Distribution Automation Market Size, Share, Growth Analysis, By Offering(Field Devices (Remote Fault Indicators, Smart Relays, Automated Feeder Switches/Reclosers, Automated Capacitors), By Communication Technology(Wired (Fiber Optics, Ethernet, Powerline Carrier, IP)), By Utility(Public Utilities, Private Utilities), By Region - Industry Forecast 2024-2031

Distribution Automation Market Driver

Exponential growth in global electricity demand and grid infrastructure

• Global electricity demand and the development of grid infrastructure will almost certainly provide new business opportunities. Demand for the technology will be driven by the need for energy efficiency, fast fault detection, and supply network protection. Also, increasing demand in residential, commercial, and industrial sectors, as well as increasing distributed energy generation, will create new opportunities to increase technology adoption, especially in developing countries. The expansion will focus on Asia-Pacific, particularly markets experiencing rapid economic growth and growing demand.

Initiatives by Major Players in Merger and Acquisition

• Players from various industries are continuously engaged in organic and inorganic expansion efforts to increase their product catalogue and global reach, thereby driving the use of this form of the distribution system. In September 2019, G&W Electric acquired Tozzi Electrical Equipment to expand its global market and improve its power grid solutions to meet IEC standards. Additionally, Builders FirstSource Inc., Dallas, paid USD 450 million for WTS Paradigm LLC, software solutions and services provider based in Middleton, Wisconsin. Major corporations use alliances, acquisitions, and other strategies to strengthen their position in global markets. During the forecast period, the complexity of power distribution infrastructure and increasing investment opportunities in grid expansion projects are expected to increase the market share.

Distribution Automation Market Restraint

Expensive initial installation costs

• The high installation cost of distribution automation systems is expected to hinder the growth of the industry. Also, technical problems associated with these systems are expected to hamper the market growth. Additionally, vulnerability to cyber-attacks is a major factor that causes concern among end users and hinders the growth of the industry. Lack of investment is reducing the supply of durable raw materials, which poses further challenges for the market during the forecast period.