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Home Artificial Intelligence

Increased Electricity Demand Fuels Growth Of The Digital Substation Market: A Key Catalyst Accelerating Global Digital Substation Market Growth in 2025

October 14, 2025
in Artificial Intelligence, OpenPR, Web3
Reading Time: 7 mins read
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Digital Substation

Digital Substation

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Digital Substation Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In the past few years, the digital substation market has seen robust growth. The market is projected to expand from $7.85 billion in 2024 to $8.48 billion in 2025, boasting a compound annual growth rate (CAGR) of 8.0%. The historical growth in this market can be traced back to numerous factors including increasing energy demand, improved grid monitoring needs, the potential for operational and maintenance cost savings, along with the stringent regulatory compliance requirements.

Digital Substation Market Size Forecast: What’s the Projected Valuation by 2029?
In the coming years, the digital substation market is predicted to experience swift expansion. It is projected to escalate to $14.14 billion in 2029, with a compound annual growth rate (CAGR) of 13.6%. The projected growth throughout the forecast period can be credited to factors including grid decentralization, transportation electrification, standardization and interoperability, and the swift pace of urbanization along with electrification. The key trends throughout the forecast period encompass a surge in the adoption of IoT and sensors, the utilization of edge computing for real-time processing and the application of artificial intelligence and machine learning, as well as remote monitoring, maintenance, and fortified communication networks.

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https://www.thebusinessresearchcompany.com/report/digital-substation-global-market-report

What Are the Drivers Transforming the Digital Substation Market?
Forecasted escalation in electricity consumption is set to drive the expansion of the digital substation market. Digital substations are increasingly supplanting conventional copper cable with cutting-edge fiber-optics transmitters that convert electrical signals into optical ones. Power grids and transformers employ digital substations to curtail losses during electric transmission. The International Energy Agency, in their 2023 projection, foresees global electricity demand surging by an accelerated 3% annually over the 2023-2025 span, outpacing the growth rate in 2022. This projected surge mirrors the ongoing resurgence of industrial and economic activities, the proliferation of energy-intense services and technologies across the globe. Consequently, the escalating demand for electricity is fueling the growth of the digital substation market.

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What Long-Term Trends Will Define the Future of the Digital Substation Market?
Trend 1

Strategic partnerships are becoming a crucial trend in the digital substation market, with digital solution providers forging alliances to keep up with the swiftly evolving digital transformation scenario. For example, Hitachi Ltd, an electronics firm from Japan, teamed up with the East Japan Railway Company in September 2023 to build a comprehensive digital substation system by 2025. The innovation will facilitate dual setup of transmission lines and protection and control mechanisms within the substation territory. This would ensure a reliable railway transit system through the consistent provision of power. It would also enhance construction efficiency by reducing the facility size. Similarly, in another development in March 2023, Tata Power, a comprehensive power company in India, entered into a partnership agreement with Italy’s Enel Group, a green energy and AI firm, to boost digitization and automation of Indian power distribution networks. The introductory pilot project aims at enhancing the digitization and automation of secondary substations. Tata Power will participate in Gridpertise’s unique QEd – Quantum Edge Device international co-creation initiative. This joint effort will result in virtualized grid functions, providing efficient network security and control, automation, instant issue detection, and service recovery.

Which Segments in the Digital Substation Market Offer the Most Profit Potential?
The digital substationmarket covered in this report is segmented –

1) By Voltage Level: Low, Medium, High
2) By Type: Transmission, Distribution
3) By Module: Fiber Optics Communication Network, Supervisory Control And Data Acquisition, Hardware
4) By Industry Vertical: Power Generation, Metal & Mining, Oil & Gas, Transportation & Logistics, Defense & Aerospace, Process & Manufacturing, Other Industry Verticals

Subsegments:
1) By Low Voltage: Distribution Automation, Smart Metering Solutions, Protective Relays
2) By Medium Voltage: Circuit Breakers, Voltage Regulators, Substation Automation Systems
3) By High Voltage: Transformer Monitoring Systems, High Voltage Circuit Breakers, Advanced Protection And Control Systems

Tailor your insights and customize the full report here:
https://www.thebusinessresearchcompany.com/customise?id=5982&type=smp

Which Firms Dominate the Digital Substation Market by Market Share and Revenue in 2025?
Major companies operating in the digital substation market include ABB Ltd., NR Electric Co. Ltd., Eaton Corporation Inc., Schneider Electric SE, General Electric Company, Larsen & Toubro Ltd., Siemens AG, Toshiba Corporation, DNV GL, Hitachi Ltd., iGrid S. L., Kalki Communication Technologies Private Limited, Locamation, Panasonic Corporation, Cisco Systems Inc., Honeywell International Inc., Emerson Electric Co., Mitsubishi Electric Corporation, Schweitzer Engineering Laboratories Inc., G Power and Industrial Solutions Limited, Arteche Group Corporation, EFACEC Power Solutions SGPS S. A., Alstom Ltd., Hyundai Electric & Energy Systems Co. Ltd., Powell Industries Inc., Rittal GmbH & Co. KG, Belden Inc., Beckwith Electric Co. Inc., ERLPhase Power Technologies Ltd.

Which Regions Offer the Highest Growth Potential in the Digital Substation Market?
Europe was the largest region in the digital substation market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital substation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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1.Business Leaders & Investors – To identify growth opportunities, assess risks, and guide strategic decisions.
2.Manufacturers & Suppliers – To understand market trends, customer demand, and competitive positioning.
3.Policy Makers & Regulators – To track industry developments and align regulatory frameworks.
4.Consultants & Analysts – To support market entry, expansion strategies, and client advisory work.

Speak With Our Expert:
Saumya Sahay
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Asia: +91 88972 63534,
Americas – +1 310-496-7795 or
Email:saumyas@tbrc.info
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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

This release was published on openPR.

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