Reuters: The revenues of global power distribution automation market, which reached $7.32 billion last year, are estimated to hit $10.33 billion in 2018, according to a new Frost & Sullivan analysis. The ‘Analysis of the Global Distribution Automation Market, said that with power interruptions resulting in huge economic losses of up to $150 billion annually, distribution automation presented a viable solution to ensure effective asset management, minimal interruption, and enhanced efficiency in the grid network.
As a result, distribution automation is quickly becoming a requirement for utilities, it said. Power demand and grid complexity will continue growing and utilities across the globe are turning to advanced automated solutions to protect assets, enhance reliability, and minimise operations and maintenance costs.
“Emerging countries hold significant potential for distribution automation vendors,” said Frost & Sullivan energy and environmental industry analyst. “In India, transmission and distribution loss is estimated at over 20 per cent of produced power, while in Latin America, power distribution loss is estimated at over 16 per cent. Hence, governments are urging utilities to adopt automation solutions and boost grid efficiency.”
Meanwhile, the high initial costs of automation solutions restrain uptake. Integration of different types of vendors, including information technology providers, communication network suppliers and hardware suppliers is also crucial to create products that prepare automation companies to meet future demand.
“Distribution automation is in the early stages of its lifecycle and investments in complementary technologies enabling two-way communication, better asset management, and improved efficiency will help capitalise on the full potential of the technology,” said the analyst. “The combination of technologies will yield significant benefits for all stakeholders.”
Courtsey: TradeArabia
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