The substation automation market has been forecast to increase at a compound annual growth rate (CAGR) of 5.2% over the next five years, increasing from a valuation of $95.30 billion in 2013, to hit a market value of $122.94 billion by 2018.
The major drivers for the substation automation market are grid efficiency and reliability which is the major contributing factor for utilities to go for automation, other drivers like cost saving, reduction in transmission and distribution loss are also contributing to the market growth.
Electrical substations represent the critical interconnections within the power grid, providing the voltage conversion, power conditioning, and protection functions required between the various levels of transmission and distribution networks.
Not surprisingly, substations are a locus of the emerging smart grid, with the automation of substation functions appearing long before the term "smart grid" came into use. Early automation systems reduced or eliminated the need to continuously staff larger substations by offering simple remote monitoring and control.
In the market currently transmission and distribution utilities are focusing on full substation automation of the retrofit substations or partially automated substation that already exist.
The market currently is majorly driven by the Intelligent Electronic Devices (IEDs) and communication networks that are used to control devices and data transfer.
Today, the integration of substation automation functions into the broader smart grid architecture is gradually shifting the nature of the substation automation opportunity toward newly automated smaller distribution substations, and into retrofit modernizations of previously automated transmission substations.
The size, cost, and complexity of substations vary dramatically. Major transmission substations manage power for entire cities, while local distribution substations are the final step into local residential neighbourhood feeder circuits. Regional differences in the structure of the grid also drive differences in substation design.
Hence, substation automation implementations, including supervisory control and data acquisition (SCADA) equipment, communications, protective relays, and other electronic devices, vary by both global location and position within the grid infrastructure.
Major players within the substation automation market include ABB (Switzerland), Alstom (France), General Electric (US), Schweitzer Engg Lab (US); Siemens (Germany), Cooper power Systems (US), NovaTech (U.S.).
For more information on the substation automation market, see the latest research: Substation Automation Market
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