Dedham, Mass., March 1, 2002 — The global SCADA systems market for the electric power industry, which exceeded $1,200 million in 2001 will reach $1,700 by the end of 2006, growing at a Compound Annual Growth Rate (CAGR) of 6.1 percent according to a newly revised study by ARC Advisory Group, “SCADA Systems for the Electric Power Industry Worldwide Outlook Market Analysis & Forecast.”
Demand for Information Fuels Growth
The emergence of large global convergent energy and utility companies has enhanced the position of the larger suppliers to match end users’ needs. Alliances and acquisitions have become an important strategic consideration for all industry players, both large and small. Russ Novak ([email protected]), Director of Consulting for ARC and author of the study said, “Suppliers are offering more advanced application software, business management tools, and the use of third party network infrastructures.”
“SCADA is moving towards knowledge management and is serving a more diverse range of client groups. This is becoming a particularly important decision factor for users in the wake of integration issues with linking to enterprise and business applications” continued Novak. The functionality requirement horizon is being expanded to include issues that were never considered before, such as energy trading. To remain competitive, SCADA vendors are now looking to improved responsiveness to the integrated business practices of the power industry.
The End User’s Perspective
Rather than universal acceptance of supplier offerings, end users are addressing today’s problems and react to their individual prioritization of operational SCADA issues. Budgetary concerns, staff limitations, and other constraints may combine to create a different viewpoint than that of the supplier’s world. Utilities may keep a legacy SCADA system and look for help in implementation of concepts such as Web enablement and linkage to supply chains at a later date. This perspective of an end user is highly significant and is an area of continuing analysis and investigative research by ARC.
Survey of End User Issues
Results of an in-depth survey are included in this Market Study. End users in the electric power industry were asked to participate in four main areas in an ARC poll. The first was to comment on and give their perspective on four of the major issues the industry faces. The second area of the poll was to have the end users rate the potential for growth of a number of technologies and their effect on SCADA. The third area in the poll was a section in which end users could list and discuss any issue of primary concern to their operation or company as it relates to SCADA. The fourth and final section of the ARC poll was focused on end users’ SCADA expenditure and forecasts.
Further information on this study can be found at: http://www.arcweb.com/arcweb/Advisory/Studies/Auto/scada.asp#pwr
This document can be used with attribution to ARC Advisory Group. For a graphic containing ‘SCADA for Electric Power Industry Market in Millions of Dollars’ please contact Maryanne Flynn at mailto:[email protected] .
ARC Advisory Group provides strategic planning and technology assessment services to manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers world-wide. From Global 1000 companies to small start-up firms, ARC has the strategic knowledge needed to succeed in today’s technology driven econ-omy. Further information can be obtained from ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax 781-471-1100, E-mail [email protected], Web ARCweb.com.