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Substation Automation Market Forecast: 7%+ CAGR to 2031 Driven by Grid Modernization and Smart Substation Adoption, Says Mordor Intelligence

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HON Mentioned as a major company in the Inertial Measurement Unit market, which is projected to grow. The article does not provide specific sentiment for Honeywell in relation to the substation automation market. NOC Mentioned as a major company in the Inertial Measurement Unit market, which is projected to grow. The article does not provide specific sentiment for Northrop Grumman in relation to the substation automation market. ADI Mentioned as a major company in the Inertial Measurement Unit market, which is projected to grow. The article does not provide specific sentiment for Analog Devices in relation to the substation automation market. ADSK Mentioned as a major company in the Building Information Modeling market, which is projected to grow. The article does not provide specific sentiment for Autodesk in relation to the substation automation market. BSY Mentioned as a major company in the Building Information Modeling market, which is projected to grow. The article does not provide specific sentiment for Bentley Systems in relation to the substation automation market. EMR Mentioned as a major company in the Control Valve market, which is projected to grow. The article does not provide specific sentiment for Emerson Electric in relation to the substation automation market. FLS Mentioned as a major company in the Control Valve market, which is projected to grow. The article does not provide specific sentiment for Flowserve Corporation in relation to the substation automation market. BKR Mentioned as a major company in the Control Valve market, which is projected to grow. The article does not provide specific sentiment for Baker Hughes Company in relation to the substation automation market.

Hyderabad, Feb. 18, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the substation automation market size was valued at USD 40.04 billion in 2026 and is projected to reach USD 57.59 billion by 2031, registering a compound annual growth rate (CAGR) of 7.54% during the forecast period. The market is witnessing steady expansion as utilities and energy operators increasingly prioritize grid reliability, operational efficiency, and real-time monitoring capabilities.

The ongoing shift toward digital substations, combined with growing electricity consumption, renewable energy integration, and aging grid infrastructure replacement, is driving substation automation market growth globally. Utilities are adopting advanced supervisory control and data acquisition (SCADA), intelligent electronic devices (IEDs), and communication protocols to enhance asset performance and reduce outage risks, reinforcing long-term substation automation market forecast momentum.

Substation Automation Market Trends & Technology Adoption

Automation Upgrades Driven by Renewable Energy Integration

As renewable power sources become a larger part of electricity grids, traditional substation control systems are no longer sufficient. Wind and solar generation create rapid fluctuations in voltage and frequency, pushing utilities to adopt smarter, automated control technologies. Modern substations are increasingly equipped with intelligent electronic devices, advanced communication standards, and digital control schemes that allow faster response, better coordination with energy storage systems, and improved grid stability. Regulatory pushes and large-scale digital substation rollouts across major economies are further accelerating investments in automation solutions designed specifically to support high renewable penetration.

Regulatory Push Accelerating Smart Substation Adoption

Stricter reliability and smart-grid regulations are pushing utilities to modernize substation operations faster than before. Grid operators are being required to respond more quickly to faults, strengthen cybersecurity across equipment supply chains, and enable real-time coordination between substations and distributed energy resources. As compliance expectations expand across regions, utilities are shortening upgrade cycles and accelerating the adoption of advanced protection, control, and communication systems, reinforcing sustained demand for substation automation solutions.

Table of Contents (Partial) - Substation Automation Industry

1. INTRODUCTION

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

6. COMPETITIVE LANDSCAPE

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

For details on other market segments and the full table of contents, visit - https://www.mordorintelligence.com/industry-reports/substation-automation-industry?utm_source=globenewswire

Substation Automation Market Regional Outlook

In North America, substation automation adoption is being driven by large-scale grid modernization programs and tighter operational standards for renewable-heavy power systems. Utilities across the region are upgrading protection, control, and communication systems to improve fault response, support distributed energy resources, and enhance overall grid reliability. These initiatives are accelerating retrofit activity across both transmission and distribution substations.

In Asia-Pacific, rapid electrification, renewable energy expansion, and cross-border power connectivity are fueling strong demand for digital and automated substations. Major utilities are prioritizing advanced control architectures and interoperable communication frameworks to manage growing grid complexity. As a result, the region continues to emerge as the fastest-moving market for substation automation deployments.

Related Reports by Mordor Intelligence

Inertial Measurement Unit Market Size - The inertial measurement unit (IMU) market is estimated to grow from USD 36.88 billion in 2026 to USD 54.24 billion by 2031, registering a CAGR of 8.05% during the forecast period. Market growth is driven by rising adoption of IMUs across aerospace and defense, automotive (ADAS and autonomous vehicles), industrial automation, and consumer electronics, along with increasing demand for precise motion sensing, navigation, and stabilization solutions in robotics, drones, and next-generation mobility platforms.

Honeywell International Inc., Northrop Grumman Corp., Bosch Sensortec GmbH, Analog Devices Inc., Safran Sensing Technologies (Safran SA) are the major companies operating in this market.

Read more about companies active in the inertial measurement unit market: https://www.mordorintelligence.com/industry-reports/global-inertial-measurement-units-market-industry/companies?utm_source=globenewswire

Building Information Modeling Market Share - The building information modeling (BIM) market is expected to expand from USD 9.93 billion in 2025 to USD 11.29 billion in 2026 and reach USD 21.42 billion by 2031, growing at a CAGR of 13.7% during 2026–2031. Growth is supported by increasing digitalization in construction, rising adoption of smart infrastructure and sustainable building practices, government mandates for BIM usage in public projects, and the need for improved project visualization, cost optimization, and lifecycle asset management.

Autodesk Inc., Bentley Systems Inc., Dassault Systems SA, Nemetschek SE, Trimble Inc. are the major companies operating in this market.

Read more about companies active in the building information modeling market: https://www.mordorintelligence.com/industry-reports/building-information-modelling-market/companies?utm_source=globenewswire

Control Valve Market Growth - The control valve market was valued at USD 9.01 billion in 2026 and is projected to reach USD 13.58 billion by 2031, growing at a CAGR of 8.55% over the forecast period. Market expansion is fueled by rising investments in oil & gas, power generation, water and wastewater treatment, and process industries, along with increasing focus on industrial automation, flow control efficiency, and safety compliance across critical infrastructure and manufacturing operations.

Emerson Electric Co., Flowserve Corporation, Baker Hughes Company, Metso Corporation, CIRCOR International Inc. are the major companies operating in this market.

Read more about companies active in the control valve market: https://www.mordorintelligence.com/industry-reports/control-valve-market/companies?utm_source=globenewswire

About Mordor Intelligence

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.