May 18, 2024

The Global Substation Monitoring System Market is Driven by Increasing Demand for Efficient Power Transmission Systems

 

Substation monitoring systems help manage and operate complex power networks efficiently and effectively through real-time data collection and analysis. Substations play a crucial role in conveying electricity generated in bulk to residential and industrial consumers across cities and regions. Substation monitoring systems comprise hardware and software components that monitor various electrical parameters such as voltage, current, power factor, and harmonic distortions through sensors installed within the substation premises. The collected data helps operators identify anomalies and faults, thereby ensuring uninterrupted power supply.

The global substation monitoring system market is estimated to be valued at US$ 4.73 billion 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:
The increasing investments towards upgrading aging power infrastructure along with continuous expansion of transmission and distribution networks across major economies are driving the demand for advanced substation monitoring systems. For instance, the US government has allocated over US$ 10 billion under the Infrastructure Investment and Jobs Act (IIJA) specifically for modernizing power grid infrastructure. Furthermore, growing adoption of Internet of Things (IoT) and cloud-based technologies in power sector has enabled utilities to remotely monitor substations from centralized control rooms, thereby enhancing operational efficiency. Leading manufacturers are also integrating advanced data analytics capabilities in their solutions to help utilities predict equipment failures and perform predictive maintenance. This is further expected to promote widespread adoption of substation monitoring systems during the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the substation monitoring system market is low as it requires large investments and established distribution channels.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of several vendors providing substation monitoring systems with customization options.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the availability of component suppliers and established design expertise among market players.
Threat of new substitutes: The threat of new substitutes is low as substation monitoring systems are an integral part of grid infrastructure with no close substitutes.
Competitive rivalry: The competition among existing players is high due to the presence of global and regional vendors providing innovative solutions.

Key Takeaways
The global substation monitoring system market is expected to witness high growth over the forecast period. The global substation monitoring system market is estimated to be valued at US$ 4.73 billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.

Regional analysis: North America and Europe are expected to dominate the market due to well-established grids and replacements of aging infrastructure in the regions. The Asia Pacific region is anticipated to grow at the fastest pace owing to the rise in investments towards grid modernization and expansion of transmission & distribution networks in countries like China and India.

Key players: Key players operating in the substation monitoring system market are General Electric, Schneider Electric, Siemens, Honeywell, Emerson Electric, Eaton, Schweitzer Engineering Laboratories, Cirais, Enetics, and NovaTech.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it