Distribution Automation Market Size - By Communication (Wired, Wireless), By Component (Software, Field Devices, Services), By Application (Public Utility, Private Utility) & Forecast, 2024 – 2032

Distribution Automation Market Size

Distribution Automation Market was valued at USD 16 billion in 2023 and is set to witness over 11.4% CAGR between 2024 and 2032, driven by ongoing efforts of governmental entities across the globe to integrate smart technologies across the grid network. For instance, as per International Energy Agency (IEA), the European Commission introduced the “Digitalisation of the Energy System” action plan for European Union in late 2022, with an anticipated investment of USD 633 billion across the European electricity grid by 2032. Furthermore, over USD 180 billion will be invested toward the digitalization of the infrastructure, thus creating a positive growth scenario for distribution network automation across Europe.
 

The distribution automation industry is witnessing a significant growth in the last few years owing to the increasing need for grid reliability and resilience, which is pushing utilities and grid operators to invest in automation technologies. The integration of renewable energy sources and the rise of distributed energy resources (DERs) require advanced control and monitoring capabilities, further fueling the demand for distribution automation solutions. Moreover, advancements in communication technologies, such as IoT and 5G, are enabling more robust and real-time data exchange, empowering utilities to make data-driven decisions and operate distribution grids more efficiently.
 

COVID– 19 Impact

The COVID-19 pandemic had a dual impact on the distribution automation market. It underscored the vital role of resilient, automated grids as utilities navigated operational challenges, promoting the adoption of digital solutions and remote monitoring to ensure grid reliability. Simultaneously, economic uncertainties and budget constraints temporarily slowed down some automation projects. Nevertheless, the long-term outlook remains positive. The pandemic's lessons emphasized the significance of grid modernization, spurring continued investment in smart grid technologies to enhance grid reliability, resilience, and efficiency in the post-pandemic era. As utilities adapt to evolving circumstances, distribution automation remains a critical component of future-proofing energy infrastructure.
 

Distribution Automation Market Trends

The continued expansion of renewable energy sources, such as solar and wind power, has accelerated the need for advanced distribution automation solutions across the globe. Moreover, the rise of electric vehicles (EVs) is driving the demand for distribution automation. EV charging infrastructure requires intelligent grid management to support the increased load and optimize charging times. Utilities are investing in automation technologies to accommodate the growing EV market while minimizing grid strain.
 

Artificial intelligence (AI) and machine learning are playing a crucial role in distribution automation. These advanced analytics tools enable predictive maintenance, fault detection, and real-time grid optimization, improving overall system performance and reducing downtime. The increasing focus on grid resilience and cybersecurity is generating a positive scenario for the integration of automation technologies across distribution networks. With the rise of cyber threats, utilities are implementing robust security measures to protect critical infrastructure and data, ensuring the uninterrupted operation of distribution automation systems. Furthermore, the deployment of edge computing and edge devices is enhancing data processing and decision-making at the grid's edge, enabling faster responses to dynamic grid conditions.
 

Distribution Automation Market Analysis

The wired distribution automation industry is set to grow at a rate of over 9% through 2032. The need for real-time monitoring, fault detection, and grid management are driving the adoption of wired communication solutions. These technologies, including fiber optics and Ethernet-based networks, offer low latency and high reliability, ensuring the efficient operation of distribution grids. Additionally, the integration of wired communication with advanced sensors and automation systems is enhancing grid resilience and performance.
 

The field devices held a market share of over 42% in 2022. The adoption of these advanced field devices has been driven by the increasing emphasis on grid modernization, the integration of renewable energy sources, and the need for better grid resilience and reliability. As the energy industry continues to evolve, with the growing deployment of renewable energy and electric vehicles, the demand for innovative field devices within the distribution automation ecosystem is expected to fuel substantial market growth, offering utilities and industries the tools they need to manage and optimize their distribution networks effectively.
 

Public utilities, responsible for supplying electricity to residential, commercial, and industrial consumers, have been keen to enhance the efficiency and reliability of their power distribution systems. Distribution automation technologies offer them a means to achieve these objectives. Public utilities have increasingly invested in smart grid solutions, including advanced sensors, intelligent switches, and communication networks, to monitor and control their distribution networks more effectively. As public utilities continue to prioritize modernization and sustainability in their operations, the distribution automation market is expected to see sustained growth, with utilities leveraging these technologies to provide more reliable and efficient electricity services to their customers while adapting to the evolving energy landscape.
 

Asia Pacific distribution automation was worth USD 4.5 billion in 2022 and is anticipated to reach USD 15 billion by 2032. Rapid urbanization and population growth in the region have led to a surge in energy demand, prompting utilities to turn to distribution automation for more efficient and reliable power distribution in densely populated areas. Additionally, the integration of renewable energy sources, such as solar and wind power, is on the rise, and distribution automation technologies play a pivotal role in seamlessly incorporating these intermittent sources into the grid while maintaining stability.
 

The expanding industrial sector further fuels the demand for distribution automation as industries seek to optimize their energy consumption. Moreover, environmental concerns, technological advancements, grid resilience needs, and the pursuit of greater energy efficiency are all contributing to the remarkable growth in the Asia-Pacific region.
 

Distribution Automation Market Share

Major players in the distribution automation industry employ diverse strategies to sustain and grow their market presence. These tactics are typically shaped by factors like market competition, technological advancements, regulatory shifts, and evolving customer preferences. Key participants in this market encompass:

• ABB
• Siemens
• Eaton
• Xylem
• S&C Electric Company
• G&W Electric
• Schneider Electric
• GE
• Schweitzer Engineering Laboratories, Inc.
• Landis+Gyr
• Cisco
• TRILLIANT HOLDINGS INC
• Toshiba Energy Systems & Solutions Corporation
• Itron Inc.
• Hubbell
• Hitachi, Ltd.
• NovaTech, LLC.

ABB, a global leader in electrification and automation technologies, has managed to maintain a substantial market share in the distribution automation market through a combination of innovative solutions, extensive industry expertise, and a commitment to customer satisfaction. ABB's comprehensive portfolio of distribution automation products and services, including smart grid solutions, advanced sensors, and grid management software, has positioned the company as a preferred choice for utilities seeking to modernize and optimize their distribution networks.
 

Distribution Automation Industry News:

• In June 2021, GE has unveiled an expansion of its Proficy suite of software solutions, incorporating Proficy Operations Analytics to further enhance digital transformation efforts. Proficy Operations Analytics is a self-provisioning predictive operations center which is SaaS-based and is designed for AI and industrial IoT, offering seamless deployment and ready-to-use capabilities. This move aims to bolster modernization, facilitate continuous improvement, and promote enterprise-wide visibility and scalability through the introduction of cloud-based predictive analytics.
   

This market research report on distribution automation includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2019 to 2032, for the following segments:

Click here to Buy Section of this Report

By communication

• Wired
• Wireless

By Components

• Software
• Field Devices
• Services

By Application

• Public Utility
• Private Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Australia
  • Japan
• South Korea
  • India
  • Middle East & Africa
  • Saudi Arabia
  • UAE
• South Africa
  • Latin America
  • Brazil
  • Chile