DUBLIN–(BUSINESS WIRE)–The “Substation Automation Market with COVID-19 impact analysis by Offering (Hardware, Software, Services), Type (Transmission, Distribution), Installation Type, End-use Industry, Component, Communication, and Region – Global Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.
The global substation automation market size is estimated to be USD 39.9 billion in 2021 and is projected to reach USD 54.2 billion by 2026, at a CAGR of 6.3% during the forecast period.
Services: The fastest growing offering segment of the substation automation market.
The high growth potential of the market can be attributed to the rapid increase in the number of projects pertaining to renewable energy sources such as solar and wind. For instance, Sun Tech Power Holdings (China), a producer of solar modules, plans to invest more in solar energy projects to meet the growing demand for energy with the rapid urbanization in China. Several power-generating companies in China, such as State Grid Corporation of China, China Three Gorges Corporation, and State Power Investment Corporation, are working on 25 wind turbine contracts worth nearly USD 586 billion to generate power.
In September 2018, Siemens Energy received an order to design, supply, and build the grid connection for the Triton Knoll offshore wind farm by Germany-based Innogy SE. In February 2020, Hitachi ABB Power Grids’ substation won a contract by Enel Green Power to deliver emission-free solar power to Brazil’s 500 kilovolts (kV) transmission network. These projects would bring great prospects for installation, commissioning, and maintenance services.
Utilities: The largest segment of substation automation market, by end-user industry.
The utilities industry is one of the booming application areas of substation automation solutions owing to the high demand for modernization of existing grid infrastructure and installation of smart grids. Growing number of utilities have implemented Internet Protocol (IP) wireless communication technology in substations that enhance the operating efficiency of the substation automation system by providing data related to the current status or condition of equipment, fault classification statistics, and information useful for preventive maintenance of the equipment.
Government bodies, in coordination with privately owned utility companies, are setting up smart substations in several countries to meet the power demand from consumers, as well as for the security of the power supply. For example, Hitachi ABB Power Grids is supporting Maharashtra State Electricity Transmission Company Limited (MSETCL) by utilizing ABB Ability-enabled technology in smart substations owned by MSETCL. This technology will be a crucial component of next-generation grids in the country.
North America is leading the substation automation market, globally, by market share, in 2020
Based on region, North America dominated the substation automation market in 2020. The commanding position of North America can be contributed to several funding programs introduced by the US and Canadian governments for the modernization of power grids. North American governments are also providing funds to deploy modern technologies in the energy & power sector, which would help the region transit to smarter, stronger, and efficient electric grid systems. Aging grid infrastructure, coupled with stringent government policies regarding the adoption of sustainable power technologies, contributes to the growth of the substation automation market in North America.
Several grid modernization projects have been undertaken in the region in the past few years. For instance, in September 2019, Schneider Electric was awarded a contract by BASF (Germany), the largest chemical company in the world, to implement EcoStruxure Asset Advisor in its new electrical substation in Beaumont, Texas. EcoStruxure Asset Advisor evaluates live data from the user’s critical connected assets and applies advanced analytics to identify potential threats.
- Increasing Investments in Smart Cities and Smart Grid Infrastructure Development Projects
- Escalating Demand for Data Centers to Support Rapidly Expanding Digital Activities Due to COVID-19-Led Lockdown Globally
- Surging Requirement to Retrofit Conventional Substations
- Rising Use of Digital Technology to Improve Grid Efficiency in Smart Cities
- Increasing Focus on Upgrading Iec 61850 Standard to Resolve Interoperability Issue Among Intelligent Electronic Devices Deployed in Substations
- High Initial Installation Cost of IEDs in Substations
- Huge Requirement for Tremendous Capital Investment for Deployment of Wireless Sensor Networks in Substations for Oil and Gas Facilities
- Huge Prospects for Substation Automation Market Due to Increasing Investments in Renewable Energy Projects to Meet Growing Energy Demand
- Increasing Demand for Electric and Hybrid Vehicles
- Vulnerability of Smart Substations to Cyber Attacks
- Slowdown in Power Generation Industry with Outbreak of COVID-19
- Cadillac Automation and Controls
- CG Power and Industrial Solutions
- Cross Canyon Engineering
- Eaton Corporation
- Encore Networks
- General Electric
- Hitachi Abb Power Grids
- Igrid T&D
- MB Control and Systems
- Novatech Automation
- Other Important Players
- Power System Engineering
- SAE-IT Systems
- Schneider Electric
- Schweitzer Engineering Laboratories
- Siemens Energy
- Venson Electric
For more information about this report visit https://www.researchandmarkets.com/r/aan91i