Power Plant Control System Market

The estimated revenue of the Global Power Plant Control System Market in 2023 is $7.2 billion, and it is projected to reach $10.2 billion by 2030, with a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030.

The major driving factor for the power plant control system market is the increasing demand for uninterrupted power supply solutions in critical power applications. Rotary or power plant control systems offer advantages such as high efficiency, space efficiency, and low lifetime costs, which further contribute to the market growth. The growth of data centers, with increased investments, is expected to be a significant factor driving market growth during the forecast period.

Impact of COVID-19 on the Global Power Plant Control System Market

The COVID-19 pandemic has had significant impacts on power plant control systems, particularly in the near term for contracted or ongoing manufacturing processes. Supply chains have been affected, with industry executives anticipating slowdowns in delivery and construction due to industry closures aimed at reducing the spread of the virus, as well as workers falling ill. Many components and parts used in manufacturing power plant control systems are sourced from regions such as China, Asia Pacific, Europe, and the US. Manufacturing disruptions in these regions can lead to a significant short-term decline in the power plant control system market.

Furthermore, the depreciation of local currencies in many countries due to the COVID-19 outbreak has caused a misalignment between supply and demand. This situation has resulted in financial losses for manufacturers, as key components used in power plant control system manufacturing are typically procured in US dollars, leading to increased component costs.

Power plant control system Market Dynamics

Driver: Rising trend of decarbonization and increased investments in renewable power plants

Electricity plays a vital role in driving the growth of countries worldwide. According to the International Energy Outlook by EIA, the global demand for electricity is projected to increase by 2.11% annually until 2040. Much of this growth is expected to occur in non-OECD countries, particularly China and India, where fossil fuels are heavily relied upon for power generation. However, the increased use of fossil fuels poses environmental risks at both regional and global levels. In response, governments and utilities globally have announced their commitments to decarbonize the power sector and heavily invest in renewable power plants.

This shift towards decarbonization and increased investments in renewable energy is evident from the annual data on global investments in power plants published by the IEA. Investments in fossil fuel-based power plants have been steadily declining since 2012, while investments in renewable power plants have surpassed those in fossil fuel plants. The global commitment to clean energy, as exemplified by the signing of the Paris climate agreement by major nations, has been a key driving force behind these increased investments, which are expected to fuel market growth.

However, there are certain restraints that need to be considered, such as the lack of standardization and interoperability in power plant control system solutions. Power plant equipment and devices communicate through various interfaces, technologies, and protocols. The absence of standardized communication interfaces and protocols can lead to data misrepresentation. Additionally, the lack of standardization complicates system integration and limits the plug-and-play capabilities between unrelated systems. For instance, different equipment manufacturers may use their own interface protocols, resulting in incompatibility between devices. Interoperability, which refers to the ability of different systems to operate together without compatibility issues, is affected by the presence of multiple major players, each with their own solutions. This can restrict customer choices and their ability to switch or integrate better solutions from different manufacturers.

In cases where key power plant components are procured from different original equipment manufacturers (OEMs), interoperability becomes a significant concern. All individual control systems in a power plant should be able to communicate and be properly controlled by a centralized plant management solution, whether it is SCADA or DCS. The lack of interoperability poses a restraint to market growth.

Opportunities: Increasing adoption of digital solutions such as industrial internet of things, digital twin, and predictive maintenance

The advancement of technologies like the Industrial Internet of Things (IIoT) has revolutionized decision-making processes by providing real-time and accurate information. The IIoT has given rise to a new generation of automation systems that possess unmatched capabilities and scalability. These systems are expected to play a crucial role in power plant automation and control, offering streamlined and efficient architectures that bridge the gap between operational technologies (OT) and information technologies (IT).

For example, Emerson provides wireless and instant access to distributed control systems (DCS) and maintenance data, resulting in reduced operational costs over an extended period. The IIoT offers comprehensive insights and facilitates faster decision-making, making it a driving force behind the growth of the power plant control system market.

However, there are challenges to address, such as the threat of cyberattacks on modern power plant control systems. As automation and digital connectivity increase, the vulnerability to cyberattacks also rises. Electricity is a critical infrastructure for society, and power plants and their equipment are essential components that, if targeted by cyberattacks, can have severe consequences on nations.

Cyberattacks pose a significant concern when developing sensor-based networks to monitor and control critical infrastructures. Power plant control systems, consisting of sensor networks, mainframe computers, communication systems, and storage systems, are susceptible to cyber threats. The failure of these systems can impact organizations, communities, and economies. Cyberattacks on power plant assets can cause long-term negative effects on plant operations.

In terms of solutions, the distributed control system (DCS) segment is expected to dominate the power plant control system market during the forecast period. DCS solutions are preferred in large and complex power plants, such as those fueled by coal, gas, and oil. The high reliability and user-friendly nature of DCS solutions drive their adoption across fossil-fueled plants, contributing to the demand for such systems.

The power plant control system market is divided into various segments based on plant type, including coal, natural gas, oil, hydroelectric, nuclear, and renewable. Among these segments, the renewable segment is projected to be the largest contributor to the power plant control system market during the forecast period. The increasing global shift towards renewable energy generation in key markets like Europe, North America, and Asia Pacific is expected to drive the demand for power plant control systems in this segment.

In terms of geographical regions, Asia Pacific, with China as a leading market, is anticipated to be the fastest-growing market for power plant control systems during the forecast period. The region is witnessing significant investments in both fossil fuel power plants, particularly in China, India, and Southeast Asia, and renewable power plants in countries like China, India, Japan, and South Korea. These investments are expected to fuel the demand for power plant control systems in Asia Pacific.

This research report classifies the power plant control system market based on plant type, solution, application, component, and region, providing a comprehensive analysis of the industry.

By plant type:

• Coal
• Natural Gas
• Oil
• Hydroelectric
• Nuclear
• Renewable
  • Solar
  • Wind
  • Biofuels

By solution:

• SCADA
• DCS
• Programmable Controllers
• Others

By application:

• Boiler & Auxiliaries Control
• Turbine & Auxiliaries Control
• Generator Excitation & Electrical Control
• Others

By region:

• Asia Pacific
• North America
• Europe
• Middle East
• Africa
• South America

Recent Developments

• Siemens Energy and TSK, a Spanish EPC contractor, entered into a contract agreement in April 2021 for the Atinkou CCGT power plant project. As per the contract, Siemens Energy will supply its SPAA-T300 control system for the construction of a CCGT plant in Jacqueville, Côte d'Ivoire.
• Schneider Electric completed the acquisition of Larsen and Toubro's Electrical and Automation business division in August 2020, in partnership with Temasek. Schneider Electric now holds a 65% stake in the acquired business division of L&T, with the remaining stake owned by Temasek. This acquisition is aimed at strengthening Schneider Electric's low-voltage offerings and Industrial Automation business. It will also contribute to their growth in the Middle East, Africa, and East Asia, leveraging L&T's robust research and development and engineering capabilities.
• In March 2019, ABB launched its Distributed Control System (DCS) 800xA 6.1. This new DCS solution introduces various features, including Ethernet I/O solutions, high-integrity controllers, and a series of engineering tools such as the Ethernet I/O Field Kit and Ethernet I/O wizard for field commissioning.