Digital Substation Market Share

North America Market Analysis

North America in digital substation market is projected to hold more than 48.7% revenue share by 2037. Utilities are facing the challenges of aging infrastructure and the integration of renewable energy sources, hence the adoption of digital substations becomes essential. Advanced systems facilitate real-time monitoring and automation, which can greatly improve operational performance and minimize downtime. Probably, it has to do with the desperate desire to modernize the electrical infrastructure to support more sustainable and resilient energy structures means of ensuring timely distribution for evolving energy requirements.

The U.S. digital substation market is growing at a rapid pace on account of an urgent desire to modernize old electrical network structures. For instance, in February 2024, GE Vernova introduced a new line of grid automation products, GridBeats to improve grid resilience. The innovative software-defined automation solutions are intended to modernize and digitize grid operations in utilities with cutting-edge capabilities for substation digitization. In addition, the implementation of smart grid initiatives aims to increase the efficiency of operations and facilitate a more sustainable energy system.

In Canada, the market will grow at a moderate pace due to government commitments to shift to a low-carbon economy. As Canada continues to increase its reliance on renewable energy sources, digital substations are necessary to enhance grid efficiency and reliability. This strategic shift supports sustainability and also gives a resilient energy infrastructure that would be ready to address future demands. In addition, the rise of smart cities and the increasing deployment of smart grids globally are contributing to the market's expansion.

Europe Market Statistics

Europe is expected to witness substantial growth in the digital substation market during the forecast timeline from 2025 to 2037. It is driven by the ambitious decarbonization targets set by the region and the integration of renewable energy. In addition, Europe nations are raising their demand for advanced grid technologies based on the ambition of meeting climate goals, with enhanced operational efficiency and reliability. The most relevant growth reason is the commitment of the European Union to smart grid initiatives, which relate to modernizing energy infrastructure and facilitating the smooth integration of distributed energy resources.

The digital substation market is especially gaining high prominence in France due to the country's focus on a shift towards a more sustainable system by installing digital substations. For instance, in February 2022, Enedis and Schneider Electric implemented an initiative centered on a new generation of MV/LV substation equipment to substitute SF6 gas. Enedis has committed to a 20% reduction in its carbon footprint by 2025. Meeting these ambitious energy transition goals calls for strategic modernization.

The driver of the digital substation market in Germany can be attributed to the increasing need for high-level solutions to be placed on grids, in a bid to absorb the share of intermittent renewable energy sources such as wind and solar power. Installing digital substations is an important step toward this transition because it opens the door to real-time analysis and automation of data. For instance, in October 2021, Siemens Energy launched the world's first environmentally friendly facility, the new high-voltage substation in Burladingen, Germany. It runs without SF6 and has been digitalized with new equipment for connectivity and intelligence.