Smart grid technologies forecast as market driver

Smart grid technologies are forecast to be the strongest market driver for low voltage contactors with an estimated market revenue of over $5 billion by 2016, said IMS Research.

11/18/2011


In a recently published study from IMS Research, entitled The World Market for Low Voltage AC & DC Contactors and Overload Protection Devices – 2011, the global trend towards installing smart grid technologies is forecast to be the strongest market driver for low voltage contactors over the next five years, spurring contactor market revenues to over $5 billion by 2016.

Contactors are traditionally used to start and control AC induction motors, where large power switching may occur and safety is a concern. The market here for contactors generally follows machinery production forecasts and is tied in heavily to underlying GDP forecasts. However, adoption of smart grid technologies drove 2010 volumes up higher than expected, and is forecast to continue to do so as smart grid initiatives gain momentum worldwide. Comments report author Michael Markides, “With more decentralized power generation, and more parties likely to act as electricity providers, the need for safe and reliable power switching is expected to increase. Growth in renewable energy, and related grid integration and management of renewable energy, is the single strongest driver for further adoption of contactors in power switching.”

2010 market revenues grew to an estimated $3 billion for contactors, with over a third of the revenues being for contactors sold into power switching. By 2016, revenues for contactors sold into power switching alone are forecast to reach $2 billion globally, or just over half the total projected market revenues. Adds Markides, “All parts of electricity infrastructure, including generation, distribution and consumption, are rapidly adopting some level of smart grid technology. As a result, suppliers of contactors will increasingly shift attention to OEMs that manufacture devices such as electric vehicle charging stations, solar and wind inverters, generators, UPS, capacitor banks and electrical paneling, all key end equipment types forecast to grow the power switching segment for contactors over the next five years.”

Graph explaining projected market revenues from 2010 to 2016 with the bar dividing projected revenues for motor control, other loads and power switching. Courtesy: IMS Research

www.imsresearch.com 

IMS Research

- Edited by Chris Vavra, Control Engineering, www.controleng.com 

See the Automation Product Research Channel...

http://www.controleng.com/channels/product-research.html



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant 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.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.