February 25, 2024

Rising Adoption of Smart Grid Technologies to Fuel Growth of the Substation Monitoring System Market

A substation monitoring system is used to monitor the equipment such as transformers, circuit breakers, and feeders in a substation. It helps in collecting real-time data and providing control functions. The system monitors parameters like voltage, current, temperature, and gas in transmission lines. It alerts the control room staff to take preventive measures if any faults are detected. This ensures uninterrupted power supply and safer operations. The system improves grid reliability and efficiency through continuous performance monitoring of critical assets.

The global Substation Monitoring System Market is estimated to be valued at US$ 5.21 Bn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Adoption of smart grid technologies is a major trend in the market. Smart grid enables two-way communication between utilities and consumer appliances. It helps modernize the grid through real-time monitoring and control. Countries are upgrading their aging power infrastructure with smart grid technologies to meet rising electricity demand. For example, the U.S. government has allocated over US$ 4.5 billion under the American Recovery and Reinvestment Act of 2009 for smart grid projects. This is expected to drive the demand for substation monitoring systems which are an integral part of smart grids. An increase in renewable energy integration is another key trend. Renewable energy sources like solar and wind have intermittent power generation which poses integration challenges. Advanced monitoring solutions help utilities effectively manage intermittent power and maintain grid stability.
Porter’s Analysis

Threat of new entrants: Low-medium, the substation monitoring systems market requires high initial investments for R&D, manufacturing facilities and infrastructure. However, emerging technologies are lowering the entry barriers.

Bargaining power of buyers: Medium, large utility companies have higher bargaining power due to bulk purchasing. However, the need for network optimization and remote asset management increases dependency on subsystem vendors.

Bargaining power of suppliers: Low, the market has several component manufacturers with low switching costs. This limits the suppliers’ control over prices.

Threat of new substitutes: Low, there are nocost-effective substitutes that can offer real-time data monitoring, analytics, cybersecurity and remote operations.

Competitive rivalry: High, the market sees intense competition between global and regional players. Players differentiate based on product customization, integration services and strategic alliances.

Key Takeaways

The global substation monitoring system market is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing investments in grid infrastructure modernization across utilities.

Regional analysis: North America dominates with over 35% share owing to grid modernization initiatives and increased deployment of distribution automation solutions in the US. Asia Pacific exhibits highest growth on back of rising power demand and focus on modernizing aging infrastructure in China and India.

Key players operating in the substation monitoring market are ABB (Switzerland), Honeywell (US), Siemens (Germany), Schneider Electric (France), Emerson Electric (US), General Electric (US), Eaton (Ireland), Schweitzer Engineering Laboratories (US), NovaTech (UK), and Crompton Greaves (India). ABB, Siemens and Schneider Electric collectively hold over 50% market share. _____________________________