Power quality investment leads growing North American distribution automation market

The global market for distribution automation equipment generated more than $11 billion in revenue during 2011.

07/09/2012


IMS Research (recently acquired by IHS Inc.) estimates the global market for distribution automation equipment generated more than $11 billion in revenue during 2011, with forecast growth to more than $18 billion annually by 2017. Equipment related to power quality is anticipated to be one of the fastest growing segments of the distribution automation market, particularly in North America, where revenues are expected to grow from more than $400 million in 2011 to a projected $700 million in 2017.

America's Market for Distribution Automation Equipment, Source: IMS ResearchCapacitor banks and voltage regulators are increasingly being automated, allowing these devices to be remotely controlled and work in direct coordination with one another in Volt/VAR optimization and conservation voltage reduction (CVR) schemes. Volt/VAR optimization maximizes the efficient use of power throughout the distribution network, while ensuring the correct (and safe) power reaches the end user, while CVR attempts to deliver the minimum voltage required by devices at the end consumer. Both applications require investment in not only the heavy metal, but increasingly there are more sales of switches and control modules to help automate schemes.

Comments analyst Nicole Juarez: “Adding electronics and controls allows equipment to act independently and/or be programmed in a system-wide scheme, allowing smart grid functionality to be accomplished. The surge in the power quality segment of the distribution automation market is coming from additional revenues being realized from retrofit sales. This is most pronounced in North America, where new construction has slowed and aging infrastructure makes the addition of controls onto existing heavy metal equipment in the field an easily justifiable investment for utility companies. In these regions, capacitor controls and voltage regulator controls are expected to grow faster than their heavy metal counterparts.”

Continued regulatory change is expected in North America, where some state’s PUCs are enforcing decoupling schemes, whereby removing the utility companies’ revenue earnings from a direct correlation to the amount of electricity sold. As this continues, more utility companies here will see a strong ROI on investing in not only power quality equipment on the grid, but also additional equipment such as sensors and other monitoring devices.

Adds Juarez: “In the short term, the appeal of Volt/VAR optimization schemes and the strong opportunity for retrofit opportunities for capacitor controls and voltage regulator controls will result in strong growth for power quality equipment. In the long term, the increased use of renewable generation and electric-vehicle charging will cause new challenges for the grid that will make the case for this group of devices even stronger, along with promoting the emerging market for energy storage on the grid.” 



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.