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Update to 2019 Market Outlook for Protective Relays and Grid Modernization Efforts

Refreshing the Outlook for P&C Investments Specifically and for Grid Modernization

The Newton-Evans study of protective relays that was completed several months ago was based on a 2019 multi-month survey-based study of protection and control engineering department heads and senor staff members at key electric power utilities in 30 countries. A total of 97 utility P&C managers and staff discussed their usage patterns and plans for relay applications, protocols and telecommunications architectures as well as their investment plans for protection and control activities during the field collection phase of the study. In addition to utility surveys, more than 30 industry officials from several protective relay manufacturing firms around the world also participated in the study.

The report series provides updated information on a variety of “universally-applied” protective relay types including generator, transmission line, distribution feeder, transformer and motor protection units.

Estimates and forecasts contained in the 2019-2022 report were premised on five sources of information:

  • In-depth utility surveys and interviews of 98 utility protection and control officials located in 30 countries conducted in 2019.
  • Relay manufacturer surveys and channel member interviews together with available financial information from suppliers.
  • Protection and Control consulting firms in six countries.
  • Excerpts from related multi-client and commissioned studies undertaken and completed by Newton-Evans Research Company.
  • Economic and financial global market outlook information developed by a number of respected public and private sources (e.g., World Bank, UNDP, IMF, Bloomberg, and others).World and Regional Economic Outlook: Implications and Viewpoints for the Protective Relay Market

Continue reading Update to 2019 Market Outlook for Protective Relays and Grid Modernization Efforts

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Electric Utilities Will Require More 3rd Party Assistance for Cybersecurity in the Next 3 Years

The recently completed Newton-Evans study of the Global Market for Protective Relays shows that out of 97 electric utilities surveyed around the world, 20% claim they currently require outside assistance for cyber security audits of their relay systems, and an additional 42% claim they will need third party assistance by 2022.

Continue reading Electric Utilities Will Require More 3rd Party Assistance for Cybersecurity in the Next 3 Years

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Slight increase in the use of PMUs among Electric Utilities according to survey

According to a survey of 97 electric utility officials in 30 countries, the use of Phasor Measurement Units (PMUs) may be on the rise. The 2019 Newton-Evans study of protective relay usage, plans and trends found that 44% of International utilities and 31% of North American utilities surveyed indicated use of PMUs; a 3% increase over the previous study’s findings. See the comparison of findings in Figs. A and B below.

Continue reading Slight increase in the use of PMUs among Electric Utilities according to survey

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One-Third of Electric Utilities Surveyed Indicate Over Half of Relays Have Been In Service for >15 Years

Roughly one-third of electric power T&D utility officials indicated in a survey that more than half of protective relays on their systems have been in service for more than 15 years. This is not such a long lifespan for EM relays, which can last 50 years or more, but for programmable, microprocessor relays the average lifespan is usually more in the ballpark of 20-25 years.

Newton-Evans Research Company has published findings from 97 surveyed electric power utility officials, relay manufacturers, suppliers and consultants. Here are a few observations on aging relays and testing intervals for microprocessor relays:
Continue reading One-Third of Electric Utilities Surveyed Indicate Over Half of Relays Have Been In Service for >15 Years

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69% of Electric Utilities Surveyed Separate OT Networks From IT Business Networks

A recent Newton-Evans survey of 55 North American electric utilities finds that companies are even more hesitant than they were in 2016 to combine networks for operational technology with networks used for IT business processes.

Survey participants were asked, “Does your company manage operational technology (OT) protection, control, and automation Ethernet networks separate from your information technology (IT) business process Ethernet networks?” This question is one of several that were asked previously on a 2016 survey of the protective relay marketplace.

In 2019, 69% percent of North American utilities responded that they manage OT networks separately from IT business process Ethernet networks. In 2016, 55% said they manage the networks separately.

Continue reading 69% of Electric Utilities Surveyed Separate OT Networks From IT Business Networks

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35% of Utilities Surveyed Said More Than Half Of Relays Are Over 15 Years in Service

Newton Evans Research Company has recently completed Volume 1 (the North American Market) of the Worldwide Study of the Protective Relay Marketplace: 2019-2022, a four volume market report. Here are a few observations gleaned from the survey:

Survey respondents were asked, “Approximately what % of your relays have been in service for more than 15 years? (Best guess estimate)”

On average, 44% of relays in the utilities surveyed have been in service for more than 15 years. The average percent of relays older than 15 years among Canadian utilities surveyed was 61%; the average among U.S. Cooperatives was 25%.
Continue reading 35% of Utilities Surveyed Said More Than Half Of Relays Are Over 15 Years in Service

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94% of North American Electric Utilities Surveyed Use DNP3 for SCADA

Newton Evans Research Company is currently surveying for the upcoming Worldwide Study of the Protective Relay Marketplace: 2019-2022, a four volume market report. Participants in this market study include utility engineers and managers from investor-owned utilities, municipal and provincial utilities, cooperative utilities within the United States and Canada, together with national power systems throughout the world. This year’s study also includes separate surveys of P&C consultants and relay manufacturers.

Interim findings from the survey of North American electric utilities validate earlier Newton Evans observations that DNP3 is more commonly used for SCADA but less so for Substation Automation, controlling actions issued externally to relays, and communications-assisted protection. Almost all North American utilities surveyed indicated the use of DNP3 for SCADA, while 60% said they use it for substation automation. Only 38% indicated the use of DNP3 for communications-assisted protection. Early tabulations have found some increase in deployments of IEC 61850.
Continue reading 94% of North American Electric Utilities Surveyed Use DNP3 for SCADA

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Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices

In 2016, Newton-Evans Research Company completed a six-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology.

Among the key findings reported in the 2016 four-volume study were these:

  • There was a receptive market for incorporating advanced technological capabilities.
  • The role of synchrophasors and teleprotection continued to expand; providing better situational awareness and visualization for control system operators.
  • Most new and retrofit relay units being purchased were digital relays, but in some of the protection applications studied, such as motor protection and
  • large generator applications, and in installations where electrical interference is strong, electro-mechanical and older solid state relays continued to have a niche market position.

Continue reading Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices

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Protective Relays and IT/OT Convergence: What Will Be Trending in 2019?

In 2016, Newton-Evans Research Company conducted a six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology. Newton-Evans Research Company plans to update this market study in January of 2019: Worldwide Study of the Protective Relay Marketplace: 2019-2022.

Here are some findings from the survey that was conducted in 2016, when we asked utilities how they collect IT information from OT networks:

Where do you provide demarcation between the physical IT and OT networks in order to safely collect IT information from the OT networks? (Check all that apply)
NORTH AMERICA: In 2016, just over half of North American respondents said the demarcation between physical IT and OT networks is at the control center, and 47% said demarcation is in the substation. Seven respondents said demarcation between the two networks is provided at both the control center and in the substation.

Continue reading Protective Relays and IT/OT Convergence: What Will Be Trending in 2019?

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Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

In 2016, Newton-Evans Research Company conducted a six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology.

Importance of Purchasing “Known” Relays: Sixty-five percent of the North American respondents strongly agreed with the statement, “It is important that we purchase known relays (a proven product with which we have had prior experience).” Overall, 97% of North American respondents strongly agreed (65%) or agreed (32%). Three people were neutral about this statement. None of the respondents expressed any level of disagreement. Eighty-two percent of North American utilities serving more than 500,000 electricity end users strongly agreed with this statement.

Fifty-three percent of international respondents strongly agreed with this statement. Forty-one percent agreed only somewhat. One person disagreed and one person was neutral about this statement.

Agree or Disagree: “It is important that we purchase known relays (a proven product with which we have had prior experience.)”

Continue reading Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

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Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2019-2022

Beginning early in January, Newton-Evans Research Company will again be gathering survey-based data for its newest four-volume market study, the Worldwide Study of the Protective Relay Marketplace: 2019-2022, planned for publication late 1st quarter 2019. Some of the questions this study will answer include: 1) Will IEC 61850-based protective relay products gain a higher market share among North American utilities? 2) Is there a change coming in protective relay market leadership? 3) With growing utility emphasis on DA, the integration of renewables, storage devices and demand-side management tools, will there be a need for additional protective relays in MV substations and embedded in a new generation of distributed field equipment?

The 2019 study will measure current market sizes and will include market projections on a world region basis for the next few years. The extensive research program will define the product and market requirements which suppliers must meet in order to successfully participate in one or more of these diverse world market regions.

Newton-Evans Research Company estimates from our earlier 2016 relay market study indicate that the North American protective relay market then stood at $660 million for the combined utility and industrial market segments. It will be important for the P&C community to learn how changes in the world market and grid modernization since 2016 will affect the outlook for 2019-2022.

Continue reading Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2019-2022

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North America Factory Shipments of Protective Relays Could Top $700 MUSD in 2018

A four-volume Newton-Evans study conducted in 2016 of the worldwide protective relay marketplace showed a steady increase in factory shipments of protective relays between 1996-2016. If this pattern continues, relay shipments could exceed $700 million by the end of this year.

Continue reading North America Factory Shipments of Protective Relays Could Top $700 MUSD in 2018

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U.S. Investor-Owned Electric Power Utility Automation Market Report

A recently published compilation of survey findings by Newton-Evans Research highlights electric power automation trends among investor-owned utilities (IOUs).

    • For control systems, IOUs tend to use more OMS analytics, are more likely to have an advanced DMS (or have plans for one), use synchrophasors for wide area monitoring, and want cybersecurity features designed as an integrated part of the control system rather than added on.

Continue reading U.S. Investor-Owned Electric Power Utility Automation Market Report

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Control Systems, Protection & Control and Substation Automation Report Series from Newton-Evans Research Find Common Ground in Key Areas of Cyber Security and Communications

Research findings from recently completed Newton-Evans studies see an upswing in cyber security investments worldwide, while substantial differences for communications protocols and methods are also evident.

Control Systems Report Series
Similarities between North American and International Utilities:
1. Support activities managed by line-of-business by about one-half of all respondents
2. Fiber optic cable dominates linkages from control centers to key substations
3. Cloud computing interest remains relatively low
Continue reading Control Systems, Protection & Control and Substation Automation Report Series from Newton-Evans Research Find Common Ground in Key Areas of Cyber Security and Communications

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U.S. Electric Power T&D Market Overview Briefs Now Available

Newton-Evans is updating its series of “top line” market overview briefs called “Overview of the 2017-2020 U.S. Transmission and Distribution Equipment Market.” The reports included in this series are grouped into seven categories based on the types of T&D Equipment, systems or services covered: Control Systems, Substation Automation, Protective Relays, Transformers, Medium Voltage Equipment, High Voltage Equipment, and Distribution Automation. Reports in some of these product categories have been published this week and are now available for ordering on our reports page.
Continue reading U.S. Electric Power T&D Market Overview Briefs Now Available

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Newton-Evans Study Indicates Similarities in Plans for Full Digital Substations and Differences for Condition-Based Maintenance Programs Among Electric Utilities

Newton-Evans Research Company continues to assess findings from its six-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Insights received from 114 large and mid-sized utilities in 28 countries point to some interesting differences in plans for implementation of the “full digital substation” concept and to increased use of condition-based maintenance (CBM) strategies for protective relays.
Continue reading Newton-Evans Study Indicates Similarities in Plans for Full Digital Substations and Differences for Condition-Based Maintenance Programs Among Electric Utilities

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Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

Newton-Evans Research Company continues to assess the results of its six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries point to some newer trends in adoption and use of protection and control technology.
Continue reading Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

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Findings from Newton-Evans 2016 Study of Protective Relay Trends in the World’s Electric Power Utilities Depict a Receptive Market for Incorporating Advanced Technological Capabilities

Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices

Role of Synchrophasors and Teleprotection Continues to Expand; Provides Better Situational Awareness and Visualization for Control System Operators
Continue reading Findings from Newton-Evans 2016 Study of Protective Relay Trends in the World’s Electric Power Utilities Depict a Receptive Market for Incorporating Advanced Technological Capabilities

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North American Protective Relay Marketplace: New Report Now Available

Volume One of this 2016 study of protection and control is based on a sample of North American investor-owned, public and cooperative electric power utilities.
The data provides information on a segmented basis by type of utility and by number of customers served. These tables help illustrate occasional important differences in the findings based on the type and size of utility.

The findings in this report are based on survey responses received from 79 electric utilities that include 16 investor-owned, 28 public power, 26 cooperatives, 4 electric power consulting groups, and 5 Canadian electric utilities. This survey was conducted between April and May of 2016. Initial phone calls were placed to utility officials and relay engineers to invite them to complete the survey either as a Microsoft Word attachment via email, or completing an online survey on www.surveymonkey.com. Reminders were sent via email every 2 weeks until the last call deadline was issued.

The 79 utilities participating in this year’s study represent 31 million electricity end users/customers, having 3,340 transmission substations and 7.841 distribution substations covering over 800,000 total T&D line miles. This sample is about 20% of the North American customer base and approximately 15.7% of utility-operated transmission and distribution substations. Newton-Evans has previously estimated that direct shipments to utilities account for about 40% of the overall North American market for protective relays.

Each question in this report contains:

  1. A pie chart or bar chart summarizing how all of the survey participants responded to the question
  2. A table (or series of tables) showing the data by:
    1. Summary: all survey respondents
    2. Investor Owned: investor owned utilities
    3. Public Power: publically owned utilities (municipals, public utility districts, state or federal government)
    4. Cooperative: member owned electric utility cooperatives
    5. Canada: electric companies in Canada
    6. Other/Consultant: respondents representing power technology companies, industrial facilities
    7. <100,000: electric utilities serving fewer than 100,000 customers
    8. 100,000 to 499,999: between 100,000 and 499,999 customers
    9. >=500,000: 500,000 or more customers (either directly via distribution, or indirectly via generation and transmission.)
  3. Some written analysis and observations based on the tables and charts

What approaches are you using to operate a WAN for remote access to relays?
While 24% of the respondents said they don’t operate a WAN for remote relay access, almost half said they connect via serial port terminal servers or data concentrators. Forty percent use firewalls in conjunction with the WAN, while just over one-third said they use routers with encryption or VPN capabilities to access relays over a WAN. Other mentions included “gateways”.

WAN Usage for Remote Access to Relays
relayWANs

Does your utility’s control system use protocol IEC 61850 for Substation Automation, Protection, Control, or SCADA?
Seventeen respondents said they use IEC 61850 in at least one of the four areas. Thirteen percent said they use 61850 within the substation, and another 6% said they plan to use it in the substation by 2018. About 80% of the respondents have no use or plans for IEC 61850 in any area, and 89% said they don’t use or plan to use IEC 61850 for SCADA.

Use/Plans for IEC 61850
IEC61850

What % of your relays have been in service for more than 15 years?
Overall, 55% of survey respondents reported that more than one-half of their protective relays have been in service for more than 15 years. Out of all 76 respondents to this question, twelve said that less than 20% of their installed base is older than 15 years. However, in some cases the useful lifespan of a protective relay is stated as nearly 30 years. There are installations of electro-mechanical relays that have been in operation since the 1960’s according to some utility officials. According to the observations reported in Table 23, two-thirds of relays installed at surveyed IOUs (and nearly two-thirds among Canadian respondents) have been installed for more than 15 years.

Percent of Relays Among Newton-Evans Sample that are >15 years in service
RelaysOver15yrs


To order Volume 1 of The Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2016-2018 visit our reports page or fax an order form to 1 410 750 7429: www.newton-evans.com/relaymarketplacestudy2016-2018

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Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2016-2018

The Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2016-2018, a four volume report series by Newton-Evans Research Company, is scheduled for publication in August 2016. Volume 1 – North American Market is now available.

Overview
Newton-Evans’ Worldwide Study of the Protective Relay Marketplace: 2016-2018 is planned to be a multi-client study which encompasses the world market for protective relays in the electric utility industry. This four volume report series will be the seventh worldwide study of protective relays which Newton-Evans has undertaken. Participants in this market study will include utility engineers and managers from investor-owned utilities, municipal and provincial utilities, cooperative utilities within the United States and Canada, together with national power systems throughout the world. The study will measure current market sizes and contains projections on a world region basis for the next several years. The entire research program will define the product and market requirements which suppliers must meet in order to successfully participate in one or more of these diverse world market regions.

Newton-Evans Research Company estimates from our earlier 2012 relay market study indicate that the North American protective relay market stood at almost $600 million for both utility and industrial applications. It will be important for the P&C community to learn how changes in the world market conditions since 2014 will affect the outlook for 2016-2018.

To read more about this upcoming study and get ordering information, see the brochure page.