Substation automation refers to using data from intelligent electronic devices (IED), control and automation capabilities within the substation, and control commands from remote users to control power-system devices.
In the Substation automation process, many intelligent electronic devices are used to provide the efficient and cost-effective distribution of electricity. And with this, there is a growing demand of digital transducers that would create opportunities for substation automation vendors in near future.
According to the ESOMAR-certified market research and consulting firm, the global substation automation market is set to expand at over 5.5% CAGR during the forecast period of 2021 to 2031.
As a result, the requirement for substation automation equipment manufacturers is witnessing an impressive rise in demand in recent years.
With the growing requirement from the utility, steel, mining, and other industries, substation automation equipment suppliers are projected to get highly benefited in the coming years.
According to the report titled “Global Steel Industry Overview” published by the World Steel Organization on 1st December 2020, the global steel supply was 85 Mt in 2018 and grew to 130 Mt over 2019. While this represents the high potential of the global steel industry, it also indicates a further increase in sales of automation equipment.
Key Takeaways from Substation Automation Market Study:
- Communication network is expected to fuel sales due to its high demand while holding nearly one-fifth of the market share
- Rise in the requirement for digital transducers to propel the growth of suppliers
- The United States to lead in the world’s largest substation automation market, North America
- Germany to maintain the lead in the world’s second-largest substation automation market Europe
- France, China, India, the United Kingdom, and a few other countries to take the spotlight for stakeholders in the substation automation market
“The growing requirement for reducing transmission and distribution losses during the transfer of electricity from the grid is boosting the growth of players in the global market. Furthermore, the high potential of the power line communication segment, which is forecast to surpass US$ 11,300 Mn through 2025, will work in favor of stakeholders in this industry,” says an analyst.
In the utility industry, it is of utmost importance to ensure reliable power output and minimize transmission & distribution losses of electricity without outages. And hence the requirement for various types of substation automation such as transmission substations, distribution substations, and others is increasing rapidly with the advancement in this sector.
According to the report titled “Public Procurement in the Utilities Sector: Water, Energy, Transport and Postal Services” published by the European Commission (EC), as in the past, the utility sectors are getting covered by separate and more flexible product procurement rules, which will apply not only to traditional public purchasers such as the state, municipalities, regions, and others but also to public or private companies. This in turn will have a significant contribution in raising the market value of substation automation.
The global market players are subject to experience fiercer competition in the coming years. To secure their places in key positions, they are launching better quality products while targeting a diverse range of end-users.