The global AGC market was valued at $828 million in 2015 and is expected to surpass $952 million by 2020, says Technavio.
Technavio’s smart grid portfolio has announced its latest market research report on AGC for the forecast period, 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global AGC market during the forecast period. Some of the top vendors listed in this industry analysis include ABB, GE-Alstom Grid, OSI, and Siemens.
The Americas will continue to dominate the global AGC market throughout the forecast period and is expected to reach revenues of over $366 million by 2020. The main reason for such high growth is the imposition of CPS by governing bodies such as NERC.
“The growth in integration of power resources will be one of the major trends that gaining popularity in this market. The need to reduce GHG emissions has led the governments worldwide to reduce their dependency on fossil fuel and started concentrating on cleaner fuel sources such as nuclear and renewable energy. The cleaner fuel sources will substitute fossil fuels without increasing CHG emission levels. This will result in the companies to using power control systems such as AGC,” says Thanikachalam Chandrasekaran, a lead analyst at Technavio for research on smart grid.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Changes in grid structure drive demand for IT implementation
The resources used for power generation has evolved from fossil fuels to low carbon or no carbon fuels. To accommodate these fuels, several utilities and energy companies are making changes in the functioning of the grid. They are adopting new IT technologies and systems that help in transforming the grid to accommodate low carbon polluting technologies such as renewable resources, distribution generation, and energy storage, subsequently making power generation multi-dimensional. The increased complexity of grids due to the addition of various sources of power generation has made it mandatory for utilities to use power management systems such as AGC. AGC systems offer benefits such as seamless integration of power generation resources and services such as load forecasting and data analytics. Owing to such advantages, utilities can manage power supply from various sources in real-time visualization of grid operations.
Increase in investments in smart grid technologies
The demand for electricity has increased considerably due to the increase in population worldwide. There is an increase in global power crisis owing to the transmission and distribution losses, constant rise in demand for electricity and the demand and supply mismatch. Such issues have led countries like China, the US, the UK, and India to adopt smart grid technologies such as phasor measurement units, RTU’s IED, and smart meters. The shift towards smart technologies will enable grid operators to execute timely maintenance by identifying the problem area. By using AGC, grid operators can unite data, gain broader, in-depth understanding of the dynamics that is affecting the performance and the efficiency of the plant and equipment that has been received from the smart grid technologies. The growing inclination towards the use of smart grids has led to huge investments in smart technologies, thereby propelling growth in the AGC market.
Deregulation of power market
Earlier, the whole electrical grid was mainly owned and managed by a single entity; however, the power system changed drastically due to the deregulation that started in Europe and the US since the 1990s. The deregulation led to the separation of activities such as power generation, transmission, and distribution. This created a market environment that promoted need for better efficiency, proactive attention to customer needs, incentives to improve technology for lowering the costs, and rise in competition that would increase the service reliability. The deregulation also introduced independent producers in the power market which led to the incorporation of several utilities through tie-lines, wherein they could exchange power to meet the respective load requirements in case of power shortage. However, this integration may impact the integrity of grid and affect large areas due to change in load. To maintain appropriate frequency and variation in the load capacity , many power entities are adopting AGC to balance the inter area frequency and load.
Some of the other prominent vendors identified in this report are ANDRITZ, DEIF, ENERCON, Hitachi, Maverick Technologies, and Regal-Beloit.
This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, and key financials. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Global AGC Market 2016-2020‘. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Generation Management Systems Market 2016-2020
- Global Smart Grid Managed Services Market 2016-2020
- Global CCS in Power Generation Market 2016-2020
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