Synchronous Generator Market Trends

Growth Drivers  

• Need for constant electricity from industry is boosting demand: The need for secure and constant electricity in industrial operations is pushing the market forward. The need for strong power in smart factories leads businesses to use synchronous generators, which are known for their inertia and stability. In April 2023, TMEIC introduced low-vibration and high-insulation generators that are designed for use in these applications. They are developed to meet the requirements of both API and IEC standards worldwide. Where power quality is a concern, countries now tend to choose synchronous units instead of asynchronous alternatives. More reliance on automation systems increases the need for strong governance. For this reason, high-load generators are now widely used in many industries.
• Modernizing hydropower opens up new opportunities for businesses: The upgrade of hydropower infrastructure is driving demand for synchronous generators in different countries, regardless of their development level. In May 2024, Končar Elektroindustrija tested a 2800 kVA vertical synchronous generator at the Shin Sakagami facility in Japan. The test helps support Japan’s efforts to modernize its infrastructure. Globally, utilities are modernizing their older equipment to comply with the current standards for grid frequency and voltage. Such improvements are often made possible by using high-performance synchronous machines. In addition, hydro-linked microgrids are being implemented in South Asia and Latin America. Such trends are encouraged by government subsidies and financial support.
• Rise in electric vehicles increases the demand for flexible sources of electricity: As countries make their transport and energy systems greener, they are turning to flexible power generators, with synchronous generators fitting well into these new systems. In September 2023, Nishishiba Electric boosted its production of marine synchronous units for use offshore. They are made to meet the rising demand for electric propulsion and energy systems at sea. As more people use hybrid vessels and offshore grids, synchronous units with permanent excitation are becoming more popular. Today, governments are urging manufacturers to follow plans for using electric transportation. Offering both fuel flexibility and the ability to stay in sync with the grid is why these systems are so important. As a result, they can work effectively in systems that use many types of energy.

Challenges

• Stronger requirements for the grid bring design difficulties: The standards for excitation systems in small-capacity plants are becoming more demanding due to rapid changes in grid codes. The IEEE 421.1-2021 standard has gained prominence as it outlines essential definitions and design practices for excitation systems in synchronous machines. Therefore, OEMs of synchronous generators have to redesign their low-output models to follow export rules. Limited research and development may make it difficult for small firms to adapt to these changes. The changes are being adopted by nearby Asia markets, adding more pressure to existing systems. Although the goal is to make grids safe, the immediate cost of compliance is high. Such standards are part of a worldwide effort to unify power equipment regulations.
• Performance monitoring mandates increase complexity: Another challenge in the sector is ensuring compliance with the performance monitoring requirements set by national grid authorities, especially in less developed countries. In June 2024, Sri Lanka enacted the Grid Code Regulation, requiring that all synchronous generators be monitored for efficiency. It is essential for these systems to come with both diagnostic and predictive maintenance tools. OEMs are now required to integrate digital technology into their existing systems. There is a strong need for industrial operators to invest in costly retrofits or even new systems. At the same time, governments are asking suppliers to provide more information about their energy sources. Although these standards make the system more reliable, it also makes it harder for new companies to enter the market. As a result, companies that produce equipment must invest more in aftermarket maintenance and repair services.