Excitation Systems Market Outlook - 2030
The global excitation systems market size was valued at $2.1 billion in 2020, and is projected to reach $3.4 billion by 2030, growing at a CAGR of 4.6% from 2021 to 2030. Excitation system is used to excite field winding of synchronous machine with the help of DC supply and helps to control the field current reactive power flow of the system and field voltage. There are two types of excitation systems such as static and rotating excitation system. Rotating excitation system is further subdivided into AC and DC excitation systems. It provides stability when starting the synchronous machines. The role of excitation systems in synchronous generator is to maintain a constant terminal voltage and in case of synchronous motor, it is used to maintain constant power factor.
Rapid growth of highly volatile energy generation by means of renewable sources such as hydro, solar, wind, and others is expected to increase the demand for excitation systems in synchronous machines during the forecast period.
In addition, advantages associated with excitation systems such as reliability, simple control, enhanced stability, fast transient response and others are anticipated to propel the growth of the market in the upcoming years. On the contrary, rise in R&D activities toward development of digital excitation control systems is expected to provide key opportunity for players operating in this market.
For the purpose of analysis, the excitation systems market is segmented into type, controller type, application, end user, and region. Depending on type, the market is bifurcated into static and rotational. On the basis of controller type, it is categorized into analog and digital. As per application, it is classified into synchronous generator and synchronous motor. The end users covered in the study include power generation and other industrial. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global excitation systems market analysis covers in-depth information of the major excitation systems industry participants. Some of the major players in the market include ABB, Andritz AG, Basler Electric Company, Fuji Electric Co., Ltd., General Electric, Mitsubishi Electric Corporation, Siemens AG, Tenel, s.r.o., Voith GmbH & Co. KGaA, and WEG Group.
Other players operating in the value chain of the global excitation systems market are Nidec Corporation, Melrose Industries, Amtech Power, Reivax, and others.
The key players have adopted numerous strategies such as product launch, acquisition, and business expansion, to stay competitive in the excitation systems market.
For instance, in October 2021, Basler Electric Company acquired Segrity, LLC and consolidates expanded field service capabilities under Basler Services, LLC. This acquisition led to rise in the product portfolio and surge in the electrical services of the company.
In addition, in March 2020, GE Steam Power supplied two 2500 MVA Short Circuit Generator systems to the High-Power Laboratory (HPL) of Central Power Research Institute (CPRI), Bengaluru. This supply led to increase in the sales of excitation system and rise in the overall revenue of the company.
The excitation systems market is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the market with respect to the growth prospects and restraints based on regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Excitation systems market, by type
By type, the static segment held the largest market share in 2020, owing to various advantages of static excitation systems such as good reliability, operation flexibility, excellent system response, small size, lower losses, and high performance, which fueled the demand during the analyzed time frame. Moreover, rise in demand for electricity from developing economies resulted in increased investment toward power generation, transmission and distribution infrastructure, which in turn is expected to fuel the growth of the excitation systems market from 2021 to 2030.
By Type
Static is projected as the most lucrative segment.
Excitation systems market, by controller type
On the basis of controller type, the digital segment dominated the global market in 2020, in terms of share, owing to rise in demand for excitation system as it provides reliable and stable operation of synchronous machines such as synchronous generator and synchronous motor. In addition, rise in R&D activities toward improvement of digital controllers for its use in excitation systems is anticipated to fuel the growth of the market during the analyzed timeframe.
By Controller Type
Digital is projected as the most lucrative segment.
Excitation systems market, by application
By application, the synchronous generator segment garnered the highest market share in 2020. This is attributed to rise in demand for synchronous generator from various power plants including nuclear, thermal, wind & hydropower, and industrial applications. In addition, rise in usage of synchronous generator for constant speed applications and power factor correction applications is anticipated to fuel the growth of the excitation systems market from 2021 to 2030.
By Application
Synchronous Generator is projected as the most lucrative segment.
Excitation systems market, by end user
By end user, in 2020, the power generation segment acquired the largest excitation systems market share, owing to rise in demand for electricity from developing and developed economies, which resulted in increased demand for synchronous machines. In addition, rise in energy demand along with cleaner generation of electricity is expected to fuel the growth of the renewable power generation segment, thereby driving the growth of the market in the coming years.
By End User
Power Generation is projected as the most lucrative segment.
Excitation systems market, by region
Asia-Pacific garnered the highest share in the excitation systems market in 2020, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, rapid expansion of the renewable energy sector, rise in investment toward up gradation of aged power infrastructure, and rapid industrialization in the region are further anticipated to fuel the growth of the market in the upcoming years.
By Region
Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdown imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries and electrical utilities, which decreased the demand for excitation systems from these consumers. In addition, halt in building & construction of new electric utility infrastructures, renewable power plants, grid network, and other power plants, owing to unavailability of workers and increase in demand–supply gap are projected to hamper the market growth during the pandemic period. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the excitation systems market is expected to recover by the last quarter of 2021, as COVID-19 vaccination has begun in various economies across the globe, which is expected to improve the global economy.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current market trends and future estimations of the global from 2021 to 2030 to determine the prevailing excitation systems market opportunities.
- A comprehensive analysis of the factors that drive and restrict the global market growth is provided.
- Estimations and excitation systems market forecast are based on factors impacting the growth, in terms of value.
- Profiles of leading players operating in the excitation systems market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable excitation systems market growth.
Key Market Segments
By Type
- Static
- Rotational
By Controller type
- Analog
- Digital
By Application
- Synchronous Generator
- Synchronous Motor
By End User
- Power Generation
- Other Industrial
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Excitation Systems Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By CONTROLLER TYPE |
|
 By APPLICATION |
|
 By END USER |
|
 By Region |
|
 Key Market Players | WEG GROUP, ANDRITZ AG, TENEL, S.R.O., VOITH GmbH & CO. KGAA, BASLER ELECTRIC COMPANY, MITSUBISHI ELECTRIC CORPORATION, GENERAL ELECTRIC, FUJI ELECTRIC CO., LTD., SIEMENS AG, ABB LTD |
Analyst Review
Rapid industrialization and growth of renewable energy sector are the key factors attributed to the leading position of Asia-Pacific. The huge potential in Asia-Pacific to set up renewable energy plants & industries and surge in high-voltage direct current (HVDC) transmission networks are expected to provide lucrative opportunities to leading excitation systems manufacturers.
Increase in demand for reliable and continuous power supply is the key factor that increased the demand for synchronous machines which in turn is expected to drive the growth of the global excitation systems market during the forecast period. In addition, rise in demand for reactive power compensation and power factor correction from electric utilities and industrial applications is anticipated to fuel the growth of the market during the analyzed time frame. However, complicated design of excitation systems and need for additional components such as slip ring & brushes in case of static excitation systems hamper the growth of the market from 2021 to 2030. On the contrary, rise in investment towards upgradation of old/aged power infrastructure and rapid growth of transmission network are anticipated to provide remunerative opportunities for key players to maintain the pace in the excitation systems market in the upcoming years.
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market throughout the forecast period, followed by North America, Europe, and LAMEA.
Product launch, acquisition and business expansion are the key growth strategies of excitation systems market players.
North America and Asia-Pacific regions will provide more business opportunities for excitation systems in future.
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Potential customers of excitation systems industry are energy & power, oil & gas, pulp & paper, manufacturing, chemical, and others.
Synchronous generators and synchronous motors are the key applications expected to drive the adoption of excitation systems.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
ABB, Ltd., Andritz AG, Basler Electric Company, Fuji Electric Co., Ltd., General Electric, Mitsubishi Electric Corporation, Siemens AG, Tenel, s.r.o., Voith GmbH & Co. KGaA, and WEG Group are the leading global players in the excitation systems market.
Rise in demand for synchronous machines from various end use industries and rise in investment towards power infrastructure are the driving factors and opportunities in the excitation systems market.
Key benefits of the excitation systems market report include detailed analysis on global trends, key players, competitive scenario, opportunities, market size & forecast, and segmental & regional analysis.
Rapid growth of renewable energy sectors such as wind power, solar power, hydropower and others is expected to be the current trend will influence the Excitation Systems Market in the next few years.
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