Power Management System Market size is set to witness significant growth over 2021-2027, owing to the escalating need for energy efficiency across the industrial landscape. Furthermore, the integration of advanced technologies like cloud-based platforms and IoT will stimulate strong industry growth over the years ahead. Power management systems refer to dedicated microsystems designed to facilitate the intelligent automation of industrial power grids. These systems are built to prevent blackouts, optimize the performance of operations and critical processes, in load shedding and power system control applications.
One of the most prominent trends driving power management system market growth over 2021-2027 is the high number of renewable power installations worldwide. Renewables are rapidly emerging as the fastest growing energy source across the globe. In 2020, additions to renewable energy capacity surpassed earlier estimates, in spite of the COVID-19-induced economic slowdown. For instance, Italy-based Enel Green Power SpA claimed to have built new renewable energy capacity of over 3,106 MW globally in 2020, breaking a new record with an addition of over 77 MW to its 2019 tally. Developments such as these are likely to foster a favorable power management system market outlook, given that these systems are well equipped to handle the dynamics and instability of renewable integration.
Software will emerge as a prominent segment in the power management system industry by 2027, on account of consistent upgrades and advent of new technologies for energy management. In July 2021, Eaton, a major power management firm introduced its new Intelligent Power Manager (IPM) 2 software to the global market. Launched as a core part of the Eaton Brightlayer Data Centers suite, the software was designed to deliver greater power infrastructure control in edge computing or enterprise applications to prevent costly outages.
Latin America is anticipated to account for a considerable share of the global power management system market by 2027. This is attributed mainly to the burgeoning grid development and energy-related projects in the region. For instance, in June 2021, Latin America’s first concentrated solar power plant was launched in Chile, built to deliver 100% renewable and clean energy to over 380,000 homes. The project, dubbed Cerro Dominador, is a first of its kind combined solar thermal and photovoltaic system in Latin America with a cumulative capacity of 210 MW, which will supply green energy to the Chilean electricity grid.
Major participants operating in the power management system market include Rockwell Automation, Emerson Electric Co., L&T, Mitsubishi Electric, General Electric, Wartsila, ABB, Schneider Electric, Eaton Corporation plc, Siemens AG, Fuji Electric and others. Research and development efforts, new product launches and technological partnerships are some of the key strategies being employed by these businesses to gain a competitive edge in the global market space.
In August 2020, global energy management and automation leader Schneider Electric introduced its new Cloud-Hosted Power Management software service solution. The system, called EcoStruxure Power, is designed to bring better flexibility to small and mid-sized facilities in Canada, that require power management systems, but are unable to support comprehensive onsite solutions.
The global pandemic caused by the novel coronavirus outbreak has not only led to a massive health crisis, but has also ushered in a new era of economic uncertainty across myriad sectors. This is evident in many aspects, most notably energy demand and consumption patterns. Preventative measures taken by governments such as lockdowns and social distancing protocols have led to a significant decrease in energy demand from industrial and commercial sectors alike, in turn creating various challenges for system operators and electric utilities.
However, in many key regions, renewable energy has started to gain an increasing share in the global power mix, stemming from low operating costs, depressed electricity demand and priority grid access via regulations, which could prove beneficial for the power management system industry. According to the IEA (International Energy Agency), installation of renewable electricity was projected to hit record levels in 2020, contrasting sharply with the declines in fossil fuel sectors caused by the pandemic.