In this smart era, the artificial intelligence industry is thriving due to the trend of intelligentization. With many smart electronics seamlessly integrated into daily life, people have become accustomed to using and controlling these interactive devices. Many of these smart electronics are upgraded versions of conventional devices. When users send simple commands, these devices can understand and execute them immediately, significantly enhancing the overall quality of life. However, it is essential to recognize that intelligentization is not limited to electronic devices alone. Modernizing the electrical grid is equally crucial for improving power transmission and generation quality.

But how to modernize the electrical grid? A concept that must be introduced is the “Smart Grid”, which represents the next generation of grid technology. The smart grid relies on an integrated high-speed two-way communication network, and it incorporates advanced communication and automation technologies to enhance efficiency. One of the key advantages of the smart grid is that it can more effectively deal with faults and quickly realize self-healing. Furthermore, compared to traditional power grids, more complete and detailed operation status can be obtained through real-time monitoring, and more costs can be saved by reducing peak demand.

(Source: Wikipedia)

The purpose of constructing smart grids varies across different countries based on their national conditions. For example, while some European countries intend to develop grid interconnection, the Japanese government primarily aims to address energy resource shortages and promote social and economic development within its limited territories. Meanwhile, the Australian government focuses on developing new energy sources and enhancing energy efficiency. Overall, the development of smart grids around the world is imperative. According to a report from Market and Markets, the smart grid market is expected to grow from an estimated USD 185.0 billion by 2029 from an estimated USD 71.8 billion in 2024, at a CAGR of 20.8% during the forecast period. The demand for smart grids is increasing due to the supportive regulatory frameworks implemented by governments worldwide. These frameworks aim to promote the deployment of smart grids and their widespread adoption.

(Source: Market and Markets)

The growing smart grid market is driving increased demand for its components. As a comprehensive system, the smart grid interconnects various components of the electricity grid, including electric power generators, smart substations, transmission and distribution lines, controllers, smart meters, collector nodes, and distribution and transmission control centers. With the ongoing electrification process in the power industry, the need for high-performance and efficient distribution channels is also on the rise. Undoubtedly, the hardware of smart grid components is expected to be the second-largest segment market. It is worth mentioning that the substation is the node of the power grid, which is responsible for connecting transmission lines and delivering electrical energy. Smart substations, built upon advanced information technology, automation, and analytical techniques, efficiently and reliably meet various demands of power generation and consumption. Operating smart substations significantly enhances grid security and flexibility. Therefore, the intelligent operation of substations is a basic step in constructing a smart grid.

(Source: Slide Team)

The modernization of substations is a crucial component of the smart grid upgrade. According to many forecasts, the smart substation market size is expected to develop in the future. The Verified Market Reports indicated that the smart substation automation market size was valued at USD 42.44 Billion in 2023 and is projected to reach USD 65.09 Billion by 2030, growing at a CAGR of 6.5% during the forecasted period from 2024 to 2030. Substation automation, as an intelligent enhancement of conventional substations, involves information exchange and data sharing among equipment. Its purpose is to facilitate substation monitoring and control.

As one of the core components of the substation, the global market of smart transformers cannot be underestimated. In accord with research from Fortune Business Insights, the global smart transformer market size was valued at USD 2.39 billion in 2023. The market is projected to be worth USD 2.68 billion in 2024 and reach USD 7.27 billion by 2032, exhibiting a CAGR of 13.3% during the forecast period. Similar to smart substations, smart transformers represent a new generation of power transformers and provide several advantages for the development of smart grids. Several countries and regions pay their attention to this new type of transformer. According to a report from Precision Business Insights, the smart transformers market is segmented based on regions into North America, Asia-Pacific, Europe, the Middle East, and Africa. It should be stressed that the Asia Pacific smart transformers market is likely to hold a significant revenue share, and in the forecasted years, it is predicted to increase rapidly due to the presence of numerous key players in emerging economies such as India, Indonesia, Australia, and China.

(Source: Fortune Business Insights)

Considering the policies and plans in Asia-Pacific countries, smart transformers indeed have significant market potential. For instance, China’s national strategy under the “Made in China 2025” program aims to position the country as a global leader in electrical power equipment by 2025. In India, aging infrastructure and high electric losses necessitate upgrades and modernization of the electricity network. Meanwhile, the Middle East and Africa remain focused on renewable power generation and energy mix diversification, driving demand for grid and intelligent equipment. In North America, the United States leads due to substantial utility investments in upgrading existing grid infrastructure. Although the smart transformer market is booming, there are also some factors restricting its development. A report by Fortune Business Insights indicates that the major restraint in installing smart transformers is their high equipment cost. The integration of advanced technologies such as sensor technology, monitoring, and diagnostics, as well as cloud computing and analytics, makes it more expensive. However, enterprises need to pay attention to the long-term development of this equipment. With the improvement of transformer technology and the expansion of the smart grid, it is wise to choose smart transformers as the core equipment for the power grid.

(Source: Research Gate)

There is no doubt that the smart grid will set off an electric power revolution in the world. Perhaps it will provide the most basic power guarantee for a new round of the Industrial Revolution. As a long-standing player in the power industry, CEEG is committed to delivering top-quality products and advanced technology during this smart era. Our new generation of smart transformers features real-time monitoring and data collection systems, finding applications across various fields. We have received numerous positive comments from our customers, and we look forward to serving even more clients who can benefit from our products and services!