Remote terminal units (RTUs) market is anticipated to grow at a significant CAGR of 11.8% during the forecast period (2024-2031). The market growth is attributed to pivotal factors such as government initiatives for renewable energy integration, increased utilization in oil & gas, water & wastewater management sectors, the demand for real-time data monitoring and control systems, and increased focus on energy management and smart grids. According to the Global Smart Energy Federation (GSEF), the global smart grid market was at $100.3 billion in 2022 and is growing to approx. $185.6 billion by 2032. 

Market Dynamics

Increasing Demand for Supervisory Control and Data Acquisition (SCADA) Modernization

The remote terminal units (RTU) market is growing owing to the modernization of Supervisory Control and Data Acquisition (SCADA) systems. The increasing adoption of digital infrastructure and automation across industries such as oil & gas, power, and water management, the need for advanced RTUs has risen. SCADA modernization drives demand for RTUs that offer enhanced communication capabilities, real-time data processing, and improved interoperability with cloud-based platforms. Additionally, industries are shifting towards smart grids and renewable energy sources, which also require the deployment of modern RTUs. As SCADA systems evolve, RTUs enable more efficient and secure industrial processes.

Advancements in Communication Protocols

The RTUs market is driven by advancements in communication protocols. Enhanced communication technologies, such as MQTT, IEC 61850, and DNP3, are enabling more efficient and reliable data transmission between remote devices and central control systems. These protocols facilitate interoperability among various equipment, which is crucial for the integration of diverse automation systems. Additionally, the rise of the Internet of Things (IoT) has spurred demand for RTUs that can support advanced analytics and real-time monitoring. Manufacturers are increasingly focusing on developing RTUs with built-in cybersecurity features to protect against potential vulnerabilities. As industries seek to optimize operations and reduce downtime, the adoption of RTUs equipped with enhanced communication capabilities is expected to accelerate.

Market Segmentation

• Based on the type, the market is segmented into wired RTUs and wireless RTUs.

• Based on the end-user, the market is segmented into oil & gas, environmental monitoring, manufacturing, smart grid, communication & telecommunications, and others (medical monitoring).

Wireless RTU Segment is Projected to Hold the Largest Market Share

The primary factors supporting the growth include the advancements in wireless communication technologies, such as 4G/5G, LoRa, and NB-IoT, which have improved the reliability and range of wireless RTUs, making them more attractive for industries. The wireless RTUs provide more flexibility for expanding systems, particularly in geographically dispersed operations such as water treatment plants or smart grids, where physical connectivity is challenging. Wireless RTUs operate on low power and can be powered by renewable sources such as solar, making them suitable for remote applications that require sustainable solutions. For instance, Raveon Technologie offers wireless remote terminal units (RTU) in the SCADA and telemetry industry. Wireless SCADA systems are common for telemetry, remote control, and power grid management.

Oil & Gas to Hold a Considerable Market Share

The factors supporting segment growth include increasing RTUs for monitoring and controlling pipelines, oil wells, gas stations, and other distributed assets in the energy sector. The demand for automation and real-time data collection to ensure safety, optimize operations, and reduce costs in geographically dispersed operations drives the demand for RTUs in Oil & Gas. Remote terminal units (RTUs) are critical for monitoring and controlling oil and gas operations by gathering real-time data from remote locations in the field. For instance, Midwest Engineered Systems Inc. offers remote terminal units that are used in industrial applications such as power generation, oil and gas, water treatment, and transportation. An RTU consists of a central processing unit (CPU), a power supply, a communication port, and input/output (I/O) modules.

Regional Outlook

The global remote terminal units (RTUs) market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Growing Demand for Remote Terminal Units in North America

The regional growth is attributed to increasing the demand for RTUs to enhance automation and control, development and expansion of smart grids across the region require RTUs for efficient monitoring, data acquisition, and remote control of substations and electrical grids, increasing integration of the Internet of Things (IoT) within industrial systems is accelerating the use of RTUs, as they can collect and transmit data from connected devices in remote areas further fueling market growth. 

Global Remote Terminal Units Market Growth by Region 2024-2031

Europe Holds Major Market Share

Europe holds a significant share owing to the presence of remote terminal units offering companies such as ABB Ltd., General Electric Co, Schneider Electric SE and Siemens AG, and others. The market growth is attributed to the technological advancements in wireless communication, increased infrastructure modernization, increased focus on water and wastewater management, industrial automation and digital transformation, and expansion of smart grid projects particularly in countries such as Germany, the UK, and France to drive the growth of the market. According to the European Commission, in October 2022, The European Commission expects to invest €584 billion ($615.4 billion) in the European electricity grid by 2030, with €170 billion ($179.1 billion) of that going toward digitalization. The Commission also adopted Implementing Regulation (EU) 2023/1162 to improve access to metering and consumption data. Market players offer flexible remote terminal units (RTUs) with enhanced scalability and adaptability, enabling seamless integration with diverse industrial systems and evolving communication technologies for efficient remote monitoring and control. For instance, Terma Group offers flexible remote terminal units. Remote Terminal Units (RTU) are applied as part of the satellite data handling system to extend the capabilities and the interfaces of the onboard computer. Terma’s RTU system provides a wide range of capabilities for monitoring, controlling, and powering satellite equipment including sensors, thermistors, Attitude and Orbit Control System (AOCS) equipment, and heaters.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the remote terminal units market include Emerson Electric Co., General Electric Co., Honeywell International Inc., Schneider Electric SE, and Siemens AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

Recent Development

• In September 2024, Red Lion introduced two new programmable remote terminal units (RTUs), the VT-MIPM-138-D and VT-MIPM-248-D. These industrial controllers, part of Red Lion’s Sixnet Series VersaTRAK MIPM industrial RTUs, feature onboard I/O and are designed for process-oriented applications across industries.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global remote terminal units market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.