The power sector is undergoing a rapid transformation guided by digital infrastructure and the need for smarter, more resilient energy systems. Digital substations are becoming crucial for modern grid operations, enabling real-time control, automation, and seamless integration of renewable sources.
Global market value is expected to reach USD 12 billion by 2030, with nearly 45% of utilities planning deployments by 2026. This blog will guide you through the key drivers of digitization, automation trends, evolving utility needs, and how Manav’s solutions enable utilities to future-proof their networks.
What Are Digital Substations?
The digital transformation of modern power systems has been caused mainly by three mega-factors: carbon neutral initiatives (reducing overall carbon emissions), decentralization of energy generation (locally generated clean energy to meet local demand), and digitalization (adoption of digital technology to increase cost efficiency and system integrity). This digital transformation is also applied to digital substation systems through the introduction of digital substations with new process bus technology.
As its name suggests, the digital substation brings digital technology into the center of the substation. The digital substation focuses on digitalization of both station level and process level by converting analog measurement data into digital data. Digitalization provides a secure and reliable method of data transmission, as well as significantly reduced investment and operating costs.
Digital Substations vs Traditional Substations
Challenges in Transitioning to Digital Substations
As modern power systems evolve, digital substations play a key role in enabling smart grid solutions. However, this transition comes with several challenges:
- System Integration Complexity: Integrating digital technologies into legacy infrastructure is technically demanding and requires careful planning to avoid disruptions.
- Cybersecurity & Resilience: Increased connectivity for smart grid solutions raises concerns around data security and system robustness, demanding stronger protection frameworks.
- High Capital Investment: Upfront costs for digital substations, including intelligent devices, communication networks, and automation tools, can be significant, with long-term ROI.
- Workforce Readiness: The shift to digital systems exposes skill gaps, requiring utilities to upskill teams in data management, cybersecurity, and digital operations.
Digital Substations for Modern Power System Trend 2025–2035
Digital Substations Market – Size, Share, and Forecast 2025 to 2035
The digital substations market is set to grow to USD 8.3 billion in 2025 and is projected to reach USD 17.1 billion by 2035, growing at a CAGR of 7.4%. The substation automation system segment holds the largest share, with the utility sector driving demand. Asia-Pacific is expected to register the fastest growth, with a CAGR of 5.5% over the forecast period. Source
Top Drivers of Smart Grid Solutions growth: 2025–2035
- Renewable Integration – With ~3,700 GW of solar and wind expected by 2028, grids must become more flexible to handle fluctuating power inputs.
- Regulatory Mandates – Governments worldwide are mandating digital grid upgrades, emissions targets, and smart infrastructure investments, as seen in EU and U.S. reform initiatives.
- Grid Flexibility Needs – The rise of DERs, energy storage, and EVs demands adaptive grid systems that adopt measures like demand response and storage to balance loads accurately.
These priorities are fueling a smart grid market projected to grow 4 times larger from approximately USD 85 billion in 2025 to over USD 340 billion by 2035.
How Automation is Transforming Digital Substations Operations
As the demand for more resilient, efficient, and intelligent power infrastructure grows, substation automation has emerged as a key enabler in the modernization of smart grid solutions. By applying sensors, intelligent devices, and real-time data analytics, automation is transforming the way substations operate, becoming an integral part of smart grid development.
- Intelligent Monitoring and Control
Substation automation eliminates the need for frequent manual intervention by automating routine monitoring, control, and fault detection processes. Intelligent Electronic Devices (IEDs) gather and process real-time data from across the network, enabling faster and more informed decision-making.
- Enhanced Grid Reliability
Through continuous monitoring and early fault detection, automation significantly reduces the risk of outages and system failures. This results in improved grid stability and reliability, especially in high-demand or mission-critical environments.
- Advanced Functional Capabilities
Modern automated substations are equipped with real-time control capabilities, self-diagnostic functions, and adaptive load management. These systems can dynamically respond to grid conditions, optimizing power flow and maintaining system balance under varying loads.
- Seamless Integration with SCADA
Automation platforms integrate smoothly with Supervisory Control and Data Acquisition (SCADA) systems and grid management platforms. This allows operators to visualize, manage, and control the grid remotely, ensuring faster response times and more efficient energy distribution.
Manav’s Role in Enabling Digital Substations
1. R-FERM: IIoT-Based Condition Monitoring
Patented IIoT Digital product Remote fault-time earth resistance monitoring system
Manav has indigenously developed R-FERM (Remote Fault Time Earth Resistance Monitor), which can automate earthing system measurement and maintenance practice. By monitoring individual earth pits, R-FERM enables the prevention of accidents caused by unhealthy or faulty earthing systems. On the occurrence of a fault, the person concerned is notified.
The behavior of the earth pit during fault conditions can be observed. If any discrepancy is found, corrective actions can be taken immediately. Manual measurement of an earthing system consumes great effort, time, and money. The R-FERM digitalized concept reduces time and effort and provides an automated system for maintenance and provides remote diagnostics, real time alerts for predictive maintenance.
Manav R-FERM is a key tool for building and maintaining robust, safe, and efficient smart grids by providing advanced fault detection and predictive maintenance capabilities for earthing systems.
2. LMAS: Intelligent IIoT digital product
Manav Intelligent IIoT-based digital product LMAS (Lightning Management and Alert System). A one-of-a-kind system that can manage lightning hazards by providing a full-scale alert that ensures every person is in the safe zone. The LMS (Lightning Management System) predicts the occurrence of storms and manages the high energy dissipation.
The LAS (Lightning Alert System) alerts the authorities of prevailing unsafe conditions during lightning. The LAS is integrated with the LMS electronically to form an LMAS that predicts, detects and measures each environment’s storm and lightning conditions, thus providing safety and reliability to lives, livestock, and assets.
Key featuresof LMAS:
- Intelligent Lightning Mitigation
- Audio and Visual Alert System
- Data Collection and Analysis
- Solar-based Battery Operation
Our installation experts are responsible for planning, executing, monitoring, controlling, and closing projects. We at Manav provide training to our engineers for addressing different parameters, along with refresher and technology advancement training.
Manav LMAS is an intelligent lightning management system that enables real-time monitoring and alerting of lightning activity to secure infrastructure. It enhances grid resilience by minimizing downtime and protecting assets from lightning-induced faults.
Conclusion
Digital substations are playing a key role in shaping the future of modern power systems. As the world moves toward smarter, cleaner energy, these advanced systems are helping utilities monitor and manage their networks in real-time, with greater accuracy and less manual effort. With the rise of smart grid solutions, there’s a growing need for flexible, automated, and secure infrastructure. That’s where Manav comes in, with smart innovations like R-FERM for condition monitoring and LMAS for lightning protection, we’re helping utilities upgrade to safer, more efficient, and future-ready networks.