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.” 



Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2017 Top Plant.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
May 2018
Electrical standards, robots and Lean manufacturing, and how an aluminum packaging plant is helping community growth.
April 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
March 2018
SCCR, 2018 Maintenance study, and VFDs in a washdown environment.
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
December 2017
Product of the Year winners, Pattern recognition, Engineering analytics, Revitalize older pump installations
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Maintenance & Safety
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Industrial Analytics
This digital report explains how plant engineers and subject matter experts (SME) need support for time series data and its many challenges.
IIoT: Operations & IT
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me