What Transformation Has the Substation Automation Market Undergone?
The substation automation market has seen considerable growth due to a variety of factors.
•The size of the substation automation market has expanded significantly in the past few years. A surge from $35.9 billion in 2024 to $38.12 billion in 2025 is projected, with a compound annual growth rate (CAGR) of 6.2%.
The unprecedented growth during the historic period is due to factors such as heightened concerns about weight management, dietary restrictions and choices, increases in gluten-free and low-carb diets, governmental sugar reduction initiatives, and widespread adoption of a healthy lifestyle.
How Will The Substation Automation Market Size Evolve In The Foreseeable Future?
The substation automation market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the substation automation market is projected to witness robust expansion, reaching "$54.66 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.4%.
The escalation projected for this period can be linked to an increase in diabetes and obesity statistics, a growing elderly population, the surge in e-commerce, educational initiatives on sugar awareness, facets of sustainability, and amplified interest in plant-based diets. Key trends during this projected period encompass innovative flavor variations, the adoption of clean labels and natural components, innovation in packaging, the rise of e-commerce and direct-to-customer sales techniques, along with personalization and customization.
Which Drivers Are Accelerating Growth In The Substation Automation Market?
There's an expected boom in the substation automation market due to the increasing demand for electric power. Electric power, which is the amount of energy transmitted over a given period, has seen a surge in demand, necessitating improved efficiency in the electrical grid system. Substation automation aids in various operations like monitoring and controlling power supply at substations to guarantee a consistent and stable electricity supply, recognizing and rectifying faults in real time, and averting power blackouts. As an example, in January 2024, global electricity demand rose by 2.2% in 2023, according to the International Energy Agency (IEA), an autonomous intergovernmental organization based in France. In 2022, electricity demand in the United States saw a 2.6% increase. As a result, the growing demand for electric power is driving the expansion of the substation automation market.
What Are The Core Segments Of The Global Substation Automation Market?
The substation automation market covered in this report is segmented –
1) By Component: Hardware, Software
2) By Rated Voltage: Low Voltage, Medium Voltage, High Voltage
3) By Communication: Optical Fiber Communication Channel, Power Line Communication Channel, Copper Wire Communication Channel, Ethernet, Other Communication
4) By Module: Supervisory Control and Data Acquisition (SCADA), Intelligent Electronic Devices (IED), Communication Network, Other Module
5) By End-User Industry: Utilities, Steel, Oil And Gas, Mining, Transportation
Subsegments:
1) By Hardware: Intelligent Electronic Devices (IEDs), Communication Network Devices, Remote Terminal Units (RTUs), Programmable Logic Controllers (PLCs), Human-Machine Interface (HMI) Devices
2) By Software: Supervisory Control And Data Acquisition (SCADA), Energy Management Systems (EMS), Substation Automation System
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Which Emerging Trends Are Reshaping The Substation Automation Market Size?
A significant trend emerging in the substation automation market is the escalation in digitization of substation automation systems. Important players in the market are focusing on developing digital solutions for substation automation systems that can closely monitor and assess the electricity power grid system in real time. For example, in May 2022, US-based Doble Engineering Company, a provider of diagnostic testing solutions for the electric power industry, launched the Doble F6880 Digital Network Analyzer. This tool is designed to identify and correct issues related to communication and network performance in IEC 61850 digital substation systems. The F6880 connects to the station networks using copper or optical fiber Ethernet cables, digitizes the data and scrutinizes for any discrepancies from the initial engineering designs using IEC 61850 sampled values and Generic Object-Oriented Substation Events (GOOSE). This allows for effective diagnostic of any faulty digital signals.
Who Are the Key Players in the Substation Automation Market?
Major companies operating in the substation automation market include:
• Schneider Electric SE
• Siemens AG
• General Electric Co.
• Black & Veatch Holdings Company
• Valiant Communications
• ABB Limited
• Omicron Electronics GmbH
• Hitachi Energy Limited
• Milsoft Utility Solutions
• Honeywell International Inc.
• Rockwell Automation Inc.
• Power Systems Engineering
• Eaton Corporation
• NovaTech LLC
• Crompton Greaves Ltd.
• Mitsubishi Electric Corporation
• GE Grid Solutions
• Emerson Electric Co.
• Efacec Power Solutions
• Arteche
• Schweitzer Engineering Laboratories
• Yokogawa Electric Corporation
• Applied System Engineering Inc.
• Enel S.p.A
What are the Regional Insights into the Substation Automation Market?
North America was the largest region in the substation automation market in 2024. Asia-pacific is expected to be the fastest-growing region in the global substation automation market during the forecast period. The regions covered in the substation automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
