Substation Automation Market size was over USD 31.94 billion in 2024 and is likely to reach USD 73.1 billion by the end of 2037, growing at around 6.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of substation automation is assessed at USD 33.63 billion. The growth of this market is driven by the increasing investment in renewable energy sources to meet energy demands. Currently, solar and wind are the epicenter of power generation with most economies at least generating 20% of their electricity with these two sources. As per a report by International Energy Agency, in 2019 the global share of renewable resources in power generation reached 25%. By 2050, it is anticipated to offer a share of approximately 86% in global power generation.
Moreover, the increasing global population and higher electricity demand are estimated to boost the market expansion in the projected period. Electricity is becoming as crucial in people's daily lives as water and air. As per the research industrial, residential, and commercial domains each account for one-third of total electricity use.
Growth Drivers
However, substation automation systems are the latest generation system designed in a way keeping in mind the functional needs and they perform functions of protection, automation, and control. These have become significant components in energy consumption systems. Therefore, these factors are projected to boost the demand for automation substations in the energy and utility section.
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.7% |
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Base Year Market Size |
USD 31.94 billion |
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Forecast Year Market Size |
USD 73.1 billion |
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Regional Scope |
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Substation Automation Segmentation
Stage (Retrofit, New)
Based on the stage, the new segment in the substation automation market is projected to observe the largest revenue by the end of 2037. This is attributed to the increasing need for new power plants and smart grids across numerous industries, as well as the growing need for automation, IED, improved communication technologies, HMIs, and SCADA systems.
As they offer higher operational safety and reliability at low maintenance prices, to propel the power flow, enhance the quality of the power supply, update power infrastructure, and improve electric reliability multiple companies have launched new installation projects. For instance, GE signed an agreement with Botswana Power Corporation for the supply, design, installation, testing, and commissioning of SCADA at the principal grid control center in the BPC main office and backup control center in Francistown in July 2018.
End User (Utility, Electronics)
Substation automation market from the utility segment is anticipated to dominate with a revenue share of 53% during the forecast timeframe. This growth of the segment is expected to rise as a result of increased government measures to modernize power systems and increased investments in renewable energy generation.
However, in the current situation, the demand for substations automation can be seen more in the wind industry due to the joining of government organizations and market players in wind farm projects.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Communication Mode |
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Stage |
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End User |
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North American Market Forecast
The North American substation automation market is expected to dominate the market by registering the highest CAGR in the predicted period. This can be assumed owing to the rising adoption of advanced electronic devices. Moreover, escalating adoption of smart grids in the region is also estimated to boost market growth. For instance, over 90 million smart meters were installed throughout the U.S. in 2019.
APAC Market Statistics
The Asia Pacific market for substations automation is estimated to account for lucrative market value between 2023 – 2037. The expansion of the regional market can be attributed to changing energy infrastructure, which is supported by rising industrialization in developing countries. The growing demand for smart grids and smart electric meters to optimize energy utilization, along with the initiatives to promote the use of renewable is projected to promote market growth in the region.
Author Credits: Dhruv Bhatia
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