Automating the Grid: Distribution Automation Market to Grow at 14.8% CAGR Through 2035

Smart grids, real-time monitoring demand, and rising grid modernization investments are fueling global growth in the distribution automation market.

INDORE, INDIA, June 6, 2025 /EINPresswire.com/ -- Distribution automation market was valued at $20.1 billion in 2024 and is anticipated to reach $41.6 billion in 2035, rising at a CAGR of 14.8% during the forecast period (2025-2035). The market is mainly led by growing focus on improving grid reliability, minimizing power outages, and adoption of renewable energy sources. Technologies such as remote fault indicators, automated feeder switches, and communications infrastructure are transforming the way utilities operate electricity distribution networks. Governments and utilities are investing heavily in smart grid initiatives and digital infrastructure, leading to adoption across developed and emerging economies.

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Regional Outlook

North America is expected to experience a steadily growing demand for distribution automation due to immense growth in technology. Technologies such as real-time analytics, advanced sensors, and smart grid solutions are transforming the distribution systems into more efficient and reliable ones. For instance, in the United States, there is extensive usage of innovative grid management solutions such as Automated Distribution Management Systems (ADMS). These systems combine real-time control, monitoring, and analytics to make electrical grids more reliable and efficient. Moreover, installation of smart meters and sensors enables utilities to collect detailed data about the performance of the grid and rapidly detect faults, including outages or equipment failures. Besides, the deployment of progressive fault detection, isolation, and restoration (FDIR) technologies allows faster restoration of power interruptions, reducing downtime and enhancing service reliability. Further development includes the integration of artificial intelligence and machine learning in grid operations to support predictive maintenance and maximize energy distribution. These developments together contribute to achieve more robust and efficient distribution networks, which meet the changing needs for smart grid infrastructure in the U.S.

In February 2024, at DISTRIBUTECH International 2024, Gridspertise showcased its virtualization and edge processing platform for MV and LV grid automation for dealing with growing complexity in electricity grids. With increased loads from electric vehicles, fluctuating demand, and distributed energy resources and rising demand, grids are challenged by bidirectional power flows and fluctuating demand. Gridspertise's quantum edge device expands visibility and control by executing critical grid functions natively on the edge of the MV/LV distribution substation. This eliminates equipment requirements, increases resilience, and provides quicker response times and uninterrupted power.

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Recent Developments

• In May 2025, Toshiba International Corp. launched its new Toshiba 3000 SP Series Uninterruptible Power System (UPS) specifically for the U.S. and international edge data centers, IT, and commercial markets. The new single-phase modular and scalable UPS provides unparalleled reliability and efficiency for mission-critical environments. This development addresses increasing needs for reliable power distribution in highly automated environments, consistent with the growing requirements of distribution automation systems in real-time and data-intensive operational settings.
• In April 2025, Toshiba Transmission & Distribution Systems Private Ltd. (TTDI), a Japanese company Toshiba Energy Systems & Solutions Corp., has inked a Memorandum of Understanding (MoU) with the Government of Telangana (India), to proceed with investment of $66.01 million (INR 562 crore) in power transmission & distribution manufacturing to enhance its manufacturing capacity within the state.
• In April 2025, Schneider Electric invested $700 million to fuel the increasing US digitalization, automation, and manufacturing needs, representing the company's largest single capital investment commitment in its 135-year history.
• In March 2025, Eaton released a milestone AI-based innovation focused on enhancing wildfire prevention in utility distribution systems. The Eaton HiZ Protect solution solves the long-time problem of detecting and preventing high-impedance (HiZ) faults on distribution lines accurately. Through accelerated fault detection and automatic de-energization, the technology improves significantly grid reliability and safety. The innovation further solidifies Eaton's leadership position in the distribution automation industry and its mission to create smart, resilient, and fire-safe grid infrastructure.
• In February 2025, Schneider Electric expanded its Indian manufacturing base significantly. The move reinforces Schneider Electric's pledge to drive India's digitalization and sustainability agenda through the latest energy management and industrial automation technologies Schneider Electric presented pioneering solutions specifically designed to power digital grids, IoT-solutioned distributed energy resources, and intelligent buildings, reflecting increased demand for distribution automation in India's fast-developing power sector.
• In January 2025, ABB has acquired Sensorfact BV, a rapidly growing energy management firm headquarters in Utrecht, Netherlands. The acquisition further increases ABB's digital energy management portfolio.
• In August 2024, Siemens Smart Infrastructure launched the SICAM Enhanced Grid Sensor (EGS), an important solution that will speed up the energy transition by solving the most important challenge of network transparency of distribution networks for grid operators. Only 22% of urban smart grids are mature or advanced, as stated in the most recent Infrastructure Transition Monitor survey. The new solution will play an important role in digitalizing distribution networks and enabling operators to gain complete network vision.

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Some of the Key Companies in the Distribution Automation Market Include-

• ABB Ltd.
• Aclara Technologies LLC
• Advanced Control Systems
• Cisco Systems, Inc.
• Eaton Corporation plc
• Emerson Electric Co.
• G&W Electric Co.
• General Electric Co.
• Landis+Gyr - Landis+Gyr Group AG
• NovaTech LLC
• Power System Engineering, Inc.
• S&C Electric Co.
• Schneider Electric SE
• Schweitzer Engineering Laboratories, Inc.
• Toshiba Corp.
• Trilliant Holdings Inc.
• Xylem Inc.

Distribution Automation Market Segmentation Analysis

Global Distribution Automation Market by Component
• Field Devices
• Remote Fault Indicators
• Smart Relays
• Automated Feeder Switches
• Automated Capacitors
• Automated Voltage Regulators
• Automated Feeder Monitors
• Transformer Monitors
• Remote Terminal Units
• Software and Services

Global Distribution Automation Market by Communication Technology
• Wireless
• Radio Frequency Mesh
• Cellular Networks
• Worldwide Interoperability for Microwave Access (WiMAX)
• Wired
• Fiber Optic
• Ethernet
• Powerline Carrier
• Internet Protocol (IP)

Global Distribution Automation Market by Utility
• Public
• Private

Regional Analysis
• North America
o United States
o Canada
• Europe
o UK
o Germany
o Italy
o Spain
o France
o Rest of Europe
• Asia-Pacific
o China
o India
o Japan
o South Korea
o ASEAN Economies (Singapore, Thailand, Vietnam, Indonesia, and Other)
o Australia and New Zealand
o Rest of Asia-Pacific
• Rest of the World
o Latin America
o Middle East and Africa

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Anurag Tiwari
Orion Market Research Pvt Ltd
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