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The automation solution market in the renewable power generation industry market is estimated to grow at a CAGR of 5.56% between 2022 and 2027. The size of the market is forecast to increase by USD 3,767.77 million. The growth of the market depends on several factors, including the aggressive policies supporting the growth of renewable power, the declining cost of solar and wind power generation, and the continuous growth of market activities in the renewable power industry.
This report extensively covers market segmentation by end-user (solar energy, wind energy, and others), application (asset management, process control, remote monitoring, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The aggressive policies supporting the growth of renewable power are notably driving the automation solution market in the renewable power generation industry market growth. To minimize the emission of greenhouse gases and reduce the impact of global warming, governments in both developed and developing countries are coming up with various policies, regulatory measures, and protocols that will act as a catalyst to increase the adoption of renewable sources for generating power. The market for automation solutions is gaining traction with growing investments and incentives in the field of renewable power generation.
Many policies and measures across countries are supporting the growth of renewable power generation. For instance, in North America, the US Environmental Protection Agency (EPA) has come up with guidelines that clearly state that power plants older than 25 years with capacities of over 50 MW must be upgraded. All these rapid developments will drive the market during the forecast period.
Renewable energy auctions gaining traction is a major trend in the automation solution market in the renewable power generation industry market. Renewable energy project auctions are becoming increasingly popular, especially for expanding renewable power generation in developed and developing countries. These auctions, coupled with measures to incentivize renewable energy deployment, are driving the growth of renewable energy generation. Renewable energy auctions are gaining traction as they aid in the deployment of renewable technologies in a cost-efficient, well-planned, and transparent manner and subsequently fulfill several other objectives as well. These objectives mainly include job creation, local ownership, and development.
The main benefits of auctions are linked to their flexibility, price, and commitments. The flexibility to design policies enables policymakers to combine and tailor unique and different elements to meet the objectives of renewable energy projects. During the deployment of such projects, factors such as the country's present economic situation, the structure of the energy sector, and the maturity of its power market are taken into consideration. The certainty on quantity and price results in stable revenue for project developers (like feed-in tariff), and, at the same time, it ensures that renewable generation targets are met more precisely (similar to quotas and tradable green certificates). Such benefits are likely to grow the market in focus during the forecast period.
Cost challenges due to retrofitting is a major challenge impeding the automation solution market in the renewable power generation industry market growth. Implementing automation in power plants provides a wide range of advantages. However, retrofitting automation solutions in conventional devices and machines requires significant investment and effort. This, in turn, requires a cost-benefit analysis, as companies need to justify investments made toward purchasing new systems. In addition, the newly bought systems must be compatible with advanced automation solutions or with retrofitting existing devices with smart solutions.
With the growing number of manufacturers, there are various devices being developed. If a device cannot be integrated into mainstream systems, it will affect the revenue and would be considered a cost to the company. Therefore, there is a crucial need to establish a common operational framework to enable secure and effective communication between devices through automation. Unable to integrate the systems may pose a challenge to the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automation Solution Market in Renewable Power Generation Industry Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Mitsubishi Electric Corp. - The company operates under multiple segments including energy and electric systems, and home appliances among others, with a high focus on energy and electric systems. The company under this segment?offers products such as turbine generators, hydraulic turbine generators, nuclear power plant equipment, motors, and more. The key offerings of the company include automation solution in renewable power generation industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the solar energy segment will be significant during the forecast period. Automation has a wide range of applications when it comes to solar power plants. Automation solutions in solar plants are used for calculating the position of solar reflectors, calculation of sun vector and normal vector, computing the direction of the solar vector based on location and time, and more.
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The solar energy segment shows a gradual increase in the market share of USD 7,678.97 million in 2017 and continued to grow until 2021. Monitoring and analyzing the performance of solar PV plants is vital to reduce operational costs as well as maintaining and enhancing the plant's equipment lifecycle. Installation of a centralized monitoring and control system in a solar power plant ensures high performance, reduced downtime, and fault detection during its entire lifecycle, thereby increasing the efficiency and productivity of the plant. These systems come with a highly scalable and distributed architecture that includes features such as real-time dashboards, key performance indicator (KPI) reporting, and event logging with pre-defined algorithms to compute trends, efficiencies, performance ratios, and estimation of losses. Therefore, these factors will drive the adoption of automation solutions in the renewable power generation industry during the forecast period.
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APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is the largest contributor in terms of revenue for the global automation solution market in the renewable power generation industry and is expected to maintain its market share during the forecast period. In APAC, countries such as the Philippines, Vietnam, and Indonesia are facing frequent power outages; therefore, more power plants are likely to be built during the forecast period to meet the escalating demands of such countries. In addition, the ongoing rapid developments in the industrial sector and increased urbanization due to the heavy inflow of FDI into APAC have drastically fostered the demand for power from both industrial as well as consumer sectors. Moreover, countries in the region are in line with the objectives of the Kyoto Protocol and are, therefore, committed to reducing the levels of greenhouse gas emissions to combat global warming. There are numerous power generation plants in APAC, which are inefficient, outdated, and emit high levels of carbon dioxide. Therefore, there is a huge requirement to upgrade such plants and their systems to lessen their emission levels.All such factors are expected to propel the regional market in focus during the forecast period.
The regional market in focus is expected to grow at a rapid year-over-year rate during the forecast period, owing to factors such as increasing economic growth in countries like India and Japan, which is driving the demand for electrical infrastructure in the region; government regulations and investments to promote the use of renewable energy, and the ongoing upgrades of power plants in the region to minimize carbon emission levels.
The outbreak COVID-19 pandemic slowed down the expected growth rate in the automation solution market as various governments have diverted their funds to healthcare and public welfare programs. However, during the forecast period, events like COP27 are likely to set new frameworks and targets to limit global greenhouse gas emissions and bring countries under the ambit of international rules and regulations, which would put nations under pressure to revitalize their renewable energy sector and thereby driving regional automation solution market in renewable power generation industry.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automation Solution Market In Renewable Power Generation Industry Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.56% |
Market growth 2023-2027 |
USD 3,767.77 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.75 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Beckhoff Automation GmbH and Co. KG, Bosch Rexroth AG, Delta Electronics Inc, Eaton Corp. Plc, Emerson Electric Co, Fuji Electric Co. Ltd., GE Grid Solutions, Hitachi Energy Ltd., Honeywell International Inc., Intel Corp., Mitsubishi Electric Corp., OMRON Corp., Pilz GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Tata Power Co. Ltd., Toshiba Corp., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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