Power distribution networks are in a transformation from passive to active distribution networks, also called smart distribution networks, owing to the fast development of emerging information and communication technologies, and the integration of advanced metering infrastructure. The main reason for the transformation to smart distribution networks is the need to accommodate high penetration of distributed generation, especially renewable energy sources, in order to meet the environmental targets for gas emission reduction and sustainability. Smart power distribution systems are designed to optimize the use of electricity by intelligently adjusting the voltage and frequency of electrical currents in order to distribute power more efficiently. Increasing demand for the integration of renewable energy sources, high grid resilience, and effective outage response have all contributed to the increase in smart power distribution systems’ penetration.
The power industry continues to be witness innovation, with activity driven by automation, digitalization of power infrastructure, optimizing the performance of the power distribution network and improving the quality of the distributed power, and growing importance of technologies such as smart power distribution systems, smart grids, and smart metering. In the last three years , there have been over 439,000 patents filed and granted in the power industry. Moreover, the higher level of automation is transforming traditional distribution systems into the smart distribution systems (SDSs) of the future. The availability of data and remote control capability in SDSs provides distribution operators with an opportunity to optimize system operation and control.
Growth and developments of smart grid infrastructure, rise in demand for integration of renewable energy sources, high grid reliability, and improved outage response have increased the penetration of smart power distribution systems globally. The global smart power distribution systems market share is primarily driven by factors such as development of disruptive technologies such as smart meters, data analytics, Cloud, as well as rising number of manufacturing and energy companies with even larger power requirement. Consumers are rapidly adopting various smart grid solutions, as it allows electrical appliances to be automatically controlled and also reduce the overall electricity cost.
Digitalization of the energy sector has its side effects as well. There have already been cases detected when a group of hackers infiltrated systems of energy companies and exposed thousands of households to a controlled blackout. For example in April 2022, cyber attackers linked to the Chinese military broke into the networks of seven power grid hubs in north India. The incident is the latest in a string of cyber espionage attributed to groups based in China, with past attacks targeting critical infrastructure such as power plants, and private organizations in sensitive sectors like defense and finance.
Real-time data is a requirement of a more efficient grid. Without it, utilities lack the visibility and control they need to service increasing demand. With it, utilities can prioritize modernization projects and provide a foundation for future operations. In 2022, utilities prioritized gaining access to real-time data to the very edge of the network (such as home, business, or charging station). Line sensors in the distribution grid provides actionable insights into power usage patterns, line disturbances and grid stability.
New product launches to flourish the marketRise in installation of field devices with communication capabilities, such as Remote Control Capability (RCSs), enables distribution operators to operate these devices remotely in distribution systems. The remote control capability is crucial for smart power distribution systems, as with more RCSs, distribution operators can perform service restoration rapidly. Westfalen Weser, a German distribution grid operator launched its first remote control local substation (fONS) with Ormazabal medium voltage switchgear. During the subsequent extended pilot phase, numerous stations went into operation in most grid areas of Westfalen Weser and were thoroughly tested in the 10 kV and 20 kV voltage levels at grid intersections and disconnection points. The on-site grid operation staff gave their feedback on optimization potentials of the new fONS. Those ideas were incorporated into our technical concept for future installations.
Segmental OverviewThe Smart Power Distribution System market is segmented on the basis of component and application. By component, it is divided into three categories including hardware, software, and services. By application , it is divided into Commercial, Residential, Automotive, Pharmaceutical, Food & Beverage, and Others
By Component: the market is divided into software and hardware. The software segment is expected to dominate during the forecast period due to increasing implementation of various advanced automated software in order to manage rising power consumption, power outages, fault detection, and power theft. Software allows utilities to reduce the overall production cost by eliminating human errors. Software components includes Advanced Metering Infrastructure, Smart Grid Communication, Substation Automation, Billing Information System, Energy Management, and SCloud-based Applications. Services segment includes Deployment and Integration, Consultant, and maintenance services. The hardware segment includes AMI Meters, Programmable Logic Controller (PLC), Intelligent Power Distribution Unit, and Others (Sensors, Protection and Control Relays, etc.).
By Application: The Smart Power Distribution System market covers application areas, including Commercial, Residential, Automotive, Pharmaceutical, Food & Beverage, and Others. The commercial applications will include power distribution in the enterprise and commercial space such as warehouses, factories, manufacturing sites, etc.
By Region: North America dominated the smart grid market share in 2020. It is anticipated that the region will continue to dominate the market during the projected timeline backed by upcoming smart city and grid upgradation projects. Asia Pacific will record robust growth in the forthcoming years, led by growing deployment of smarter grid technologies in the region. In December 2021, ABB partnered with Indore Smart City Development Limited (ISCDL) to deploy next-generation digital technology that enables the continuous supply of electricity to homes and businesses. In the first phase of the collaboration, this technology has enabled more than 2300 connections to achieve 24/7 electricity supply with an efficient automatic response system (ARS) in case of power outages or disruption.
ABB and ISCDL now plan to replicate the same model in other areas of the city and position Indore as the model for smart city projects across India. Meanwhile, the market in Europe will expand on account of increasing clean power generation in the region. The respective governments are also accelerating efforts to implement smarter grid technologies. In December 2021, Schneider Electric launched a new version of its distribution system, EcoStruxure Power. This IoT-enabled architecture and platform designed to digitize and simplify electrical distribution infrastructure and delivers “always-on” power for commercial buildings, healthcare, data centers, industry, and infrastructure. This new upgraded EcoStruxure has enhanced cybersecurity features, improved connectivity and predictive analytics features to reduce electrical fires and ensure the safety of equipment and personnel. Earlier, in 2020, AWS released its smart meter data analytics solution, AWS Quick Start, which deploys a Smart Meter Data Analytics (MDA) platform on the AWS Cloud, helps utilities tap the unrealized value of energy consumption data while removing undifferentiated heavy lifting for utilities.
Competitive analysis and profiles of the major players in the Smart Power Distribution System market, such as ABB Ltd., Aclara Technologies LLC., Cisco Systems Inc., Eaton Corporation, Fuji Electric Co., Ltd, Honeywell International Inc., General Electric Company, litron inc., Schneider Electric SE, Emerson, Siemens AG, Itron Inc., and Landis+Gyr AG
MARKET TRENDSGovernment initiatives to support smart cities Government initiatives toward developing smart cities have majorly contributed to the growth of the smart power distribution systems market and are expected to continue to grow significantly throughout the forecast period. Smart city programs need a wide range of technologies, including IoT, AI, and smart sensors, whose applications vary between projects and cities. The main drivers for integrating smart city technology are the aim to increase energy efficiency, reduce environmental waste, and make cities more resilient.
Power generation at the edgeChanges at the grid edge due to renewable energy and electronic vehicles require greater visibility and control by operators as they force the grid to answer demand spikes and bidirectional power flow. Around 70% of the distribution grid is at least 25 years old. Grid-connected rooftop solar increased by 19% in 2020, and is projected to continue to increase in response to the desire for renewable energy. Rooftop wind turbines are being introduced to the network by several innovative companies. These new energy sources at the edge cause the grid to accommodate bidirectional power flow, which can affect stability and voltage quality. In 2022, utilities will focus on grid reliability and resilience in the face of changes at the grid edge. Data-driven insights are of paramount concern to these companies as they work to ensure quality and reliability. To capture and analyze grid data, utilities will use more sensors and conduct sophisticated analytics to prevent disturbances and downtimes.
Greater emphasis on data analytics and IoTAdvancements in data collection and analysis are helping utilities become more efficient, providing insights and visibility needed to reduce downtime by monitoring and analyzing the details of power distribution and use. Utilities can monitor the real-time status of the distribution network and use data to predict failures and proactively fix problems before they occur. In 2022, utilities will use data to build more precision and control in their power distribution strategies to increase efficiency and reliability. Meanwhile, the IoT platform supports the smart power distribution’s bidirectional flow of data. Use of this data through cloud, automated telemonitoring systems, and its accurate collection, visualization, and analysis enables plant operators to respond proactively to various challenges. The operators can optimally coordinate all systems and services to prevent errors and reduce design, construction, and maintenance costs on a lasting basis.
Key Segments CoveredComponentsApplication- Commercial
- Residential
- Automotive
- Pharmaceutical
- Food & Beverage
- Others
Key Benefits of the Report- This study presents the analytical depiction of the Smart Power Distribution System market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the Smart Power Distribution System market share.
- The current market is quantitatively analyzed from 2022 to 2032 to highlight the Smart Power Distribution System market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed Smart Power Distribution System market analysis based on competitive intensity and how the competition will take shape in the coming years.
Questions answered in the Smart Power Distribution System Market · Who are the leading market players active in the Smart Power Distribution System market?
· What current trends in Smart Power Distribution System market?
· What are the driving factors and opportunities in the market?
· What future projections would help in taking further strategic steps?
· What is Smart Power Distribution System industry?
· What does Smart Power Distribution System market allow utilities to achieve?
· Which application areas combine to make Smart Power Distribution System market a critical organizational asset?
· What is the Smart Power Distribution System market prediction for the future?
· What are the predicted trends in Smart Power Distribution System market?
· What are the challenges faced in the Smart Power Distribution System market?
· What will be the anticipated growth rates of the Smart Power Distribution System market and for every segment ?
Key Market Segments
- By Component
- Software
- Hardware
- Services
- By Application
- Commercial
- Residential
- Automotive
- Pharmaceutical
- Food & Beverage
- Others
- By Region
- North America
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Thailand
- Malaysia
- Indonesia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Argentina
- Rest of LAMEA
Key Market Players
- General Electric Company
- ABB Ltd.
- Eaton Corporation
- Fuji Electric Co., Ltd
- Aclara Technologies LLC.
- Cisco Systems Inc.
- Schneider Electric SE
- Honeywell International Inc.
- Siemens AG
- litron inc.