The Global Distribution Automation Market size is expected to reach $35.9 billion by 2030, rising at a market growth of 11.8% CAGR during the forecast period.
Ethernet networks are highly scalable, making them suitable for distribution automation systems that require expansion or integration with other devices and systems. Hence, Ethernet is poised to register 2/5th share of the market by 2030. It allows adding new devices and services without major disruptions or reconfiguring the entire network. Ethernet supports various security protocols, such as virtual local area networks (VLANs), encryption, and authentication mechanisms, which help safeguard communication and data integrity in distribution automation systems. These security features protect against unauthorized access, data tampering, and network vulnerabilities.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2022, GE Grid Solutions came into partnership with LineVision to provide the world's first integrated portfolio of Grid Enhancing Technologies, offering utilities with a complete Dynamic System Rating. Additionally, In September, 2021, Siemens signed a partnership with Digi-Key Electronics to deliver a broad range of automation and control products.
Based on the Analysis presented in the KBV Cardinal matrix; ABB Group, Schneider Electric SE, Siemens AG, and Eaton Corporation PLC are the forerunners in the Market. In October, 2022, ABB came into an agreement with Insta Automation Oy to strengthen their distribution channels, enhance industry knowledge and maximize lead generation across various industries, consisting of water, food and beverage, pharmaceuticals, and energy. Companies such as General Electric Company and Itron, Inc. are some of the key innovators in the Market.
Demand response, energy storage, distributed generation, and renewable energy are all included in the electric transmission and distribution system. Reduced carbon emissions, enhanced asset utilization due to the incorporation of distributed systems, and improved reliability and resiliency from microgrid uses, which aid in lowering peak loads and the price of electricity, are just a few benefits of integrating renewable energy. In order to reduce carbon emissions in the power distribution system and ensure environmental protection, several utilities strongly emphasize integrating renewable energy. Hence, the rising usage of renewable energy will help support the expansion of the market.
Communication infrastructure is necessary for distribution automation. WiMAX, cellular, fiber optic, radio-frequency (RF) mesh, and ethernet are, in a general sense, the primary communication technologies that are deployed in distribution automation. IoT and distribution automation communication technologies enable two-way communication between software and field devices, allowing quick and effective access to user needs. As a result, the smart grid is more resilient, and the communication sector has a new chance for growth.
Implementing distribution automation systems involves significant upfront costs. This includes the installation of sensors, communication infrastructure, advanced metering equipment, and control devices. Analyzing and processing huge amounts of brand-new data generated by automated equipment is necessary for the adoption of distribution automation. In order to process, analyze, store, and error-check distribution system issues, several smart monitoring devices collect enormous volumes of data. Therefore, the high initial investment required to upgrade and modernize existing distribution networks can be a barrier for utilities and distribution system operators, particularly those with limited financial resources.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
By communication technology, the market is divided into wired and wireless. The wired segment procured the maximum revenue share in the market in 2022. Wired communication technologies, such as fiber optic cables or dedicated copper lines, provide high reliability. This reliability ensures consistent and uninterrupted data transmission, which is critical for real-time monitoring and control of distribution automation systems.
By utility, the market is bifurcated into public and private. The private segment recorded a remarkable growth rate in the market in 2022. The rise in funding and subsidies provided by government agencies to private entities for these systems has been credited for the growth. Strong demand for power is also seen in countries like China and India due to their rapid urbanization.
Based on wired communication technology, the market is segmented into fiber optic, ethernet, powerline carrier, and IP. The fiber optic segment recorded the highest revenue share in the market in 2022. Electromagnetic interference (EMI) as well as radio frequency interference (RFI) cannot affect fiber optic connections in any way. This characteristic makes fiber optics highly reliable in environments where there are electromagnetic fields, high-voltage equipment, or heavy electrical interference.
Based on component, the market is characterized into field devices, software, and services. The field devices segment garnered the highest revenue share in the market in 2022. The segment is growing due to the rising deployment of field devices in distribution automation systems. This equipment handles losses from voltage variations and power interruptions and is a crucial component of the distribution network.
On the basis of field devices, the market is classified into remote fault indicators, smart relays, automated feeder switches/reclosers, automated capacitors, automated voltage regulators, transformer monitors, feeder monitors, remote terminal unit, and others. The automated feeder switches/reclosers segment acquired the largest revenue share in the market in 2022. In order to find issues as quickly as possible, automated feeder switches are utilized in the grids as in case of a problem, they open and close. In the event of a fault, switches that are part of the power system can also be set up to open and close.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 14.9 Billion |
| Market size forecast in 2030 | USD 35.9 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 11.8% from 2023 to 2030 |
| Number of Pages | 345 |
| Number of Table | 573 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Communication Technology, Utility, Component, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed the highest revenue share in the market in 2022. Due to rising electricity consumption from remote areas and the rising need for integrating renewable energy sources, the market in this region is expanding, as seen by increased expenditures in smart grids. Countries like China, Japan, and Australia are responsible for a substantial portion of the region's growth.
Free Valuable Insights: Global Distribution Automation Market size to reach USD 35.9 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ABB Group, Schneider Electric SE, Siemens AG, Eaton Corporation PLC, General Electric Company, Itron, Inc., Toshiba Corporation, Xylem, Inc., G&W Electric, and S&C Electric Company
By Communication Technology
By Utility
By Component
By Geography
The Market size is projected to reach USD 35.9 billion by 2030.
Intensifying incorporation of renewable energy are driving the Market in coming years, however, Cost and technical challenges because of increased data processing and analyzing restraints the growth of the Market.
ABB Group, Schneider Electric SE, Siemens AG, Eaton Corporation PLC, General Electric Company, Itron, Inc., Toshiba Corporation, Xylem, Inc., G&W Electric, and S&C Electric Company
The expected CAGR of this Market is 11.8% from 2023 to 2030.
The Public segment is leading the Global Distribution Automation Market by Utility in 2022, achieving a market value of $24.2 billion by 2030.
The Asia Pacific market dominated the Global Distribution Automation Market by Region in 2022 and would continue to be a dominant market till 2030; thereby, achieving a market value of $13.4 billion by 2030.
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