Power Line Communication (PLC) Market Analysis

Power Line Communication (PLC) Market Analysis:

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Based on offering, the hardware segment held over USD 4.8 billion revenue in 2022, attributed to the increased demand for cutting-edge hardware and tools that support reliable power line communication networks. The demand for hardware such as communication chips, couplers, and modems has increased with the growth of smart grid initiatives, smart meters, and IoT devices.
 

For instance, in December 2022, the European Commission introduced the EU action plan, “Digitalization of the Energy System”. The Commission expects about USD 633 billion in investments in the European electricity grid by 2030, of which USD 184 billion will be for digitalization (smart meters, automated grid management, digital technologies for metering, and improvement on the field operations).

Based on frequency, the power line communication market from narrowband segment dominated around USD 6.3 billion revenue in 2022. Narrowband power line communication technology is well-suited for applications such as smart metering, which require reliable long-range communication with low data rates. As utilities and industries increasingly adopt smart grid solutions & IoT devices, narrowband power line communication's efficiency in transmitting data over long distances while minimizing interference positions it for substantial growth.

For instance, in April 2023, Bharti Airtel, a major Indian telecom operator, teamed up with Secure Meters to introduce Narrow Band-Internet of Things (NB-IoT) services for smart meter solutions. This partnership aims to provide 1.3 million households with India's first NB-IoT solution, ensuring real-time connectivity and uninterrupted data transfer through a fallback option on 2G & 4G networks.
 

North America power line communication market accounted for 35% of the revenue share in 2022. PLC plays a significant role in the development of smart grids, helping utilities monitor and control power distribution more efficiently. Utilities in North America have been investing in smart grid technologies to enhance reliability and reduce operational costs. PLC enables the creation of the communication infrastructure necessary for these smart grids.
 

PLC is utilized in industrial automation and control systems. It offers a reliable & cost-effective means of communication for various industrial devices and sensors. Industries in the U.S. are likely to continue exploring PLC solutions to enhance their operations. In August 2023, Reuters announced that North American companies are focusing on automating their factories to enhance efficiency and streamline operations.