Grid Automation Evolves Due to the Energy Transition

Recent research by ARC Advisory Group indicates that the monitoring and control of power transmission and distribution is evolving due to the shift toward more distributed generation. This includes the growth of solar, wind, and battery power, while fossil generation is being retired and nuclear power remains flat. The grid automation market is strongest in regions that are building new electric grids or making major system upgrades or repairs due to weather events or wars that target and damage electric distribution systems. There is substantial growth in grid automation software, hardware, and services due to a changing mix of generation, new grid storage assets, and new market structures such as virtual power plants and support for demand response.

"Artificial Intelligence (AI) is playing a transformative role in grid automation. AI and Machine Learning (ML) are being increasingly utilized for applications like predictive maintenance, fault detection and diagnosis, optimized power flow control and both load and generation forecasting. These technologies help improve operational efficiency, reduce downtime, and enhance grid resilience. Existing suppliers are embedding AI into EMS, ADMS, DMS, GIS, and other software applications. New niche AI firms are often leveraging cloud-native AI platforms and offer SaaS (Software-as-a-Service) solutions,” according to Rick Rys, Director of Consulting and key author of ARC's Grid Automation Market Research.

Grid Automation Market Trends

In addition to providing detailed competitive market share data, the research also addresses key market trends as follows:

  • Microgrid Growth
  • Increased Focus on Grid Resilience and Reliability
  • Transformer Shortage Continues
  • Digitalization and Intelligence Improvements
  • More Distributed Generation
  • Grid Modernization
  • SWB Dominate New Power Additions Worldwide
  • AI and Machine Learning Integration: AI and ML Are Becoming Foundational for Advanced Grid Automation

Leading Suppliers to the Grid Automation Market Identified

In addition to providing specific market data and industry trends, this ARC market research also identifies and positions the leading suppliers to this market and provides and summarizes their relevant offerings. An alphabetical list of key suppliers covered in this analysis includes: GE Vernova, Hitachi Energy, NARI Technology, Schneider Electric, Siemens.

About the Grid Automation Research

Grid Automation Trends

The Grid Automation research explores the current and future market performance and related technology and business trends and identifies leading technology suppliers. This new research is based on ARC’s industry-leading market research database, extensive primary and secondary research, and proprietary economic modelling techniques. The research includes competitive analysis, five-year market forecasts, and four years of historical analysis. The research segmentation includes World Region, Revenue Category, Hardware Type, Software Type, Service Type, Grid Location, Site Type, Project Size, Project Type, Sales Channel, Customer Type.

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