Power Plant Control System Market Size, Share & Trends Analysis Report By Solution (Supervisory Control and Data Acquisition (SCADA), Programmable Logic Controller (PLC), Distributed Control System (DCS), Plant Asset Management (PAM), Plant Lifecycle Management (PLM)), By Component (Hardware, Software, Services), By Plant Type (Coal, Hydroelectric, Natural Gas, Nuclear, Renewables, Oil), By Application (Boiler & Auxiliaries Control, Generator Excitation & Electrical Control, Turbine & Auxiliaries Control System, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global power plant control system market size was valued at USD 7.59 billion in 2022. It is projected to reach USD 11.51 billion by 2031, growing at a CAGR of 3.90% during the forecast period (2023-2031).

Power plants at the moment are highly automated. Most thermal power plants' systems can be managed from a control room. Electrical auxiliary systems for grid connection, unit transformers, excitation, generator/unit protection, synchronization, auxiliary transformers, and switchgear are among the systems that can be managed from the central control room. In the past, these electrical devices were hardwired to data control and input/output (I/O) systems (DCS). Power Plant Control Systems Market operating efficiency is predicted to be fueled by an increase in global power demand, particularly in developing countries. These systems aid in increasing the operational effectiveness of power plants, which is anticipated to strengthen the control systems for power plants.

Market Dynamics

Global Power Plant Control System Market Drivers

Growth in Renewable Energy Sector to Drive the Market Demand

Due to solid legislative backing and significant cost reductions, the renewable energy sector has seen tremendous expansion over time in all nations. In addition, governments worldwide are increasingly turning to greener energy sources to cut down on the emissions produced by conventional fuels. Energy-intensive sectors benefited from how quickly renewable energy sources replaced conventional fuels.

Furthermore, the economics of producing energy from renewable sources is anticipated to soon be on par with producing electricity from traditional fuels. There are drawbacks to using renewable energy sources like the sun and wind to produce electricity. They are inconsistent, and a few renewable energy industry sectors include unpredictable variables. They regulate the charge and discharge cycles of energy storage devices, which rely on external factors, to incorporate intermittent renewable generation into the power grid. The control systems address these variabilities in a variety of methods.

Global Power Plant Control System Market Restraint

Lack of Standardization and Interoperability in Power Plant Control System Solutions

Turbines, generators, and other power plant components communicate with one another using a variety of interfaces, technologies, and protocols. Data interpretation could be affected by the need for more standardization of various communication interfaces and protocols. The lack of communication technology standards makes system integration difficult and prevents plug-and-play connections across unrelated systems.

For instance, most of the equipment in power plants communicates via their interface protocols, resulting in incompatibility between devices made by various equipment manufacturers and restraining the market for global power plant control solutions over the projection period. Lack of standardization results in higher costs for power plants, which reduces the likelihood that control-system manufacturers will provide funding assistance. As a result, project justification through savings from using their respective product offerings declines, which restrains the market growth.

Global Power Plant Control System Market Opportunities

Increasing Demand for Natural Gas-Fired Power Plants 

Due to countries switching from coal to natural gas as their principal energy source, natural gas saw a considerable increase in production and consumption worldwide over several years. According to the Energy Information Administration (EIA) of the United States, 103 coal-fired power stations were replaced with natural gas-fired ones, while 121 were converted to burn alternative fuels. Many nations, including the United States, China, and the United Kingdom, started switching from coal to natural gas to reduce emissions. The demand for natural gas expanded dramatically due to its inherent environmental advantages, and present natural gas-based power generation accounts for more than half of the demand worldwide.

China is anticipated to consume more natural gas than any other nation. By 2024, China is anticipated to account for more than 40% of the world's gas consumption increase, driven by the need for power and the government's desire to improve air quality. Therefore, it is anticipated that demand for worldwide power plant control systems will increase significantly during the projected period due to rising natural gas consumption in the power industry and the switch from coal to natural gas-based power generation.

Regional Analysis

The global power plant control system market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 4.01% during the forecast period. Asia-Pacific is the most important geographical market for power plant control systems, with increasing investments in nations like India, China, and Japan driving this industry. Additionally, the market in the region is anticipated to be caused by the rising costs in the renewable energy industry. Factors including emerging industrial automation and inadequate technological understanding constrain the market expansion of power plant control systems. China is one of the largest markets in the region for power plant control systems, followed by India and Australia. Despite their apparent insurmountable political and economic divisions and rivalry, India and China share a massive coal plant pipeline.

Additionally, the market for power plant control systems is predicted to develop moderately in India, driven by rising energy consumption, resulting in more coal power plants deployed and increasing investments in the renewable energy sector. India is anticipated to reach 267 GW of coal-fired capacity by 2030, adding 58 GW of new capacity, according to the Central Electricity Authority (CEA). The Indian government established a goal of 70,000 MW of hydropower generation capacity by 2030. Currently, 13,000 MW of hydropower plants are under construction at various levels, and another 8,000 MW of projects are in the works, with work on those projects slated to start by the end of 2020. The hydropower business is expected to expand during the anticipated time due to the high government goals for the technology.

The U.S. market for renewable energy is anticipated to be dominated by solar and wind energy, with the geothermal and bioenergy sectors also projected to benefit from technology improvements. Overall, it is anticipated that the nation's market for power plant control systems will primarily be driven by rising investments in gas-based power plant systems and renewable energy sources during the forecast period. Along with the United States, Canada is anticipated to have modest growth in the power plant control system market during the forecast period. Increased gas-based power plants, hydropower, and capacity for renewable energy sources will primarily fuel this growth. Canada has searched for new project options and potential sites outside its borders. The development of wind energy projects in Alberta is expected to draw roughly USD 8.3 billion in investment by 2030, making it an attractive market for investors in recent years. In addition to Alberta, Saskatchewan is anticipated to see significant investment as the government works to reach a 50% renewable capacity by 2030.

Germany has seen a significant drop in the amount of electricity produced from coal in recent years due to the decommissioning of coal-based power plants and a growing movement toward producing electricity from clean energy sources. The market analyzed in the coal energy sector will likely be restrained by this tendency throughout the projection period. Due to a lack of planned projects and a greater emphasis on non-hydro renewable energy sources, hydroelectricity generation in the country has also been essentially constant. It is anticipated to experience slight growth. In the market for power plant control systems, the United Kingdom has had moderate growth.

Given that the nation is on a mission to expand the number of renewable energy sources in the electricity mix, the renewable energy sector might be a significant market driver for power plant control systems. Due to a lack of hydropower generation capacity and forthcoming projects, hydroelectricity generation in the country has historically remained low. It is anticipated to rise slowly throughout the projection period. According to the Energy and Climate Intelligence Unit (ECIU), power plant operators have been guaranteed capacity market subsidies totaling GBP 3.4 billion, many of which are gas-fired operations. Gas-based power generation is projected to dominate the industry and present a chance for market expansion because it is more dependable than renewable energy sources.

The Association of Southeast Asian Nations (ASEAN) has set an ambitious goal of sourcing 23% of its primary energy from renewable sources by 2025, as the region's energy demand is anticipated to increase by 50%. This should provide the Southeast Asian renewable energy market with a significant advantage. In recent years, the renewable energy capacities of nations like Indonesia, Malaysia, the Philippines, Thailand, and Vietnam have seen tremendous expansion. They anticipate doing so over the predicted period as well. The Brazilian Ministry of Mines and Energy announced a plan to leverage USD 3.9 billion in investments in coal mining and coal-fired plants over the next ten years, which is anticipated to benefit the country's power plant control systems industry during the expected time. The initiative also emphasizes funding the upgrading of Brazil's coal-fired power plants, which will benefit the power plant control systems market.

Segmental Analysis

The global power plant control system market is segmented by solution, component, and plant type.

Based on solution, the global power plant control system market is bifurcated into supervisory control and data acquisition (SCADA), programmable logic controller (PLC), distributed control system (DCS), plant asset management (PAM), plant lifecycle management (PLM). 

The distributed control system (DCS) segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.12% during the forecast period. A distributed control system (DCS) links numerous automated local controllers throughout a processing plant to a central controller through a high-speed communication network. These local controllers connect the field devices and the main controller. Additionally, this network links operators, supervisors, and historians to devices and controllers. The DCS concept improves dependability while lowering installation costs by locating control functions close to the power plant and combining them with remote supervision and monitoring.

For manufacturing facilities or large-scale operations where a vast number of continuous loops must be monitored and controlled, DCS is appropriate. A DCS can handle tens of thousands of analog input-output devices and tens of thousands of PID (proportional integral derivative) functions. DCSs are best suited for complicated processes that need sophisticated process control abilities. ABB, Yokogawa, Emerson, Siemens, Honeywell, Schneider Electric, General Electric, Toshiba Corporation, METSO, Hitachi, Mitsubishi Group, Rockwell Automation, and Hyosung Corporation are just a few of the top DCS manufacturers in the world. The makers have been forced to introduce new systems by the rapid evolution of technology and the rising need for effective DCS.

An industry-wide control system used in power plants, the production of solar panels, and wind turbines is known as a programmed logic controller (PLC). This system decides and keeps track of input device conditions to regulate output device conditions. This control system primarily improves power generation or any production line. The PLC may communicate and gather essential data while replicating and altering the process or activity. PLC is used in power plants for automatic turbine run-up systems (ATRS) and burner management systems (BMS) because of its considerable adaptability. The PLC systems are superior to other alternatives because they can be tailored to the application's needs. With the aid of a power plant controller, managers may regulate how the plant behaves in terms of output, compliance, grid stability, and revenue. Though specific requirements may differ, most PPCs can handle frequency, voltage, active power, reactive power, power factor, and ramp control using PLC systems.

Based on components, the global power plant control system market is bifurcated into hardware and software. 

The hardware segment owns the highest market and is estimated to grow at a CAGR of 2.98% during the forecast period. The outdated gauge panel boards and strip chart recorders have been replaced with the recently developed industry-standard hardware and software solutions. Controllers and input-output modules are two examples of the current hardware solutions. Although software solutions dominate the market, the hardware sector has established itself because of low prices and developing technology. Numerous firms' technological innovations have guided the market's expansion. For instance, RDI Controllers LLC unveiled the "Edge Controller," a new Programmable Automation Controller (PAC) for power generation systems, in September 2021. Turbine and generator protection and control systems are crucial for power producers because these assets' production depends on their operation, which is again correlated with maintenance. PLCs (programmable logic controllers) have been a trusted automation method for many control systems. Additionally, these systems are now offered with fresh programming software built right into them.

Power plant control systems have embraced information and communication technologies (ICT) to a great extent. The industry uses a variety of software programs that may either manage a single power plant asset or manage the entire facility from a control room panel. Some of the best examples of software solutions utilized in the power generation business are SCADA, HSR (Human-Machine Interface), and solutions based on the Industrial Internet of Things (IIOT) and AI (Artificial intelligence). Many businesses have successfully integrated software solutions in the solar power generation market and won praise for their offerings.

In March 2021, the ABB group acquired 5 GW worth of solar power automation contracts in India. The output results from previous projects being completed using utility-scale SCADA and String Monitoring Solutions. For the solar energy industry, the Indian government has set objectives that include promoting fresh investment, domestic manufacturing, and resolving problems with money accessibility. A significant increase in software integration projects in the power sector is beginning to be anticipated by India and other nations in the Asia Pacific area.

Based on plant type, the global power plant control system market is bifurcated into coal, hydroelectric, natural gas, nuclear, and renewables. 

The coal segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.43% during the forecast period. Steam generated by coal heat is used in coal power plants to generate electricity by rotating a turbine shaft. While the enthalpy of the steam is a function of its temperature and pressure, the quantity of energy that the steam turbine extracts from it depends on the enthalpy decrease across the apparatus. Coal power plant control systems enable process optimization by reducing the importance of key operating parameters and boosting the effectiveness of the power plants.

Without a concerted government program, coal use will likely remain significant in the future despite justifiable worries about air pollution and greenhouse gas emissions. Additionally, most contemporary coal power plants have control systems integrated into the distributed control system (DCS) platform, enabling seamless operation with the other plant modules. Governor control, turbine and generator protection, automatic startup, evaluation of rotor stress, auxiliary control, valve management, condition monitoring, auto-synchronization, excitation, frequency control, extraction control, bypass control, unit control, etc., are typical coal power plant functions implemented.

One of the key end-users of plant control systems is the hydroelectric power plant (hydropower), and over the projected period, it is anticipated to experience moderate expansion. Hydropower is a renewable energy source that produces electricity by harnessing the energy of water flowing from higher elevations to lower ones. In addition to providing clean water for homes, businesses, and agriculture, hydropower projects also lessen the effects of adverse weather conditions like floods and drought. Additionally, these initiatives might deliver essential transit infrastructure, funding for neighborhood services, and leisure and entertainment. The United Nations Climate Conference (COP25) in Madrid focused particularly on climate resilience and adaptation, underlining the necessity of creating capacity to address climate change. IHA published the Hydropower Sector Climate Resilience Guide in May 2019 to ensure the long-term operational viability of both new and existing assets. The guide offers best practices advice on integrating climate resilience measures into project planning, design, and operations.

Recent Developments

• November 2022- Emerson automated origin materials’ new carbon-negative materials plant.
• November 2022- MHI Signed MOU with Taiwan Power Company for Ammonia Co-Firing at the Linkou Thermal Power Plant, Four-Company Coalition Involving Mitsubishi Corporation and Mitsubishi Corporation Machinery