June 18, 2024
Excitation Systems Market

Excitation Systems Market Trends Towards Integration of Advanced Technologies

They help maximize generator efficiency through automatic voltage regulation. The systems consist of power electronic components such as thyristors, diodes and transistors which help in controlling armature current. Rising investments in upgrading aging power infrastructure and grid integration of renewable energy are driving demand for advanced excitation systems.

The Excitation Systems Market is estimated to be valued at US$ 4.28 Billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031.

Key players operating in the excitation systems market are 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.

Key takeaways:

Key players: The key players are focusing on integrating latest technologies such as artificial intelligence and Internet of Things into excitation systems to improve efficiency. For instance, ABB introduced an AI-enabled solution that uses self-learning algorithms to optimize excitation settings.

Growing demand: There is growing demand for excitation systems from renewable energy sector as more solar and wind power projects are being commissioned globally. The increasing share of renewable energy in power generation is driving demand.

Global expansion: Leading excitation system manufacturers are expanding globally by opening new manufacturing plants and service centers to cater to the growing demand. For example, Siemens Energy commissioned a new factory in China to produce excitation systems for large generators.

Market key trends:

One of the key trends in the Excitation Systems Market Size is the integration of advanced technologies to improve efficiency and performance. Major players are focusing on developing IoT-enabled and AI-powered systems to predict outages and optimize operations. For instance, systems equipped with advanced sensors can monitor winding temperatures and current signals in real time to prevent overheating and failures. Digitalization is also enabling remote condition monitoring of excitation systems installed across geographically dispersed power plants. The adoption of such smart systems will boost demand and help grid operators improve reliability.

Porter’s Analysis

Threat of new entrants: Medium threat as excitation systems require high capital investment for R&D and manufacturing. However, a few new players may enter providing advanced systems.

Bargaining power of buyers: High bargaining power as there are many established suppliers for buyers to choose from. Buyers can negotiate on price and customization.

Bargaining power of suppliers: Medium bargaining power as large OEMs source components from a few major suppliers globally. Suppliers have some pricing power due to specialized components.

Threat of new substitutes: Low threat as excitation systems have no close substitute. Wind turbines and solar are alternative sources of power generation but not substitutes for excitation systems.

Competitive rivalry: Intense rivalry among major global players and regional specialists. Players compete on performance, quality, pricing, customization and after-sales service.

Geographical Regions
Asia Pacific accounts for over 40% of the global excitation systems market value due to strong demand from China, India and Southeast Asia. China has the world’s largest installed base of power generators and remains a major market for new installations.

Europe is the fastest growing regional market, expanding at a CAGR of over 5% during the forecast period. Stringent grid regulations in the EU are driving replacement demand. Germany, UK, France and Nordic nations are major European countries.

1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it