Global 5G-Enabled Digital Substation Market Size (2024-2030)

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 5G-enabled digital substation market comprises of sales of the 5G-enabled digital substation by various entities such as organizations, sole traders, and partnerships that are used as a communication channel between the relays in the control house in the station. The digital substation integrates digital technology into the substation. The term digital substation refers to an electrical substation in which all the operation is controlled and managed by distributed intelligent electronic devices (IEDs) that are linked by communication networks. It is possible through the use of advanced computing technologies in the substation.

Market Drivers

The inclination of industries toward technological advancements is driving the demand for 5G-enabled digital substation market

In the wake of ever-evolving technological advancements, organizations and enterprises are entering a new era where digital technologies are playing a vital role to stimulate organizational growth. Deep penetration of AI, IoT-based products, smart devices, and a perpetually rising number of mobile applications are together driving the demand for faster and more secure internet connections and bandwidths. Furthermore, the increasing demand for electricity is anticipated to fuel the growth of the 5G-enabled digital substation market. Therefore, the amount of electricity generated by renewables is estimated to rise as well, by 11% in 2023. 

Government initiatives and policies in developing nations align with the interests of organizations fuelling the market growth

The government of different nations are implementing various strategies to support and increase the adoption of automation to improve the overall industrial situation and infrastructural facilities in the economy. Therefore, this inclination of government toward advanced technologies and the formulation of such policies and initiatives to promote it, especially in developing nations, is one of the major factors fuelling the growth of 5G services, thereby augmenting the global market of its digital substations in the upcoming years.

Market Restraints

Increasing security concerns may hinder the market expansion during the forecast period:With large amounts of datasets stored online, their storage and processing have become increasingly complicated, making them difficult to take accountability. The complexity of these technology systems presents unique security breach risks and challenges. The security challenges increase with the increased adoption of IoT and cloud-based services among organizations. Therefore, efficient cybersecurity measures are needed to properly implement these technologies and tackle this problem, restraining the growth of the market.

GLOBAL 5G-ENABLED DIGITAL SUBSTATION MARKET REPORT COVERAGE:

Segmentation Analysis

5G-Enabled Digital Substation Market – By Component:

• Substation automation system

• Communication network

• Electrical system

• Transformer

• Busbar

• Protection devices

• Circuit breaker

• Protective relay

• Switchgear

• Monitoring & control system

• Human machine interface

• Programmable logic controlled

• Other

Based on the component, the 5G-enabled Digital Substation Market has been segmented into 5 segments – Substation automation System, Communication network, Electrical System, Monitoring and Control System, and Others.  

5G-Enabled Digital Substation Market – By Architecture:

• Process

• Bay

• Station

Based on the architecture, the 5G-enabled Digital Substation Market has been segmented into 3 segments – Process, Bay, and Station.

5G-Enabled Digital Substation Market – By Application:

• Transmission

• Distribution

Based on the application, the 5G-enabled Digital Substation Market has been segmented into 2 segments – Transmission and Distribution.

5G-Enabled Digital Substation Market – By Connectivity:

• < 33 kV

• 33 kV to 110 kV

• 110 kV to 220 kV

• 220 kV to 550 kV

• > 550 kV

Based on the connectivity, the 5G-enabled Digital Substation Market has been segmented into 5 segments – < 33 kV, 33 kV to 110 kV, 110 kV to 220 kV, 220 kV to 550 kV, and > 550 kV.

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

• Low

• Medium

• High

Based on the voltage level, the 5G-enabled Digital Substation Market has been segmented into 3 segments – Low, Medium, and High.

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

• Consumer

• BFSI

• Government

• Retail & E-commerce

• Travel & Hospitality, Automotive

• Transportation & Logistics

• IT & Telecommunication

• Others

Based on the end user, the 5G-enabled Digital Substation Market has been segmented into 8 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 anticipated to grow at the highest CAGR of 6.75% during 2023–2028. This growth is due to the growing commercialization of the 5G services for consumer applications across various economies, especially the U.S., China, Japan, Germany, and South Korea. The number of 5G subscribers is rising continuously at a faster pace since 5G provides some advanced features such as lower latency, higher speed, and greater capacity as compared to the 4G LTE networks.The manufacturing sector has also been digitalizing rapidly. Production lines are being automated and evolved continuously to enhance the overall productivity of the system. This has triggered the requirement for seamless wireless communication between robots, sensors, actuators, and other devices in manufacturing facilities. Thus, the manufacturing segment is estimated to showcase the fastest CAGR over the forecasted years. Moreover, key sectors, such as healthcare, are likely to see a considerable adoption of the services to provide enhanced telemedicine facilities and healthcare emergency services during and post-pandemic period.

5G-Enabled Digital Substation Market – By Region:

• North America

• Europe

• Asia-Pacific

• South America

• Middle-East and Africa

Based on region, the 5G-enabled Digital Substation Market has been segmented into 5 major regions – North America, Europe, Asia-Pacific, South America, Middle-East, and Africa. The North American 5G-enabled digital substation market is anticipated to cross USD 2.5 billion by 2028. The increasing energy demand across the U.S. accredited to the ongoing commercial & industrial infrastructure project developments will further augment the regional product and technology penetration. A paradigm shift toward these advanced technologies is estimated to foster product deployment. Additionally, continuous economic growth in the region will boost the regional microgrid infrastructure development even further, which, in turn, is anticipated to proliferate the industry demand during the forecast timeline. Europe is estimated to hold the largest market share and is the largest region in the 5G-enabled digital substation market in 2023. Asia Pacific is anticipated to be the fastest-growing region in the forecast timeline.

5G-enabled Digital Substation Market – By Companies.

1. Emerson Electric

2. ABB

3. Tesco Automation

4. SIFANG

5. General Electric

6. Eaton

7. Rockwell Automation

The 5G-enabled Digital Substation Market is highly fragmented and extremely competitive with key players involved in R&D and constant technological innovation done by the vendors.

Recent Key Industry Developments:

• In February 2021, a Brazilian power transmission and infrastructure provider, Power Do Brasil Participacoes Ltd, acquired a 51% stake in Fasttel Engenharia Ltd for USD 8.8 million. The acquisition allowed Kalpataru Power to capitalize and maximize its profit on the opportunity in Brazil and grow its position in the Latin American market.

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

The global 5G-enabled digital substation market is anticipated to grow from 6.85 billion in 2023 and at a compound annual growth rate (CAGR) of 11.19% through the forecast period. The Russia-Ukraine war further disrupted the chances of global economic recovery from the COVID-19 pandemic, in the short run. The war between these two countries led to an economic crisis and applied sanctions on multiple countries, a surge in commodity prices, supply chain disturbances, and affected many markets across the globe