Digital Substation Companies - Siemens Energy (Germany) and ABB Ltd. (Switzerland) are the Key Players

The digital substation market is projected to reach USD 19.78 billion by 2030 from USD 14.41 billion in 2025 at a CAGR of 6.5% during the forecast period.

The main growth drivers for the digital substation market include the rapid modernization of power grids and the increasing integration of renewable energy sources into electrical networks. Growing adoption of intelligent electronic devices (IEDs), fiber-optic communication, and IEC 61850-based automation systems supports real-time monitoring, predictive maintenance, and improved grid reliability. Opportunities are emerging from expanding smart grid infrastructure, the use of digital twins, and cybersecurity-focused substation upgrades. However, high initial costs and interoperability challenges among multiple vendor systems remain significant barriers. Additional challenges such as a shortage of skilled workers, complex legacy system integration, and evolving regulatory requirements continue to affect large-scale deployment. As utilities, EPCs, and transmission operators increasingly adopt data-driven automation and advanced protection systems, the demand for digital substations is expected to grow steadily during the forecast period.

Major Digital Substation Companies Include:

• Hitachi Energy (Switzerland)
• Siemens Energy (Germany)
• GE Vernova (US)
• ABB Ltd. (Switzerland)
• Schneider Electric (France)
• Eaton Corporation (Ireland)
• Mitsubishi Electric Corporation (Japan)
• Toshiba Energy Systems & Solutions Corporation (Japan)
• Cisco Systems Inc. (US)
• Honeywell International Inc. (US)

Siemens Energy employs a dual approach of technological innovation and strategic collaboration to strengthen its position in the global digital substation market. On the organic growth front, in December 2024, the company launched SIPROTEC 5 firmware V9.90, incorporating improved process bus compatibility, modular I/O configurations, and embedded Ethernet switching to enhance fault detection, reliability, and spatial efficiency within high-voltage systems. Earlier in 2024, Siemens Energy expanded its Sensproducts range by integrating Sensgear and Sensformer technologies at Netze BW’s Burladingen pilot digital substation in Germany. This project used IoT-connected, SF6-free switchgear and edge analytics, reducing emissions by approximately 30% while enabling continuous digital twin-based monitoring. In terms of inorganic growth, in March 2024, Siemens Energy partnered with National Grid (UK) under the Eastern Green Link 4 (EGL4) transmission project to implement IEC 61850 communication protocols and cloud-based analytics for predictive performance and operational resilience. By combining innovative product development with digital grid collaborations, Siemens Energy continues to advance cybersecure, interoperable, and sustainable solutions across modern substation infrastructure.

ABB leverages both internal product innovation and external partnerships to expand its global presence in the Digital Substation industry. On the organic side, the company’s Relion® 650 series continues to set benchmarks in digital protection and control, providing process bus sampling at 80 samples per cycle, full IEC 61850-9-2 LE compliance, and advanced time synchronization through PTP and PPS. The 2024 updates to this platform focus on improved connectivity and cybersecurity for hybrid and GIS-based substations, reducing cabling requirements while enhancing interoperability. In December 2024, ABB completed an agreement to acquire Siemens Gamesa’s power electronics division, adding advanced inverter systems and digital control platforms that boost its digital substation and renewable energy integration capabilities, including grid-forming features to maintain stability amid variable renewable loads. Additionally, ABB maintains long-standing collaborations in the Asia-Pacific region, including projects with Korea Electric Power Corporation (KEPCO), where a September 2024 MoU centered on deploying a 50 Mvar high-inertia flywheel system to stabilize Jeju Island’s renewable-dominant grid. By aligning ongoing product development with global partnerships, ABB continues to shape the future of intelligent substations and digital grid transformation.

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Market Ranking

The market ranking for major companies such as Hitachi Energy (Switzerland), Siemens Energy (Germany), ABB (Switzerland), GE Vernova (US), and Schneider Electric (France) is based on several key factors, including market share, product portfolio, technological innovations, and global presence.

Market leadership in the digital substation space is fueled by technology maturity, deployment readiness, global utility partnerships, and strength in IEC 61850-native architectures. Hitachi Energy stands out for its early adoption of process-bus implementation, hybrid HVDC, and digital twin integration, as well as its dominance in high-voltage grid modernization projects. Siemens Energy shows strong influence in utility digitalization policies and provides deep interoperability across SCADA, ADMS, AI-edge, and cybersecurity, positioning it strongly in Europe and Asia. ABB maintains a long-standing strength in protection and control, offering one of the most advanced modular digital substation portfolios for renewable-heavy grids with proven stability in sub-cycle fault response. GE Vernova, through its software-defined GridBeats platform, is highly competitive in engineering-led high-voltage deployments that require rapid real-time visibility and wide-area monitoring. Schneider Electric leads in sustainability-optimized medium-voltage digital substations, gaining strong traction in data centers, smart infrastructure, and energy-intensive industrial settings. Together, these companies define the cutting edge of grid innovation and automation.