Digital Substation Industry worth USD 19.78 billion by 2030

The report "Digital Substation Industry by Transformers, Busbars, Circuit Breakers, Protection Relays, Switchgears, Interfacing Units, Fiber-optic Communication Networks, SCADA Systems, Transmission Substation and Distribution Substation - Global Forecast to 2030" The digital substation market is expected to reach USD 19.78 billion by 2030 from USD 14.41 billion in 2025 at a CAGR of 6.5%, from 2025 to 2030. Key drivers fueling the growth of the digital substation market include the rapid modernization of power infrastructure, the increasing integration of renewable energy sources, and the growing demand for grid automation and real-time monitoring to improve reliability and operational efficiency. Utilities worldwide are adopting digital substations to enable smarter, safer, and more flexible transmission and distribution networks. Additionally, the rising focus on sustainability and the shift toward SF6-free switchgear technologies are stimulating innovation across hardware and software ecosystems. The adoption of IEC 61850 standards, advances in IoT-based sensor technologies, and improved cybersecurity frameworks are further creating opportunities for utilities and OEMs. These developments are encouraging large-scale investments, ecosystem partnerships, and digital transformation efforts aimed at enhancing grid resilience and supporting future-ready energy systems.

SCADA systems to account for second-fastest growth in module segment.

Supervisory control and data acquisition (SCADA) systems are projected to experience the fastest growth in the digital substation market during the forecast period. The increasing integration of real-time monitoring, automation, and analytics within power substations is fueling demand for advanced SCADA platforms. Utilities and transmission operators are quickly upgrading legacy control systems to digital SCADA architectures that enable remote operation, fault detection, and predictive maintenance. The rising need for grid reliability and operational efficiency, especially with the growing integration of renewable energy and distributed energy resources, is further accelerating adoption. SCADA systems improve situational awareness by offering centralized control and visualization of substation assets, which helps reduce downtime and speeds up outage response. Additionally, advancements in IoT connectivity, cloud computing, and cybersecurity standards such as IEC 62351 are supporting next-generation SCADA platforms with enhanced interoperability and secure data exchange. Collectively, these trends establish SCADA systems as vital for the automation and modernization of digital substations across global transmission and distribution networks.

Up to 220 kV voltage segment to account for largest share in digital substation market.

The up to 220 kV voltage segment is expected to hold the largest share of the digital substation market, mainly due to its widespread application in medium voltage transmission and distribution networks. This voltage range is commonly used by utilities, industrial facilities, and urban substations to manage regional grid connections and incorporate renewable energy sources like wind and solar. The growing emphasis on grid modernization and replacing traditional substations with digital ones within this voltage range are key factors driving market expansion. Digital substations below 220 kV facilitate cost-effective deployment of automation systems, communication networks, and advanced protection relays while supporting distributed energy resource management. Additionally, developing economies in Asia Pacific, Latin America, and Africa are experiencing significant investments in urban power infrastructure, further boosting the demand for compact, modular, and remotely operated substations. The combination of cost effectiveness, scalability, and integration flexibility makes this voltage segment the leading choice for digital substation installations worldwide.

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Asia Pacific to account for largest share in digital substation market.

Asia Pacific is poised to hold the largest share of the digital substation market, driven by strong investments in power grid expansion, renewable integration, and smart infrastructure development. Countries such as China, India, Japan, and South Korea are leading large-scale transmission modernization programs aimed at enhancing grid reliability and energy efficiency. Government initiatives promoting digital transformation and decarbonization of the power sector, like China’s smart grid roadmap and India’s Revamped Distribution Sector Scheme (RDSS), are boosting digital substation adoption. The region’s high electricity demand growth, rapid urbanization, and increasing deployment of solar and wind power further emphasize the need for automation and real-time grid monitoring solutions. Moreover, regional utilities are partnering with global OEMs such as Hitachi Energy, ABB, and Siemens Energy to implement IEC 61850-compliant substations featuring process bus systems, fiber optic communication, and advanced protection relays. The presence of domestic manufacturing and R&D capabilities in countries like China and India strengthens Asia Pacific’s leadership in digital substation deployment and innovation.

The report highlights key players, including 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), and Honeywell International Inc. (US). These companies have implemented various organic and inorganic growth strategies, such as product launches, expansions, acquisitions, partnerships, collaborations, agreements, and investments.