REPORT DESCRIPTION

Market Size and Overview:

Global 5G-Enabled Digital Substation Market is valued at USD 2.87 billion in 2023 and is projected to reach a market size of USD 6.03 billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.19%.

Market Overview:

The sector encompassing sales of 5G-enabled digital substations by various entities, including organizations, sole traders, and partnerships, serves as a communication conduit between relays within control houses at stations. These digital substations integrate digital technology into their operations, where all functions are controlled and managed by distributed intelligent electronic devices (IEDs) linked through communication networks, facilitated by advanced computing technologies.

Market Drivers

The demand for 5G-enabled digital substations is propelled by industries' inclination towards technological advancements. As organizations and enterprises embrace digital technologies to drive growth, the landscape witnesses a surge in AI, IoT-based products, smart devices, and mobile applications, necessitating faster and more secure internet connections and bandwidths. Additionally, the escalating demand for electricity, expected to rise by 11% in 2023 with the increased generation from renewables, further fuels the market.

Government initiatives and policies in developing nations bolster market growth by aligning with organizational interests. Governments worldwide are implementing strategies to promote automation, enhancing industrial landscapes and infrastructural facilities. Particularly in developing nations, government inclination towards advanced technologies, coupled with policy formulations to encourage adoption, drives the growth of 5G services and subsequently the global market for digital substations.

Market Restraints

The forecasted market expansion may encounter hindrances due to escalating security concerns. As vast datasets migrate online, their storage and processing complexities pose accountability challenges, accentuated by the intricate nature of technology systems. The proliferation of IoT and cloud-based services exacerbates security risks, necessitating robust cybersecurity measures to mitigate threats. Failure to address these challenges effectively restrains market growth.

Segmentation Analysis

5G-Enabled Digital Substation Market – By Component:

The breakdown of the 5G-enabled Digital Substation Market by component includes:

• Substation automation system
• Communication network
• Electrical system
• Transformer
• Busbar
• Protection devices
• Circuit breaker
• Protective relay
• Switchgear
• Monitoring & control system
• Human-machine interface
• Programmable logic controller
• Others

Segmentation is structured into five segments: Substation automation System, Communication network, Electrical System, Monitoring and Control System, and Others.

5G-Enabled Digital Substation Market – By Architecture:

The segmentation based on architecture consists of three segments:

• Process
• Bay
• Station

5G-Enabled Digital Substation Market – By Application:

Segmentation by application comprises two segments:

• Transmission
• Distribution

5G-Enabled Digital Substation Market – By Connectivity:

Connectivity segmentation is divided into five segments based on voltage levels:

• < 33 kV
• 33 kV to 110 kV
• 110 kV to 220 kV
• 220 kV to 550 kV
• 550 kV

5G-Enabled Digital Substation Market – By Voltage Level:

Segmentation by voltage level includes three segments:

• Low
• Medium
• High

5G-Enabled Digital Substation Market – By End User:

End-user segmentation encompasses eight segments:

• Consumer
• BFSI
• Government
• Retail & E-commerce
• Travel & Hospitality
• Automotive
• Transportation & Logistics
• IT & Telecommunication
• Others (Energy & Utilities, Education, Agriculture, Healthcare, Manufacturing)

The consumer segment is expected to experience the highest CAGR of 6.75% during 2023–2028 due to the increasing commercialization of 5G services, particularly in economies such as the U.S., China, Japan, Germany, and South Korea. The manufacturing sector's rapid digitalization is triggering the need for seamless wireless communication, leading to the segment's fastest CAGR. Additionally, key sectors like healthcare are anticipated to witness significant adoption for enhanced telemedicine facilities and emergency services.

5G-Enabled Digital Substation Market – By Region:

The segmentation by region covers five major regions:

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East and Africa

The North American market is projected to surpass USD 2.5 billion by 2028, driven by increasing energy demand and ongoing infrastructure projects. Europe currently holds the largest market share, while Asia Pacific is expected to witness the fastest growth.

5G-enabled Digital Substation Market – By Companies:

Key players in the market include:

• Emerson Electric
• ABB
• Tesco Automation
• SIFANG
• General Electric
• Eaton
• Rockwell Automation

The market is highly fragmented and competitive, with significant R&D and technological innovation among vendors.

Recent Key Industry Developments:

In February 2021, Power Do BrasilParticipacoes Ltd acquired a 51% stake in FasttelEngenharia Ltd for USD 8.8 million, enabling Kalpataru Power to capitalize on opportunities in Brazil and strengthen its position in the Latin American market.

COVID-19 Impact on the Global 5G-enabled Digital Substation Market:

The market is expected to grow from USD 6.85 billion in 2023, with a CAGR of 11.19% through the forecast period. The Russia-Ukraine war has further disrupted global economic recovery from the COVID-19 pandemic, leading to economic crises, sanctions, commodity price surges, and supply chain disturbances worldwide.