According to the findings of the study, the top three emerging trends driving the global power distribution automation market between 2017 and 2021 are the emergence of IoT, increasing demand for renewable energy and rollout of smart meters.
The research firm projects revenue generation in the market to grow from $8,89 billion in 2016 to $12,01 billion in 2021.
The growth of the market is forecasted to be high in developed economies with the US and Europe expected to dominate the segment.
In developing countries, Technavio says the power distribution automation components market will remain low as the economies employ efforts to expand the market which is at its initial stages.
Countries like China, India and in the middle east are expected to start deploying components to automate grid networks as utilities in the regions try to improve energy management and secure energy supply to address challenges such as high demand of energy due growth in economic activities.
Factors driving power distribution automation
An increase in deployment of renewable energy and distributed energy resources under efforts to secure energy supply and reduce carbon emissions will drive utilities’ investments in power distribution automation components to improve management and operation of clean energy resources integrated with grid networks.
Technavio forecasts both the renewable energy market and the power distribution automation market to grow during the forecasted period as governments continue to prioritise increasing investments in clean energy through policy development and implementation.
In a statement, Technavio highlights that the rollout of smart meters is currently the biggest trend in the power distribution automation market.
Through the use smart meters, energy providers are able to automate energy billing and meter data acquisition and processing. AMI technology has also proved an asset in helping towards stabilisation of energy networks through real time energy usage data provided consumers and utilities for use to identify energy efficiency potentials.
As utility firms embark on the digitisation of energy networks, IoT is forecasted to play a major role in automation of energy distribution assets.
Bharath Kanniappan, a lead analyst at Technavio, commented: “IoT is the next generation technology for all the end-user applications owing to its superior advantages in connectivity. In 2016, IoT already commercialized to a degree in the factory, thereby bringing an industrial revolution with the concept of Industry 4.0.”