Executive Briefings

Electric-Power Generation Industry to Require More Automation and Software, Study Finds

After the economic crisis, which had a marginal effect on the power generation industry, the automation and software solutions market in the electric power generation sector continued to grow. While the capital expenditure trend grew strongly from 2006 until 2008, it went down significantly in 2009 due to the global economic crisis. However, the investment activities resurged in 2010 and 2011. Developed economies have increased their investment in grid modernization while emerging economies have continued to build new electricity infrastructure. China's projects in this sector are ambitious and farsighted.

Electric-Power Generation Industry to Require More Automation and Software, Study Finds

According to ARC Advisory Group's "Automation and Software Expenditures in the Electric Power Generation Industry Global Market Research Study," the growth trend in the automation and software market will be positive in the forecast period. In addition to market analysis and forecasts, the market research study covers the current market nuances, strategic issues and the future outlook. The report also highlights the factors that influence the global electric power generation market and its dynamics.

The resurgence in power generation projects, particularly in the gas-fired combined cycle market, has increased the demand for automation equipment. In the developed regions, the emphasis will be on improving efficiency, reducing emissions, and improving ramp rates. Emerging countries, and China in particular, are undergoing a shift from coal-fired power generation to nuclear, wind and solar generation. And in Germany, Switzerland, and Italy, the "dash to gas" in the wake of the Fukushima nuclear disaster in Japan, will replace much existing nuclear generation capacity with new gas-fired combined cycle and renewable power generation capacity.

According to senior analyst Harry Forbes, co-author of the study, "The resurgence in power generation projects, including many large greenfield projects, will not only drive demand for DCSs, but also for CPM, APC, optimization, and training simulators."

Regionally, the highest growth rates will occur in Asia and Latin America. Asia's share of sales, growing at above average rates, will become nearly equivalent to the EMEA region by 2016. EMEA and North America have not yet recovered fully from the recession and hence ARC estimates lower than average growth for these regions. High unemployment and sluggish consumer demand continue to slow economic recovery in these regions. Moreover, the regions are mature markets and therefore rely largely on replacement projects. Although the Latin America market is growing at above the average growth rate, it is still the smallest market by a substantial margin. Several Latin American countries, such as Argentina, Chile,and Paraguay have shown good growth in the past, but the biggest market for automation suppliers in Latin America is Brazil.

For more information on this study, click here.

Source: ARC Advisory Group

According to ARC Advisory Group's "Automation and Software Expenditures in the Electric Power Generation Industry Global Market Research Study," the growth trend in the automation and software market will be positive in the forecast period. In addition to market analysis and forecasts, the market research study covers the current market nuances, strategic issues and the future outlook. The report also highlights the factors that influence the global electric power generation market and its dynamics.

The resurgence in power generation projects, particularly in the gas-fired combined cycle market, has increased the demand for automation equipment. In the developed regions, the emphasis will be on improving efficiency, reducing emissions, and improving ramp rates. Emerging countries, and China in particular, are undergoing a shift from coal-fired power generation to nuclear, wind and solar generation. And in Germany, Switzerland, and Italy, the "dash to gas" in the wake of the Fukushima nuclear disaster in Japan, will replace much existing nuclear generation capacity with new gas-fired combined cycle and renewable power generation capacity.

According to senior analyst Harry Forbes, co-author of the study, "The resurgence in power generation projects, including many large greenfield projects, will not only drive demand for DCSs, but also for CPM, APC, optimization, and training simulators."

Regionally, the highest growth rates will occur in Asia and Latin America. Asia's share of sales, growing at above average rates, will become nearly equivalent to the EMEA region by 2016. EMEA and North America have not yet recovered fully from the recession and hence ARC estimates lower than average growth for these regions. High unemployment and sluggish consumer demand continue to slow economic recovery in these regions. Moreover, the regions are mature markets and therefore rely largely on replacement projects. Although the Latin America market is growing at above the average growth rate, it is still the smallest market by a substantial margin. Several Latin American countries, such as Argentina, Chile,and Paraguay have shown good growth in the past, but the biggest market for automation suppliers in Latin America is Brazil.

For more information on this study, click here.

Source: ARC Advisory Group

Electric-Power Generation Industry to Require More Automation and Software, Study Finds