Market Size in 2022 | Market Forecast in 2030 | CAGR (in %) | Base Year |
---|---|---|---|
USD 264 Million | USD 393 Million | 5.1% | 2022 |
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.
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.
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.
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.
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.
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.
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.
Report Attributes | Report Details |
---|---|
Report Name | RTU in Smart Grid Market |
Market Size in 2022 | USD 264 Million |
Market Forecast in 2030 | USD 393 Million |
Growth Rate | CAGR of 5.1% |
Number of Pages | 212 |
Key Companies Covered | 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, and others. |
Segments Covered | By Type, By Application, By Component, By Communication Technology, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2022 |
Historical Year | 2017 to 2021 |
Forecast Year | 2023 - 2030 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
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.
The global RTU in Smart Grid market is dominated by players like:
By Type
By Application
By Component
By Communication Technology
FrequentlyAsked Questions
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 and monitors and controls field equipment.
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.
According to the report, the global market size was worth around USD 264 million in 2022 and is predicted to grow to around USD 393 million by 2030.
The global RTU in Smart Grid market is expected to grow at a CAGR of 5.1% during the forecast period.
The global RTU in Smart Grid market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market due to the growing integration of renewable sources of energy.
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 among others.
The RTU in Smart Grid market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.
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