by The excitation systems market is used across various industrial applications including power generation. Excitation systems aid in voltage regulation and reactive power compensation at generation stations. They play a vital role in ensuring grid stability and reliability by controlling the excitation of synchronous generators. Advances in renewable energy integration have boosted demand for dynamic and flexible excitation controllers that can help stabilize grids with higher penetrations of variable renewable resources like solar and wind.
The global excitation systems market is estimated to be valued at US$ 4.28 Bn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period from 2024 to 2031.
Excitation systems are commonly installed across thermal, hydro, and wind power plants to help generators deliver reactive power for voltage regulation and system synchronization. They optimize generator performance under changing load conditions and improve unit availability by automatically adjusting excitation levels. The growing focus on modernizing aging power infrastructure and expanding renewable energy capacity worldwide is catalyzing market growth.
Key Takeaways
– Key players operating in the excitation systems market include ABB, Siemens Energy, General Electric, ANDRITZ Group, Voith Group, Nidec Corporation, KONCAR Group, Emerson, Melrose Industries PLC, Mitsubishi Electric Corporation, WEG, Tenel S.R.O, Basler Electric, Automation Electronics India, Amtech Power Ltd., Reivax, Veo Oy, L & S Electric, PLUTON Group, NR Electric Co. Ltd, Birr Machines, SVEA Power, Excitation & Engineering Services Ltd, Nelumbo Icona Controls Pvt. Ltd, and F&S PROZESSAUTOMATION GmbH.
– Growing investments in smart grid technologies present significant opportunities for excitation system providers to supply advanced controllers integrated with IoT, cloud, and data analytics.
– Advancements in wide-bandgap semiconductors like SiC and GaN enable more compact and efficient Excitation Systems Market Size well-suited for renewable energy and distributed power generation applications.
Market Drivers
– Rapid capacity additions of renewable energy sources like solar and wind farms is a major driver as excitation systems play an important role in grid stabilization. They mitigate the variability challenges associated with renewable power.
– Implementation of energy efficiency standards and policies worldwide have bolstered investments to upgrade or replace obsolete excitation equipment installed on aging conventional power plants. This supports market revenue growth.
– Increasing electrification of transportation and shifting towards electrified manufacturing is placing greater importance on reliable power infrastructure with stable voltage and frequency controls provided by modern excitation systems.
Current Challenges in Excitation Systems Market:
The major challenges faced by the global excitation systems market include increasing costs of raw materials, lack of investments in aging grid infrastructure, concerns regarding data security and cyber threats to power grids, need for skilled workforce to operate advanced equipment, and availability of cost-effective substitutes. With rising prices of metals like steel and copper used widely in excitation system components, manufacturing costs are increasing. Many countries are still using old power grids needing heavy investments for modernization. Protecting power equipment and networks from cyber-attacks requires significant spending on security systems and training. Sourcing qualified engineers and technicians remains difficult for smooth operations and maintenance of sophisticated excitation controls. Some renewable energy solutions provide cheaper alternatives to conventional grid-based supplies.
SWOT Analysis
Strength: High reliability and efficiency of excitation systems in stabilizing AC generator output. Ability to operate heavy power turbines and generators using digital controls and advanced algorithms.
Weakness: High initial capital investments required for installing excitation controls. Dependence on rare earth permanent magnets for some components raises supply concerns.
Opportunity: Growing needs for flexible power sources to integrate more renewable energy into grids. Modernizing aging power infrastructure in developing nations presents market expansion opportunities.
Threats: Cost pressures due to rising prices of raw materials. Disruption from distributed energy resources and microgrid technologies poses a long-term challenge.
Geographical Regions: North America currently holds the largest share of over 30% in the global excitation systems market in terms of value owing to heavy investments in grid modernization projects. Countries like the US and Canada are continuously upgrading transmission and distribution networks to enhance reliability and efficiency.
Fastest Growing Region: The Asia Pacific region is expected to witness the fastest growth during the forecast period, driven by rapid industrialization and urbanization in China, India, Indonesia, and other Southeast Asian nations. Huge investments are planned for expanding generation capacities and power transmission infrastructure to meet rising electric demand from manufacturing and consumer sectors in developing Asian economies.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
