Market Trends of Supervisory Control And Data Acquisition (SCADA) Industry
Remote Terminal Unit (RTU) To Hold Significant Market Share
- The segment holds the largest market share in the supervisory control and data acquisition (SCADA) market, owing to the rise in the adoption of Remote Terminal Unit (RTU) devices in various industrial processes, such as circulation pumps and pressure tests from a central location, to improve operational efficiency, and control multiple processes.
- The oil and gas industry is witnessing a surge in demand for RTUs due to the high use of SCADA systems. Within the downstream sector, refineries operate 24/7, meaning firms need RTU systems that are robust, secure, reliable, and flexible enough to manage and monitor the plant's diverse range of assets. Furthermore, the growing investments in oil and gas fields are driving the growth of this segment. For instance, in February 2024, the Prime Minister of India announced the plan to invest USD 67 billion in the natural gas supply chain over the next 5-6 years.
- Furthermore, there has been a significant increase in the adoption of RTU in the power industry due to the use of variable power sources. RTU in the power industry includes monitoring power generation with the help of sensors that provide operators with real-time data on power generation. Several companies are developing products for energy management. For instance, in August 2023, Schneider Electric launched two SCADA Pack controllers, the new 471i and 474i Smart RTU controllers. These controllers come with an integrated edge computing platform and combine the field-tested remote terminal units with the flexibility of a Linux open-source operating system.
- The United States generated 4,178 terawatt-hours of electricity in 2023. Several companies in the country are undertaking initiatives to replace the old RTUs to minimize the risk to normal operations. Furthermore, the government is investing to bolster the power grid and deploy clean energy.
- For instance, in October 2023, President Joe Biden announced USD 3.5 billion in grants for projects to protect the aging US power grid from extreme weather and fires and to connect transmission systems with more electricity from renewable energy sources. As investments increase, there is an increasing demand to use RTUs in these smart grids to collect and transmit data, enhancing grid efficiency.
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Asia-Pacific To Be The Fastest Growing Region
- The region is expected to hold the largest share and increase due to the investments and industrial developments in the area. Industries such as power, water and wastewater treatment, manufacturing, and oil and gas in various countries are major driving factors in increasing demand for SCADA systems.
- The Metropolitan Electricity Authority (MEA) announced that the highest electricity demand in 2024 has been anticipated to reach 9,934.25 megawatts, marking an increase of 0.1%. In response, the MEA is gearing up to address this rise in power consumption by deploying advanced technologies and SCADA systems. SCADA's deployment is focused on the Chaengwattana (Thailand) area to ensure efficient and safe voltage control and electricity distribution.
- Increasing population, rising urbanization, and growth in income levels of consumers in developing economies such as China and India have increased the demand for water and water treatment. Several SCADA systems are being installed at Dams in India. For instance, in August 2023, the Hydrology Division of Water Resources Development Amravati equipped the Hatnur dam in Jalgaon district with a Supervisory Control and Data Acquisition (SCADA).
- The Asia-Pacific region is experiencing swift modernization and industrialization, leading to a shift towards automated processes in production industries and a decreased need for manual labor. The latest industrial revolution, called Industry 4.0, has led to the advancement of new technologies such as SCADA. For instance, the Chinese government initiated the 'Made in China 2025' policy. Chinese manufacturers are implementing smart manufacturing strategies such as Industry 4.0 and Industrial IoT to enhance global competitiveness and ensure future survival. As a result, it is anticipated that the SCADA market in China will experience growth.
- Further, with a more simplified and productive way of working, industrial organizations are transforming their automation design capabilities. For instance, in July 2023, Rockwell Automation announced the launch of a new, cloud-enabled human-machine interface platform that enables users to design, test, and install applications from any web browser at any time through its factoryTalk Optix located in Pune, India.
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