Markets and Markets forecasts that the global distribution automation market will grow from $11.82 billion in 2018 to $16.81 billion in 2023, representing a compound annual growth rate of 7.29% during the period.

The global distribution automation market is driven by increasing renewable energy generation and growing demand for energy efficiency. Advances in the Internet of Things and communication technologies are also providing significant opportunities for the distribution automation market.

By component, the field equipment segment is expected to account for a major share of the market during the forecast period. Increasing investment in refurbishing aging infrastructure and government initiatives to promote the use of energy efficient power generation resources are the major factors driving the distribution automation market in the European region. European market players such as ABB, Schneider Electric and Eaton are involved in the manufacture of field equipment. These factors make the field equipment segment occupy the highest market share.

By application type, the utility sector is expected to be the largest distribution automation market between 2018 and 2023. Factors driving the utility distribution automation market include significant government efforts to expand public services. The grants provided by the government will contribute to the modernization of the power grid, thereby driving the development of the distribution automation market.

By region, Asia Pacific is the fastest growing market for distribution automation. The distribution automation market in APAC is driven by countries such as China, India, Japan, and Australia. Rapid industrialization in India, China and Australia is expected to drive the implementation of distribution automation systems. These countries are increasing renewable energy generation to meet growing energy demand. According to the Renewable Energy Policy Network for the 21st Century (REN21), China accounted for 45% of total global investment in renewable power generation in 2017. Increased investment in renewable energy will drive the growth of the distribution automation market in APAC.