Distribution Automation Market: Overview
The market size for Distribution Automation was USD 11.1 billion in 2021, and it is projected to grow at a CAGR of 7.3 percent during the forecast period. Global distribution automation will rise during the projection period as a result of an increase in the production of renewable energy. The distribution automation market is expanding globally due to an increase in the proportion of renewable energy sources in the overall energy mix. Additionally, it has been observed that the current infrastructure needs to be updated because it is getting older. This is all good news for the market for distribution automation.
The distribution automation market is anticipated to increase due to replacing outdated power distribution systems. Power distribution infrastructure that is clever and modern will likely be in high demand, opening up many business prospects. Government obligations to improve grid efficiency drive distribution automation technology adoption in the utility and energy industries. The industry is also driven by the rising proportion of renewable energy sources. Snohomish County PUD upgraded their existing substations' electrical systems in June 2021. The PUD has scheduled maintenance, equipment replacement, and automation upgrades at numerous substations.
The global distribution automation market's participants should find appealing development opportunities with bidirectional grid investment. Furthermore, adopting next-generation digital power supply technology will probably open up appealing development opportunities for players in the global distribution automation market. For instance, in December 2021, ABB India and Indore Smart City Development Ltd worked together to implement cutting-edge digital technology that guarantees uninterrupted power service to homes and businesses. Major players in the global distribution automation market are concentrating on forging alliances to expand their market shares. In May 2021, industrial automation component distributor BPX and Schneider Electric formed a partnership. BPX became Schneider Electric's alliance master industrial automation distributor for Ireland.
Distribution Automation Market: COVID-19 Impact
The COVID-19 pandemic has caused major market disruptions that have resulted in sizable revenue losses. Strict government regulations, a lack of labor, and issues with the supply chain are some of the main causes of these delays. For the market participants, the global economic slowdown has created several difficulties. After the COVID-19 pandemic, a gradual pick-up in public infrastructure construction and renovation will expand the market's potential. Obtaining the raw materials and components needed for production is one of the numerous difficulties faced by manufacturers and suppliers of automation technology, which has caused delays in the supply of goods. These elements caused multiple supply chain delays. Along with the elements mentioned above, strict lockout restrictions significantly impacted the demand for distribution automation solutions.
Distribution Automation Market: Drivers
Exponential Growth in Global Electricity Demand and Grid Infrastructures to Drive Market Growth
Global electricity demand and grid infrastructure growth will likely open up new business opportunities. The requirement for energy efficiency, rapid defect detection, and supply network protection will drive technology demand. Furthermore, rising demand from the residential, commercial, and industrial sectors and rising distributed energy generation will generate new opportunities for expanded technology adoption, particularly in emerging nations. For instance, the U.S. Energy Information Administration (EIA) estimates that global energy consumption will increase by 50% between 2018 and 2050 in its International Energy Outlook 2019. Most of this expansion will come from countries rather than the Organization for Economic Cooperation and Development (OECD). The expansion will concentrate on markets with strong economic growth and rising demand, particularly in Asia-Pacific.
Merger and Acquisition Initiatives by Key Players to Drive Market Growth
Various industry players are always engaging in organic and inorganic expansion efforts to expand their product portfolio and reach around the globe, hence accelerating the use of this type of distribution system. For instance, in September 2019, G&W Electric acquired Tozzi Electrical Equipment to extend its markets globally and improve its power grid solutions to satisfy IEC standards. In addition, Builders FirstSource Inc., Dallas, has acquired WTS Paradigm LLC, a software solutions and services provider based in Middleton, Wisconsin, for USD 450 million. To improve their position in the global market, major firms use alliances, acquisitions, and other tactics. The complexity of the power distribution infrastructure and expanding investment opportunities in grid expansion projects are projected to drive a sizable market share throughout the projection period.
Distribution Automation Market: Restraints
High Initial Installation Costs to Hamper Market Growth
The high installation costs associated with distribution automation systems are anticipated to limit market expansion. Furthermore, technical challenges associated with these systems are projected to hinder market expansion. Furthermore, the vulnerability to cyberattacks is a key element that raises concerns among end users and hampers the market's growth. Following the onset of the pandemic in 2020, the market has faced functional and demand constraints, which would be a major issue during the projection period. The lack of investment is lowering the availability of durable raw materials, which will cause additional problems for the industry throughout the projection period.
Distribution Automation Market: Segment Overview
Public Sector to Dominate Market Owing to Growing Publically Owned Utilities
Due to the growth of publicly owned utilities during the forecast period, the public utility sector will account for a significant share. The utility industry is divided into two divisions: public utility and private utility. The public utility industry is predicted to grow significantly due to the growing number of publicly owned electric utilities worldwide. The public utility industry is likely to develop due to government offerings to public utilities. Furthermore, during the market forecast period, the private utility sector is predicted to develop faster. The increase in government funding for these systems is due to the expansion. Moreover, rising urbanization in countries such as India and China necessitates a high need for electricity. This driving force behind the market growth for the category is luring investors to invest in distribution automation systems.
Field Devises Category to Dominate Owing to Increased Deployment in these Systems
Due to the rising deployment of field devices in these systems, the field devices category is likely to represent a considerable percentage of the global market. These devices are an essential component of the distribution network, assisting in managing losses caused by voltage variations and power outages. Field devices aid grid operators in controlling reliability and outages, asset health management, reactive power management, and distributed energy resources. Furthermore, the software segment is predicted to develop greatly due to a growing trend of IoT and communication system adaption to new technological advancements. Low maintenance costs, quick restoration times, and enhanced efficiency drive market segment growth. These services collect track data and keep track of switch status to monitor and regulate the electric supply network remotely. Keeping track of power quality, error, and remote control of the distribution track, also keeps the track operating at its best.
Distribution Automation Market: Regional Landscape
Asia Pacific to Dominate Market due to Rising Investments in Smart Grid Initiatives
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. Due to rising investments in smart grid initiatives, the region is anticipated to experience increased demand for distribution automation solutions. Nations like Australia, China, and Japan are driving significant expansion in the region. In addition, the region's market growth is anticipated to benefit from factors like quick industrialization and a growing shift toward sustainable energy to address rising energy needs. Due to the significant investment in smart grid initiatives, the region is anticipated to have a high demand for distribution automation systems. In October 2021, Electricite de France S.A. joined forces with NTPC to further investigate power project advancement opportunities in the Asia Pacific.
The North American market is anticipated to experience stable revenue growth throughout the forecast period due to new communication and IoT technology developments. Additionally, the region's industry is anticipated to grow faster due to the presence of several important companies. For instance, the SEL-421 Protection, Automation, and Control System from Schweitzer Engineering Laboratories (SEL) feature improved Time-Domain Link (TiDL) technology. TiDL technology is a protection-focused digital secondary system that uses fiber connections instead of copper connections to improve security and lower expenses. It offers the ability to share data, specialized merging units and contemporary setup software. The region is quickly adopting distribution automation systems to keep up with the rising electricity demand. For instance, in June 2021, AES Ohio, a utility with headquarters in Dayton, received regulatory approval from the state of Ohio to establish a smart grid in the area. According to the proposal, the utility will spend more than USD 109 million on technologies such as substation automation, enhanced distribution management, and distribution automation. Austin Utilities, based in Minnesota, chose Aclara's RF network earlier in April for its end-to-end AMI (advanced metering infrastructure) for multiutility services. This network supports distribution automation and other applications.
Global Distribution Automation Market: Competitive Landscape
In June 2021, GE announced the addition of Proficy operations analytics to its industry-leading Proficy suite of software solutions to support modernization, continuous improvement, enterprise visibility and scalability with new cloud-based predictive analytics. Proficy operations analytics is a self-service, ready-to-deploy predictive operations center for AI and industrial IoT. Similarly, in September 2019, Schneider Electric and Meglab agreed to integrate Schneider Electric's medium voltage hardware with Meglab's low voltage bundle to provide more adaptable, adjustable, and effective power and automation solutions for clients across multiple industries.
Few of the players in the Distribution Automation Market include GE (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Itron (US), Landis+Gyr (Switzerland), Hubbell (US), CE Power Engineered Services (US), S&C Electric Company (US), Eaton (Ireland), Schweitzer Engineering Laboratories (US), G&W Electric (US), Xylem (US), Beckwith Electric (US), Toshiba (Japan), Mitsubishi Electric (Japan), Minsait ACS (US), Ingeteam (US), Kalkitech (India), and Trilliant Holdings (US).
Regional Classification of the Global Distribution Automation Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Distribution Automation Market
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1. Executive Summary
1.1. Global Distribution Automation Market Snapshot
1.2. Key Market Trends
1.3. Future Projections
1.4. Analyst Recommendations
2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
22.214.171.124. Driver A
126.96.36.199. Driver B
188.8.131.52. Driver C
184.108.40.206. Restraint 1
220.127.116.11. Restraint 2
2.2.3. Market Opportunities Matrix
2.3. Value Chain Analysis
2.4. Porter’s Five Forces Analysis
2.5. Covid-19 Impact Analysis
2.5.1. Pre-covid and Post-covid Scenario
2.5.2. Supply Impact
2.5.3. Demand Impact
2.6. Government Regulations
2.7. Technology Landscape
2.8. Economic Analysis
3. Global Distribution Automation Market Outlook, 2019 - 2030
3.1. Global Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
3.1.1. Key Highlights
18.104.22.168. Field Devices
3.2. Global Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
3.2.1. Key Highlights
3.3. Global Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
3.3.1. Key Highlights
3.3.2. BPS Analysis/Market Attractiveness Analysis
3.4. Global Distribution Automation Market Outlook, by Region, Value (US$ Mn), 2019 - 2030
3.4.1. Key Highlights
22.214.171.124. North America
126.96.36.199. Asia Pacific
188.8.131.52. Latin America
184.108.40.206. Middle East & Africa
3.4.2. BPS Analysis/Market Attractiveness Analysis
4. North America Distribution Automation Market Outlook, 2019 - 2030
4.1. North America Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
4.1.1. Key Highlights
220.127.116.11. Field Devices
4.2. North America Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
4.2.1. Key Highlights
4.3. North America Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
4.3.1. Key Highlights
4.4. North America Distribution Automation Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
4.4.1. Key Highlights
4.4.2. BPS Analysis/Market Attractiveness Analysis
5. Europe Distribution Automation Market Outlook, 2019 - 2030
5.1. Europe Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
5.1.1. Key Highlights
18.104.22.168. Field Devices
5.2. Europe Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
5.2.1. Key Highlights
5.3. Europe Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
5.3.1. Key Highlights
5.4. Europe Distribution Automation Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
5.4.1. Key Highlights
22.214.171.124. Rest of Europe
5.4.2. BPS Analysis/Market Attractiveness Analysis
6. Asia Pacific Distribution Automation Market Outlook, 2019 - 2030
6.1. Asia Pacific Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
6.1.1. Key Highlights
126.96.36.199. Field Devices
6.2. Asia Pacific Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
6.2.1. Key Highlights
6.3. Asia Pacific Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
6.3.1. Key Highlights
6.4. Asia Pacific Distribution Automation Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
6.4.1. Key Highlights
188.8.131.52. South Korea
184.108.40.206. Southeast Asia
220.127.116.11. Rest of Asia Pacific
6.4.2. BPS Analysis/Market Attractiveness Analysis
7. Latin America Distribution Automation Market Outlook, 2019 - 2030
7.1. Latin America Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
7.1.1. Key Highlights
18.104.22.168. Field Devices
7.2. Latin America Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
7.2.1. Key Highlights
7.3. Latin America Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
7.3.1. Key Highlights
7.4. Latin America Distribution Automation Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
7.4.1. Key Highlights
22.214.171.124. Rest of Latin America
7.4.2. BPS Analysis/Market Attractiveness Analysis
8. Middle East & Africa Distribution Automation Market Outlook, 2019 - 2030
8.1. Middle East & Africa Distribution Automation Market Outlook, by Component, Value (US$ Mn), 2019 - 2030
8.1.1. Key Highlights
126.96.36.199. Field Devices
8.2. Middle East & Africa Distribution Automation Market Outlook, by Communication Technology, Value (US$ Mn), 2019 - 2030
8.2.1. Key Highlights
8.3. Middle East & Africa Distribution Automation Market Outlook, by Utility Type, Value (US$ Mn), 2019 - 2030
8.3.1. Key Highlights
8.4. Middle East & Africa Distribution Automation Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
8.4.1. Key Highlights
188.8.131.52. South Africa
184.108.40.206. Rest of Middle East & Africa
8.4.2. BPS Analysis/Market Attractiveness Analysis
9. Competitive Landscape
9.1. Company Market Share Analysis, 2021
9.2. Competitive Dashboard
9.3. Company Profiles
9.3.1. ABB Ltd.
220.127.116.11. Company Overview
18.104.22.168. Product Portfolio
22.214.171.124. Financial Overview
126.96.36.199. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
9.3.2. Siemens AG
9.3.3. Schneider Electric
9.3.5. Xylem Inc.
9.3.6. Eaton Corporation
9.3.7. Mitsubishi Electric
9.3.12. NARI Technology
9.3.13. XJ Group Corporation
9.3.14. G&W Electric Co.
9.3.15. Hitachi Energy
9.3.17. Honeywell International Inc.
9.3.18. S&C Electric Company
10.1. Research Methodology
10.2. Report Assumptions
10.3. Acronyms and Abbreviations
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.View Methodology