Digital Substation Market

Digital Substation Market by Module (Hardware, Fiber Optic Communication Network, and SCADA), Type (Transmission and Distribution Substation), Voltage (Up to 220 kV, 220–550 kV, and above 550 kV), Industry, and Region - Global Forecast to 2023

Report Code: SE 4607 Nov, 2019, by marketsandmarkets.com
Updated date -

The digital substation market is expected to grow from USD 5.77 Billion in 2016 to USD 9.96 Billion by 2023, at a CAGR of 7.87% between 2017 and 2023.

Digital Substation Market

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Digital Substation Market Dynamics

Increase in the number of smart cities globally

Smart cities are one of the booming concepts across the globe. These cities use digital technology to deliver services to their citizens. The discussion of smart cities revolves around smart buildings and smart meters (known as advanced metering infrastructure (AMI)). Smart cities are equipped with multiple hardware and software systems, which communicate with each other to deliver data in real-time. Among various modules, supervisory control and data acquisition (SCADA) is considered as a reliable technology for smart grid implementation in smart cities. Smart grids control and maintain the electricity distribution in these cities. The use of smart meters helps in optimizing the use of valuable natural resources.

Digital substations are a critical part of the entire distribution system of smart cities. They are connected using fiber optic communication networks to communicate with devices using digital signals. These substations act as a backbone of smart grids and help in providing real-time phasor measurement data, which is increasingly required to control the power flow and stabilize grids in smart cities. Thus, an increase in the number of smart city projects across the globe is fueling the growth of the digital substation market.

High initial investments for establishing digital substations

The initial investments for the establishment of digital substations are comparatively much higher than those required for setting up traditional substations. These high initial costs result from the deployment of expensive intelligent electronic devices in digital substations. Initially, the construction, installation, and engineering fee of traditional substations were comparatively high. However, with the launch of digital substations, the costs of setting up traditional substations dropped by 3.2% in 2016 from 6.2% in 2013. Some of the devices and equipment used in digital substations that are responsible for their high initial investments are SCADA systems, wireless sensor networks, etc.

The research methodology used to estimate and forecast the digital substation market begins with capturing data on key vendor revenues through secondary research. The vendor offerings have also been taken into consideration to determine the market segmentation. The top-down procedure has been employed to arrive at the overall market size of the global market from the average number of projects worldwide and average investments made for installation of digital substations in USD. 

 

Some of the key players operating in this market are ABB Group (Switzerland), Siemens (Germany), General Electric (US), Cisco Systems (US), Schneider Electric (France), Honeywell International (US), Emerson Electric (US), Larsen & Toubro (India), Eaton Corporation (Ireland), and NR Electric (China).

Key Target Audience

  • Intelligent electronic devices (IED) manufacturers
  • Supervisory control and data acquisition (SCADA) solution providers
  • Communication network providers
  • Power utility companies
  • Turnkey contractors
  • Distributors and traders
  • Research organizations
  • Forums, alliances, and associations
  • Other end users such as companies operating in the steel, mining, oil & gas, and railway sectors

Digital Substation Market Report Scope:

This research report categorizes the global market based on module, type, industry, voltage, and region.

Digital Substation Market, By Module

  • Hardware
  • Fiber optic communication network
  • Supervisory control and data acquisition

Digital Substation Market, By Voltage

  • Up to 220 kV
  • 220 kV to 550 kV
  • Above 550 kV

Digital Substation Market, By Type

  • Transmission substation
  • Distribution substation

Digital substation Market, By Industry

  • Utility
  • Metal
  • Mining
  • Oil & Gas
  • Transportation

Digital Substation Market, By Region

  • North America
  • Europe
  • Asia Pacific (APAC)
  • Rest of the World (RoW)

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:

Country-wise Information:

Detailed analysis of various hardware, software, and services for each country.

Company Information:

Detailed analysis and profiling of additional market players (up to five).

According to MarketsandMarkets’ forecast, the digital substation market, in terms of value, is expected to grow from USD 6.32 Billion in 2017 to USD 9.96 Billion by 2023, at a CAGR of 7.87% between 2017 and 2023. The major drivers for the market include increasing infrastructure development in smart cities, rise in power demand with space availability, increasing demand for replacing traditional substation infrastructure, and improved safety and reduced maintenance costs.

This report covers the digital substation market based on module, type, voltage, industry, and region. The utility industry is expected to hold the largest share of the market between 2017 and 2023.

The voltage segment in the 220–550 kV range is estimated to hold the largest share, growing at the highest CAGR between 2017 and 2023. The digital substation market for 220–550 kV is expected to grow at the highest CAGR due to its increasing demand from the power utility sector as well as large industrial customers. Several companies such as Larsen & Toubro (India) are awarded a power and distribution contract to build a 220 kV substation in the Middle East for the utility application.

The digital substation market for the transmission substation is expected to grow at the highest rate between 2017 and 2023. The digital substations installed with IEC 61850 compliance are capable of sustaining more bulk power movements and have a longer lifespan. Therefore, investor-owned utilities are spending more on upgrading the transmission substation infrastructure. Hence, the transmission digital substation is expected to grow at a faster CAGR during the forecast period.

Digital Substation Market

Asia Pacific (APAC) held the largest share of the digital substation market in 2016. The market in APAC is expected to grow at the highest CAGR during the forecast period. Factors such as building renewables with an energy capacity of 175 GW by 2022 and various initiatives taken by Government of India to improve its power and energy sector to ensure clean energy generation are expected to drive the growth of the market in APAC. The market in APAC is expected to grow at the highest CAGR between 2017 and 2023.

The major challenge for the companies in the market is controlling cybersecurity threats. The major vendors in the digital substation market include ABB Group (Switzerland), Siemens (Germany), General Electric (US), Cisco Systems (US), Schneider Electric (France), Honeywell International (US), Emerson Electric (US), Larsen & Toubro (India), Eaton Corporation (Ireland), and NR Electric (China). These players adopted various strategies such as product developments, mergers, partnerships, collaborations, and expansions to cater to the needs of their customers.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Study Objectives
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Geographic Scope
           1.3.3 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries Interviews
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 31)
    4.1 Digital Substation: Market Overview
    4.2 Transmission Digital Substation Market, By Region
    4.3 Market in APAC, By Industry and Country
    4.4 Market, By Country

5 Digital Substation Market Overview (Page No. - 34)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Infrastructure Development in Smart Cities
                    5.2.1.2 Rise in Power Demand With Limited Space Availability
                    5.2.1.3 Increasing Demand for Replacing Traditional Substation Infrastructure
                    5.2.1.4 Improved Safety and Reduced Maintenance Costs
           5.2.2 Restraints
                    5.2.2.1 High Initial Investment
           5.2.3 Opportunities
                    5.2.3.1 Growing Demand for Renewable Energy Projects in the Market
                    5.2.3.2 Increasing Demand for Battery Technology to Generate Electricity in APAC
           5.2.4 Challenges
                    5.2.4.1 Controlling Cybersecurity Risks

6 Industry Trends (Page No. - 40)
    6.1 Introduction
    6.2 Value Chain Analysis
           6.2.1 Research, Design, and Development
           6.2.2 Manufacturing
           6.2.3 Transmission
           6.2.4 Distribution
           6.2.5 Post-Sales Services
    6.3 Key Trends

7 Technological Overview (Page No. - 42)
    7.1 Introduction
    7.2 Digital Substation Architecture
           7.2.1 Process Level
           7.2.2 Protection and Control Level
           7.2.3 Station Control Area
    7.3 Conventional vs Digital Substation
    7.4 Non-Conventional Instrument Transformer (NCIT)
           7.4.1 Voltage Instrument Transformer
           7.4.2 Current Instrument Transformer
    7.5 Overview of International Standard Communication Protocols
           7.5.1 IEC 61850
           7.5.2 IEC 61850-8-1
           7.5.3 IEC 61850-9-2

8 Digital Substation Market, By Module (Page No. - 47)
    8.1 Introduction
    8.2 Hardware
           8.2.1 Transformers
           8.2.2 Busbars
           8.2.3 Protection Devices
                    8.2.3.1 Circuit Breakers
                    8.2.3.2 Protective Relays
                    8.2.3.3 Switchgears
           8.2.4 Interfacing Units
                    8.2.4.1 Human–Machine Interfaces
                    8.2.4.2 Remote Terminal Units
                    8.2.4.3 Programmable Logic Controllers
           8.2.5 Others
    8.3 Fiber Optic Communication Network
    8.4 Scada Systems

9 Digital Substation Market, By Type (Page No. - 53)
    9.1 Introduction
    9.2 Transmission Substation
    9.3 Distribution Substation

10 Digital Substation Market, By Voltage (Page No. - 57)
     10.1 Introduction
     10.2 Up to 220 kV
     10.3 220–550 kV
     10.4 Above 550 kV

11 Digital Substation Market, By Industry (Page No. - 60)
     11.1 Introduction
     11.2 Utility
             11.2.1 Non-Renewables
             11.2.2 Renewables
     11.3 Metal
     11.4 Mining
     11.5 Oil & Gas
     11.6 Transportation

12 Geographic Analysis (Page No. - 68)
     12.1 Introduction
     12.2 North America
             12.2.1 US
                        12.2.1.1 Increasing Investments By Energy Companies to Modernize Grid System
             12.2.2 Canada
                        12.2.2.1 Focus on Electric Grid Security and Resilience Energy
     12.3 Europe
             12.3.1 UK
                        12.3.1.1 Fitness Project is Expected to Increase Digital Substation Demand
             12.3.2 Germany
                        12.3.2.1 Installation of Digital Substation in Railways Expected to Drive Growth of Market
             12.3.3 France
                        12.3.3.1 Focus on Renewable Energy is Likely to Increase Demand for Digital Substation
     12.4 Asia Pacific
             12.4.1 China
                        12.4.1.1 Increased Number of Installations of Digital Substations in China
             12.4.2 India
                        12.4.2.1 Increased Government Investments for Infrastructure Projects to Increase the Power Generation Capacity in India
             12.4.3 Japan
                        12.4.3.1 Focus on Rebuilding Power Grids and Substations to Reduce Costs
     12.5 Rest of the World
             12.5.1 Middle East
                        12.5.1.1 Installation of Digital Substations in the Region is Expected to Increase in the Long Run
             12.5.2 Africa
                        12.5.2.1 Upgrading Power Facilities to Meet Rising Demand for Electricity
             12.5.3 South America
                        12.5.3.1 Increased Awareness of Digital Substation Among Industries

13 Competitive Landscape (Page No. - 101)
     13.1 Introduction
     13.2 Market Ranking Analysis, 2016
     13.3 Competitive Situation and Trend
             13.3.1 Battle for Market Share: Contracts and Agreements are Key Strategies Adopted Between 2015 and 2017

14 Company Profiles (Page No. - 105)
(Business Overview, Products Offered & Services Strategies, Key Insights, Recent Developments, MnM View)*
     14.1 Key Players
             14.1.1 ABB
             14.1.2 Siemens
             14.1.3 General Electric
             14.1.4 Schneider Electric
             14.1.5 Honeywell
             14.1.6 Cisco
             14.1.7 Eaton
             14.1.8 Emerson
             14.1.9 NR Electric
             14.1.10 Larsen & Toubro
     14.2 Startup Ecosystems
             14.2.1 Tekvel
             14.2.2 Igrid T&D
             14.2.3 Yamal LNG
             14.2.4 Cadillac Automation and Controls
             14.2.5 I-Tor

*Details on Business Overview, Products Offered & Services Strategies, Key Insights, Recent Developments, MnM View Might Not Be Captured in Case of Unlisted Companies.

15 Appendix (Page No. - 147)
     15.1 Insights of Industry Experts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Introducing RT: Real-Time Market Intelligence
     15.5 Available Customizations
     15.6 Related Reports
     15.7 Author Details


List of Tables (68 Tables)

Table 1 Comparison Between Conventional and Digital Substation
Table 2 Digital Substation Market, By Module, 2014–2023 (USD Million)
Table 3 Market for Hardware, By Type, 2014–2023 (USD Million)
Table 4 Market, By Type, 2014–2023 (USD Million)
Table 5 Transmission Digital Substation Market, By Region, 2014–2023 (USD Million)
Table 6 Distribution Digital Substation Market, By Region, 2014–2023 (USD Million)
Table 7 Market, By Voltage, 2014–2023 (USD Million)
Table 8 Market, By Industry, 2014–2023 (USD Million)
Table 9 Market for Utility, By Region, 2014–2023 (USD Million)
Table 10 Market for Utility, By Non-Renewable Source, 2014–2023 (USD Million)
Table 11 Market for Utility, By Renewable Source, 2014–2023 (USD Million)
Table 12 Market for Metal, By Region, 2014–2023 (USD Million)
Table 13 Market for Mining, By Region, 2014–2023 (USD Million)
Table 14 Market for Oil & Gas, By Region, 2014–2023 (USD Million)
Table 15 Market for Transportation, By Region, 2014–2023 (USD Million)
Table 16 Market, By Region, 2014–2023 (USD Million)
Table 17 Noticeable Substation Projects Across Regions
Table 18 Digital Substations Market in North America, By Country, 2014–2023 (USD Million)
Table 19 Market in North America, By Module, 2014–2023 (USD Million)
Table 20 Market in North America, By Hardware, 2014–2023 (USD Million)
Table 21 Market in North America, By Type, 2014–2023 (USD Million)
Table 22 Market in North America, By Voltage, 2014–2023 (USD Million)
Table 23 Market in North America, By Industry, 2014–2023 (USD Million)
Table 24 Market in North America, By Utility, 2014–2023 (USD Million)
Table 25 Digital Substations Market in US, By Module, 2014–2023 (USD Million)
Table 26 Market in US, By Industry, 2014–2023 (USD Million)
Table 27 Market in Canada, By Module, 2014–2023 (USD Million)
Table 28 Digital Substations Market in Canada, By Industry, 2014–2023 (USD Million)
Table 29 Market in Europe, By Country, 2014–2023 (USD Million)
Table 30 Digital Substations Market in Europe, By Module, 2014–2023 (USD Million)
Table 31 Market in Europe, By Hardware, 2014–2023 (USD Million)
Table 32 Market in Europe, By Type, 2014–2023 (USD Million)
Table 33 Market in Europe, By Voltage, 2014–2023 (USD Million)
Table 34 Market in Europe, By Industry, 2014–2023 (USD Million)
Table 35 Market in Europe, By Utility, 2014–2023 (USD Million)
Table 36 Market in UK, By Module, 2014–2023 (USD Million)
Table 37 Market in UK, By Industry, 2014–2023 (USD Million)
Table 38 Market in Germany, By Module, 2014–2023 (USD Million)
Table 39 Market in Germany, By Industry, 2014–2023 (USD Million)
Table 40 Market in France, By Module, 2014–2023 (USD Million)
Table 41 Market in France, By Industry, 2014–2023 (USD Million)
Table 42 Digital Substations Market in RoW, By Country, 2014–2023 (USD Million)
Table 43 Market in APAC, By Module, 2014–2023 (USD Million)
Table 44 Market in APAC, By Hardware, 2014–2023 (USD Million)
Table 45 Market in APAC, By Type, 2014–2023 (USD Million)
Table 46 Market in APAC, By Voltage, 2014–2023 (USD Million)
Table 47 Market in APAC, By Industry, 2014–2023 (USD Million)
Table 48 Market in APAC, By Utility, 2014–2023 (USD Million)
Table 49 Market in China, By Module, 2014–2023 (USD Million)
Table 50 Digital Substation Trends in China, By Industry, 2014–2023 (USD Million)
Table 51 Market in India, By Module, 2014–2023 (USD Million)
Table 52 Market in India, By Industry, 2014–2023 (USD Million)
Table 53 Digital Substations Market in Japan, By Module, 2014–2023 (USD Million)
Table 54 Market in Japan, By Industry, 2014–2023 (USD Million)
Table 55 Digital Substations Market in RoW, By Country, 2014–2023 (USD Million)
Table 56 Market in RoW, By Module, 2014–2023 (USD Million)
Table 57 Market in RoW, By Hardware, 2014–2023 (USD Million)
Table 58 Market in RoW, By Type, 2014–2023 (USD Million)
Table 59 Digital Substations Market in RoW, By Voltage, 2014–2023 (USD Million)
Table 60 Market in RoW, By Industry, 2014–2023 (USD Million)
Table 61 Market in RoW, By Utility, 2014–2023 (USD Million)
Table 62 Digital Substation Market in Middle East, By Module, 2014–2023 (USD Million)
Table 63 Market in Middle East, By Industry, 2014–2023 (USD Million)
Table 64 Market in Africa, By Module, 2014–2023 (USD Million)
Table 65 Digital Substations Market in Africa, By Industry, 2014–2023 (USD Million)
Table 66 Market in South America, By Module, 2014–2023 (USD Million)
Table 67 Market in South America, By Industry, 2014–2023 (USD Million)
Table 68 Ranking of Top 5 Players in Market, 2016


List of Figures (39 Figures)

Figure 1 Digital Substation Market: Research Design
Figure 2 Market Size Estimation Methodology: Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Top-Down Approach
Figure 4 Data Triangulation
Figure 5 Market Expected to Grow Moderately During Forecast Period
Figure 6 Fiber Optic Communication Network Expected to Grow at Highest CAGR During Forecast Period
Figure 7 Digital Substation for Utility Industry Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 8 Transmission Substation Likely to Grow at Higher CAGR in Market Between 2017 and 2023
Figure 9 Market for 220–550 kV Voltage Range Expected to Grow at Highest CAGR During Forecast Period
Figure 10 Market in APAC Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 11 Increase in Demand for Digital Substation in Utility Industry for Renewable Projects
Figure 12 APAC to Register Highest CAGR in Market for Transmission Substation During Forecast Period
Figure 13 Utility Industry and China to Hold Largest Share of Market in APAC in 2017
Figure 14 India Expected to Witness Highest CAGR During Forecast Period
Figure 15 Market Dynamics: Overview
Figure 16 Major Value is Added During Manufacturing & Transmission Phase
Figure 17 Digital Substation Architecture
Figure 18 Hardware Expected to Hold Largest Share of Market for Module During Forecast Period
Figure 19 Market for Transmission Substations Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 20 Digital Substations With Voltage Range of 220–550 kV Expected to Hold Largest Share During Forecast Period
Figure 21 Utility Expected to Hold Largest Share of Market During Forecast Period
Figure 22 Geographic Snapshot: Market in APAC Expected to Grow at Highest CAGR During Forecast Period
Figure 23 Digital Substation Market in India is Estimated to Grow at Highest CAGR Between 2017 and 2023
Figure 24 Ongoing and Planned Substation Project Between 2017 and 2025, By Regional Share
Figure 25 Existing Substation Project Until 2016, By Regional Share
Figure 26 Snapshot of Market in North America
Figure 27 Snapshot of Market in Europe
Figure 28 Snapshot of Market in Asia Pacific
Figure 29 Companies Adopted Product Launches as Key Growth Strategy
Figure 30 Market Evaluation Framework: Product Launches Fuelled Growth and Innovation Between 2015 and 2017
Figure 31 ABB: Company Snapshot
Figure 32 Siemens: Company Snapshot
Figure 33 General Electric: Company Snapshot
Figure 34 Schneider Electric: Company Snapshot
Figure 35 Honeywell: Company Snapshot
Figure 36 Cisco: Company Snapshot
Figure 37 Eaton: Company Snapshot
Figure 38 Emerson: Company Snapshot
Figure 39 Larsen & Toubro: Company Snapshot


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