Uploaded on Jan 30, 2024
Electrical power distribution is characterized as the final stage of an electrical power system. Get more insights into our Electric Power DAS market blog.
Electric Power DAS: Profiting Regional Market to Aid Global Expansion
Electric Power DAS: Profiting
Regional Market to Aid Global
Expansion
By Shruti Vanjare
Electrical power distribution is characterized as the final stage of an electrical power system,
primarily in terms of delivering electricity to the load. Automation in the distribution field helps
implement flexible control of distribution systems, consequently used to enhance reliability,
efficiency, and the quality of electric service.
In this regard, the operational and financial benefits of distribution automation systems (DAS)
include:
Increased revenue owing to quick restoration
Enhanced utilization of system capacity
Reduced man-hour and manpower
Better fault detection and diagnostic analysis
Hence, these advantages play an integral role in positioning the global electric power distribution
automation systems market as a rapidly-developing avenue, progressing with a CAGR of 6.59% over
the forecast period of 2022 to 2030. Moreover, the global market’s growth is further accredited to
the high reliability of distribution automation systems and the aging power infrastructure.
For example, as per the United States Department of Energy (DOE), nearly 70% of the transmission
and distribution lines in the country are over two decades old. Hence, with the modernization of grid
infrastructure, automation is integral for making distributed energy profitable, thereby propelling
market growth.
Regional Dynamics to Supplement Global Market Developments
According to industry statistics, government energy R&D expenditure in 2019 increased by 3% to $30
billion, majorly directed to low-carbon energy technologies. Aligning with this, Europe and the
United States recorded robust growth, with the spending on public energy R&D rising by 7% in both
economies. Hence, the regional investments within the energy sector will also aid the adoption of
electric power distribution automation systems, thereby facilitating the market’s growth in Europe
as well as North America.
North America to Capture the Largest Share of 31.03% by 2030
The demand for electric power distribution automation systems has witnessed robust
growth in North America due to the increasing need for energy consumption in terms of
industry, commercial, and residential usage. Moreover, Ontario is also engaged in a billion-
dollar program for the installation of smart meters for 4.5 million electricity customers in the
Canadian province.
Market leaders such as General Electric Company, Siemens AG, and others are focused on
expanding their business by partnering with government agencies for the maintenance and
supply of power distribution automation systems. Primarily concentrated across states like
South Carolina and California, these collaborations will further accelerate the North America
electric power distribution automation systems market growth.
Likewise, Hydro-Québec, a major smart grid firm headquartered in Canada, has also been
involved in the automation of substations and high-voltage transmission. This factor plays an
essential role in ranking substation as the fastest-growing implementation segment with a
6.94% CAGR by 2030.
Asia-Pacific to Witness the Highest CAGR of 8.34% by 2030
The demand for electricity is on the rise across developing countries such as Indonesia,
Bangladesh, China, India, and others. This factor, in addition to rapid urbanization,
significantly contributes to the growth of the Asia-Pacific electric power distribution
automation systems market growth.
The lack of residential area development, especially in countries such as Indonesia, impacts
the demand for distribution automation systems (DAS). However, industrial advancements
are expected to boost the need for electric power distribution automation systems over the
forecast years, thus propelling the regional market’s growth. Consequently, this factor will
also support the growth of the industrial segment under the end-user category, capturing a
sizeable market share of 49.94% by 2030.
On the other hand, the development of feeder automation (FA) technology in the Asia-
Pacific is majorly focused on automation techniques. In view of this aspect, leading players
operating in the market, such as S&C Electric, ABB Ltd, and Hitachi Ltd, are introducing
cutting-edge features that manage power restoration and are ideal for smart grid systems.
Players’ Contribution to Alleviating Limitations
While the global market is developing with improved grid management approaches and investments
in smart cities, it may face challenges like security concerns and the lack of operational planning
tools. In this regard, the development and trend of feeder automation (FA) technology, focused on
automation techniques, will help reduce challenges faced during the operational planning of electric
power distribution automation.
Moreover, initiatives introduced by organizations across the globe play an essential role in fortifying
security solutions, as well. For instance, the European Union’s regulation comprises guidelines for
better coordination between transmission system operators, thus enhancing the security of
electricity supply. Similarly, companies such as Schweitzer Engineering Laboratories offer
engineering services and solutions for the security of critical infrastructure, thereby strengthening
the global electric power distribution automation systems market growth.
Frequently Asked Questions
(FAQs) –
1. What are the end-user segments covered in the market growth analysis?
A: Industrial, commercial, and residential segments are covered in the market growth
analysis.
2. Which country leads the Asia-Pacific electric power distribution automation systems
market?
A: China is set to lead the market growth in the Asia-Pacific region.
Comments