Merging Unit Market

The merging unit market serves a range of end users, such as utilities, industrial, commercial, data centers, renewable energy, transportation, and others. The fastest-growing end user market is the renewable energy sector due to the sudden shift toward clean energy and decentralized power generation. The wind, solar, and hybrid power stations are increasingly demanding the modern substation infrastructures to effectively incorporate the changing energy sources into the grid. Digital substations (with merging units) allow precise and high-speed transmission of current and voltage transformer data to protection devices and control devices. This is crucial in managing the intermittency and variability of generating renewable energy and in keeping the grid stable and reliable. The combination of units helps in real-time monitoring, protection and control, which are necessary in the integration of distributed energy resources (DERs) within the transmission and distribution systems. With the growing installation of renewable sources, grid operators focus on digital architectures that meet the IEC 61850-standard, as they are required to provide interoperability, quicker fault handling, and remote control. Additionally, most renewable sources require remote or offshore construction where the cost of conventional wiring is high and unfeasible. Merging units minimize copper consumption, improve the installation process and minimize maintenance costs, which are very appealing to renewable uses. With the international policy favoring renewable energy and the falling prices of wind and solar energy technologies and the rising investments in intelligent grids, the renewable energy sector is creating a wave of demand among the merging unit.

The merging unit market is segmented by application into standalone and integrated merging units. The requirement on individual merging units is expanding as utilities and industrial operators move to flexible and modular digital substations architectures. Standalone merging units are more adaptable as opposed to integrated solutions, which are usually specific to protection and control systems. Therefore, they can be used in greenfield and brownfield substations. They enable utilities to upgrade existing substations without changing all remaining legacy equipment, which can incrementally upgrade the substation, minimizing costs and time. Standalone MUs are also interoperable with multivendor IEC 61850 devices, which makes them efficient in utilities requiring to have standardized and future-proof solutions which can easily be integrated with various protection relays, bay control units, and SCADA systems. The capability of standalone merging units to make installation simpler and make physical wiring complex is another important reason behind its growth. Standalone MUs improve accuracy of protection and data quality to monitor. They expand the system more easily and especially in areas with high renewable energy integration or in areas with swelling distribution networks. The federation of retrofit flexibility, cost reduction and facilitation of the present-day digital substitution modernization contributes to the increasing number of standalone merging unit implementation in utilities and industrial setups globally.

The with relay output configuration is the fastest-growing segment in the merging unit market due to its ability to combine digital measurement with direct protection functionality. Merging units with relay outputs digitize current and voltage signals for transmission over IEC 61850 process bus and provide direct tripping or control signals to circuit breakers and other protective devices. This eliminates the need for additional standalone relays in certain applications, simplifying system architecture and reducing installation and wiring costs. Utilities and industrial operators increasingly prefer this configuration because it supports faster fault detection and response, which is critical in modern high-speed protection schemes, especially in grids with high renewable penetration or complex network topologies. Furthermore, merging units with relay outputs offer higher reliability and easier integration in new and retrofit projects. They enable multivendor interoperability, ensuring that the merging unit can work seamlessly with various IEDs while maintaining compliance with IEC 61850 standards. This flexibility is particularly attractive for utilities modernizing aging substations without a full system overhaul. The growing emphasis on digital substations, enhanced automation, and reduced maintenance complexity drives adoption of this configuration. As utilities seek to optimize operational efficiency, reduce costs, and enhance grid resilience, the merging unit segment with relay output continues to witness the fastest growth globally

The high-voltage (>36 kV) segment takes leading position in the merging unit market as it is an essential part of the transmission systems, and reliability, accuracy, and real-time control are the most important aspects. High levels of protection and control are required to avoid cascading failures or large scale outages. Combining units in this category offer quick precise digitization of current and voltage signals, which are delivered to protection relays and control systems though process bus communication in an IEC 61850 standard. The rise of modernization of outdated transmission networks, the necessity to make the system reliable, integrate renewable energy, and increase demand has boosted the adoption of digital substations in transmission networks, which has led to a strong demand to merge units in the high-voltage category. High-voltage infrastructure, the high cost, and long lifespan also influence to undertake a retrofit and upgrade project with merging units allowing an efficient modernization without necessarily replacing the entire substation. Digital instrumentation is also crucial in utilities, with less copper cabling, less maintenance and safer. The strategic operational significance, extensive implementation of digital solutions and modernization efforts put the >36 kV segment in the merging unit market.