Demand for intelligent electronic devices is booming at a CAGR of 5.2% from 2023 to 2033
The global intelligent electronic devices market is set to garner $25 billion by 2033, advancing at 5.2% CAGR from 2023 to 2033, as per a new industry analysis by Fact.MR, a market research and competitive intelligence provider.
In the electric power industry, an intelligent electronic device (IED) is utilised to describe microprocessor-based controllers of power system equipment. If IEDs detect current, voltage, or frequency anomalies, they can give control commands, such as triggering a circuit breaker or lower/raise voltage levels to maintain the intended level.
A typical IED has five to 12 protection functions, and five to eight control functions for communication, self-monitoring, controlling independent devices, and other features. Hence, they are appropriately termed IEDs. Some modern intelligent electronic devices have been designed to comply with the IEC61850 substation automation standard, which offers interoperability and enhanced communications abilities.
Most countries throughout the world are attempting to boost their power production to keep up with rising urbanisation and industrialisation. This aspect has substantially led to the increased development of substations to distribute energy to diverse remote areas of a country. A substation is used to scale up voltage or current or vice versa for long-distance electricity transmission. Furthermore, the usage of intelligent electronic devices has increased rapidly in recent years, owing to a wide range of applications in substation automation such as collector converter, distribution, transmission, and switching in a variety of end-use sectors.
One of the main factors pushing global market growth is the rising automation of industrial processes. Moreover, the global market is being propelled by the significant necessity to lessen T&D (transmission and power distribution) losses and the growing incidences of outages and fluctuation in power lines. Furthermore, the substantial growth of substation automation in solar energy systems, combined with the strong requirement for renewable power sources, is bolstering market development. Moreover, governments worldwide are concentrating on installing smart meters in every home, which is raising the demand for intelligent electronic devices as they enable energy automation with minimum capital investments and human participation.
Key takeaways from market study
- The global IED market amounted to $15 billion in 2023
- Worldwide demand for IED is anticipated to evolve at a CAGR of 5.2% from 2023 to 2033
- The global market is estimated to hit $25 billion by 2033
- Asia Pacific accounted for 36% share of the global market in 2022
- The digital relay segment is expected to grow considerably during the forecast period
“Increased demand for IEDs in numerous industries, as these devices are employed to detect power faults, control transformers from high voltages, and manage overload, are propelling market expansion. Additionally, increased acceptance of intelligent electronic devices due to their wide variety of applications in substation automation, such as transmission, distribution, and others, is supporting market expansion,” says a Fact.MR analyst.
Asia Pacific is leading the worldwide IED market. Japan and South Korea are boosting the market growth in Asia Pacific due to the increasing adoption of IEDs. Moreover, North America and Europe are projected to follow Asia Pacific in terms of development.