Scada integration drives growth at more than 4%

Edited by the Engineeringtalk editorial team Mar 30, 2005

The worldwide Scada systems market for the electric power industry, which exceeded $1200 million in 2004, will exceed $1500 million by the end of 2009, says a new report.

The worldwide Scada systems market for the electric power industry, which exceeded $1200 million in 2004, will exceed $1500 million by the end of 2009, growing at a compound annual growth rate of over 4%.

That is according to a newly revised study by ARC Advisory Group, "Scada Systems for the electric power industry worldwide outlook - market analysis and forecast through 2009".

"For a Scada system to be effective, it is becoming increasingly important for it to be integrated with business systems throughout a company".

"Scada systems must be enabled to provide real-time data to all of the required nodes of the enterprise".

"For electric utilities, a model of the operations network usually includes platforms dealing with geographic information systems (GIS), customer management systems (CMS), workforce or maintenance management systems and ERP", according to Russ Novak, ARC's Research Director, and author of the study.

Novak continued: "Information from Scada must be integrated to workforce and asset optimisation programmes in order to affect business process change that will improve transmission and distribution (T and D) system reliability, improved performance, better customer service, and lower operating costs".

The latest Scada systems encompass a new generation of technology and improved functions and are now being integrated with IT systems.

Scadas are now being used for a wide range of applications and business processes for a variety of purposes, added Novak.

Utilities and energy companies are increasingly looking for a total solution integrating Scada systems with other systems at the plant level and higher-level corporate business systems.

Scada system design must go beyond local automation systems that are open, modular, and provide for simplified connectivity to other control systems, continued the report.

The underlying technology that enables traditional Scada functions has changed dramatically.

Emerging technology is enabling Scada systems to be tightly integrated to the domain of business processes, creating an improved value proposition for its usage.

As the need for real-time data spreads across the de-regulated power arena, the ability to share real-time information and synchronise diverse data sets becomes critical.

Scada systems bring improved performance to geographically dispersed assets and provide a framework for real-time performance management on a global basis.

Emerging capabilities of Scada systems will allow its utilisation for additional classes of assets across a wider array of vertical industries including the electric power industry.

Operating structure regulations as well as those related to environmental and safety issues are driving growth in Scada revenues both in the USA and overseas.

Pricing and true cost are brought under the spotlight by a deregulated market.

In the USA, Sarbanes-Oxley requires that reported data is accurate and visible as it is efficiently transmitted up the corporate ranks.

End users realise that the level of operating detail gathered and made available by Scada systems is essential in evaluating and maintaining sufficient minimal operating margins, and to survive the increased levels of competition of a deregulated market, said the report.

Deregulation has split the power industry horizontally and vertically.

To be competitive and efficient, the separate parts of the fragmented industry need to be synchronised.

In setting up the model of a deregulated operation, additional data points have to be added to the Scada systems.