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The remote terminal unit (RTU) in smart grid market size is forecast to increase by USD 82.28 million, at a CAGR of 4.97% between 2023 and 2028. The market growth analysis depends on several factors such as the transition to smart grids, the rising energy demand globally, and the advancements in communication technologies.
The report includes a comprehensive outlook on the Remote Terminal Unit in Smart Grid Market, offering forecasts for the industry segmented by Application, which comprises company power sector and power plant. Additionally, it categorizes Type into high voltage, medium voltage, and low voltage, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The market report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
A smart grid is an integrated network that connects all the assets of a power network, namely, generation, transmission, distribution, and consumption. One of the main features of a smart grid is its ability to generate large volumes of data. The vast amount of information, coupled with variable power consumption sources, such as automation devices, sensors, and other smart devices, broadens the opportunities for utilities to handle multiple databases and synchronize them. With the help of a power utility monitoring system, this data can be used as a diagnostic tool for corrective action.
Furthermore, as utilities worldwide shift towards more advanced and automated grid management, the demand for RTUs rises. These devices play a pivotal role in collecting and transmitting data, enhancing grid efficiency, and enabling real-time monitoring. The increasing deployment of smart grid infrastructure globally is expected to propel the demand for RTUs, which in turn will fuel the growth of the market during the forecast period.
The adoption of edge computing in the smart grid sector is poised to fuel the growth of the global remote terminal unit (RTU) in the smart grid market during the forecast period by addressing key challenges and enhancing the overall efficiency and responsiveness of smart grid systems. Edge computing involves processing data locally, near the source of generation or consumption, reducing latency and improving real-time decision-making capabilities. Edge computing integration into RTUs allows for faster processing of critical data directly at the grids edge, enabling quicker response to dynamic grid conditions.
Moreover, the adoption of edge computing in RTUs contributes to reduced data transmission requirements, alleviating strain on communication networks. Furthermore, the trend towards edge computing also aligns with the increasing focus on real-time analytics and the deployment of advanced applications, such as predictive maintenance and fault detection. These capabilities are vital for ensuring the stability and efficiency of smart grid systems, driving the demand for edge-enhanced RTUs in the market during the forecast period. As the smart grid landscape continues to evolve, the integration of edge computing in RTUs will drive market growth during the forecast period.
As RTUs play a key role in facilitating real-time data monitoring and control within smart grid systems, they become attractive targets for cyber threats, jeopardizing the overall integrity of the power infrastructure. Mumbai's power infrastructure was the target of a devastating ransomware attack in 2023, which marked a dramatic shift in the field of cybersecurity. This incident shocked the cybersecurity community and brought severe attention to the possible repercussions of such attacks on critical infrastructure. Thus, such incidents highlight the vulnerabilities in smart grid systems, prompting increased scrutiny and concern over the security of components like RTUs.
Furthermore, utilities and organizations investing in smart grid technologies, including RTUs, are compelled to allocate substantial resources to fortify cybersecurity measures. The uncertainty and evolving nature of cyber threats make it challenging for RTU manufacturers to stay ahead of potential risks. The need for continuous updates, patches, and investments in sophisticated cybersecurity solutions adds complexity and cost to the deployment and maintenance of RTUs, potentially hindering market growth during the forecast period.
The company power sector segment will account for a major share of the market's growth during the forecast period.? RTUs play a crucial role in collecting real-time data, ensuring grid stability, and managing the fluctuations inherent in renewable energy generation. The rising focus on grid modernization and smart grid initiatives is propelling the demand for RTUs in the power sector. Moreover, the need for real-time monitoring and control of power distribution networks is critical for companies in the power sector. RTUs enable utilities to remotely manage substations, monitor equipment health, and respond swiftly to faults or outages, contributing to operational efficiency and reducing downtime.
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The company power sector segment was valued at USD 180.48 million in 2018. Remote terminal unit in smart grid market players offer products tailored to the specific needs of the company power sector. For example, Siemens AG provides the Sicam A8000 series RTU, designed for advanced automation and control in power applications. ABB Ltd. offers the RTU500 series, featuring scalable solutions for substation automation in the power sector. Thus, the growing demand for RTUs in the company power sector is driven by the integration of renewable energy, grid modernization initiatives, and the need for efficient monitoring and control systems will drive the growth of the RTU in smart grid market through company power sector segment during the forecast period.
Based on type, the market has been segmented into high voltage, medium voltage, and low voltage. The high voltage segment will account for the largest share of this segment.?The high voltage segment in the global remote terminal unit in smart grid market is experiencing substantial growth, driven by several key factors. The increasing demand for reliable and efficient energy transmission in high-voltage networks is a primary driver. Secondly, the integration of renewable energy sources, often located in remote areas, necessitates efficient high-voltage transmission to bring the generated power to demand centers. RTUs play a critical role in monitoring and controlling high-voltage substations, ensuring the stability and reliability of the grid. The growing need for grid automation and modernization initiatives in the power sector is contributing to the demand for RTUs in high-voltage applications. Thus, increasing demand for reliable and efficient high voltage transmission, integration of renewable energy, and the broader trend of grid modernization in the power sector is expected to fuel the growth of the global remote terminal unit (RTU) in smart grid market through high voltage segment during the forecast period.
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North America is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America, particularly the US and Canada, leads in smart grid deployments, driven by government funding and initiatives. The US, a pioneer, supports grid modernization through legislation and financial aid. The Department of Energy provides grants for energy code adoption. The region plans significant power infrastructure upgrades, fostering the demand for remote terminal units (RTUs) in smart grids.
Moreover, major players like Schneider Electric and Siemens contribute to the market's growth. In Canada, government policies, renewable energy, and infrastructure upgrades drive the smart grid market, with a focus on achieving emission-free electricity by 2030. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Advantech Co. Ltd., Eaton Corp. Plc, Emerson Electric Co., Enilit Ltd., General Electric Co., Honeywell International Inc., ICP DAS CO. LTD., Kalki Communication Technologies Pvt. Ltd., Mitsubishi Electric Corp., Motorola Solutions Inc., Moxa Inc., Remsdaq Ltd., Schneider Electric SE, Schweitzer Engineering Laboratories Inc., Siemens AG, Spectris Plc, WAGO GmbH and Co. KG, Yokogawa Electric Corp., and Hitachi Energy Ltd.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Remote Terminal Unit (RTU) in Smart Grid Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.97% |
Market Growth 2024-2028 |
USD 82.28 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.47 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., Eaton Corp. Plc, Emerson Electric Co., Enilit Ltd., General Electric Co., Honeywell International Inc., ICP DAS CO. LTD., Kalki Communication Technologies Pvt. Ltd., Mitsubishi Electric Corp., Motorola Solutions Inc., Moxa Inc., Remsdaq Ltd., Schneider Electric SE, Schweitzer Engineering Laboratories Inc., Siemens AG, Spectris Plc, WAGO GmbH and Co. KG, Yokogawa Electric Corp., and Hitachi Energy Ltd. |
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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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