Industrial Digital Substation Market Size - By Component (Substation Automation System, Communication Network, Electrical System, Monitoring & Control System, Others), By Architecture (Process, Bay, Station), By Voltage Level, By Installation & Forecast, 2024 – 2032

Industrial Digital Substation Market Size

Industrial Digital Substation Market was valued at USD 4.1 billion in 2023 and is projected to witness more than 7.2% CAGR between 2024 and 2032, driven by the integration of renewable energy sources, need for better network management, and adoption of smart grid technologies.
 

Major key players are focusing on developing innovative solutions to meet the growing demand for efficient power distribution. For instance, in June 2023, Hitachi Energy launched new digital substation solution called "e-mesh" designed to enhance grid reliability and efficiency through advanced digitalization and communication capabilities. It aims to improve performance and resilience of power distribution networks, catering to growing demand for reliable and sustainable energy solutions.
 

Industrial Digital Substation Market Trends

The market is undergoing a significant transformation, driven by digitalization, renewable energy integration, electrification, and regulatory support. Digital technologies are revolutionizing substations, improving efficiency, reliability, and safety. Increasing renewable energy adoption necessitates substation upgrades to accommodate intermittent power sources. Ongoing R&D activities across digital substation industry will boost the product adoption. These trends present substantial opportunities for businesses to capitalize on the rising demand for sustainable and efficient power distribution solutions.
 

Industrial Digital Substation Market Analysis

Based on component, the electrical systems segment will cross USD 2.5 billion by 2032, due to its critical role in power distribution and management. Electrical components including switchgear, transformers, and protection devices form the backbone of substation infrastructure, ensuring efficient and reliable electricity delivery. With increasing adoption of digital technologies in substations, demand for advanced electrical components capable of integrating with IoT and automation systems is on the rise. This trend positions the electrical sector as a key player in driving innovation and growth within the industrial digital substation market. These elements position digital substations as essential components in addressing the electrical sector's evolving requirements for efficient and sustainable power distribution.
 

Based on architecture, the station architecture segment to grow at a CAGR of over 6.5% through 2032. Modern designs incorporate digital technologies such as intelligent electronic devices (IEDs), communication networks, and automation systems, enhancing operational efficiency, reliability, and safety. These architectures facilitate real-time monitoring, control, and diagnostics, enabling predictive maintenance and optimizing asset performance. Additionally, digital substations offer scalability and flexibility to accommodate evolving energy demands and integrate renewable energy sources. As industries increasingly prioritize digitalization and energy efficiency, the market is poised for continued expansion.
 

Asia Pacific industrial digital substation market is predicted to surpass USD 2.8 billion in 2032, driven by rapid industrialization, renewable energy growth, government support, a growing population, and technological advancements. The region is witnessing extensive industrialization and urbanization, driving demand for efficient power distribution infrastructure across sectors including manufacturing, energy, and utilities. Additionally, companies across the region are collaborating in order to develop digital substation technologies, which favors the market growth.
 

Industrial Digital Substation Market Share

Siemens Energy emerges as dominant player in the market, owing to its extensive product portfolio, technological innovation, and strong global presence. The company's comprehensive range of digital switchgear, transformers, and automation solutions, including the pioneering high-voltage system with integrated edge computing technology, positions it as a preferred choice for grid operators seeking advanced digital solutions.
 

Industrial Digital Substation Market Companies

Some of the major key players operating across the industrial digital substation industry are:

• ABB
• CG Power and Industrial Solutions Ltd.
• Cisco Systems, Inc.
• Eaton
• Efacec
• GE Grid Solutions, LLC
• Hitachi Energy
• Hubbell
• Larson & Toubro Limited
• Locamation
• Netcontrol Group
• NR Electric Co. Ltd.
• Powell Industries
• Rittal GmbH & Co. KG
• Schneider Electric SE
• Siemens Energy
• Toshiba Energy Systems & Solutions Corporation
   

Industrial Digital Substation Industry News

• In February 2024, ABB introduced its groundbreaking virtualized protection and control solution, marking a significant milestone with the debut of the Smart Substation Control and Protection SSC600 software. This innovative offering empowers utility customers to tailor their hardware preferences while seamlessly accessing a suite of dependable protection and control capabilities, thereby revolutionizing grid management strategies and bolstering reliability in power distribution systems.
   
• In January 2020, Siemens made waves in the energy industry with the launch of its SIPROTEC digital substation, integrating cutting-edge electromagnetic pulse mitigation (EMP) technology. Currently operational at a CenterPoint Energy substation, this advanced system elevates grid operations by fortifying resilience against external threats, ensuring uninterrupted service delivery, and setting a new standard for robustness and efficiency in power infrastructure management.
   

This industrial digital substation market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2019 to 2032, for the following segments:

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Market, By Component

• Substation Automation System
• Communication Network
• Electrical System
• Monitoring & Control System
• Others

Market, By Architecture

• Process
• Bay
• Station

Market, By Voltage Level

• Low
• Medium
• High

Market, By Installation

• New
• Refurbished

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

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Spain
  • Italy
  • UK
  • Austria
  • Netherlands
  • Sweden
  • Russia
  • Belgium
  • Denmark
  • Switzerland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
  • Philippines
  • New Zealand
  • Malaysia
  • Thailand
  • Singapore
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Türkiye
  • South Africa
• Latin America
  • Brazil
  • Chile