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Smart Grid Distribution Automation Revenue Will Surpass $11 Billion By 2020, Forecasts Navigant Research

In the context of smart grid deployments today, distribution automation (DA) refers to intelligent distribution systems that are fully controllable and flexible, and that can help operate the grid more efficiently due to their embedded intelligence. The lessons learned from smart grid pilots over the last 5 years are leading to proven reliability improvements and verified grid efficiencies, which in turn have become powerful drivers for growth in the DA market. According to a new report from Navigant Research, revenue from distribution automation systems will grow from $6.3 billion in 2013 to more than $11.3 billion in 2020.

“The global market for distribution automation is diverse, dynamic and growing,” says Kristoffer Torvik, senior research analyst with Navigant Research. “As annual utility spending reaches and exceeds $10 billion in the coming years, opportunities will vary significantly by region and application. Although low voltage applications contribute most significantly to growth in DA, medium voltage automation constitutes the majority of the overall volume.”

DA technology can play a critical role in outage recovery, delivering the capability to sense and pinpoint faults, reroute power flows through dynamic sectionalizing, and even provide key location information back to line crews to speed repair and recovery. Collectively, this type of application is called fault location, isolation, and service restoration (FLISR). However, few distribution feeders in North America currently have such capability, largely because the cost of rollout has traditionally been too high. According to the report, as interest in DA continues to grow, FLISR will be a key application area, particularly in North America and in other regions as well.

The report, “ Distribution Automation,” analyzes the global market trends for low voltage and medium voltage automation and communication. The technical discussion revolves around the intelligent electronic devices inside and outside the substation fence and the functional evolution of distribution automation. The report provides a comprehensive assessment of the demand drivers, business cases, regional differences, and technology issues that are shaping the DA market. Key industry players are profiled in depth, and worldwide revenue and capacity forecasts, segmented by application and region, extend through 2020. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at

* The information contained in this press release concerning the report, “Distribution Automation ,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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