EXCITATION SYSTEMS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The excitation systems market is estimated to be valued at USD 3.24 billion in 2024 and is expected to reach USD 4.28 billion by 2031, growing at a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.

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The excitation systems market is expected to witness significant growth over the forecast period. The rising demand for reliable power supply and increasing investments towards the modernization of existing power grids are some key factors driving the adoption of excitation systems. Additionally, the growing emphasis on the integration of renewable energy is also augmenting the demand for excitation systems that help stabilize power grids with intermittent power sources.

Excitation System Efficiency

Newer digital static excitation systems provide advanced field forcing capabilities which allows generators to operate closer to their maximum continuous rating. This improves generator capabilities without requiring additional capital expenditure on the generating unit itself. Static systems also facilitate load-dependent voltage regulation and transient stability support which boosts overall plant efficiency. Technologies such as brushless exciters and fully controlled silicon diodes further enhance the power transfer efficiency from the auxiliary power source to the generator field. Overall efficiency gains from state-of-the-art static excitation systems range from 1% to 3% depending on the generator size and loading conditions.

For utilities with hundreds of generators in their fleet, such small efficiency improvements can translate into massive savings. Not only in terms of reduced fuel costs but also decreased maintenance needs and extended component life. The latest static systems also enable the integration of condition monitoring features to optimize scheduled outages and spare parts inventory. Utilities are finding that the returns from investing in excitation system upgrades substantially outweigh their costs, especially considering the assets are expected to operate for decades. This is a key factor driving end users to continually upgrade to newer and more advanced excitation control technologies.

For instance, in November 2020, ABB won a contract to provide excitation systems and speed regulation for four generator units at the Governador José Richa hydropower plant on the Iguazu River. The solution helped Copel (Companhia Paranaense de Energia) enhance the visibility of its operational data using predictive diagnostics.

The increasing presence of intermittent renewable energy sources like solar and wind is presenting new operational challenges for conventional generators and grid operators. The variable and sometimes erratic power output from renewables needs to be balanced instantaneously with alterable "dispatchable" resources to ensure grid stability at all times. Here excitation systems play a crucial role in providing critical frequency and voltage support to compensate for renewable power fluctuations.

Utility-scale solar and wind farms are already a major part of the energy mix in many regions worldwide. Moreover, the individual and cumulative impact of distributed rooftop solar installations on low voltage distribution grids is also rising substantially. Maintaining grid code compliance and power quality norms under these dynamic conditions requires generators to rapidly adjust their reactive power and terminal voltage capabilities.

For instance, in March 2020, Nidec Leroy-Somer electric motors manufacturer, launched TAL 0473. TAL 0473 delivers a nominal power between 400 kVA and 660 kVA at 50 Hz (from 495 kVA to 825 kVA at 60 Hz). The alternator features a SHUNT excitation system and an R150 regulator as standard.