Digital Substation Market to grow at a CAGR of 7% from 2022 to 2027, Driven by the growing demand for compact automation solutions - Technavio

NEW YORK, March 14, 2023 /PRNewswire/ -- The global digital substation market size is estimated to grow by USD 2,923.01 million from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 7% during the forecast period. The growing demand for compact automation solutions is a major factor driving the growth of the global digital substation market. Challenges related to designing at the control level have increased significantly due to the advent of the Industrial Internet of Things (IIoT). IIoT provides several benefits, such as real-time communication capability, increased efficiency of industrial automation control systems, and higher reliability. The rising adoption of IoT-enabled devices leads to design challenges related to price reductions. The use of IIoT for manufacturing and factory automation facilitates smart maintenance, distributed intelligence systems, and predictive analytics. Vendors also swiftly upgrade the features of their products based on end-user requirements. Hence, the growing demand for compact automation solutions is expected to drive the growth of the market during the forecast period.

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Digital Substation Market - Segmentation Assessment
Segment Overview
Technavio has segmented the market based on type (transmission and distribution), component (hardware, fiber-optic communication networks, and SCADA systems), and geography (APAC, North America, Europe, South America, and Middle East and Africa).

• The market share growth by the transmission segment will be significant for the market growth during the forecast period. In the power industry, digital substations like PLCs control and supervise power system automation. They find applications in transformer substations to detect transmission-related anomalies. Programmable sequential switching operations are a major application area of digital substations. 

Geography Overview
By geography, the global digital substation market is segmented into APAC, North America, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global digital substation market.

• APAC is estimated to contribute 34% to the growth of the global digital substation market during the forecast period. Some of the key factors contributing to the growth include government initiatives for digitalization, rising standards of living, a strong industrial base, and increasing demand for automobiles in the region. There has been a rising demand for both passenger and commercial vehicles in the region.

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Digital Substation Market – Market Dynamics

Leading trends influencing the market 

The growing focus on expanding the capabilities of micro PLCs is a major trend in the global digital substation market. Owing to the increasing technological advances, vendors have developed micro PLCs with high-speed communication capabilities to control larger machines while featuring large program memory and capabilities to support multiple communication. Furthermore, some vendors provide additional features like analog and temperature I/O expansion modules to already launched or existing products to increase efficiency. Hence, such product expansions and developments in micro PLCs will increase their demand in process and discrete industries. This leads to a positive impact on the growth of the global digital substation market during the forecast period.

Major challenges hindering the market growth

One of the major challenges that may impede the growth of the market is the concern over cyber threats. In the last few years, various cyberattacks targeting the energy sector have occurred worldwide. As hackers devise new means to gain access to critical information by carrying out ransomware and distributed denial of service (DDoS) attacks, cyber threats also evolve constantly. Even as vendors try to improve the security of power monitoring and control software, the continually evolving nature of cyberattacks has put the use of power monitoring and control software at risk. This may hinder the growth of the global digital substation market during the forecast period.

Insights on market drivers, trends, & challenges, historic period(2017 to 2021), and forecast period(2023 to 2027)- Request a sample report!

What are the key data covered in this Digital Substation Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the digital substation market between 2023 and 2027
• Precise estimation of the size of the digital substation market and its contribution to the market with a focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the digital substation market across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of digital substation market vendors

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Related Reports:

The packaged substation market size should rise by USD 3.96 billion from 2022 to 2026 at a CAGR of 7.41%. The increasing urbanization and industrialization are notably driving the packaged substation market growth. 

The substation wide area monitoring system market has the potential to grow by USD 338.88 million during 2021-2025, and the market's growth momentum will decelerate at a CAGR of 22.04%. The rise in investments in smart grid projects will be the primary factor driving the substation-wide area monitoring system market growth during the forecast period.

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Table of Contents 

1 Executive Summary

• 1.1 Market overview
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Type
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Component
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global digital substation market 2017 - 2021 
• Exhibit 18: Historic Market Size – Data Table on Global digital substation market 2017 - 2021 ($ million)

• 4.2 Type Segment Analysis 2017 - 2021 
• Exhibit 19: Historic Market Size – Type Segment 2017 - 2021 ($ million)

• 4.3 Component Segment Analysis 2017 - 2021 
• Exhibit 20: Historic Market Size – Component Segment 2017 - 2021 ($ million)

• 4.4 Geography Segment Analysis 2017 - 2021 
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ million)

• 4.5 Country Segment Analysis 2017 - 2021 
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ million)

5 Five Forces Analysis

• 5.1 Five forces summary
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Type

• 6.1 Market segments
• Exhibit 30: Chart on Type - Market share 2022-2027 (%)
• Exhibit 31: Data Table on Type - Market share 2022-2027 (%)

• 6.2 Comparison by Type
• Exhibit 32: Chart on Comparison by Type
• Exhibit 33: Data Table on Comparison by Type

• 6.3 Transmission - Market size and forecast 2022-2027 
• Exhibit 34: Chart on Transmission - Market size and forecast 2022-2027 ($ million)
• Exhibit 35: Data Table on Transmission - Market size and forecast 2022-2027 ($ million)
• Exhibit 36: Chart on Transmission - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Transmission - Year-over-year growth 2022-2027 (%)

• 6.4 Distribution - Market size and forecast 2022-2027 
• Exhibit 38: Chart on Distribution - Market size and forecast 2022-2027 ($ million)
• Exhibit 39: Data Table on Distribution - Market size and forecast 2022-2027 ($ million)
• Exhibit 40: Chart on Distribution - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Distribution - Year-over-year growth 2022-2027 (%)

• 6.5 Market opportunity by Type 
• Exhibit 42: Market opportunity by Type ($ million)

7 Market Segmentation by Component

• 7.1 Market segments
• Exhibit 43: Chart on Component - Market share 2022-2027 (%)
• Exhibit 44: Data Table on Component - Market share 2022-2027 (%)

• 7.2 Comparison by Component 
• Exhibit 45: Chart on Comparison by Component
• Exhibit 46: Data Table on Comparison by Component

• 7.3 Hardware - Market size and forecast 2022-2027 
• Exhibit 47: Chart on Hardware - Market size and forecast 2022-2027 ($ million)
• Exhibit 48: Data Table on Hardware - Market size and forecast 2022-2027 ($ million)
• Exhibit 49: Chart on Hardware - Year-over-year growth 2022-2027 (%)
• Exhibit 50: Data Table on Hardware - Year-over-year growth 2022-2027 (%)

• 7.4 Fiber-optic communication networks - Market size and forecast 2022-2027 
• Exhibit 51: Chart on Fiber-optic communication networks - Market size and forecast 2022-2027 ($ million)
• Exhibit 52: Data Table on Fiber-optic communication networks - Market size and forecast 2022-2027 ($ million)
• Exhibit 53: Chart on Fiber-optic communication networks - Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Fiber-optic communication networks - Year-over-year growth 2022-2027 (%)

• 7.5 SCADA systems - Market size and forecast 2022-2027 
• Exhibit 55: Chart on SCADA systems - Market size and forecast 2022-2027 ($ million)
• Exhibit 56: Data Table on SCADA systems - Market size and forecast 2022-2027 ($ million)
• Exhibit 57: Chart on SCADA systems - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on SCADA systems - Year-over-year growth 2022-2027 (%)

• 7.6 Market opportunity by Component 
• Exhibit 59: Market opportunity by Component ($ million)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 60: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 61: Chart on Market share by geography 2022-2027 (%)
• Exhibit 62: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 63: Chart on Geographic comparison
• Exhibit 64: Data Table on Geographic comparison

• 9.3 APAC - Market size and forecast 2022-2027 
• Exhibit 65: Chart on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 66: Data Table on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 67: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 68: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.4 North America - Market size and forecast 2022-2027 
• Exhibit 69: Chart on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 70: Data Table on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 71: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 72: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.5 Europe - Market size and forecast 2022-2027 
• Exhibit 73: Chart on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 74: Data Table on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 75: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 76: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.6 South America - Market size and forecast 2022-2027 
• Exhibit 77: Chart on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 78: Data Table on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 79: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 80: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.7 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 81: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 82: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 83: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 84: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.8 China - Market size and forecast 2022-2027 
• Exhibit 85: Chart on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 86: Data Table on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 87: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 88: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.9 US - Market size and forecast 2022-2027 
• Exhibit 89: Chart on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 90: Data Table on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 91: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 92: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.10 UK - Market size and forecast 2022-2027 
• Exhibit 93: Chart on UK - Market size and forecast 2022-2027 ($ million)
• Exhibit 94: Data Table on UK - Market size and forecast 2022-2027 ($ million)
• Exhibit 95: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 96: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.11 Japan - Market size and forecast 2022-2027 
• Exhibit 97: Chart on Japan - Market size and forecast 2022-2027 ($ million)
• Exhibit 98: Data Table on Japan - Market size and forecast 2022-2027 ($ million)
• Exhibit 99: Chart on Japan - Year-over-year growth 2022-2027 (%)
• Exhibit 100: Data Table on Japan - Year-over-year growth 2022-2027 (%)

• 9.12 Germany - Market size and forecast 2022-2027 
• Exhibit 101: Chart on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 102: Data Table on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 103: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 104: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 105: Market opportunity by geography ($ million)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges 
• Exhibit 106: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape
• Exhibit 107: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption
• Exhibit 108: Overview on factors of disruption

• 11.4 Industry risks
• Exhibit 109: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered
• Exhibit 110: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 111: Matrix on vendor position and classification

• 12.3 ABB
• Exhibit 112: ABB - Overview
• Exhibit 113: ABB - Product / Service
• Exhibit 114: ABB - Key offerings

• 12.4 Cadillac Automation and Controls 
• Exhibit 115: Cadillac Automation and Controls - Overview
• Exhibit 116: Cadillac Automation and Controls - Product / Service
• Exhibit 117: Cadillac Automation and Controls - Key offerings

• 12.5 Cisco Systems Inc.
• Exhibit 118: Cisco Systems Inc. - Overview
• Exhibit 119: Cisco Systems Inc. - Business segments
• Exhibit 120: Cisco Systems Inc. - Key news
• Exhibit 121: Cisco Systems Inc. - Key offerings
• Exhibit 122: Cisco Systems Inc. - Segment focus

• 12.6 Eaton Corp. Plc
• Exhibit 123: Eaton Corp. Plc - Overview
• Exhibit 124: Eaton Corp. Plc - Business segments
• Exhibit 125: Eaton Corp. Plc - Key news
• Exhibit 126: Eaton Corp. Plc - Key offerings
• Exhibit 127: Eaton Corp. Plc - Segment focus

• 12.7 Emerson Electric Co.
• Exhibit 128: Emerson Electric Co. - Overview
• Exhibit 129: Emerson Electric Co. - Business segments
• Exhibit 130: Emerson Electric Co. - Key news
• Exhibit 131: Emerson Electric Co. - Key offerings
• Exhibit 132: Emerson Electric Co. - Segment focus

• 12.8 General Electric Co.
• Exhibit 133: General Electric Co. - Overview
• Exhibit 134: General Electric Co. - Business segments
• Exhibit 135: General Electric Co. - Key news
• Exhibit 136: General Electric Co. - Key offerings
• Exhibit 137: General Electric Co. - Segment focus

• 12.9 Honeywell International Inc. 
• Exhibit 138: Honeywell International Inc. - Overview
• Exhibit 139: Honeywell International Inc. - Business segments
• Exhibit 140: Honeywell International Inc. - Key news
• Exhibit 141: Honeywell International Inc. - Key offerings
• Exhibit 142: Honeywell International Inc. - Segment focus

• 12.10 iGrid T and D
• Exhibit 143: iGrid T and D - Overview
• Exhibit 144: iGrid T and D - Product / Service
• Exhibit 145: iGrid T and D - Key offerings

• 12.11 Larsen and Toubro Ltd. 
• Exhibit 146: Larsen and Toubro Ltd. - Overview
• Exhibit 147: Larsen and Toubro Ltd. - Business segments
• Exhibit 148: Larsen and Toubro Ltd. - Key news
• Exhibit 149: Larsen and Toubro Ltd. - Key offerings
• Exhibit 150: Larsen and Toubro Ltd. - Segment focus

• 12.12 NovaTech LLC
• Exhibit 151: NovaTech LLC - Overview
• Exhibit 152: NovaTech LLC - Product / Service
• Exhibit 153: NovaTech LLC - Key offerings

• 12.13 NR Electric Co. Ltd.
• Exhibit 154: NR Electric Co. Ltd. - Overview
• Exhibit 155: NR Electric Co. Ltd. - Product / Service
• Exhibit 156: NR Electric Co. Ltd. - Key offerings

• 12.14 Open Systems International Inc. 
• Exhibit 157: Open Systems International Inc. - Overview
• Exhibit 158: Open Systems International Inc. - Product / Service
• Exhibit 159: Open Systems International Inc. - Key offerings

• 12.15 Schneider Electric SE 
• Exhibit 160: Schneider Electric SE - Overview
• Exhibit 161: Schneider Electric SE - Business segments
• Exhibit 162: Schneider Electric SE - Key news
• Exhibit 163: Schneider Electric SE - Key offerings
• Exhibit 164: Schneider Electric SE - Segment focus

• 12.16 Siemens AG
• Exhibit 165: Siemens AG - Overview
• Exhibit 166: Siemens AG - Business segments
• Exhibit 167: Siemens AG - Key news
• Exhibit 168: Siemens AG - Key offerings
• Exhibit 169: Siemens AG - Segment focus

• 12.17 Tekvel
• Exhibit 170: Tekvel - Overview
• Exhibit 171: Tekvel - Product / Service
• Exhibit 172: Tekvel - Key offerings

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist 
• Exhibit 173: Inclusions checklist
• Exhibit 174: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 175: Currency conversion rates for US$

• 13.4 Research methodology
• Exhibit 176: Research methodology
• Exhibit 177: Validation techniques employed for market sizing
• Exhibit 178: Information sources

• 13.5 List of abbreviations 
• Exhibit 179: List of abbreviations

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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