Digital Substation Market, 34% of Growth to Originate from APAC, Technavio
NEW YORK, April 16, 2024 /PRNewswire/ -- The global digital substation market size is estimated to grow by USD 2923.01 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 7% during the forecast period. APAC held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 34%.
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APAC is expected to play a pivotal role in propelling the global digital substation market
Geographic Landscape:
The Digital Substation Market in APAC is experiencing robust growth, driven by the electrical generation, transmission, and distribution systems of industries in China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. Key factors include rising industrialization, increasing demand for medium-voltage and low-voltage motors, and investments in power, water and wastewater treatment, food and beverage, and automotive industries. SCADA systems and fiber-optic communication networks are integral to this growth, with voltage segments ranging from medium to high. The renewable energy sector's expansion and the need for cybersecurity are also significant drivers. Companies like General Electric (GE) and Siemens lead the industry landscape, investing in advanced, secure, and adaptable technologies. R&D spendings and technological platforms facilitate product adoption, addressing electricity demand and regulatory reforms. Despite budget constraints and ongoing projects, continuous investments in grid infrastructure, smart meters, and smart grids are essential for providing affordable, uninterrupted electricity in developing economies. The strategic approach to efficient, cost-competitive solutions is crucial in the face of restrictions on movement and social distancing measures.
Research Analysis
The Digital Substation Market is experiencing significant growth in the electrical generation, transmission, and distribution systems industry landscape. This trend is driven by the adoption of secure and adaptable technologies, such as SCADA systems and fiber-optic communication networks. These technologies enable real-time monitoring and control of voltage segments in electrical grids, enhancing the reliability and efficiency of electric utilities. Manufacturers and suppliers are investing heavily in R&D spendings to develop advanced product offerings based on technological platforms like Industrial Internet of Things (IIoT) and Artificial Intelligence (AI). The competitive landscape is intensifying as industry development and digitization continue to accelerate. Transformers, a crucial component of power systems, are also being integrated into digital substations to optimize performance and reduce maintenance costs. Overall, the digital substation market is poised for innovation and growth in the coming years.
Market Drivers
The Digital Substation Market is experiencing significant growth with the integration of IIoT in Transformers and Substations for Power Generation and Distribution. IIoT enables smart Maintenance, distributed Intelligence systems, and Predictive Analytics. LAN and Fiber-optic communication networks facilitate secure data transmission. Security systems ensure Cybersecurity against potential threats. Key players like ABB, GE, and Siemens provide advanced Hardware and SCADA systems. Transmission and Distribution Substations in industries such as Mining, Metal, and Electrical Utilities benefit from IIoT, reducing costs and enhancing efficiency. Sulfur hexafluoride (SF6) is used in Transformers for insulation, but its high global warming potential necessitates the exploration of alternative solutions. Advanced Technologies like Fiber optic cables and Voltage segments cater to the needs of the Renewable Energy Sector. Cybersecurity remains a critical concern, necessitating the adoption of Secure Technologies. Suppliers play a vital role in providing reliable solutions for Non-renewable and Renewable Energy Resources.
Market Overview
The Digital Substation Market is a significant segment of the power industry, characterized by the implementation of advanced technologies such as SCADA, fiber-optic communication, and smart grids. Transmissions systems and distribution networks are key components of digital substations, enabling efficient energy transfer and management. The use of technologies like telemetry, automation, and control systems enhances system performance, reliability, and security. Industries like oil and gas, renewable energy, and utilities are major consumers of digital substations, driven by the need for modernization and grid optimization. The market is projected to grow steadily due to increasing demand for reliable and efficient power transmission and distribution. Companies like Siemens, ABB, and Schneider Electric are major players in the digital substation market.
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About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Technavio Research
Jesse Maida
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UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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