Digital Fault Recorder Market size was over USD 2 Billion in 2023 and is set to reach USD 6 Billion by the end of 2036, witnessing around 11% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of digital fault recorders is estimated at USD 2.3 Billion.
The increasing investments in the power infrastructure, government initiatives in energy conservation, and high electricity demand are the growth drivers for the market. According to the Energy Administration, the Ministry of Economic Affairs launched a program in Feb 2023, named the ‘New Energy Saving Campaign Program’ which is estimated to save 5 billion kWh to decrease the demand for electricity from 2017-2020.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
11% |
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Base Year Market Size (2023) |
USD 2 Billion |
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Forecast Year Market Size (2036) |
USD 6 Billion |
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Regional Scope |
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Installation (Generation, Transmission, Distribution)
Transmission segment is likely to hold more than ~44% digital fault recorder market share by 2036. The segment growth is attributed to the power being transferred to various centers with the help of transmission networks. The rise in the demand for DFR is related to the increase in transmission infrastructure to attain a reliable power supply coupled with seamless necessary data. China is the first country to create 1 million volt transmission lines, plans to partner with other countries to manufacture powerful grid infrastructures and attain a global interconnected electric grid by 2070.
Station (Automated, Non-automated)
By 2036, automated segment is projected to hold more than 25% digital fault recorder market share. The automated segment is poised to hold a significant share of 25% in the year 2036. This segment helps remotely monitor and control power distribution systems even the large power transmission systems. Additionally, automated systems assist in the transformation of standard substations by improvising old infrastructures.
Voltage (Less than 66kV, 66kV-220kV, above 220kV)
The 66kV-220kV segment in digital fault recorder market is anticipated to hold the revenue owing to its usage in transmitting power over long distances since high-voltage transmission lines are required for covering large distances. USD 20 million has been allocated for investment in the transmission and distribution system for 2020-2023 as per NEMA on a global level.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Installation |
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Station |
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Voltage |
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North America Market Forecast
North American in digital fault recorder market is anticipated to account for more than 40% revenue share by the end of 2036. The growth of the region is attributed to the investments in power infrastructure, excessive energy resources, high electricity consumption, and the expansion of smart grids. There are many distributed energy resources, for instance, rooftop solar panels, wind generating units, and, e-vehicle batteries which are growing day by day and require a powerful monitoring system.
In the United States, a high percentage of electricity comes from renewable resources and the electricity consumption rate is also high therefore, they constantly put efforts into reducing carbon emissions. As per EIA, electric appliances in an average household in the US consume 52% of electricity.
Due to the growing demand for power supply and the expansion of smart grids, the government in Canada is focused on investing more in grid infrastructures and transmission networks. In Canada, around USD 100 million is expected to be invested for the effective utilization of existing electrical assets and to reduce greenhouse gas emissions.
Asia Pacific Market Analysis
Asia Pacific digital fault recorder market is expected to observe over 8.5% growth between 2024 and 2036. The region is experiencing growth due to the investment in power grid infrastructure, demand for renewable resources, and increased awareness of sustainability. The Union Minister of India disclosed that over USD 130 Billion has been administered to the generation, transmission, and distribution sector along with it nearly half of the stated amount is invested in the innovation of the renewable energy sector.
Carbon neutrality is again a crucial factor in helping the market grow in Japan. India and Japan's clean energy partnership aims to achieve sustainable goals such as economic growth and climate change. Moreover, both countries are planning to reach net zero and therefore investing in innovative technologies that will help in reducing carbon emissions, which will help the market grow.
Additionally, this partnership will cover many areas such as wind energy, carbon capture & recycling, etc. Along with India and Japan, South Korea is all set to become carbon neutral by 2050, as per a study South Korea will attain one-third of its power generation from renewable resources.
The market for digital fault recorder is dominated by key market players who are gaining traction in the market due to the high demand for electricity and excessive usage of energy-efficient products.
Author Credits: Dhruv Bhatia
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