HOME Research Insight ABB Ltd. (Switzerland) and Siemens AG (Germany) are Substation Automation Market



ABB Ltd. (Switzerland) and Siemens AG (Germany) are Substation Automation Market


The substation automation and integration market was valued at USD 32.53 Billion in 2015 and is expected to reach USD 50.16 Billion by 2022, at a CAGR of 5.97% between 2016 and 2022. The market growth can be attributed to various factors such as the replacement of traditional substations with digital substations due to the growing demand for low-cost and more flexible solutions and increasing demand for retrofitting the conventional substations. Digital substations have been launched in emerging markets such as India, China, Brazil, Russia, Saudi Arabia, and Indonesia, as well as in developed markets such as the U.K. and Paris.

The demand for substation automation in higher in APAC and RoW compared to that in other regions. In the Middle East, several companies are upgrading high-voltage substations to boost the regionís power generation capacity. A number of initiatives have been taken by the Government of Africa to attract more investments in the regionís mining sector.

The growing demand for renewable energy projects and the shift toward battery technology for electricity generation is creating huge opportunities for the substation automation and integration market. Some of the major players operating in the substation automation and integration market include ABB Ltd. (Switzerland), Siemens AG (Germany), General Electric (U.S.), Cisco systems, Inc. (U.S.), Schneider Electric (France), and Eaton Corp., (Ireland), among others.

Top 2 players in the substation automation and integration market:

ABB Ltd. (Switzerland) primarily focuses on both organic and inorganic strategies such as new product launches and acquisitions, among others, to maintain its position in the market. 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 for integration in the Rampion Offshore Wind Farm, the U.K.ís transmission grid. The company also launched a new technology and integrated three substation functions together, in December 2015, to reduce the space of the substation by 70%. The company also focuses on strategic acquisitions to grow in the market; in October 2013, ABB acquired Power One, Inc. (California) to expand its renewables business. This acquisition helped the company meet the growing demand for renewable energy solutions and strengthen its leadership position in the market.

Siemens AG (Germany) focuses on inorganic strategies to expand in the market. For instance, in March 2016, Siemens AG signed a memorandum of understanding (MoU) with the Government of the Republic of Iraq, the Ministry of Energy, and the Ministry of Oil and Gas to strengthen the collaboration with the Ministry of Energy and Oil & Gas for modernizing the energy infrastructure. Under this agreement, Siemens AG would help the Iraqi government to develop and optimize power generation and grid infrastructure. The company aims to expand its energy management business by focusing on new product launches. 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 substation automation and integration market. For instance, 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%.

The stakeholders in the value chain of the substation automation and integration ecosystem 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 end users such as companies operating in the steel, mining, oil and gas, and railway sectors.

Related Reports:

Substation Automation Market by Module (IEDS, Communication Network, SCADA System), Offering, Type (Transmission, Distribution), Installation Type (Retrofit & New Installation), Industry & Geography - Global Forecast to 2022

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