
Electrical substation management Component Outlook
- Hardware
- Software
- Services
Electrical substation management Application Outlook
- Generation Substations
- Transmission Substations
- Distribution Substations
Electrical substation management SourcesOutlook
- Non-Renewable
- Renewable
Electrical substation management Verticals Outlook
- Utilities
- Steelworks
- Oil & Gas Transportation
- Others
Electrical substation management Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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