Distribution Automation Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The distribution automation market size has grown strongly in recent years. It will grow from $16.97 billion in 2024 to $18.51 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to favorable government regulations and mandates, favorable government regulations and mandates, growing share of renewable energy in the energy mix, reliable and efficient energy consumption, reduced power outages time.

The distribution automation market size is expected to see strong growth in the next few years. It will grow to $26.6 billion in 2029 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to increasing need to digitalize the power sector, growing renewable power generation, increase renewable energy integration, improving distribution system reliability and efficiency, exponential increase in global electricity demand and grid infrastructures. Major trends in the forecast period include technological advancement, advancement of IoT and communication technologies, increasing dependence on electrical equipment, increasing awareness to reduce carbon footprint, upgrade the aging distribution infrastructure.

Growing renewable power generation is expected to propel the growth of the distribution automation market going forward. Renewable power generation refers to the production of electricity from naturally replenished sources. Distribution automation is crucial in enabling renewable energy's efficient, reliable, and sustainable integration into the power grid, contributing to the transition towards a cleaner and more sustainable energy future. For instance, according to the Energy Information Administration (EIA), a US-based principal agency of the Federal Statistical System, in 2022, wind and solar power accounted for 14% of U.S. electricity generation, expected to increase to 18% in 2024. Further, wind and solar energy will lead the growth in U.S. power generation for the next two years, with solar power generation projected to grow by 75% from 163 billion kWh in 2023 to 286 billion kWh in 2024, and wind power generation expected to grow by 11% from 430 billion kWh in 2023 to 476 billion kWh in 2024. Therefore, the growing renewable power generation is driving the growth of the distribution automation market.

Major companies operating in the distribution automation market are developing underground distribution restoration systems, such as EdgeRestore, to improve customer power reliability. EdgeRestore is a fully automated solution designed to isolate faults in difficult-to-access, underground residential distribution circuits, allowing for quick power restoration to homes. For instance, in February 2023, S&C Electric Company, a US-based provider of switching, protection, and control solutions for electric power systems, launched EdgeRestore, an automated solution designed to enhance crew safety and seamlessly fit into the existing system. This technology eliminates underground lateral outages with an automated restoration solution, enhances crew safety, and seamlessly fits into the existing system. The system is beneficial for multiple reasons, including boosting customer reliability, enabling customers to maintain service, improving overall satisfaction, and avoiding thousands of outage minutes.

In March 2024, VINCI Energies, a France-based company specializing in energy and information technology services, acquired Premiere Automation LLC for an undisclosed amount. This acquisition allows VINCI Energies to strengthen its industrial portfolio in the USA by utilizing Premiere Automation's expertise in controls, robotics integration, and training services. Premiere Automation LLC, a US-based technology company, specializes in industrial automation, including power and distribution.

Major companies operating in the distribution automation market are Hitachi Ltd., Siemens AG, General Electric Company, Cisco Systems Inc., Mitsubishi Electric, Schneider Electric SE, ABB Ltd., Toshiba, Eaton Corporation Plc, American Electric Power, Xylem Inc., Hubbell Incorporated, Itron Inc., Schweitzer Engineering Laboratories Inc., Landis+Gyr, Ingeteam, S&C Electric Company, Cooper Power Systems LLC, G&W Electric, CE Power Engineered Services (US), Kalkitech, NovaTech LLC., Beckwith Electric, Trilliant Holdings, Minsait ACS, Aclara Technologies LLC, Advanced Control Systems Inc., Alstom SA, Atlantic City Electric Company, BPL Global Ltd., Crompton Greaves Limited.

North America was the largest region in the distribution automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distribution automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the distribution automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The distribution automation market consists of revenues earned by entities by providing services such as deployment of smart grids, remotely monitor, manage, and control distribution assets, and communication technology. The market value includes the value of related goods sold by the service provider or included within the service offering. The distribution automation market also includes sales of remote terminal units, intelligent electronic devices, switchgear and circuit breakers, sensors, and actuators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Distribution automation (DA) is a set of technologies used by electric utilities to collect, automate, analyze, and optimize data to improve the operational efficiency of their distribution power system. It enhances several key distribution system processes' speed, cost, and accuracy, including fault detection, feeder switching, outage management, voltage monitoring and control, reactive power control, and load balancing.

The main components of distribution automation are software, field devices and services. Distribution automation refers to the use of smart grid technologies and advanced control systems to automate various aspects of electricity distribution. Wired and wireless communication of distribution automation is used for public utility and private utility applications by industrial, commercial, and residential end users.

The main components of distribution automation are software, field devices and services. Distribution automation refers to the use of smart grid technologies and advanced control systems to automate various aspects of electricity distribution. Wired and wireless communication of distribution automation is used for public utility and private utility applications by industrial, commercial, and residential end users.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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