The global smart grid analytics market is expected to accelerate from $1.15bn in 2018 to $2.31bn by 2025 says a new report from Frost and Sullivan.
The compound annual growth rate (CAGR) of 10.4% comes as energy companies are generating massive volumes of data from smart meters, intelligent energy devices, and multi-sensing units. However, only two to four percent of the data from the system is actually used, so sophisticated analytics platforms can provide insights for utilities that can lead to improved customer service and operational metrics.
“The market will gradually switch to predictive and prescriptive analytics, especially as networks with low latency capabilities, such as 5G, are employed to minimize reaction times,” said Farah Saeed, Research Director, Energy & Environment at Frost & Sullivan. “Predictive and prescriptive analytics will incorporate statistical models that flag areas of inefficiency, evaluate and predict events in a timely manner, and eventually include Artificial Intelligence (AI) to deliver a holistic decision-making tool.”
The Global Smart Grid Analytics Market, Forecast to 2025, report segments data analytics into three main areas of the grid network: transmission and distribution(T&D) network, metering, and customer analytics. It covers the regions of North America, Europe, Asia-Pacific, and Rest of the World.
“North America is currently the largest market for grid analytics but Asia is expected to register the fastest CAGR of 13.3 percent between 2018 and 2025. The emphasis is on improving energy access and minimizing financial losses including non-technical losses. India and China, in particular, have been leading the way when it comes to utility-scale renewable energy (RE) sources. ” noted Saeed. “Meanwhile, Australiaand Singapore are looking to minimize power interruption by integrating geographic information system data analytics and forecast events, and Japan would be an ideal market for customer analytics as it is attempting to achieve 100% smart meter penetration by 2024.”
The areas with the greatest growth opportunities include service outcome-based business models instead of just power generation and transmission, as well as Internet of Things (IoT) devices and sensors that track and transmit data from and to the grid.
IoT infrastructure spending by utilities is forecast to reach more than $2 billion by 2024, growing at a CAGR of 20.5%.
Utilities in Europe and North America are beginning to use electric vheciles as baseload and back-up capacity, and there are initiatives to strengthen the grid to minimize outage times, streamline billing operations, provide real-time energy information, and deliver new and relevant services.