RTU in Smart Grid Market Size, Share, Trends, Growth and Forecast 2030

RTU in Smart Grid Industry Prospective:

The global RTU in smart grid market size was worth around USD 264 million in 2022 and is predicted to grow to around USD 393 million by 2030 with a compound annual growth rate (CAGR) of roughly 5.1% between 2023 and 2030.   

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RTU in Smart Grid Market: Overview

Remote Telemetry Unit or Remote Telecontrol Unit are other names for RTU, which stands for Remote Terminal Unit. An RTU is a microprocessor-based device that links to plant control or SCADA (supervisory control and data acquisition) systems & monitors and controls field equipment. RTUs are responsible for collecting real-time data from sensors and other devices deployed across the grid. This data includes information about voltage levels, current flow, power quality, and equipment status. The RTU in smart grid market growth is driven by several factors that include increasing grid modernization, integration of renewable energy, smart metering, and growing government initiatives across the globe.

Key Insights

• As per the analysis shared by our research analyst, the global RTU in Smart Grid market is estimated to grow annually at a CAGR of around 5.1% over the forecast period (2023-2030).
• In terms of revenue, the global RTU in Smart Grid market size was valued at around USD 264 million in 2022 and is projected to reach USD 393 million, by 2030.
• The growing integration of renewable energy is expected to RTU in smart grid drive market growth during the forecast period.
• Based on the application, the transmission & distribution segment is expected to dominate the market over the forecast period.
• Based on the communication technology, the wireless segment is expected to grow at the highest CAGR over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

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RTU in Smart Grid Market: Growth Drivers

Integration of renewable energy drives market growth

The grid needs advanced monitoring and control systems due to the growing integration of renewable energy sources like solar and wind. RTUs are essential for facilitating the smooth integration of these intermittent energy sources while preserving grid stability. For instance, since 2000, wind power has expanded quickly due to R&D, supporting laws, and declining costs. According to IRENA's data, the installed wind production capacity worldwide has expanded by a factor of 98 over the previous 20 years, rising from 7.5 GW in 1997 to about 733 GW by 2018. While offshore wind capacity increased proportionately faster, but from a smaller base, from 3.1 GW in 2010 to 34.4 GW in 2020, onshore wind capacity increased from 178 GW in 2010 to 699 GW in the same period. Between 2009 and 2019, the amount of wind energy produced rose by a factor of 5.2, reaching 1412 TWh. Therefore, the aforementioned stats are expected to drive the global RTU in smart grid market growth during the forecast period.

RTU in Smart Grid Market: Restraints

High initial cost and security concerns hinder market growth

Deploying RTUs and the required communication infrastructure might have significant up-front expenditures. It could be difficult for many utilities, especially smaller ones, to set aside the necessary funding for these projects. As per the secondary data analysis, the RTU and its implementation cost is around USD 10,000 to USD 50,000. Additionally, RTUs are susceptible to attacks because they are crucial parts of Smart Grids that gather and send vital data. The constantly changing nature of cyber threats, protecting RTUs, and guaranteeing their cybersecurity is an ongoing problem. Therefore, these factors might be acting as a major restraint for the RTU in smart grid industry expansion over the forecast period.

RTU in Smart Grid Market: Opportunities

Increasing grid modernization initiatives offer a lucrative opportunity for market growth

The increasing grid modernization initiatives are expected to offer a lucrative opportunity for market growth over the forecast period. To increase grid dependability, efficiency, and sustainability, governments and utilities from across the world are funding grid modernization initiatives. RTU providers now have an excellent opportunity to offer the crucial technology required for these activities. For instance, according to the NC Clean Energy Technology Center, in the US, about 549 policy and deployment actions on grid modernization during the second quarter of 2022, however of the $12.86 billion in investment that was under consideration, regulators only authorized $478.7 million. Moreover, the US Department of Energy (DOE) announced USD 13 billion in funding in November 2022 to support the modernization and growth of the nation's electrical infrastructure. The funds were to be made available through the Grid Resilience Innovative Partnership (GRIP) Program, the Transmission Facilitation Program, and President Joe Biden's Bipartisan Infrastructure Act. Thus, these facts support the RTU in smart grid market revenue growth.

RTU in Smart Grid Market: Challenges

The lack of a skilled workforce poses a major challenge to market growth

Professional personnel with knowledge of both modern communication technologies and electrical grid operations are needed for the deployment and maintenance of RTU systems. A shortage of such skilled professionals poses a major challenge to the market growth during the projected period.

RTU in Smart Grid Market: Segmentation

The global RTU in Smart Grid industry is segmented based on type, application, component, communication technology, and region.

Based on the type, the global market is bifurcated into small size, medium size, and large size.

Based on the application, the RTU in smart grid industry is bifurcated into power plant, company power sector, residential, industrial, and transmission & distribution. The transmission & distribution segment is expected to dominate the market over the forecast period. RTUs have been strategically placed at substations and along high-voltage transmission lines in the transmission network. They continually and in real-time monitor variables including voltage, current, power flow, and equipment status. For the transmission system to remain stable and reliable, this information is essential. Additionally, RTUs give the distribution network the ability to regulate load. To balance supply and demand, utilities can develop demand response programs, manage loads remotely, and regulate voltage levels. Therefore, this function of the RTUs in the transmission & distribution sector is anticipated to drive market growth.

Based on the component, the RTU in smart grid industry is divided into processor, memory, input/output devices, and power supply.

Based on communication technology, the global industry is divided into wired and wireless. The wireless segment is expected to grow at the highest CAGR over the forecast period. Real-time data transfer capabilities offered by wireless communication provide quick delivery of RTU-collected data to central control centers. For grid monitoring, control, and decision-making, real-time data is crucial. Thus, this is expected to drive the segment growth.

RTU in Smart Grid Market: Report Scope

RTU in Smart Grid Market: Regional Analysis

North America is expected to dominate the market growth over the forecast period

North America is expected to dominate the global RTU in smart grid market during the forecast period. The market growth in the region is attributed to the growing integration of renewable energy. For instance, as per secondary sources, solar energy accounts for 2.8% of the electricity produced in the US. In 2021, solar energy produced 13.5% of the power produced by renewable sources. In 2022, Americans installed enough solar panels to supply electricity to 22 million households. In the US, the average cost of a household solar system ranges from $10,878 to $21,756. In addition, as per the data given by the Office of Energy Efficiency & Renewable Energy, the largest Q1 ever, the United States built 5.7 GW alternating current (GWac) and 6.1 GW direct current (dc) of PV in 2023; a sizeable amount of this was in Texas, Florida, and California. Cadmium telluride (CdTe) panels were employed in 34% of utility-scale PV systems and around 21% of all PV systems developed in the United States in 2022.

On the other hand, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. The revenue of the RTU in smart grid industry in the region is particularly derived from countries like India, China, and Japan. For instance, during the 14th Five-Year Plan period (2021–25), China will invest more than $4.1 billion in the development of a digital power transmission network, which will serve as the foundation of a new power system. It would make sure that the power system runs reliably and safely and would maximize large-scale resource allocation. Thus, the aforementioned stats support the market growth in the region.

RTU in Smart Grid Market: Competitive Analysis

The global RTU in Smart Grid market is dominated by players like:

• Siemens
• Schneider Electric
• WAGO Kontakttechnik GmbH & Co. KG
• IDS GmbH
• Sprecher Automation GmbH
• Servelec Technologies
• Schweitzer Engineering Laboratories
• Prestigious Discovery
• PT Arliscoputra Hantama
• Iskra Sistemi
• General Electric
• Honeywell
• Phoenix Contact
• Netcontrol and Mikronika

The global RTU in Smart Grid market is segmented as follows:

By Type

• Small Size
• Medium Size
• Large Size

By Application

• Power Plant
• Company Power Sector
• Residential
• Industrial
• Transmission & Distribution

By Component

• Processor
• Memory
• Input/Output Devices
• Power Supply

By Communication Technology

• Wired
• Wireless

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa