The global distribution automation market, valued at USD 11.1 billion in 2021, is on track for substantial expansion with a projected Compound Annual Growth Rate (CAGR) of 7.3 percent during the forecast period. The surge in renewable energy production and the need to modernize aging power distribution infrastructure are driving the global distribution automation markets growth.
Key Drivers:
- Renewable Energy Production: The increasing production of renewable energy sources is fueling the growth of the distribution automation market. As the proportion of renewable energy in the global energy mix rises, theres a greater demand for modernizing power distribution systems to accommodate these changes.
- Infrastructure Modernization: The need to update outdated power distribution systems is creating lucrative business prospects. Governments and industries are realizing the importance of efficient and modern distribution infrastructure, leading to a higher demand for distribution automation solutions.
Impact of COVID-19:
The COVID-19 pandemic disrupted the distribution automation market, resulting in significant revenue losses due to government regulations, supply chain issues, and labor shortages. Despite these challenges, the post-pandemic period is expected to witness a gradual recovery in public infrastructure construction and renovation projects, thus bolstering the potential for market expansion.
Distribution Automation Market: Drivers
- Global Electricity Demand and Grid Infrastructure Growth: As the demand for electricity and grid infrastructure expansion continue to rise, the distribution automation market is presented with new growth opportunities. The need for energy efficiency, rapid defect detection, and supply network protection is driving the demand for technology in this sector.
- Merger and Acquisition Initiatives: Key players in the industry are actively engaged in both organic and inorganic expansion efforts, aiming to expand their product portfolios and global reach. Collaborations, acquisitions, and alliances are driving technology adoption and market growth.
Distribution Automation Market: Restraints
- High Initial Installation Costs: The high costs associated with installing distribution automation systems are likely to hinder market growth. Technical challenges and concerns related to cyberattacks also pose obstacles to adoption.
Segment Overview:
- Public Sector Dominance: The public utility sector is expected to hold a significant market share due to the growth of publicly owned electric utilities globally. Government support and funding are driving the expansion of both public and private utility sectors.
- Field Devices Lead: Field devices are projected to dominate the distribution automation market due to their crucial role in managing losses caused by voltage variations and power outages. Software solutions are also expected to grow due to the adoption of IoT and communication systems.
Regional Landscape:
- Asia Pacific Leadership: The Asia Pacific region is anticipated to lead the market due to rising investments in smart grid initiatives and a growing demand for distribution automation systems. Nations like China, Australia, and Japan are driving significant expansion in the region.
Global Distribution Automation Market: Competitive Landscape
Key players in the distribution automation market, including GE, ABB, Siemens, Schneider Electric, and others, are making strategic moves such as acquisitions and collaborations to expand their market presence. These initiatives aim to enhance their product offerings and capitalize on the increasing demand for distribution automation solutions.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/distribution-automation-market
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COMTEX_438893159/2840/2023-08-23T04:45:09
