The Global Power Line Communication Market size was valued at USD 9.91 Billion in 2022 and is expected to surpass USD 35.41 Billion by 2031, expanding at a CAGR of 15.2% during the forecast period, 2023–2031. The market growth is attributed to the growing implementation of advanced metering infrastructure and the rising demand for home automation solutions for smart control of various house parameters.
Power Line Communication (PLC) or Power Line Telecommunications (PLT) is a broadband access technology that utilizes private or public electrical wiring mediums for transferring signals. PLC communication signals are used for transferring voice, video, and high-speed data communication over low-voltage power line systems.
The PLC (Power Line Communication) system relies upon an existing electricity distribution network, due to this, it eliminates the need to implement special lines for broadband purposes. One of the major advantages of PLC is that it can be connected to any control point or any measurement. There is no need for any special permissions and can be easily managed, as it comes under the direct control of the power sector.
Power line communication systems have been used for signal transfer for years, but it has received some newly found popularity due to the rising global home automation trend, the invention of smart technology devices, and the rise of the internet of things (IoT) in recent years. Since power line systems exist everywhere, it has major significance in automation and IoT signal transmission requirements in the coming years.
COVID-19 Impact on Power Line Communication Market
The market report finds that the COVID-19 pandemic hampered global market growth. The slowdown in the market was caused due to disruptions of economic activities in various sectors and a reduction in demand for smart grids. The installation of the smart grid was considerably disrupted due to the economic slowdown caused by lockdowns and other regulations imposed by various governments across the world.
The ease in regulations post vaccinations has helped the market to start a gradual recovery. Furthermore, investment in smart electric infrastructure management is rising again and is expected to reach further pre-COVID-19 levels. The International energy agency (IEA) has projected that the investment in the electricity grid to reach about USD 290 billion in 2021, recovering significantly from the 2020 slowdown.
Power Line Communication Market Dynamics
The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global power line communication market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
Drivers
One of the major factors driving the global market is the growing implementation of advanced metering infrastructure (AMI). The AMI includes various communication technologies such as power line communications, radio frequency mesh, and cellular. The demand for PLC systems for installing AMI is the highest among other communication technology, which is expected to be a major driver in the coming years.
PLC is dependent on existing power cables, which makes it cost-effective, reliable, and easy to implement, owing to this it has a higher demand for AMI installations. The AMI system includes smart electricity meters, communication networks, data management systems (such as MDMs), load management, and outage detection among other smart services which enable two-way communication between customers and utilities.
Restraints
The global market is expected to be hindered by limitations of PLC (Power Line Communication) systems such as limited transmission speed and high interference issues. Since PLC lines are originally meant for energy management systems, the harsh condition of power lines affects the data transmission quality and speed.
Additionally, higher noise generated by electronic devices could cause interferences in data transfer. The higher the noise the more it interferes with the signal transmission process. Noise results in difficulty in detecting signals, which can affect several operations that rely on PLC technology. The noise and inability to receive quality signals due to noise are expected to hamper the global market growth.
Opportunities
The rising use of PLC technology in the connectivity of smart technology devices is expected to create considerable growth opportunities for the global power line communication market. The rise of home automation devices and the industrial internet of things (IIoT) has increased the dependence on PLC technology for efficient data connectivity.
The use of PLC can enable technology devices to be controlled through ethernet and can be directed as per the requirements of residents/occupants. Smart control enables effective management of the resources such as energy, gas, and water, among others. Moreover, the PLC (Power Line Communication) system is a low cost solution, owing to which its adoption in households and expected to grow considerably in the coming years.
Scope of Power Line Communication Market Report
The global power line communication market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Power Line Communication Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Offering (Hardware, Software [Energy Management and Data Acquisition & Management], and Services [Training & Development, Consulting, and Maintenance & Repair]), Frequency (Narrowband PLC and Broadband PLC), Technique (Single Carrier Modulation, Multi-Carrier Modulation, Spread Spectrum Modulation, and Others), Application (Energy Management & Smart Grid, and Indoor Networking), and Vertical (Commercial, Industrial, and Residential)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Power Line Communication Market Size and Analysis, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Hitachi Ltd.; STMicroelectronics; Amtek Ltd.; General Electric; Hubbell; Panasonic Holdings Corporation; Schneider Electric; Renesas Electronics Corporation; Siemens; D-Link Corporation; TP-Link Corporation Limited; NETGEAR; ABB; Landis+Gyr; Belkin; devolo AG; Zyxel; Infineon Technologies AG; Texas Instruments Incorporated.; Sigma Design Company, LLC; Maxim Integrated; Microchip Technology Inc.; Echelon Corporation; Semtech Corporation; Rational Network; Setel Ltd Marvell; and Broadcom.
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Power Line Communication Market Segment Insights
Which Major Factors influence the Significant Growth of the Hardware Segment?
Based on the offering, the global power line communication market is segmented into hardware, software, and services. The software sub-segment is further divided into energy management and data acquisition & management. In addition, the services sub-segment is also further categorized into training & development, consulting, and maintenance & repair.
The hardware segment constituted more than 40% share of the market in 2021 and is expected to expand at a significant growth rate during the forecast period. The growth of the hardware segment is owing to the growing use of PLC in IoT solutions in the residential, commercial, and industrial arenas.
The software segment is also expected to grow at a significant rate owing to its growing importance in the effective management of power line communication systems. The PLC software solutions are essential for energy management systems and data acquisition and management purposes. The growing popularity of PLC in smart grid communications and smart buildings infrastructure has also given rise to the development of highly customizable software solutions to manage power line communication systems.
Why is Narrowband PLC Segment More Prevalent than Broadband PLC Segment?
On the basis of frequency, the global market is bifurcated into Narrowband PLC and Broadband PLC. The narrowband PLC segment is projected to register a considerable CAGR during the forecast period owing to its larger applications in connecting IoT devices.
The narrowband segment is anticipated to hold more than 55% market share owing to its growing demand for connecting IoT applications across verticals. Narrowband signals cover long ranges and require low cost, and low power to cover a wider area. Narrowband IoT solutions are highly implemented in smart building management, industrial units, and smart metering of buildings.
The broadband PLC is also expected to grow at a considerable pace during the projection period owing to the drivers such as high-speed access to the internet. The high data transmission speed provided by broadband services, enables faster downloads and uploads, owing to which, the broadband PLC is also expected to grow at a significant pace during the forecast period.
What Key Factors Aid in Expansion of Spread Spectrum Modulation Segment?
In terms of technique, the global power line communication market is categorized into single carrier modulation, multi-carrier modulation, spread spectrum modulation, and others. The spread spectrum modulation segment is expected to expand at a significant growth rate during the projected period. The spread spectrum modulation technique enables information signals transmission over wider bandwidth with high robustness and resistance against external interferences.
The multi-carrier modulation is also expected to hold a key market share during the forecast period. Multi-carrier modulation (MCM) involves the transmission of data by sending it over multiple carriers in close proximity. The key advantages offered by the MCM technique are resistance to interferences, narrowband fading, and multipath effects. MCM technique is widely adopted owing to its efficiency in transmission in a real-world environment.
Which Major Factors influence Substantial Growth of Energy Management & Smart Grid Segment?
On the basis of application, the global market is segregated into energy management & smart grid, and indoor networking. The energy management & smart grid segment is anticipated to witness significant growth during the forecast period.
The energy management & smart grid segment growth is owing to the rising demand for smart grids and intelligent metering solutions. Smart grid and energy management are considered essential factors for improving the usage of renewable energy and energy efficiency. Moreover, increasing lighting control applications, electronic device monitoring, and machine controlling are expected to aid the segment’s growth in the coming years.
The indoor networking segment is anticipated to account for a major market share in the coming years. The indoor networking segment held more than 28% market share in 2021 and is expected to witness substantial growth owing to the cost-effectiveness provided by indoor installed PLC systems. Internet services, phone calls, and other transmissions can be easily managed through indoor PLC systems.
What are Major Reasons for High Revenue Generation in Commercial Segment?
Based on vertical, the global power line communication market is divided into commercial, industrial, and residential. The commercial segment held the largest share of the market in 2021, and is expected to grow at the fastest rate owing to the increasing installation of power connections in commercial buildings.
The commercial vertical segment is expected to account for the highest revenues in the global market owing to the rising use of PLC systems installed in private buildings for internet connectivity. Commercial outlets such as office buildings, hotels, shopping malls, and retail stores, among others, are increasingly adopting power line transmission technology for various transmission requirements.
The residential segment is also projected to hold a key market share during the forecast period. The segment growth is owing to the rising use of home-based PLC systems for internet access to automation of household electronic devices. The growing use of internet-connected devices in homes is giving rise to the need for high-speed reliable connections such as PLC technology.
Why is Europe Dominating Power Line Communication Market?
In terms of region, the global power line communication market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market size of Europe is expected to dominate the global market during the projection period. The large-scale adoption of PLC technology for various connectivity solutions, such as advanced metering, smart grids, and industrial connectivity solutions is driving the market growth in the region.
Asia Pacific is also anticipated to expand at a rapid pace during the forecast period owing to the growing penetration of advanced technologies and automation devices in the region. The emerging economies in the region such as China, India, South Korea, and Japan are expected to witness higher PLC technology demand due to growing consumer smart electronics utilization in the region.
Segments
Offering
- Hardware
- Software
- Energy Management
- Data Acquisition & Management
- Services
- Training & Development
- Consulting
- Maintenance & Repair
Frequency
- Narrowband PLC
- Broadband PLC
Technique
- Single Carrier Modulation
- Multi-Carrier Modulation
- Spread Spectrum Modulation
- Others
Application
- Energy Management
- Smart Grid
- Indoor Networking
Vertical
- Commercial
- Industrial
- Residential
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Hitachi Ltd.
- STMicroelectronics
- Amtek Ltd.
- General Electric
- Hubbell
- Panasonic Holdings Corporation
- Schneider Electric
- Renesas Electronics Corporation
- Siemens
- D-Link Corporation
- TP-Link Corporation Limited
- NETGEAR
- ABB
- Landis+Gyr
- Belkin
- devolo AG
- Zyxel
- Infineon Technologies AG
- Texas Instruments Incorporated.
- Sigma Design Company, LLC
- Maxim Integrated
- Microchip Technology Inc.
- Echelon Corporation
- Semtech Corporation
- Rational Network
- Setel Ltd
- Marvell
- Broadcom
Competitive Landscape
The competitive landscape of the global power line communication market report provides key insights into the growth strategies and development initiatives implemented by the key players in the market.
Key players competing in the global power line communication market are Hitachi Ltd.; STMicroelectronics; Amtek Ltd.; General Electric; Hubbell; Panasonic Holdings Corporation; Schneider Electric; Renesas Electronics Corporation; Siemens; D-Link Corporation; TP-Link Corporation Limited; NETGEAR; ABB; Landis+Gyr; Belkin; devolo AG; Zyxel; Infineon Technologies AG; Texas Instruments Incorporated.; Sigma Design Company, LLC; Maxim Integrated; Microchip Technology Inc.; Echelon Corporation; Semtech Corporation; Rational Network; Setel Ltd Marvell; and Broadcom.
Some of these major companies adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
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On 25 Oct 2022, Arizona Public Services (APS) signed a deal with Landis+Gyr for additional advanced metering infrastructure. The agreement will enable a wide range of smart grid applications. The new agreement is a further extension of the original AMI agreement between the two parties from 2015. The new deal includes the installation of 500, 000 AMI over the next seven years.
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