Supervisory Control and Data Acquisition (SCADA) systems are computer systems that are used to control industrial processes locally or remotely. They are widely used in industries such as electricity, water and wastewater, oil and gas, manufacturing, telecommunications and transportation. SCADA systems collect real-time data from remote machines and process control equipment like sensors, instruments, pumps, valves and meters. This data is then transmitted to centralized control room for monitoring and controlling. They help industries monitor and optimize processes for increased efficiency and minimized costs.
The global SCADA market is estimated to be valued at US$ 15.2 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
With growing focus on sustainable clean energy, renewable energy sources like solar and wind power are seeing increased investments globally. SCADA systems help utilities manage distributed renewable energy resources more efficiently. They aid in remote monitoring and controlling power generation from renewable sources during varying weather conditions. Moreover, SCADA systems also help optimize power grid operations by routing energy from regions of surplus to areas of deficit. The forecasted growth in renewable energy capacity additions worldwide will subsequently drive the demand for advanced SCADA systems to handle the complex power generation and distribution requirements from clean energy sources.
Segment Analysis
The global supervisory control and data acquisition (SCADA) market can be segmented based on component, industry and geography. Based on component, the market can be bifurcated into software and hardware. The hardware segment is currently dominating the market owing to the need for various hardware components such as programmable logic controllers (PLCs), remote terminal units (RTUs), communication technologies, sensors. Industry-wise, the market is segmented into oil & gas, power & energy, water & wastewater treatment, transportation, manufacturing and others. The oil & gas industry accounts for the largest share in the global SCADA market due to extensive applications of SCADA systems in upstream, midstream and downstream oil & gas operations for process optimization, cost efficiency and safety.
PEST Analysis
Political: Governments across the globe are investing heavily in developing critical infrastructure and upgrading aging industrial control systems, which is creating demand for more advanced SCADA systems. Various regulators have also mandated the use of SCADA for monitoring industrial operations to ensure safety and security.
Economic: Growth in process industries such as oil & gas, chemicals, power etc. is driving investments in automation technologies including SCADA systems. Cost optimization initiatives are also prompting industries to adopt SCADA for remote monitoring and management.
Social: Increasing concerns around safety, security and environment are pressing industries to leverage IoT-enabled SCADA for predictive maintenance, disaster management and remote asset monitoring.
Technological: Advancements in IoT, cloud, AI and edge computing are enhancing the capabilities of SCADA and making them more intelligent, scalable and secure. Initiatives like Industry 4.0 are also spurring technological modernization of industrial infrastructure.
Key Takeaways
The Global Supervisory Control And Data Acquisition (SCADA) Market Size is expected to witness high growth. The global SCADA market is estimated to be valued at US$ 15.2 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2031.
Regional analysis comprises North America currently dominates the global SCADA market owing to extensive modernization of critical infrastructure and early adoption of automation and IoT technologies across industries. Asia Pacific is poised to be the fastest growing market for SCADA systems driven by the rapid industrial growth and infrastructure development projects underway in China and India.
Key players operating in the SCADA market are ABB Ltd., Emerson Electric Co., Honeywell International Inc., Schneider Electric SE, Siemens AG, Rockwell Automation Inc., General Electric Co., Yokogawa Electric Corporation, Alstom, IBM Corporation. Key players are focusing on leveraging latest technologies to enhance their product offerings and expand into new industry verticals and geographical regions for sustained growth. They are also undertaking partnerships, mergers and acquisitions for strengthening their market position.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it