Fueled by growing electricity needs, that are driving demand for reliable and safe electrical networks, digital substation market is anticipated to undergo a period of exponential growth over the forthcoming years.
Digital substations bring great flexibility to the electricity grid, particularly in terms of engineering, design, operation, and installation. Attributing to this flexibility, modifications can be accommodated easily, off-the-shelf solutions to problems can be adopted, system integrity can be assured through embedded diagnostics and the amount of cabling, and by association costs, can be reduced greatly.
These prominent benefits are majorly responsible for promoting adoption of digital substations over its conventional counterpart across several regions. Additionally, numerous grid upgradation activities across number of developed nations is expected to further bring growth to digital substation industry share during the forthcoming years.
Impact of rising global electricity demand on global digital substation market size
Attributing to the rapid growth of several emerging economies, demand for electricity has been going up substantially over the past couple of years. Going forward, to meet energy requirements while adhering to long-term carbon emission reduction goals, decentralization and digital transformation of the energy infrastructure in becoming critical.
It is anticipated that this need would be opening up greater avenues of growth for the digital substation market in coming years.
The Potential: According to the International Energy Agency, in 2018, demand for electricity across the world went up by 4% approximately 900 terawatt-hours (TWh). The demand increased nearly twice as quick as overall energy demand, reaching its fastest pace since 2010.
The Conditions: While nuclear and renewable energy sources facilitated a majority of the increase in energy demand, power-generation from gas and coal fired plants also increased considerably, driving up carbon emissions consequently.
The Opportunity: Today, efforts to rein in carbon emissions are picking up more momentum. Incorporation of electricity networks that are more sustainable and electrification throughout stand-alone electrical grid infrastructure are increasingly presenting favorable growth scenarios.
This trend is expected to further foster the growth of digital substation market size across several regions.