Industrial Digital Substation Market Size - By Component, By Architecture, By Voltage Level, By Installation, Analysis, Share, & Forecast, 2025 - 2034

Industrial Digital Substation Market Size

The global industrial digital substation market was valued at USD 4.4 billion in 2024 and is estimated to reach the value of USD 8.6 billion by 2034, growing at a CAGR of 6.9% from 2025 to 2034, due to increased spending on upgrading the grid infrastructure, larger requirements for reliable power delivery, and the incorporation of sophisticated digital technologies. Conventional substations are being superseded or upgraded to digital substations, which utilize automation, real-time monitoring, and predictive maintenance, to improve operational efficiency while reducing operational interruptions.
 

All over the world, authorities and service providers are investing heavily towards refurbishing and upgrading outdated power systems. The prominent company in the MEA, the Saudi Electricity Company (SEC) posted notable growth in January 2024, with revenue growth of 18% and capital outlay soaring to an all-time high of USD 16 billion towards upgrading the power infrastructure, smart grids, and improving services. Additionally, Canada, European countries, and the Asia Pacific region have built digital substations for integration into smart grid systems.
 

The rise of renewable energy sources, such as wind and solar power, requires advanced grid infrastructure to manage variability and ensure grid stability. Renewable energy penetration is increasing significantly across the world. For instance, in 2024, Mexico saw a significant increase in solar PV energy generation capacity, reaching around 12 gigawatts (GW), with plans to increase renewable energy generation to 35% by 2024 and 50% by 2050. These targets will significantly create a strong necessity for digital substations in the various industries.
 

A significant transformation has been witnessed in industrial substations due to the implementation of Internet of Things (IoT), Artificial Intelligence (AI), and the Cloud. The implementation of these technologies allows for predictive maintenance of the system. This not only lowers the operational costs but also increases reliability of the system. With the implementation of cloud-based technology, digital substations offer utilities remote access to vital information which enhances the speed of the decision-making process along with better management of the assets.
 

The digital substations are being supported and accelerated by regulation frameworks such as IEC 61850 which also covers interoperability, cybersecurity, and system dependability for critical energy infrastructure. Additionally, there are state-sponsored grants and subsidizations for smart grid technology implementations. International standards for substation automation systems IEC 61850 facilitate data communication between Intelligent Electronic Devices (IEDs), which helps in reducing information technology workload, enhancing asset management, and operational risk mitigation.
 

Industrial Digital Substation Market Trends

• The oil and gas, manufacturing, mining, and transportation industrial sectors are now moving towards the adoption of industry 4.0 practices, which require more sophisticated energy supervision and automated control systems. Digital substations offer the necessary high-speed data communication, real-time data analysis, and remote control needed by these industries.
   
• There is notable growth that has been witnessed across these end use industries, along with the large investments, since last decade. As per reports by IEA, it was noted that world oil demand growth is set to accelerate from 840 kb/d in 2024 to 1.1 mb/d next year, lifting consumption to 103.9 mb/d in 2025. This growth will bring multiple projects, rising need for electrical infrastructure.
   
• Similarly, Saudi Aramco, the world's largest oil exporter, is targeting capital investments of between USD 52 billion to USD 58 billion in 2025. Whereas BP also planned to increase its annual oil and gas investment to USD 10 billion, as part of a strategic reset to boost earnings and investor confidence, while also reducing its investment in transition businesses.
   
• The global shift towards clean energy has necessitated the enhancement of substations to accommodate the fluctuation of renewables, like wind and solar. To manage the fluctuations of renewable energy while keeping balance within the grid, digital substations with advanced control systems are essential. This is especially the case for the Asia Pacific region, which is currently receiving considerable investment in renewable energy projects, increasing the need for digital substations.
   
• Incorporating Internet of Things (IoT) technologies, along with sophisticated data analytics, is transforming the operational paradigm of substations in an automated grid framework. Modern IoT smart meters and sensors are capable of effortlessly tracking and monitoring voltage, current, temperature readings, and the status of the equipment in real-time which is reported to edge computing systems or the cloud.
   

Industrial Digital Substation Market Analysis

• The industrial digital substations industry was worth USD 3.7 billion in 2022, USD 4 billion in 2023 and USD 4.4 billion in 2024. Countries and utility companies across the globe have started modernizing aging power infrastructure framework. The movement from traditional substations to digital substations is a response to the increasing need for efficiency, automation, and reliability in power systems transmission and distribution.
   
• As per the projections, the market size of the electrical systems segment is expected to surpass USD 2.6 billion by 2034. The transition to smart grids necessitates the use of advanced electrical components with real-time monitoring, fault detection, and remote-control capabilities. Digital substations depend on advanced input devices to improve stability on the grid and control power distribution effectively.
   
• Similarly, communication network segment is also projected to exceed USD 2.4 billion by 2034 since the digital substations require high-speed, low-latency communication networks to enable real-time monitoring, control, and automation. To ensure smooth data transfer between substation constituents, advanced technologies like IEC 61850, SCADA systems, and industrial Ethernet have been integrated into the industry.
   
• The concern of climate change and carbon emissions has been increasing across the world. In 2024, global carbon emissions reached record highs, with total CO2 emissions hitting 41.6 billion tonnes, including 37.4 billion tonnes from fossil fuels and 4.2 billion tonnes from land-use changes, like deforestation. Therefore, industries are increasingly adopting electrification strategies to reduce carbon emissions and improve operational efficiency.
   

• Based on voltage, low voltage segment is expected to grow at a CAGR of over 7.3% till 2034 since the industries are increasingly shifting toward electrification to enhance operational efficiency and reduce carbon emissions. This has led to a higher demand for low-voltage substations that provide reliable power distribution to manufacturing plants, commercial buildings, and industrial facilities.
   
• Low voltage digital substations are crucial in maintaining efficient power distribution during rapid urbanization. They contribute significantly to the stability and reliability of power distribution systems in growing urban infrastructures. Increased investments are being made in these substations alongside the rising power consumption due to the economic growth of nations like India, China, Brazil, and Southeast Asian countries.
   
• The U.S. EIA report disclosed that U.S. electricity sales will increase by 3% in 2025, led by strong growth in the end use industries. This growth will remarkably drive the demand for low voltage substations for efficient power distribution. Companies, these days, prefer digitally controlled systems for better performance and efficiency. Therefore, this segment will witness considerable growth in the industrial digital substation market.
   
• Medium voltage segment holds the overall market share of 72.2% since they are widely used in industries, utilities, and large commercial facilities for power distribution. These substations are crucial in managing power transmission between high-voltage grids and low-voltage end-use applications, making them the dominant segment in the market.
   
• The growing electrical consumption is propelling the need for multiple electrical infrastructure projects across the world. For instance, China started construction on 94.5 gigawatts of coal-fired power in 2024, the highest volume of new builds since 2015. These projects will boost the demand for industrial digital substations across the world.
   

• The U.S. industrial digital substation market was surpassed USD 875.8 million, USD 933 million, and USD 991.9 million in 2022, 2023, and 2024, respectively, since the U.S. holds a dominant position in the global economy. In 2024, the U.S. had the world's largest economy, with a gross domestic product (GDP) of approximately USD 29 trillion.
   
• Europe is also influencing the industrial digital substation market because it is focused on modern updating the grid, integrating renewable energy resources, and building smart infrastructure systems. The region’s strict policies in energy efficiency, growing trend of digitalization in power distribution, and spending on industrial automation are pulling the advanced digital substations market.
   
• Europe has set a target to invest approximately USD 600 billion in grid modernization, fostering collaboration for a sustainable clean energy future. Moreover, the EU offers help to finance European energy projects through several funds and programs. These programs will help the multiple businesses to grow in this industry significantly in coming years.
   
• In Asia Pacific, developing countries including China, India and South Korea are becoming a vital part of the economy. As per PIB, India’s GDP expected to grow between 6.3 & 6.8% in FY 26. Similarly, South Korea's GDP per capita reached USD 36.1 million in Dec 2024, compared with USD 35.5 million in Dec 2023. These figures also indicate that the demand for electrical infrastructure will be higher in coming years.
   
• The Middle East plays a significant role in the industrial digital substation market due to its rapid industrialization, large-scale power infrastructure investments, and increasing focus on digital transformation in the energy sector. The region is home to some of the world’s largest oil & gas, petrochemical, and manufacturing industries, which require highly reliable power supply and advanced substation automation.
   

Industrial Digital Substation Market Share

Top 4 companies, including ABB, General Electric, Siemens, and Schneider Electric hold more than 30% market around the world. The dominance of these companies in the industrial digital substation industry is driven by their technological leadership, extensive global presence, strong R&D capabilities, and comprehensive product portfolios. These companies are at the forefront of digital substation technology, integrating IoT, AI-driven analytics, cloud computing, and automation to enhance grid efficiency and reliability.
 

Industrial Digital Substation Market Companies

Major players operating in the industrial digital substation industry are:

• ABB
• Belden
• Cisco Systems
• Eaton
• Efacec
• General Electric
• Grid to Great
• Hitachi Energy
• Larsen & Toubro Limited
• Netcontrol Group
• Schneider Electric
• Siemens
• SIFANG
• Tesco Automation
• Texas Instruments Incorporated
• Toshiba
   

In January 2024, Hitachi Energy innovated its substations systems, working on its pioneering digital substation technology with the all-new SAM600 3.0, a process interface unit (PIU), to help transmission utilities accelerate the adoption of digital substations. As a merging unit, SAM600 will speed the upgrade of conventional substations to digital substations. They bridge the gap by converting analog signals and digitally distributing current and voltage information throughout the substation and to the control center.
 

In July 2024, Toshiba Group has announced a USD 6 million investment to upgrade its power transmission and distribution equipment manufacturing facilities in India. The company revealed that TTDI (Toshiba Transmission & Distribution Systems India Pvt Ltd) aims to boost its production capacity for power and distribution transformers by around 150% compared to the fiscal year 2023, with this expansion planned for the period between FY 2024 and FY 2026.
 

Industrial Digital Substation Industry News

• In November 2024, China installed 8 GW of solar in a range of countries under its “Belt and Road” development program in 2024. As Chinese manufacturers drive down the costs of renewable power technology, they are spearheading its deployment in many developing markets that previously lacked access to affordable clean energy. Since the inception of the BRI, China has completed 156 GW of overseas power projects, including 22 GW of solar, reflecting its growing focus on clean energy.
   
• IN August 2024, India’s Cabinet Committee on Economic Affairs (CCEA), approved 12 new smart city projects under the National Industrial Corridor Development Programme (NICDP) with an investment of USD 3.41 billion These projects are expected to attract USD18.12 billion in investments from large industries and MSMEs, creating 1 million direct and 3 million indirect jobs.
   
• In February 2024, GE Vernova’s Grid Solutions business announced the launch of GridBeats, a comprehensive portfolio of software-defined automation solutions aimed at streamlining grid digitalization and enhancing grid resilience. Amid growing climate concerns, grid operators worldwide are responding to regulatory, consumer, and societal demands to achieve net-zero emissions and deepen their commitment to sustainability.
   
• In November 2024, At Enlit Europe 2024, Schneider Electric unveiled new innovations and partnerships, showcasing advanced technologies aimed at optimizing energy flow management in smart grids. The company demonstrated the Power Logic T300 RTU, which is virtualized on the E4S hardware platform, streamlining substation design and improving operational efficiency.
   
• In July 2024, Dubai Electricity and Water Authority (DEWA) successfully commissioned eight new 132 kV transmission substations in the first half of 2024, representing a major investment of AED 1.36 billion. This expansion, which includes 89 kilometers of ground cable, aims to enhance the efficiency of the 132 kV transmission network and address the increasing electricity demand across Dubai.
   

This industrial digital substation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, 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

• 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
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina