Electric Power Distribution Automation Systems Market: The surging demand by utilities is projected to spur sales

Posted On Dec, 04, 2020

The escalating investments in industrial and infrastructural developments in the Asia Pacific and North American regions are expected to fuel the distribution automation systems demand over the forecast period. The mounting electricity demand has led to the development and enlargement of power infrastructures, which necessitates the installation of these systems.

The growing demand for alternative energy and rising cost of generating electricity have led to the transformation of conventional electric grid to smart grid. Smart grid or automation allows the modernization and easy adaptability of existing power grids to future energy demand. Automation significantly helps power operators to manage energy and react quickly to the changing demands, subsequently boosting the network efficiency.

Distributed automation systems provide increased situational awareness through communication, sensors, and intelligent controls. These systems also help stabilize the distribution grids that handle a large amount of decentralized power generation plants, which is anticipated to drive the overall distribution automation systems market growth.

The graph above suggests that the industrial segment accounted for a significant share in 2015. The emergence of smart cities is expected to benefit substation automation over the forecast period. There is a rising need for developing countries, such as India, to address sustainability and network issues of outage response, which would help them reduce the cost per kilowatt-hour. Smart grids can prove to be an efficient way of bringing transformative operations. Hence, as countries are increasingly choosing to upgrade their infrastructure for the smart city initiative, the demand for automation systems is expected to increase.

Electric power distribution automation systems by implementation, 2015 (%)

Electric Power Distribution Automation Systems

Analyst Perspective

The rise in manufacturing and other industrial activities in Asia Pacific is expected to catapult the demand for electric power distribution automation systems over the forecast period. The countries in Asia Pacific, particularly China, are projected to witness a significant growth in the near future owing to the espousal of automation across industrial, commercial, and residential applications.

With the escalating need of utilities to automate manufacturing operations and enhance grid efficiency, the market is expected to witness a substantial growth over the forecast period. However, rising security concerns and lack of global standards are anticipated to hamper the market growth.

The rising electricity demand in Asia Pacific is projected to offer several avenues for the adoption of automated solutions across the utilities. Several factors, such as growing reliability and efficiency of distribution systems, abridged outage durations, and cost & maintenance reduction coupled with the enhanced power quality are expected to drive the global distribution automation market.

Moreover, power quality improvement, islanding operation, self-healing functionality, load shedding, and energy efficiency boost the demand for the advanced distribution automation industrial segment. As such, the electric power distribution automation systems market is expected to witness a substantial growth over the forecast period.

key  In-depth report on electric power distribution automation systems market by Grand View Research:


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