Industrial Remote Terminal Unit (RTU) Market by End-user, Product and Geography - Forecast and Analysis 2023-2027
The industrial remote terminal unit (RTU) market size is estimated to grow at a CAGR of 6.17% between 2022 and 2027. The market size is forecast to increase by USD 1,106.47 million. The growth of the market depends on several factors, including an increase in sales and revenue with the support of e-commerce, rising investments in shale oil and gas, and growing pipeline and terminal projects. The industrial remote terminal unit (RTU) market is a control device that helps the supervisory control and data acquisition (SCADA) system, the master device, monitor and communicate with devices in the grid placed in different geographical locations.
This industrial remote terminal unit (RTU) market report extensively covers market segmentation by end-user (oil and gas industry, power generation industry, chemical and petrochemical industry, water and wastewater industry, and others), product (wireless industrial RTU and wired industrial RTU), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Industrial Remote Terminal Unit (RTU) Market Driver
One of the key factors driving the Industrial Remote Terminal Unit (RTU) Market growth is the increase in sales and revenue with the support of e-commerce. There has been significant growth in the global industrial RTU market due to the increase in sales through e-commerce platforms such as Amazon and Flipkart. These e-commerce platform has provided free entry for end-users from developing economies to choose their products per their global market needs.
As a result, this has created numerous opportunities for manufacturing companies in Europe and North America to enter the Asian market and other developing regions. Due to the implementation of the e-commerce platform, it supports regional market players to compete at the global scale. Hence, such factors are expected to drive the global industrial RTU market during the forecast period.
Industrial Remote Terminal Unit (RTU) Market Trends
A key factor shaping the Industrial RTU Market growth is the increasing integration of IoT. One of the significant advantages of the integration of IoT in remote operational plants is that it helps in monitoring and thereby improving productivity in industrial operations.
Also, there have been several advancements in automation technology associated with IoT which helps to identify failures in advance and helps in the optimum use of the available resources such as energy. IoT plays a crucial role in the reduction of electricity costs, customized data acquisition, and cloud computing. Hence, such applications are expected to drive the global industrial RTU market during the forecast period.
Industrial Remote Terminal Unit (RTU) Market Restrain
The excessive cost of installation and maintenance services is one of the key challenges hindering the Industrial Remote Terminal Unit Market growth. The global industrial RTU is a very competitive market and the vendors such as Honeywell are innovating high-quality industrial RTU products for remote monitoring applications. There is a slow growth in the adoption of SCADA systems and industrial RTU in developing economies due to the high cost of installation and maintenance services.
The installation and services for industrial RTU in remote operations can pose a significant threat as it requires high initial investments, as these products are manufactured to work in a harsh environment and provide data about machinery and industrial operations. Other factors such as the problems based on communication errors and diagnosing such issues are expected to add to the maintenance costs as well. Hence, such factors are expected to hinder the global industrial RTU market during the forecast period.
Industrial Remote Terminal Unit (RTU) Market Segmentation By End-user
The oil and gas industry segment is estimated to witness significant growth during the forecast period. One of the main end users of the industrial RTU is the oil and gas industry due to the high use of SCADA systems in the industry. SCADA is crucial to the oil and gas industry and is extensively used in the upstream, midstream, and downstream sectors.
The oil and gas industry segment was the largest segment and was valued at USD 831.10 million in 2017.
In the upstream sector, the key role of traditional SCADA is that of supporting the remote transmission of data whereas in the midstream sector, SCADA is mainly utilized for applications, such as line pack calculations, which are made to maintain an estimated inventory quantity and schedule tracking to forecast the end-of-day contract quantity. There is increasing adoption of robust industrial RTU in the oil and gas industries due to certain advances in RTU such as functioning in extreme weather conditions.
Factors such as the growing investments in oil and gas fields, as well as the resurgence of crude oil prices, are expected to drive the growth of this segment which in turn will drive the growth of the global industrial RTU market during the forecast period.
The widespread focus on energy efficiency and data analysis in the power industry is significantly driving the market growth in this segment during the forecast period. One of the main applications of RTU in the power industry includes monitoring power generation with the help of sensors that provide real-time data on power generation to operators. There is a significant increase in the adoption of RTU in the power industry due to the use of variable power sources. Hence, such applications of industrial RTU in the power industry are expected to drive market growth during the forecast period.
Industrial Remote Terminal Unit (RTU) Market Segmentation By Product
Based on product, the market has been segmented into wireless industrial RTU and wired industrial RTU. The wireless industrial RTU segment will account for the largest share of this segment. Due to their ability to monitor remote operations in harsh environments, end-user industries are increasingly favoring wireless industrial RTUs. The growing use of wind turbines and oil well production in the wireless RTU market is one of the main drivers. Additionally, a few new developments of less-power-consuming crossover RTUs are likewise adding to the development. As a result, the wide range of industries for which wireless industrial RTUs are used is expected to drive growth in this market, which in turn will drive growth in the global industrial RTU market over the forecast period.
Similarly, in the wired industrial RTU segment, some of the key advantages of wired RTUs include reliable and stable communication, resistance to electromagnetic interference, and the ability to transmit large amounts of data. There is increasing adoption of Wired RTU in several countries such as India, China, Indonesia, Brazil, Mexico, and Argentina across various industries like manufacturing, oil and gas, power generation, water and wastewater management, and transportation. Hence, such wide applications of wired RTU are expected to drive the growth of this segment which in turn will drive the growth of the global industrial RTU market during the forecast period.
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