Digital substation
The rising need for secure electrical networks across several industrial, commercial, utility and residential applications is set to boost digital substation market growth over the next few years. In fact, the global digital substation market size crossed $7-billion (€6.35-billion) in 2018 and is anticipated to depict a compound annual growth rate (CAGR) of over 7% through 2025. According to a research report by Global Market Insights, Inc. the global digital substation market is expected to surpass $13-billion (€11.8-billion) by 2025.
A digital substation is an electrical substations where operation is managed between distributed intelligent electronic devices interconnected by communications networks.
Moreover, favourable regulatory mandates and policies, facilitated by standardised product specifications for both installers and consumers will boost industry outlook. Shifting trends towards sustainable electricity infrastructure adoption and electrification of off-grid networks is also likely to foster a positive growth trajectory for the industry. In recent times, the digital substation market scenario has gained considerable momentum, as a result of proliferating concerns pertaining to health, supply faults in electricity, fires and other industrial hazards.
Substandard electricity infrastructure in developing economies favoured by paradigm shift towards enhancement of the current electrical network is presenting lucrative opportunities for industry expansion. Likewise, evolving product specifications in tandem with numerous strategic business initiatives like mergers & acquisitions being undertaken by key industry players will add further impetus to digital substation market trends.
Myriad government initiatives and policies have had significant impact on the digital substation industry landscape, outlining several guidelines for the efficient production and implementation of these systems. Standalone regions prove to be vital for installers and regulators of the products owing to their vast potential for business expansion. Furthermore, burgeoning demand for energy backed by shifting consumer preferences towards the incorporation of sustainable energy infrastructure will stimulate market dynamics.
In the APAC region, the digital substation market size surpassed $2.5-billion (€2.27-billion) in 2018. The demand for electricity in the region is propelled majorly by planned and in-progress commercial and industrial facilities. Evolution of trends pertaining to the renewal of overhead transmission lines with underground wires and aerial bunched cables will promote the adoption of this technology. Likewise, economic advancements and an enhanced technological landscape will bolster the augmentation of micro-grid networks, spurring the digital substation industry outlook in the region.
With regards to the APAC digital substation market scenario, the India industry is poised to accumulate proceeds worth over $600-million ($545-million) by 2025. India and fellow developing economies are regarded as lucrative revenue pockets for the industry owing to their ongoing efforts to improve the existing power and network capacities in order to fulfil the mounting demand for electricity in the region.
Furthermore, initiatives pertaining to security, grid safety and reliability have led to a sizeable increase in the demand for sustainable product adoption. For instance, in 2016 the Indian Government launched the “One Nation -One Grid” initiative to connect all state grids with the aim of achieving a single tariff structure nationwide. Manufacturing sectors across several developed economies are also key contributors towards revenue realisation and investments in the digital substation industry. These economies exhibit considerable dependence on processed products which in turn reinforces utility and preferences of installers towards the enhancement of renewable energy infrastructure.
Also, the global proliferation of the mining and metal extraction sectors has resulted in a sizeable increase in demand for power networks in order to authenticate the reliability of processes and continuous operations.
Source :- https://www.gminsights.com/industry-analysis/digital-substation-market
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