Global Outlook for Substation Automation and Integration Continues to Show Impressive Growth

The Newton-Evans Research Company has released a new report on global substation automation markets based on the company’s 2016-2017 world market studies of substation automation and integration activities. The objective of this market outlook report by Newton-Evans Research Company, according to CEO Chuck Newton is “to provide world regional substation modernization market sizing, including country-specific activities for the largest countries in each region. As such, the outlook report complements the survey-based volumes covering North American and International substation automation markets, also completed in November.”

This newest report undertaken by Newton-Evans has been developed using a variety of information sources including:

  1. Reviewing available and ongoing Newton-Evans’ studies of substation automation through the fourth quarter of 2017.
  2. Incorporating data from the Newton-Evans global electric power market model which provides the outlook for substation-related activities and investments based on (1) the estimated number of substations in each of 180+ countries, and (2) Newton-Evans 2017 survey-based findings from utilities, consulting firms and automation systems and equipment providers.
  3. Requests made during 2014-2017 for summary market-related information from major substation automation-related suppliers. Review and updates of supplier profiles for more than 50 specialist firms around the world will be published as Volume Four to the new series.
  4. Review of project data from NGO sources of funding, for investments used primarily (or in part) for substation construction and modernization.

Based on the findings from these various sources and research methods, this new report includes the following sections:

  1. Narrative Summary of Observations for each of eight world regions.
  2. Counts of substations by country for each world region.
  3. Estimates of substation automation-related investments made in each world region and for major countries.
  4. Estimated market shares by world region for supplier groupings by provider type, i.e., specialist substation integration firms; SCADA-related systems integrators; IED manufacturers with substation services business units; T&D engineering services having substation integration expertise; other substation integration service providers
  5. Examples of NGO funded loans and grants used for substation modernization projects in various countries.

NER-GraphThe following chart illustrates the estimated total number of HV substations in each world region.

Note that the majority of HV substations remain at 220kV, but new additions to the global fleet of HV substations are likely to be constructed at higher voltages. Also note that three regions (Asia-Pacific, North America and Western Europe) account for the majority (about two-thirds) of HV substations. A majority of HV substations around the world are equipped or configured with “communicating instrumentation” (i.e., RTUs, PLCs, smart relays, et al.) as of year-end 2017. “Progress toward fully digital substations is being made, but it will be decades before such substations are the norm around the world” according to Newton. “Nonetheless, when combined with spending for modern digital relays, the substation modernization market is now approaching $5 billion per year, as detailed in the report.”

The report is published as Volume Three of the Newton-Evans series, “The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.”

The entire four volume report series will be available as of December 1, 2017, with introductory pricing reduced by 25 percent for the entire series or for any of the four volumes.

Additional topics being covered in the four-volume series of substation automation studies include in-depth coverage of several communications topics, vendor security certification requirements, external systems linkages to the substation, and preferred equipment suppliers.

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