Distribution Automation Market - Global Industry Analysis Trends and Forecast by2019
Distribution automation (DA) provides effective solutions, efficient
management, and operation of electric utility systems. Distribution automation
helps in controlling assets, regulating, and monitoring distribution systems.
DA consists of several technological systems such as switches, processors,
sensors, and communications that administer the electrical distribution system
network and components, automatically. The multiple benefits of DA systems are:
Energy conservation, decrease of power interruptions, increased efficiency of
distribution systems, and higher penetration of distributed energy resources
(DER).
Expansion at a CAGR of 8.5% Expected Due to Automation and Operation
Efficiency
Distribution automation involves automation of distribution systems
and this factor decreases functioning and maintenance costs. Costs are reduced
as DA has the capability to detect, isolate, and restore faults well ahead. The
decrease in cost is the main driver for global distribution automation (DA)
market . The DA market had reached a value of US$9,986.3 million in 2012 and is
expected to expand at a CAGR of 8.5% over the next few years and reach a value
of US$17,677.2 million by the end of 2019.
The reduction of power outages, consistent and efficient distribution
of power systems and improved quality are among the factors stimulating the
market for Distribution Automation (DA) worldwide. Whereas, the communication
system technology and infrastructure lack standardization, and switchgears are
not updated to suit contemporary standards and these factors deter market
growth. However, there are market opportunities that exist in technological
innovations and the yet unexplored rural market for DA systems. Knowledge about
conservation of energy to reduce power expenses is a market driving aspect in
rural areas.
Monitoring and Controlling Devices Lead DA Market, Power Quality and
Efficiency Devices Expanding
The distribution automation (DA) market can be segmented based on
product type. The global distribution and automation segments can be segmented
by product, end-users and by geographical regions. The product type segment has
power quality and efficiency devices and switching and power reliability
devices. The monitoring and control devices segment had a major market share
with 31.6% of the global market share in 2012 for DA. This product helps in
fault detection and guarantees improved grid reliability and decreases
restoration periods significantly. Recent market research states that the power
quality and efficiency devices segment is emerging as the most rapidly
expanding segment by 2019.
Industrial Segment to Continue Expansion and Residential Segment to
Expand due to Reduction in Outages
The end use segment for distribution automation (DA) includes
industrial, commercial, and residential. Among these, the industrial segment
had a market revenue share of 51.3% in 2012 and is anticipated to continue the
growth trend over the next few years. Residential, another end-use segment, is
projected to develop at a strong CAGR of 12% to 2019 and this is attributed to
the increased need for reliability, to reduce power outages, and obtain quality
services.
Europe and North America are Market Leaders; China and India to Show
Marked Expansion
Europe had generated larger revenues in 2012 due to growth of smart
grid projects and upturn in investment for automation systems such as smart
systems. The need was generated due to cost saving and operation factors of DA.
North America is focusing more on DA and hence market expansion is expected in
this geographical segment for DA systems. China and India are also investing in
enhanced DA and China’s focus on renewable energy technologies will drive
demand for the implementation of DA systems.Globally the major players in the
distribution automation market are ABB Ltd, Schneider Electric, Siemens AG, and
GE Corporation.
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