A new study on the global distribution automation market forecasts the sector to record a 7.29% growth between 2018 and 2023.
Markets and Markets predicts revenue generation to increase from $11.82 billion to $16.81 billion during the forecast period.
Factors including increasing penetration of distributed and renewable power generation and the need for energy efficiency, protection and immediate fault detection in the power distribution network, will drive the market growth.
Continued upgrading of grid infrastructure is expected to positively impact on the market.
Advancements in ICT and communications infrastructure and technologies are expected to provide growth opportunities for the distribution automation market.
Europe will dominate the market followed by North America and the Asia Pacific region owing to countries including Germany, UK, France, Spain, Italy and Denmark increasing investments in smart grids in the energy transmission and distribution segments.
On the other hand, the high installation cost of distribution automation systems, low acceptance level by utilities and vulnerability of the systems to cyberattacks are projected to continue restraining the market growth.
Asian countries such as China, India, Japan, and South Korea will result in the higher market share of field device segment in distribution automation market.