The incorporation of intelligent electronic devices (IEDs) with a communication network is transforming the analogous system of the substation in the energy and power industry. The digital substation market is anticipated to expand at a CAGR of 7.55% between 2018 and 2024. The technical advancement has led the electrical system for digitization, resulting in implementing digital substations over traditional substations.
The digital substation market is expected to see substantial growth during the forecast period owing to the rising usage of smart grid technology, redevelopment of the older power infrastructure, construction of smart cities and favourable government initiatives, such as the “National Smart Grid Mission” in India, building varying voltage level substation in Qatar with the help of Larsen & Toubro. In addition, reduced maintenance, flexibility and better electric system protection are some additional benefits that are further fueling the demand for the digital substation market. However, the high initial investment will hinder the growth of the digital substation market.
The global digital substation market is segmented in terms of type (transmission substation, distribution substation), voltage level (up to 220KV, 220-550KV, above 550KV), module (hardware, fibre optic, SCADA) and end-user (electric utility, oil and gas, mining, transportation, metal, others). The electric utility is replacing traditional equipment in substations, resulting in a higher demand for digital substations in the electric utility system in comparison with other end-user industries. The real-time operation in the national power grid is demanding more installation of digital substations in SCADA based systems than other modules of digital substations.
In terms of region, the global digital substation market has been classified into North America, South America, Middle East and Africa, Europe and Asia-Pacific. North-America is expected to hold a substantial market share during the forecast period owing to the higher adoption of digital substations in the U.S. and Canada and the availability of cheaper digital substation systems in the region. Asia Pacific region is projected to see a noticeable growth due to rapid industrialization, high investment in the renewable sector, growing urbanization, expansion of power distribution network in countries such as India, China and Singapore. In addition, the rising cost of electricity, increasing nature of power demand and favourable government initiatives are further driving demand for the digital substation in this region.
Finally, this section describes various key players in the digital substation market, their market share, recent developments, financial condition and strategies taken to increase market share. Key players operating in the global digital substation market are ABB Ltd, Siemens AG, Honeywell International Inc, Schneider Electric SE, Eaton Corporation, General Electric Company, Emerson Electric Co., and Larsen & Toubro Limited, among others.
The global digital substation market has been analyzed through the following segments:
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