ARC says SCADA market for Electric Power to exceed $2.1 Billion

  • April 02, 2009
  • ARC Advisory Group
  • News
April 2, 2009 - Driven by new industry dynamics and global demand for electric power infrastructure, the worldwide market for Electric Power Supervisory Control and Data Acquisition (SCADA) is expected to grow at a compounded annual growth rate (CAGR) of 5.5% over the next five years. The market was $1,629 million in 2008 and is forecasted to be over $2,125 million in 2013, according to a new ARC Advisory Group study.The far-reaching impact of technology and quantum change in the way companies are restructuring and streamlining business processes are transforming the global SCADA market. “The latest SCADA systems encompass a new generation of technology components. These new generations of SCADA systems and applications are easier to integrate and provide vastly improved capabilities and functionalities. SCADA systems are enabling distributed intelligence and broader adoption of smart grids. A wide range of applications link SCADA to business processes and to technologies such as GIS for a variety of purposes, including asset and business performance management,” according to Research Director Russ Novak, the principal author of ARC’s “SCADA Systems for the Electric Power Industry Worldwide Outlook”.Global Presence DominatesThe worldwide SCADA market for the Electric Power industry is expanding as developing regions establish their energy infrastructures, and established regions refine their control and data collection systems to meet sustainability requirements and the needs of revised utility business processes. While the worldwide SCADA market continues to be dominated by global suppliers, there are still a number of niche players, particularly those that offer services. While North America and Europe continue to dominate the global SCADA market, focus is shifting to developing regions of the world where electric power is a critical infrastructure requirement even during a period of economic uncertainty. Enhanced SCADA Functionality The underlying technology that facilitates traditional SCADA functionality has changed dramatically. Emerging technology is enabling SCADA to be tightly integrated to the domain of business processes, creating an improved value proposition for its usage. SCADA systems improve performance of geographically dispersed assets and provide a framework for real-time performance management on a regional, or even global, basis. SCADA technology enables utilities to improve customer service, allows the layering of intelligence into distribution grids, increases network reliability, and reduces operating costs. Supported by intelligent field devices, expanded communications networks, and improved compatibility with IT, SCADA can now provide a wealth of information and knowledge as a means to modify business processes, and enable the creation of mobile knowledge workers. Utilization of today’s SCADA systems should be leveraged to encompass both robust control and automation functionalities with enhanced workflows for utilities. Developed Regions Continued ImportanceThe Europe, Middle East, Africa (EMEA) region will experience slightly less than average growth through 2013, but it will remain the most significant region through the forecast period. The SCADA system market in North America, accounting for less than 25 percent in 2008, will also experience less than average growth, while Asia will experience above average growth. Learn More

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