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ABB Ltd. (Switzerland) and Siemens AG (Germany) are Leading Players in Digital Substation Market
The demand for digital substations is increasing because more investments are made in infrastructure projects, and the installation of solar substations are also increasing in developing countries such as India and China, among others. Efforts are being made to rebuild the power grids and power substations to meet the increasing demand for electricity. APAC and RoW are the major regions where the demand for digital substations is more compared to the other regions. In Middle East and Africa the companies are trying to build distributed power generation connected with the grids that would help to reduce electricity costs. A significant growth in the industries such as petrochemicals and oil & gas in Saudi Arabia is expected in the coming years, which would drive the demand for installation of digital substations. Some of the major players operating in the digital substation market include ABB Ltd. (Switzerland), Siemens AG (Germany), General Electric (U.S.), Cisco systems, Inc. (U.S.), Schneider Electric (France), Honeywell International Inc. (U.S.), Emerson Electric (U.S.), Larsen & Toubro (India), Eaton Corp.,(Ireland), and NR Electric Co., Ltd. (China), among others.
Top 2 players in the digital substation market:
ABB Ltd. (Switzerland) held the leading position in the digital substation market in 2015. The company primarily focuses on both organic & inorganic strategies such as new product launches and acquisitions to maintain its market presence worldwide. The company has a huge customer base with long-term contracts. For instance, in June 2016, ABB received a contract to provide power infrastructure for offshore and onshore substations to integrate into Rampion Offshore Wind Farm, the U.K.’s transmission grid. The company also launched a new technology and integrated three substation functions—circuit breaking, disconnecting, and current measurement—in one single component, in December 2015, to reduce the space of the substation by 70%. The company also focuses on strategic acquisitions to grow in the market; for instance, in October 2015, ABB acquired Power One, Inc. (California) to expand its renewables business.
Siemens AG (Germany) is also among the top players in the digital substation market. To maintain a leading position in the energy management segment, the company focuses majorly on technology developments. For instance, in February 2015, Siemens made a technology development in its wind turbines and grid connections to create new offshore logistics for turbine maintenance. The company has also launched several new products in the digital substation market. In August 2014, Siemens launched its first gas-insulated switch gears for high-voltage direct current applications in Paris, which helped in reducing the platform size by 10%. In 2016, Siemens AG (Germany) introduced a strengthened automation and control portfolio to help in the modernization of field automation systems and essential electrical infrastructure. The technology portfolio includes various types of technologies such as new substation automation software platforms that would help to ease the renewables integration and increase visibility in the status of field operations, which would result in the lesser requirement for testing.
The stakeholders involved in the value chain of this market include intelligent electronic devices manufacturers, SCADA solution providers, communication network providers, power utility companies, turnkey contractors, distributors and traders, research organizations, forums, alliances and associations, and other end users such as companies operating in the steel, mining, oil & gas, and railway sectors.
Digital Substation Market by Module (Hardware, SCADA, & Fiber Optics Communication Network), Voltage (Below 66kV, 66kV–220kV, 220–550kV, & Above 550kV), Type (Transmission & Distribution), Industry, & Geography - Global Forecast to 2022
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