The Energy and Power Automation Market was worth USD 40.61 billion in 2022 and is set to reach USD 66.21 billion in 2030. The market is projected to grow at a CAGR of 6.3% over the forecast period of 2022 – 2030. The surge in demand for retrofitting traditional substations, soaring use of digital tools to enhance grid performance in smart cities, growing adoption of electric and hybrid vehicles, and increased focus on upgrading the IEC 61850 standard to resolve interoperability issues among intelligent electronic devices deployed in substations are all driving the growth of the Energy and Power Automation Market.
INDUSTRY OVERVIEW
The increased demand for stable and uninterrupted energy supply among users has prompted an urgent need for grid infrastructure modernization. The rapid expansion of the population has caused significant congestion and stress on the current system, resulting in an imbalanced and inefficient supply of energy to customers, with the majority of them experiencing power outages.
Energy and Power Automations systems allow power companies to remotely monitor, regulate, and safeguard the substation's transmission components, ensuring a more dependable and enhanced power supply while adhering to stricter safety rules. The technology employs real-time system data to discover major defects across the energy network, analyze and control the problems, and ultimately display the data. Energy and power automation systems have transformed how substations were previously regulated and gathered crucial data. The market has grown in response to the growing need for high productivity and grid dependability. Decreased capital investment has also contributed to the market's positive outlook. The global electric power substation automation market is being driven by a growing need for smart grid solutions. The capacity to cut transmission and distribution losses would ensure the market's long-term viability.
The rising need for efficient energy consumption increased acceptance of renewable energy, and the requirement for optimal grid infrastructure are driving the Energy and Power Automation market. Energy and Power Automations are in more demand as the need for sustainable energy delivery grows. These systems are especially important to deploy in rural places and off-grid sites since they can provide real-time notification alerts during circuit outages, allowing the power company to respond quickly. The increasing adoption of sustainable power has supplemented the development of the Energy and Power Automation market. The technology is required for effective surveillance and real-time renewable energy supply to customers. Substation automation is considered to be a crucial solution for outdated energy infrastructure since it may minimize the strain on current utilities by monitoring and managing important faults throughout the network. However, the market's expansion has been hampered to a larger extent by an absence of skilled professionals and expensive installation costs. The absence of global interoperability regulations has also hampered business expansion.
MARKET DRIVERS:
Government investments in smart cities and smart grid infrastructure are expected to drive growth in the Energy and Power Automation market
With the use of advanced technology, energy, and power automation solutions may assist in minimizing operating and maintenance costs while also aiding in increasing the plat or utility output. It also assures the electrical power network's superior efficiency, stability, and safety by executing interlocking and intelligent load shedding operations. Smart grids in a power plant can decrease energy losses during transmission and distribution, enhance reliability and productivity, and proactively and cost-effectively manage energy demand. Because of all of these advantages, smart grid development is attracting major funding across the world and which in turn is propelling the energy and power automation industry towards growth.
Massive prospects for Energy and Power automation market due to increasing investments in renewable energy projects to meet growing energy demand
Solar and wind energy are presently the most common power generation choices, with most nations generating more than 20% of their electricity from these natural sources. As per the International Energy Agency (IEA), renewable energy sources accounted for 25% of global power output in 2019 and this is projected to grow up to 86% by 2050. Companies all across the world are investing their money into renewable energy infrastructure rather than fossil fuels. Countries all around the world are attempting to develop new renewable energy plants. They're also putting money into solar and wind projects to accommodate rising electricity demand and reduce the environmental effects and thus are also adopting energy and powerful automation solutions for enhanced maintenance and monitoring purposes which are influencing the market towards positive growth.
MARKET RESTRAINTS:
The high initial installation cost of the power automation solution is hampering the market expansion
The initial capital investment in energy and power automation is high, which may limit the worldwide energy and power automation market's growth. The expanding demand to integrate numerous IEDs, as well as the increasing usage of modern technologies like microcontrollers and service-oriented architecture (SOA), has raised the cost of the automation process. Energy and power automation solution implementation also necessitates strong collaboration beyond traditional organizational boundaries, major process change, and strict governance. High expenditures on smart substation deployment might add to the government's financial burden. Utility suppliers are also concerned about high operating and maintenance expenses following the implementation of automation solutions which is limiting the market growth.
The slowdown in the power generation industry with the outbreak of COVID-19 has also hampered the market growth
The outbreak of the COVID-19 pandemic has hindered the power-generating industry's expansion in 2020. During periods of complete lockdown in some nations, electricity usage has been reduced by 20% as major industries, offices, and organizations were closed. Industries have made very few investments in substation automation in 2020 due to the decline in power consumption. Furthermore, the lockdown disruptions hampered component and device production, causing item costs to rise and, as a result, diminishing market demand. Governments throughout the globe have reduced investment in a variety of sectors to focus more on upgrading healthcare systems; as a result, demand for energy and power automation products and solutions from national grid projects is likely to decline.
ENERGY AND POWER AUTOMATION MARKET REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 - 2030 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2030 |
|
CAGR |
6.3% |
|
Segments Covered |
By Offering, Components, By Installation, By End - User and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Key Companies Profiled |
G&W Electric Co., Mitsubishi Electric, Hitachi, Schneider Electric, S&C Electric Company, General Electric, Cisco Systems, Siemens AG, Alstom S.A., Schweitzer Engg Lab |
This research report IoT in IoT in Mobility Market has been segmented and sub-segmented based on Offering, Components, By Installation, By End - User, and By Region.
Hardware
Software
Services
Based on Offering, the Energy and Power automation market is segmented into Hardware, Software, and Services. Among these, the hardware segment contributed the maximum to the Energy and Power automation market share. The development of the IEC 61850 standard for substations, which allows the integration of all management, assessment, and surveillance functions into a single protocol and improves compatibility between smart electronic equipment, is credited for the market's rise. The rising need to upgrade traditional substations with modern-day monitoring and control capabilities is also driving the demand for energy and power automation systems. SCADA systems are being installed in power stations across the world by government agencies and businesses. Utilities and heavy industries are rapidly implementing SCADA systems to get better control and a full picture of power stations, resulting in increased operational efficiency.
IEDs
Communication Networks
SCADA Systems
Others
Based on Components, the Energy and Power automation market is segmented into IEDs (Intelligent Electronic Devices), SCADA Systems, and Communication Networks among others. Among these, the IED, (Intelligent Electronic Device) dominated the Energy and power automation market. Microprocessor-based controllers of power system equipment are referred to as Intelligent Electronic Devices (IEDs) in the power generation sector. IEDs take data from sensors and power equipment and can automatically send orders, such as activating circuit breakers if the voltage, current, or frequency abnormalities are detected, or raising/lowering voltage levels to the optimum level. The intelligent electronic devices market was worth USD 12.5 billion in 2021 and is anticipated to reach USD 19.3 billion by 2030. The IEDs market is anticipated to witness a CAGR of 6.2% over the forecast period. The market growth can be attributed to the increase in up-gradation and modernization of the devices as they increase the efficiency of the system and reduces human interventions.
The SCADA segment is also poised to contribute significantly to the market growth. The SCADA system was valued at USD 1.7 billion in 2021 and is projected to reach USD 2.5 billion by 2030, experiencing a CAGR of 7.6% over the forecast period. The growing adoption of Industry 4.0 is a major driver propelling the power SCADA market forward.
ENERGY AND POWER AUTOMATION MARKET- BY INSTALLATION
New Installations
Retrofit Installations
Based on Installation, the Energy and Power automation market is segmented into New Installation and Retrofit Installation. Among these, the new installation category is projected to contribute maximum to the market development over the forecast period. The energy and power automation for new installations is anticipated to grow at a high CAGR. The growth is credited to the rise in new power stations and smart grid infrastructures in numerous industries that are growing swiftly. Moreover, the need for automation, IEDs, SCADA systems, and the latest and advanced communication systems is also propelling the market expansion. New installations also provide a higher level of functional safety and dependability, as well as fewer maintenance requirements. In the energy and power automation market, businesses have launched various new installation projects to increase power flow, promote electric dependability, enhance energy supply quality, and modernize electrical infrastructure.
Utilities
Steel Industry
Oil & Gas Industry
Mining Industry
Transportation Industry
Others
Based on End-user, the Energy and Power automation market is segmented into Utilities, Steel, Oil & Gas, Mining, and Transportation industries among others. The utility category emerged as the dominant segment for the energy and power automation segment and is projected to continue with this trend over the forecast period. The market's expansion may be linked to rising government programs aimed at modernizing power systems and increasing investments in renewable energy generation. As per World International Energy Agency (IEA), total investment in renewable resources grew from USD 226 billion in 2019 to USD 259 billion by 2050. In the current situation, the demand for energy and power automation is driven by the wind energy industry. Governments across the world are partnering with power generation firms to bring automation to the wind farm sector which is propelling the market growth.
North America
Europe
The Asia Pacific
Latin America
The Middle East
Africa
Based on region, the Energy and Power automation market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. The Asia Pacific region was valued at USD 4.7 billion in 2021 and is projected to grow with a CAGR of over 6% during the forecast period. Various governments in APAC nations have taken numerous measures to strengthen the power and energy sector, which has fueled the expansion of the energy and power automation market. Due to increased expenditures on smart grid initiatives, the area is projected to witness significant demand for Energy and Power automation solutions. Countries like Japan, China, and Australia are driving the region's growth. Furthermore, factors such as fast industrialization and a growing shift toward clean energy to fulfill rising energy demands are likely to boost the region's market growth.
The North American region is also set to contribute significantly to the growth of the energy and power automation market. Because of new technical innovations in IoT and communication systems, the North American market is likely to increase considerably throughout the forecast period. Furthermore, the region's market expansion is likely to be aided by the existence of numerous major competitors. Owing to increased industrialization in the area, Latin America is predicted to rise due to considerable demand from Brazil and Mexico. Brazil is the region's market leader, with a significant market share, followed by Canada.
The European market is poised to grow significantly in the coming years. The expanding investments in grid development, along with the increasing complexity of the electric supply infrastructure, have resulted in tremendous growth throughout Europe. Germany, France, and the United Kingdom are major countries contributing to the market growth. The region's growth is projected to expand due to the rising need for energy efficiency in the power supply.
ENERGY AND POWER AUTOMATION MARKET- BY COMPANIES
Some of the prominent players operating in the Energy and Power automation market include:
The Energy and Power automation market is concentrated and highly competitive with key players occupying market share. The major players are focusing on innovation, mergers, and product launches to capture market share and increase their product portfolio.
NOTABLE HAPPENING IN THE ENERGY AND POWER AUTOMATION MARKET
COVD-19 IMPACT ON ENERGY AND POWER AUTOMATION MARKET
The COVID-19 outbreak wreaked havoc on the energy and power automation industries, resulting in massive financial losses. Procuring raw materials and components essential for manufacturing, recruiting personnel from quarantines, and delivering finished goods to markets were all issues that automation technology suppliers and device makers encountered. Due to severe lockdown restrictions, installation and replacements were postponed, further affecting manufacturing facilities and putting the market to a standstill. Furthermore, the lockdown disruptions hampered component and device production, causing item costs to rise and, as a result, diminishing market demand. Governments throughout the globe have reduced investment in a variety of sectors to focus more on upgrading healthcare systems; as a result, demand for energy and power automation products and solutions from national grid projects is likely to decline. Moreover, as the commercial spaces in most regions of the world are functioning at a massively reduced capacity, power consumption is predicted to drop dramatically, and electric utilities may face a delay in modernizing their grid infrastructure. All of these reasons are projected to have a negative influence on the market growth.
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
Specify your preferred Countries, Segments, or timeframes
Unlock Country Level Outlook, Trends, Cross-country Comparability, or supply Chain Variations.
Analyst Support
Every order comes with Analyst Support.
Customization
We offer customization to cater your needs to fullest.
Verified Analysis
We value integrity, quality and authenticity the most.
