Growing electricity demand across various industrial sectors to fuel the global digital substation market outlook through 2026
The increasing installation of advanced electrical control and monitoring devices is slated to push the global digital substation market share over the forthcoming timeframe. Mounting energy demand across the world would also play a pivotal role in fostering overall market expansion over the coming years. In fact, owing, in part, to the aforementioned factors, the market was valued for more than $8 billion in 2019.
Over the forthcoming years, favorable government initiatives towards the electrification of areas that have a limited or no access to power would positively influence industry growth. The market would also observe significant expansion owing to the wide-scale integration of renewables coupled with the rising demand for incorporation of innovative and advanced generation technologies in existing grid infrastructures as well as new establishments across the world.
While the large scale renewable integration is expected to further add up to the digital substations demand, positive geographic, consumer, as well as regulatory proximities would also fuel the digital substation market outlook through the projected timeframe.
The energy consumption is witnessing a significant upsurge over the recent years, primarily due to increasing suburban migration in the developing areas. Furthermore, rapid commercialization supported by growing per capita income has further instigated the expansion of a plethora of commercial establishments, which is subsequently plating a key role is fostering the market growth.
Digital substations would also observe increasing adoption due to an upsurge in the energy use from industrial, residential, commercial sectors as well as utility aided customers. In fact, this increasing demand has led installers to further expand and restructure the electrical grid network with new, updated systems.
In addition, the growing dependency of the global populous on processed products and manufactured goods has further led to a large scale expansion of a number of manufacturing plants, facilities, small scale companies, and other similar industries across the globe. These enterprises require copious amounts of power supply for their daily operations, which in turn is expected to increase the deployment of digital substations.
Apart from this, increasing demand for upgraded and automated electrical equipment throughout the existing grid network is likely to further push product demand in the analysis timeframe. Furthermore, increasing R&D investments coupled with private as well as public led fund flow towards secure and safe power supply would further proliferate the overall industry scenario.
Taking 2018 for instance, ABB unveiled Ability based technology to enhance safety, efficiency, security, and reliability of the air-insulated digital substation with control equipment, protection, and MicroSCADA system.
Geographically, the Asia Pacific digital substation market is anticipated to observe substantial growth over the coming years due to the increasing peak load demand in the region. Additionally, increasing consumer concerns towards secure and stable electricity supply throughout the grid would further complement the business scenario across the region over the coming years. Furthermore, the regional market is also poised to witness an upsurge in the deployment of digital substations due to the incorporation of renewable energy power sources and the expansion of micro grid structure.
The competitive landscape of the global digital substation market is inclusive of players such as Schneider Electric, Emerson Electric, Siemens, GE, and ABB among others.