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Substation automation is an integral part of electrical system for generation, transmission and distribution of electricity. The combination of devices used to change the characteristics of electric supply such as voltage, p.f. and frequency among others is called substation. Substations are used to receive electricity at high voltage from the transmission and decrease the voltage to the appropriate level so that it can be used for local distribution.

The build metrics and impact metrics are the major parameters used to determine the efficiency of an automated substation. Impact metrics determine the impact on the grid response and its associated human resource, infrastructure and the consumers after deployment of smart grid. Build metrics monitors the progress while building the smart grid infrastructure and is similar to project management type metrics.

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On the basis of the components substation automation market can be segmented into recloser controller, programmable logic controller, capacitor bank controller, digital transducer/smart meter, load tap controller, communication channel and digital relays among others.

The communication channel includes four segments which includes ethernet, powerline communication, copper wire communication and optical fiber communication among others. SCADA (supervisory control and data acquisition), intelligent electronic devices (IED) and communication network among others are the segments of substation automation on the basis of modules. The demand to improve the grid efficiency and reliability is one of the major factors driving the growth of substation automation market.