Power Line Communication Market Dynamics

According to the new market research report "Power Line Communication Market by Offering (Hardware, Software, and Services), Frequency (Narrowband, and Broadband), Application (Energy Management and Smart Grid, and Indoor Networking), Vertical, and Geography – Global Forecast to 2023", the power line communication market is expected to grow from USD 5.5 billion in 2017 to USD 11.1 billion by 2025, at a CAGR of 9.3% between 2017 and 2023.  High demand for power line communication technology-based products from the industrial and residential verticals primarily for substation communication, advanced metering, and indoor networking applications are most likely to be the key factors attributed to the growth of the market.

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Driver:  Enabling wide coverage by using the existing electricity distribution network

The use of power line communication technology for communication is not only cost-effective but also allows wide coverage. Considering the wide availability of the power lines, nearly all the devices receiving power through these power lines can be controlled and monitored with the use of the power line communication technology. The fact that the power line communication technology uses the existing electricity distribution network for communication makes it especially useful for communication with devices, which are located in remote areas where no communication infrastructure is available. One of such example is communication with substations located in remote areas with inadequate communication infrastructure. Extension of each electricity distribution network results in the extension of power line communication network, thereby enabling a wider geographic network coverage.

Restraint:  High noise generation on power lines limiting the data transmission quality

Initially, the power lines were used for energy distribution and not for data transmission. The harsh environment of the power lines can negatively impact the quality of data being transmitted. Noise is one of the main distortion factors, which impacts the performance of the communication systems over power lines. Noise is generated by electrical appliances, which are connected to the electric grid, as well as the coupling of the radio broadcasters that transmit signals over short, middle, and long wave ranges. There is an inverse relationship between the noise on the power line and performance of the power line communication systems. With the increase in the noise level, it is harder to detect the received signal. For instance, light dimmers, vacuum cleaners, drills, and kitchen appliances are some of the noise-sourced devices, which can have a negative impact on the performance of a power line communication technology-based home network.

Opportunity:  Use of power line communication technology for lighting control applications

The power line communication technology is witnessing an increasing penetration in the lighting control applications. This technology can be used for both indoor as well as outdoor lighting control. In outdoor lighting, street lighting, such as roadway lighting, tunnel lighting, car park lighting, and urban lighting, is one of the upcoming applications where this technology is increasingly being used. Street lighting accounts for a significant portion of operating expenses incurred by municipalities and businesses with large facilities. Moreover, the lighting cost cannot be avoided, as it is necessary for public safety and operation; hence, municipalities and businesses are moving toward automating lighting networks for lowering the energy usage. Power line communication is considered one of the ideal technologies for this purpose. The advantages, such as no additional wiring required for setting up communication network, as well as network coverage even through walls, underground, and adverse weather conditions, offered by this technology has led to its adoption in the lighting control applications. Furthermore, this technology is increasingly being used for network expansion and lighting control in smart homes. A number of companies in the power line communication market are offering power line communication technology-based products for the lighting control application. For instance, NYX Hemera Technologies (Canada) offers TLACS-EM solution designed for switching on and off luminaire/lamps, and controlling and supervising luminaire/lamps status and consumption. This solution for communication either uses the power line communication technology and transfers the data through the power lines or uses dedicated communication wires.

Challenge:  Availability of various substitute technologies

The players providing power line communication technology face competition from other players providing wired and wireless communication technologies. Fiber-optic network is one of the communication technologies, which can be used for smart grid communication instead of power lines. The selection of the communication technology depends upon various factors such as infrastructure, application, and resources. For instance, the factors, such as frequency spectrum for wireless technologies, availability of fiber-optic cables, and quality and length of the power cables for broadband power line carrier, needs to be considered for the selection of communication technology for data communication in power utilities. At times, a combination of various communication technologies is also required to be deployed at the power utilities for effective communication and cost efficiency. At the consumers’ end, the selection of communication technology differs based on consumer’s requirements. For instance, in buildings, where a communication network is required only for the transmission of meter data and price signals, GPRS modems or narrowband power line carriers are sufficient. On the other hand, broadband power line carriers, fiber-optic cables, or wireless solutions can be used in smart homes where power generation and controllable loads or e-car charging stations need to be managed. In the network expansion application segment, the power line communication technology-based product providers face competition from other players offering various communication devices such as Wi-Fi extenders and network switches. However, companies operating in the power line communication market are focusing on offering innovative products to compete with the substitute communication technologies. For instance, in 2016 TP-Link Technologies launched the TL-WPA9610, an AV2000 gigabit powerline AC Wi-Fi kit. This device is designed for the network expansion application and is capable of simultaneously delivering AV2000 via powerline and AC1200 via Wi-Fi.

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