Global Substation Automation Products Market, The

Report Summary

Nations are prioritizing their efforts to revitalize their decaying electric infrastructure by focusing on much-needed upgrades to their substations and ensuring these structures can be seamlessly connected to the Smart Grid.

The burgeoning industry of substation automation involves a plethora of devices, technologies, and business models that require a sophisticated approach to product selection, implementation, interoperability, and skilled engineering.

This SBI Energy report, The Global Substation Automation Products Market, examines the worldwide interest in smart substation development, including the market size and scope of the products, and the uneven pace at which nations are adopting the different substation automation architectures and designs.

The report covers a wide range of products and technologies used to automate substation processes and controls. Through interviews with substation industry experts and extensive secondary research, SBI Energy finds that from 2006-2010 the world has added approximately 2,200 new conventional substations per year, distributed disproportionately across the globe. That number is likely to slow as new construction projects continue to wane in favor of upgrades to established substations and other regions accelerate their movements to renewable energy sources. Other key findings include:

• SBI Energy forecasts the global market size for substation automation products to reach nearly $106 billion by 2015. Many factors are driving the market growth but the most predominant forces are the aging grid infrastructure, the influence of product marketers to provide multifunctional solutions that comply with strict communication protocols, and advancing technologies required to keep pace with electricity demand.
• The average cost per substation automation initiative will grow at a much slower rate for the period 2011 to 2015 as regions lock in long-term contracts with suppliers and the cost of manufacturing goods sold also drops, especially in commodity product categories such as telecommunications.
• Asia still maintains the greatest number of substations available for automation worldwide, with a 53% share in 2011. The bulk of Asia’s smart substation spending, however, is concentrated on control/protection products and monitoring/recording products.
• Much of Europe’s focus on substation upgrades will be in retrofit of communication networks and SBI Energy expects that sector to realize upwards of a 10% CAGR for the five year period ending 2015 when sales will reach $7.2 billion.
• The U.S. will ease its investment in nearly all of the substation product categories, most notably monitoring/recording products where the market value will drop to $6.8 billion by 2020 from $11.2 billion in 2016.

Table Of Contents

Chapter 1 Executive Summary
Substation Automation Systems
Substation Communication
Three Smart Substation Designs
Total Global Substations
Table 1.1 Total Conventional Substations Worldwide by Region, 2006-2011
Figure 1.1 Percent of Total Conventional Substations Available for Automation by Region, 2006-2020
Smart Grid Costs
Table 1.2 Global Sales (in $ billions) of Smart Grid Products by Smart Grid Category, 2010 vs. 2011 (e)
Retrofit Design Model
Future Substation Design
New Design Architecture
Smart Substation Initial Costs
Table 1.3 Average Cost Per Substation Automation Initiative (in $ millions) by Region, 2011-2015
Table 1.4 Global Sales (in $ billions) Forecast of Substation Automation System Products, 2011-2015
Table 1.5 Global Sales Forecast (in $ billions) of Smart Substation Design Models, 2011-2015
Forecast by SAS Model
Asia Smart Substation Products Market
Table 1.6 Total Substations Available for Automation by Region, 2011-2015
Europe’s Smart Substation Market
Table 1.8 Europe Spending (in $ billions) on Smart Substation Products by Category, 2011-2015
The U.S. Market for Smart Substation Products
Table 1.9 U.S. Spending (in $ billions) on Smart Substation Products by Category, 2011-2015
Factors Driving Future Growth
Table 1.10 Global Smart Substation Products Market Forecast (in $ billions) by Product Sector, 2011-2015
Factors Affecting Regional Spending
Table 1.11 Smart Substation Spending (in $ billions) by Country, 2011 vs. 2015
Smart Substation Long Term Forecast
Table 1.12 Smart Substation Products Market Forecast (in $ billions) by Design Architecture, 2016-2020
Regional Long-Term Forecasts
Table 1.13 Smart Substation Products Forecast (in $ billions) by Global Region, 2011, 2015 & 2020
Table 1.14 Europe Smart Substation Products Spending (in $ billions) by Category, 2016-2020
Table 1.15 Smart Substation Forecast (in $ billions) by Product Category and Architecture Design, 2016-2020

Chapter 2 Introduction
Scope of This Report
Methodology
Substation Defined
The Smart Grid Defined
The Need for a Smart Grid
Figure 2.1 The Electric Grid Today
Table 2.1 Global Electricity Generation by Fuel Source (trillions of KWh), 2005-2030
Figure 2.2 Share of Electricity Generation by Source 2005, 2010 and 2015
Aging Infrastructure
Figure 2.3 Components of the Smart Grid
Smart Grid Deployment
Substation Automation Systems
Main System Components
Advanced Information and Control Products
Smart Meters
Grid Visualization and Control
Phasor Measurement Units (PMUs)
Management Control Products
Integrated Communications Products
Communications Technology
Table 2.4 Smart Grid Interactive Communications Technologies
Power Line Communications
Broadband Over Power Lines
ZigBee
RF Mesh Networks
Z-Wave
Sensing and Response Products
Demand Response
Smart Sensors
Figure 2.5 Typical Smart Grid Connections and Components, Including Smart Meters
Substation Communication
Communication Networks and Systems in Substations
SCADA Systems
Substation Automation Architecture
Three Smart Substation Designs

Chapter 3 Market Size
Figure 3.1 Shares of Total Conventional Substations Worldwide by Region, 2006-2020
Table 3.1 Total Conventional Substations Worldwide by Region, 2006-2011
Table 3.2 Total Conventional Substations Worldwide by Region, 2011-2015
Table 3.3 Total Substations Available for Automation in Europe by Country, 2006, 2011, 2015 & 2020
Table 3.4 Total Substations Available for Automation in Asia by Country, 2006, 2011, 2015, & 2020
Figure 3.2 Percent of Total Conventional Substations Available for Automation by Region, 2006-2020
Figure 3.3 Total Conventional Substations Available for Automation Worldwide, 2006 to 2020
Table 3.5 Total Smart Grid Products Market Size (in $ billions) by Global Region, 2006-2011 (e)
Figure 3.4 Global Market Shares of Smart Grid Products, 2006 vs. 2011 (e)
Smart Grid Costs
Table 3.6 Global Sales (in $ billions) of Smart Grid Products by Smart Grid Category, 2010 vs. 2011 (e)
Table 3.7 Average Cost per Substation (in $ millions) Automation Initiative by Region, 2006-2011
Table 3.8 Global Smart Substation Automation Products Market Size (in $ billions) by Product Sector, 2010 vs. 2011 (e)
Retrofit Design Model
Future Substation Design
New Design Architecture
Condition Monitoring
New Substation Communication Protocols
IEC 60870-5 Protocol
Table 3.7 Average Cost Per Substation Automation Initiative (in $ millions) by Region, 2011-2015
Smart Substation Initial Costs
Table 3.8 Global Sales (in $ billions) Forecast of Substation Automation System Products, 2011-2015
Table 3.9 Global Smart Substation Automation Products Market Sales (in $ billions) Trend by Region, 2006-2011
Table 3.10 Global Smart Substation Automation Products Market Sales (in $ billions) Trend by Region, 2011-2015
Forecast by SAS Model
Table 3.12 Global Sales Forecast (in $ billions) of Smart Substation Design Models, 2011-2015
Table 3.13 Global Sales Forecast (in $ billions) of Retrofit Smart Substation Design Products by Region, 2011-2015
Table 3.14 Global Sales Forecast (in $ billions) of New Smart Substation Design Products by Region, 2011-2015
Table 3.15 Global Sales Forecast (in $ billions) of Future Smart Substation Design Products by Region, 2011-2015
Figure 3.5 Cumulative Spending on Smart Substation Products (in $ billions) by Global Region, 2011-2015
Asia Smart Substation Products Market
Table 3.16 Average Cost Per Substation Automation Project (in $ millions) in U.S., Europe and Asia, by Smart Substation Product Segment, 2011-2015
Table 3.17 Total Substations Available for Automation by Region, 2011-2015
Figure 3.6 Smart Substation Integrated Communications Products Spending as Percent of Total Smart Substation Sales by Region, 2011-2015
Figure 3.7 Share of Smart Substation Spending in Asia by Product Category, 2011, 2015 and 2020
Table 3.18 Asian Market Size (in $ billions) of Substation Automation Products by Sector, 2011-2015
Table 3.19 Cumulative Spending on Smart Substation Products in Asia (in $ billions), 2011-2015
Table 3.20 Spending (in $ billions) on Smart Substation Products by Design Architecture in Asia, 2011-2015
Europe’s Smart Substation Market
Table 3.21 Europe Spending (in $ billions) on Smart Substation Products by Category, 2011-2015
Figure 3.8 Share of Spending by Global Region on Substation Monitoring and Recording Devices (expressed as a Percent of Total Smart Substation Spending), 2011-2015
Table 3.22 Europe’s Cumulative Spending (in $ billions) on Smart Substation Products Categories, 2011 to 2015
Figure 3.9 Share of Spending by Product Category on Smart Substation Products in Europe, 2011, 2015 and 2020
Table 3.23 European Spending (in $ billions) on Smart Substation Products by Substation Architecture, 2011-2015
Figure 3.10 U.S. Cumulative Spending (in $ billions) on Smart Substation Products by Category, 2011-2015
Table 3.24 U.S. Spending (in $ billions) on Smart Substation Products by Substation Architecture, 2011-2015
Figure 3.11 Shares of Smart Substation Products Spending in the U.S. by Category, 2011, 2015, & 2020
Table 3.25 U.S. Spending (in $ billions) on Smart Substation Products by Category, 2011-2015
Projected Number of World Smart Meter Installation
Advanced Metering Infrastructure
Phasor Measurement Unit (PMU) Installations
Communications Network Forecast
Sensing and Response Products
Control and Protection Products
Table 3.26 Sales (in $ billions) of Control and Protection Products (including SCADA) for Substation Automation by Country, 2011-2015
Table 3.27 Sales (in $ billions) of Control and Protection Products (including SCADA) for Substation Automation by Country, 2016-2020
Table 3.28 Global Smart Substation Products Market Forecast (in $ billions) by Product Sector, 2011-2015
Factors Driving Future Growth
Figure 3.12 Smart Substation Products with Fastest CAGR Forecast, 2010-2015
Table 3.29 Global Market Size Forecast (in $ billions) of SAS Products by SAS Design
Communications Systems Growth
Table 3.30 Smart Substation Spending (in $ billions) by Country, 2011 vs. 2015
Factors Affecting Regional Spending
Figure 3.13 Market Share of Smart Substation Product Spending by Country, 2011 vs. 2015
Table 3.31 Sales (in $ billions) of Integrated Communications Products for Substation Automation by Country, 2011-2015
Table 3.32 Sales (in $ billions) of Integrated Communications Products for Substation Automation by Country, 2016-2020
Figure 3.14 Average Cost (in $ millions) per Smart Substation Project by Region, 2006-2020
Smart Substation Long Term Forecast
Table 3.33 Smart Substation Products Market Forecast (in $ billions) by Region, 2016-2020
Table 3.34 Smart Substation Products Market Forecast (in $ billions) by Design Architecture, 2016-2020
Table 3.35 Total Substations by Region, 2016-2020
Table 3.36 Smart Substation Products Long-Term Forecast (in $ billions) by Product Sector, 2016-2020
Regional Long-Term Forecasts
Table 3.37 Smart Substation Products Forecast (in $ billions) by Global Region, 2011, 2015 & 2020
Figure 3.15 Average Cost Per Substation (in $ millions) for Integrated Communications Upgrade by Region, 2011-2020
Table 3.38 Smart Substation Products Forecast (in $ billions) by Product Sector, 2011, 2015 & 2020
Table 3.39 U.S. Smart Substation Products Spending (in $ billions) by Category, 2016-2020
Table 3.40 Europe Smart Substation Products Spending (in $ billions) by Category, 2016-2020
Table 3.41 Asia Smart Substation Products Spending (in $ billions) by Category, 2016-2020
Figure 3.16 Smart Substation Products Spending Forecast as Percent of Total Smart Grid Spending by Region, 2011-2020
Table 3.42 Global Smart Substation Products Forecast (in $ billions) by Product Type, 2016-2020
Figure 3.18 Global Shares of Smart Substation Design Architectures, 2011-2020
Table 3.43 Total Substations Available for Automation, 2016-2020
Figure 3.19 Global Five-Year CAGRs for Smart Substation Products, 2016-2020
Source: SBI Energy
Figure 3.20 Shares of Substations Available for Automation by Region, 2006, 2011, 2015 and 2020
Table 3.44 Smart Substation Forecast (in $ billions) by Architecture Design and Region, 2016-2020
Table 3.45 Smart Substation Forecast (in $ billions) by Product Category and Architecture Design, 2016-2020

Chapter 4 Competitive Profiles
Subnet Solutions
RuggedCom
Itron, Inc.
Overview
Figure 4.1 Itron Sales (in $billions) and Year-Over-Year Percent Change, 2006-2010
Significant Developments
Open Systems International
Landis + Gyr
Overview
Recent Developments
Echelon Corp
Figure 4.2 Echelon Sales (in $millions) and Year-Over-Year Percent Change, 2006-2010
Silver Spring Network
Trilliant
Cisco Systems
Figure 4.3 Cisco Sales and Year-Over-Year Percent Change, 2006-2010
General Electric
Figure 4.4 Share of General Electric Revenue for 2010, by GE Business Unit ($ in billions)
ABB Group
Table 4.1 ABB Sales (in $ millions) by Division, 2008-2010
Adtran
Figure 4.5 Adtran Sales and Year-Over-Year Percent Change, 2006-2010
Telvent
Figure 4.6 Telvent Share of Sales by Business Unit, 2010 (e)
NovaTech
Orion Automation Platform
Tropos Networks
BPL Global

Chapter 5 Market Challenges
Standardization of Substation Products
China Releases Smart Grid Standards
IEC 61850 Standard Popularity
Figure 5.1 Benefits of IEC 61850 Protocol in Substations
U.S. Panel Agrees on Interoperability Standards
Europe Embraces IEC 61850
SCADA Standards Organizations
Human Resources Market Challenge