POWER MONITORING SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Power Monitoring System Market Size and Trends

The global power monitoring system market is estimated to be valued at USD 4.73 Bn in 2024 and is expected to reach USD 7.56 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.9% from 2024 to 2031.

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Power monitoring systems help industries optimize energy usage by providing real-time energy consumption data. The growing emphasis on improving energy efficiency and the need to reduce costs is driving the increased adoption of these systems across various industry verticals. This is owing to rising concerns over energy consumption and carbon footprint management. Wide acceptance of renewable energy integration and need to reduce peak demand charges will further spur opportunities for power monitoring system vendors during the forecast years.

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Insights By Component - Hardware Leads Due to Wide Adoption Across Industries

In terms of component, the hardware segment is expected to contribute 38.2% share of the market share in 2024. This is due to hardware being the core component required for installing and operating power monitoring systems. Various hardware devices like meters, sensors, and communication modules form the backbone of any power monitoring solution.

Insights By Application - Utilities & Renewables Segment Dominates as Electricity Generation and Distribution Increases

In terms of application, Utilities & Renewable segment is expected to contribute 28.2% share of the market in 2024. This is primarily due to the massive scale of electricity generation and distribution undertaken by utilities companies worldwide. Power plants, substations, transmission, and distribution networks consuming huge amounts of energy require comprehensive monitoring of their power infrastructure.

Regional Insights

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Regional Analysis:

Dominating Region: North America

North America is expected to dominate the market in 2024 with an estimated share of 35.5%. This dominance can be attributed to the strong presence of leading vendors such as Schneider Electric, ABB, and Siemens. Furthermore, growing investments in upgrading aging power infrastructure and the implementation of smart grid technologies by utilities are driving robust demand.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth, led by countries such as China, India, and Japan. Rapid industrialization and infrastructure development are necessitating sophisticated power monitoring across various end-use industries such as automotive and electronics.

Power Monitoring System Market Outlook for Key Countries

U.S. Leads in Technological Advancements with Increased Investments in Smart Grid Upgrades

The U.S. power monitoring system market continues to be at the forefront of technological advancements, backed by high expenditure on grid network upgrades by utilities and grid operators. Major players like Larsen & Toubro and Eaton are also gaining popularity. In 2023, the U.S. Department of Energy announced funding for smart grid projects, emphasizing the need for advanced power monitoring systems. Major players like Schneider Electric and Siemens are introducing new solutions focused on real-time data analytics.

China is Set for Significant Growth with Government Investment in Smart Grid and Renewable Integration

China's power monitoring system market is expected to expand considerably given the government's strong push for strengthening the transmission and distribution infrastructure against the ongoing urbanization and industrialization. State Grid Corporation of China is playing a lead role. In 2023, China’s National Energy Administration announced plans to invest heavily in smart grid technologies including advanced power monitoring systems. Leading companies like State Grid Corporation of China are expanding their monitoring infrastructure to support renewable integration.

Canada Market for Power Monitoring System is Driven by Government Investments in Renewable Energy and Grid Modernization

Canada’s power monitoring system market is supported by government initiatives towards renewable energy sources. In 2023, Hydro One announced a partnership with technology firms to enhance power monitoring capabilities across its grid. The Canadian government is investing in grid modernization projects to improve reliability and efficiency.

Japan Market for Power Monitoring System is Driven by Grid Modernization and Renewable Integration Initiatives

Japan's power monitoring system market is supported by initiatives around modernizing aging assets as well investments in grid-interfaced renewable projects. Key industry participants are expanding their service offerings. In 2023, Tokyo Electric Power Company (TEPCO) launched a new initiative to enhance its power monitoring systems. Japan's government is promoting the use of advanced metering infrastructure to improve energy management.

India Market for Power Monitoring System is Fueled by Industrialization, Urbanization, and Government Smart Grid Initiatives

India’s power monitoring system market is primarily fueled by rapid industrialization, urbanization, and a rising demand for reliable power. Government initiatives like Make in India and Smart Cities Mission are also driving the demand for advanced monitoring solutions to enhance energy management in various sectors. In 2023, the government of India announced a significant push towards smart grid technologies, with funding allocated for power monitoring systems. Companies like Tata Power are investing in advanced monitoring technologies to enhance grid reliability.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Power Monitoring System Market Players

• Established Players: Leading companies in this market heavily invest in research and development to continuously innovate and enhance their product portfolios. Companies such as ABB, Schneider Electric, and Eaton allocate over 5% of their annual revenues to R&D activities focused on developing advanced technologies for power monitoring.
• Mid-level players are often well-positioned regionally or in specific industries, and they have a more focused product portfolio compared to industry leaders. These companies offer a variety of PMS solutions that often emphasize particular sectors, such as manufacturing or utilities, with some specialization in IoT or industry-specific software.
• These include smaller, regionally focused companies and start-ups such as Acuvim, Cet Power Solutions, and Veris Industries. Small-scale players tend to operate in niche markets or specific regions, offering specialized solutions often at competitive prices.

Emerging Startups in the Global Power Monitoring System Market

Innovative Technologies: Several startups are innovating technologies like AI-powered solutions and smart sensors to disrupt the industry. For example, Sentient Energy develops intelligent monitoring devices leveraging advanced analytics to predict equipment failures. The sensors stream real-time data to the cloud for analysis using machine learning algorithms. This enables utilities to pinpoint issues preemptively and improve grid reliability. Sentient's solutions could transform condition-based maintenance practices if adopted widely.

Sustainable Solutions: Startups are also introducing eco-friendly products. Ekho monitors power consumption using recyclable paper-based sensors that do not require batteries or wiring. The sensors offer utility providers insights into energy usage patterns while reducing electronic waste. Its sustainable technology may appeal to utilities targeting net-zero emissions.

Power Monitoring System Industry News

• In January 2024, Starline, a sub-brand of Legrand, launched Starline's third generation of Critical Power Monitor products, the M70 CPM. Primarily introduced in 2014, the Starline Critical Power Monitor has been the preferred process of data center busway power monitoring for major data center providers worldwide.
• In September 2023, Sungrow, an energy storage system supplier, launched the upgraded version of its iSolarCloud App. As an intelligent project management and monitoring system developed by Sungrow, iSolarCloud enables complete lifecycle management for photovoltaic and energy storage plants, plant monitoring, including data collection, as well as operation and maintenance.
• In October 2021, Siemens Smart Infrastructure and its partners, Sagemcom and Bite Lietuva, announced to participate in the rollout of 1.2 million smart meters all across Lithuania. The company will provide the distribution system operator of Lithuania with an EnergyIP meter data management system as a maintenance service for 10 years. Siemens Smart Infrastructure (SI) is a division of Siemens AG that focuses on intelligently connecting energy systems, buildings, and industries to adapt and evolve the way people live and work.
• In August 2021, CyanConnode announced that it secured a contract with Schneider Electric. The contract will be related to the deployment of smart meters all across Northern India. CyanConnode will supply 152,000 Omnimesh modules together with advanced metering infrastructure standards-based hardware, services, and software along with an annual maintenance contract.

Key Takeaways from Analyst

The power monitoring system market is expected to witness significant growth over the forecast period driven by the growing adoption of renewable energy sources across the globe. Stringent regulations regarding energy efficiency and carbon footprint reduction are also compelling industries and data centers to deploy power monitoring systems. The ability of these systems to reduce energy wastage and optimize power usage will drive their increased adoption.

North America currently dominates the global power monitoring system market owing to strict energy efficiency mandates. However, Asia Pacific is poised to be the fastest growing regional market as countries like China and India undertake massive investments in smart grid technologies. The rapid industrialization and growing electrical infrastructure in Asia Pacific economies are prompting industries to closely monitor their power consumption.

While the need for renewable integration and energy conservation offers huge opportunities, high initial installation costs may hinder the mass adoption of power monitoring systems especially in price-sensitive developing markets. Lack of awareness about the return on investment from these systems can also restrain their adoption to some extent. However, the availability of affordable monitoring devices and cloud-based monitoring solutions are expected to boost the demand over the long term.

Market Report Scope

Market Dynamics

Market Driver - Growing concerns over energy management and efficiency

With rising electricity prices and increasing focus on sustainability, companies and organizations are looking towards optimizing their energy consumption and reducing wastage. Power monitoring systems play a crucial role here by providing real-time data on power usage across different equipment and machineries. This helps identify areas of inefficiency and determine savings potential. Detailed energy reports assist in analyzing peak demand periods and scheduling high energy operations during off-peak hours to lower costs. As per estimates by The International Energy Agency in 2021, implementation of smart grid technologies like smart meters enabled by power monitoring can reduce annual energy usage by over 200 TWh globally by 2023.

Market Challenge - High upfront installation and maintenance costs

The market faces significant challenges in terms of high upfront installation and maintenance costs. Power monitoring systems involve sophisticated hardware and software components to measure energy consumption. Deploying these systems on a large scale across industries requires substantial capital expenditure. The sensors, metering devices, communications infrastructure and data management platforms entail high initial procurement expenditure. Moreover, continuous upgrades, timely repairs and periodic replacements add to the operating expenses over the lifespan of the systems.

Market Opportunity - Integration of power monitoring systems with IT systems and smart devices

The integration of power monitoring systems with existing IT infrastructure and smart devices presents significant opportunities for the market. As industries invest heavily in digital transformation, power monitoring data can be seamlessly integrated with other operational systems for improved visibility and decision making. Linking energy data with enterprise resource planning (ERP), asset management, and building automation improves overall equipment effectiveness. For example, correlating consumption patterns with production metrics helps identify inefficiencies.

Market Segmentation

• By Component Insights (Revenue, USD Bn, 2019 - 2031)
• • Hardware
  • Software
  • Services
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Utilities & Renewable
  • Manufacturing & Process Industry
  • Data Centers & IT Infrastructure
  • Public Infrastructure
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • ABB
  • General Electric
  • Schneider Electric
  • Eaton
  • Siemens
  • Emerson
  • Rockwell Automation
  • Mitsubishi Electric
  • Omron
  • Yokogawa
  • Fuji Electric FA Components & Systems
  • Fluke Corporation