In 2018, the global distribution automation market reached 11.82 billion US dollars.
International market research firm Markets and Markets predicts that the global distribution automation market will grow from $11.82 billion in 2018 to $16.81 billion in 2023, with a compound annual growth rate of 7.29%.
The global distribution automation market reached US$11.82 billion in 2018
The global distribution automation market is driven by increasing renewable energy generation and growing demand for energy efficiency. Advances in the Internet of Things and communication technologies have also provided important opportunities for the distribution automation market.
Divided by component, during the forecast period, the field equipment component is expected to occupy a major share of the market. Increasing investment in aging and aging infrastructure, as well as government initiatives to promote the use of energy-efficient power generation resources, are major factors driving the distribution automation market in Europe. European market participants such as ABB, Schneider Electric and Eaton are involved in the manufacture of field devices. These factors make the field device field the highest market share.
Depending on the type of application, the utility sector is expected to be the largest distribution automation market between 2018 and 2023. Factors driving the utility's distribution automation market include significant government efforts to expand public services. Government-provided grants will help modernize the grid and drive the development of the distribution automation market.
By region, the Asia Pacific region is the fastest growing market for distribution automation. The distribution automation market in the Asia Pacific region is driven by countries such as China, India, Japan and Australia. Rapid industrialization in India, China and Australia is expected to drive the implementation of distribution automation systems. These countries are increasing renewable energy generation to meet growing energy needs. According to the 21st Century Renewable Energy Policy Network (REN21), China accounted for 45% of total global renewable energy power generation investment in 2017. Increasing investment in renewable energy will drive the growth of the distribution automation market in the Asia Pacific region.
Major suppliers to the global distribution automation market include Siemens (Germany), ABB (Switzerland), General Electric (USA), Schneider Electric (France) and Eaton (Ireland).