The research study covers the present scenario and growth prospects of the global GMS market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top four vendors operating in the market.
The GMS market in EMEA was valued at USD 221.2 million in 2015 and is predicted to reach USD 247.3 million by 2020, growing at a CAGR of over 2%. Europe was one the largest markets for generation management systems. This can be attributed to the deregulation of the power market and the electricity interconnections. After the deregulation, utilities started focusing on asset optimization for improving the efficiency to meet the growing energy demand, rather than building larger power plants to meet the rising power demand. The deregulation gave rise to the need for the utilities to adopt energy management systems that enabled them to have tighter control over the generation assets. This led to operational efficiencies.
Technavio energy analysts highlight the following three factors that are contributing to the growth of the global GMS market:
- Need for improved reliability
- Changes in grid structure
- Increased investments in smart grid technology
Need for improved reliability
The deregulation of the power market has structurally changed the power sector. This has led to intense competition requiring the plant operators to improve the efficiency of the plants and provide reliable service to their customers. Therefore, to maximize their profits and stay ahead in the competition, utilities are adopting generation management systems that provide solutions for day to day operations for quick response times. These systems are also designed to gather data from other departments for load forecasting and optimizing the power generation resources to provide continuous power to their consumers, while keeping the prices of electricity low.
Sayani Roy, an industry expert, specializing in smart grid at Technavio, says, “Profitable operation requires the power plants to run efficiently, have reduced maintenance costs and be failure proof. To achieve this, generation management system gathers critical data from all verticals to provide the operators actionable intelligence, thereby stopping small issues from becoming big. Any unplanned downtime in the generation assets results in loss of productivity, schedule delays, and the high cost of repairs.”
Changes in grid structure
The power generation is moving to low carbon or no carbon fuels. Utilities and energy companies are making efforts to transition to accommodate these fuels by changing the function of the grid. A traditional power grid had linear power generation, partial connection with its customers, and had one-way communication; but energy and utility companies are improving each part of the value chain by implementing new IT technology.
“IT systems help in collaborating and transforming the grid to accommodate more number of low carbon polluting technologies such as renewables, distribution generation, and energy storage for power generation, thus, making power generation more multi-dimensional than before,” adds Sayani.
Increased investments in smart grid technology
The rise in population and increase in power consumption have triggered increased demand for power across the geographies. T&D losses, increased demand for power, and the demand-supply mismatch have led to power crises worldwide. To curtail this, countries such as the US, China, India, and the UK have started adopting smart grid technology such as phasor measurement units, RTUs, IEDs, and smart meters providing intelligence from the power generation to the point of consumption.
The investment in smart grid technologies has propelled the growth of power generation management systems. These systems provide grid operators the ability to consolidate the data received from the smart grid technologies. Thus, it provides a holistic view of multiple plants spread across a wide geography. These systems also help the operators in gaining broader, in-depth understanding of the dynamics that affect the performance, and the efficiency of the plant and equipment.
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