Dublin, Jan. 23, 2026 (GLOBE NEWSWIRE) — The “Power Distribution Automation Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The Global Power Distribution Automation Market is projected to expand from USD 24.22 Billion in 2025 to USD 44.98 Billion by 2031, exhibiting a CAGR of 10.87%
Power distribution automation involves the deployment of digital sensors, processors, and communication technologies designed to monitor, control, and optimize the performance of electrical distribution networks. The market is primarily driven by the urgent need to modernize aging infrastructure and the increasing requirement to integrate distributed energy resources, such as solar and wind, which demand dynamic load management to ensure grid stability and reliability.
However, the substantial capital expenditure required for upgrading legacy systems poses a significant challenge that could impede widespread market expansion. According to the Edison Electric Institute, in 2024, U.S. investor-owned electric companies invested a record USD 178.2 billion to make the energy grid smarter and more resilient. This high cost of entry often limits the ability of smaller utilities or operators in developing regions to implement comprehensive automation solutions, thereby slowing the overall rate of adoption.
Market Drivers
The increasing integration of renewable energy sources and distributed generation necessitates advanced distribution automation to maintain network stability. As utilities shift from centralized generation to decentralized models, the variable nature of resources like solar and wind introduces power quality challenges that manual grid management cannot address efficiently. According to the International Renewable Energy Agency’s ‘Renewable Capacity Statistics 2024’ report from March 2024, the global power sector added a record 473 GW of renewable capacity in 2023. This surge in variable capacity compels operators to deploy automated voltage regulation and fault detection systems to proactively manage load fluctuations and prevent potential service disruptions.
Modernization of aging power distribution infrastructure is the second primary factor propelling market growth, driven by the imperative to reduce outages and improve operational efficiency. Governments and utilities are prioritizing capital allocation toward smart grid technologies to replace obsolete equipment that is increasingly prone to failure during extreme weather events. For instance, according to the U.S. Department of Energy’s ‘Grid Resilience and Innovation Partnerships’ announcement in August 2024, the administration awarded approximately USD 2.2 billion to eight projects aimed at enhancing grid reliability and resilience. Furthermore, the International Energy Agency projects that global investment in electricity grids will reach USD 400 billion in 2024, reflecting a broader industrial commitment to digitalizing network operations.
Market Challenges
The substantial capital expenditure required to upgrade legacy infrastructure serves as a primary restraint on the power distribution automation market. Implementing these systems involves significant upfront costs for advanced hardware installation, software integration, and the establishment of secure communication networks. For many utility operators, particularly those managing extensive but outdated grids, the financial burden of replacing existing equipment with automated alternatives is prohibitive. This economic pressure often forces utilities to delay modernization projects or opt for piecemeal upgrades rather than comprehensive system overhauls, effectively reducing the immediate rate of market penetration.
This high cost of entry creates a disparity in adoption rates, specifically limiting market growth in regions with constrained financial resources. While major operators may possess the capital to absorb these expenses, smaller municipal utilities and those in developing economies frequently lack the necessary funding to proceed. According to the International Energy Agency, in 2024, global investment in electricity grids reached USD 400 billion, reflecting the immense financial scale required to support modern energy transitions. Such capital intensity ensures that budgetary constraints remain a decisive factor in preventing the widespread deployment of automation technologies across the global sector.
Market Trends
The integration of Artificial Intelligence (AI) and Machine Learning (ML) for predictive grid analytics is rapidly transforming the sector by enabling operators to transition from reactive maintenance to proactive network management. These technologies process vast datasets from smart meters and sensors to forecast load patterns and identify potential equipment failures before they occur, optimizing asset performance and reducing downtime. According to National Grid Partners’ ‘2025 Utility Innovation Survey’ from October 2025, 42% of utility respondents plan targeted AI deployments over the next two years, highlighting the strategic shift toward algorithm-driven decision-making in grid operations.
The emergence of Virtual Power Plants (VPPs) represents a fundamental shift in distribution architecture, aggregating distributed energy resources like rooftop solar and batteries to function as a unified, dispatchable asset. This model allows utilities to balance supply and demand fluctuations without relying on capital-intensive fossil fuel peaker plants, thereby enhancing grid flexibility and economic efficiency. According to an Energy-Storage.news article from September 2025 titled ‘North American virtual power plants added 4.5GW of new capacity in 2024’, total operational VPP capacity in North America has reached 37.5 GW, reflecting the growing reliance on aggregated distributed resources for system stability.
Key Players Profiled in the Power Distribution Automation Market
- ABB Ltd.
- Schneider Electric SE
- Siemens AG
- Eaton Corporation PLC
- General Electric Company
- Hitachi Energy Ltd.
- Itron Inc.
- S&C Electric Company
- Toshiba Energy Systems & Solutions Corporation
- Landis+Gyr AG
Report Scope
In this report, the Global Power Distribution Automation Market has been segmented into the following categories:
Power Distribution Automation Market, by Component:
- Field Devices
- Software & Services
- Communication Technology
Power Distribution Automation Market, by Utility:
Power Distribution Automation Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 180 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value (USD) in 2025 | $24.22 Billion |
| Forecasted Market Value (USD) by 2031 | $44.98 Billion |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/3lwbjr
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- Power Distribution Automation Market
