[228+ Pages Report] According to Facts and Factors, the global smart grid data analytics market size was valued at USD 5.39 billion in 2022 and is predicted to surpass USD 13.26 billion by the end of 2023. The smart grid data analytics industry is expected to grow by a CAGR of 11.78%.
Smart grid data analytics refers to the combined usage of advanced data analysis tools and techniques to derive important insights from the huge amounts of data generated through smart grid technologies. Smart grid makes use of information technology and modern communication to improve the sustainability, reliability, and efficiency of the electric grid.
The data analytics extracted through the systems help the vendors and service providers to make the right decision and further optimize the grid operations to improve overall performance.
The growing initiatives by the energy providers and government utilities to modernize the legacy grid system are driving the growth of the global smart grid data analytics market. Modernization of the grid system includes the integration of advanced technologies into the existing infrastructure to extract meaningful insights, which are vital to making informed decisions.
Also, the integration of renewable energy sources into the power grid necessitates further high demand for analytic solutions to accommodate the variability and intermittency of these sources. For instance, Siemens Smart Infrastructure collaborated with SEW in November 2022 to support utilities globally. It will help move forward the new platform paradigm in the energy and utilities industry.
There is no standardized protocol in the market for the interoperability and data exchange between the different components of a smart grid. Therefore, it leads to the obstruction in the seamless integration of diverse data sources, which in turn is expected to slow down the growth of the smart grid data analytics industry.
Increasing cyber security threats in the power and energy industry are driving utility providers to invest in analytics solutions to prevent the growing cyber-attacks. These analytic solutions help in the security of smart grid systems and therefore are likely to foster growth opportunities in the smart grid data analytics industry.
For instance, Siemens Energy came up with the Unified Power Flow Controller (UPFC) PLUS in September 2020 to expand the options for grid stabilization.
Integrating a data analytic solution with the legacy infrastructure and system is a difficult task. This complexity leads to a delay in achieving a full functional analytic ecosystem, which is a big challenge in the global smart grid data analytics market.
The global smart grid data analytics market can be segmented into end users, application, IT solution, deployment, and region.
By end-user, the market can be segmented into public sector and private sector. The public sector segment accounts for the largest share of the smart grid data analytics industry. Public sector entities are adopting several initiatives to improve and enhance the efficiency of smart technologies via smart energy infrastructure.
Moreover, the favorable regulatory support by the government further encourages the deployment of smart grid solutions within the public sector. Also, public utilities are increasingly investing in the market with data analytics to enhance the power of smart grids, thereby taking the public utility sector to another level.
By application, the market can be segmented into grid optimization analysis, demand response analysis, advanced metering infrastructure analysis, and others. The grid optimization analysis segment is expected to swipe the largest share of the global smart grid data analytics market in the forthcoming years.
The grid optimization analysis is important for improving the efficiency of these markets. The energy service providers are investing heavily in the solution to improve overall efficiency, reduce losses, and optimize the grid operations. Therefore, it is expected to foster huge developments in the segment in the forthcoming years.
Also, the grid optimization analysis helps operate the demand response program that needs energy consumption adjustment in real-time conditions. It has significantly improved the functionality of programs, therefore fostering grid stability and cost-effectiveness. Also, the utility vendors invest in the analytic solution to align with the regulatory compliance associated with the performance, stability, and reliability of the grid.
By IT solutions, the market can be segmented into generalized solutions and specialized solutions. The generalized solution segment is anticipated to witness notable growth in the forthcoming years. The generalized solutions are versatile in nature. Its flexibility and wide scope of functionality attract energy providers with diverse needs.
This solution offers a holistic view of the smart grid, thereby helping in extracting comprehensive insights regarding asset management, energy consumption patterns, great operations, and several others. Moreover, these generalized solutions help people align with industry standards and best practices by complying with the regulatory requirements and norms of the government.
By deployment, the market can be segmented into on-premise and cloud-based. The cloud-based solution segment is likely to dominate the global smart grid data analytics market. Cloud-based solutions offer scalability, which helps vendors manage the growing amount of data generated by smart grids.
Moreover, the cloud-based solutions operate on a pay-as-you-go model, which helps people save on the high upfront cost associated with traditional on-premise solutions. Cloud-based solutions help vendors access the smart data from any geological location with proper internet connectivity. It is relevant for the decentralized and geographically dispersed smart infrastructure.
Also, the solutions offer an automatic update service, which helps people maintain their performance by assuring the installation of security patches, the latest features, and performance improvement without manual intervention.
Market Size in 2022
USD 5.39 Billion
Projected Market Size in 2030
USD 13.26 Billion
CAGR Growth Rate
Key Market Players
Hitachi ABB Power Grids, Oracle Corporation, Schneider Electric, Itron Inc., ABB Group, SAP SE, General Electric (GE), Cisco Systems Inc., IBM Corporation, Siemens AG, and Others.
By End-Users, By Application, By IT Solution, By Deployment, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Request customized purchase options to meet your research needs. Explore purchase options
North America is expected to swipe the largest share of the smart grid data analytics industry in the forthcoming years because of the increasing need for efficient energy management solutions. Also, the high adoption rate of smart grid technology in the region, along with the surge in demand for data analytics in decision-making is further accentuating the demand.
The region utilities are heavily investing in grid modernization initiatives, which include the deployment of advanced communication systems, sensors, and smart meters. Such a landscape requires intense analysis, which further needs smart grid data analytic solutions to extract insights from the grid components.
Also, the region is witnessing growing demand for renewable energy sources in order to integrate wind and solar power into the smart grid system. Therefore, the regional utilities require advanced analytic solutions to manage the variability of these sources and optimize the grid operations.
Asia Pacific is expected to exhibit a high CAGR during the anticipated period because of the ongoing significant developments in the region. The region holds a diverse energy landscape, thereby driving the utilities to focus on smart initiatives in order to improve the sustainability, reliability, and efficiency of the grid systems.
Moreover, the region is witnessing increasing urban centers and industries, which pose a huge demand for powerful energy systems. Smart with data analytics helps in optimizing and managing the energy distribution to align with the increasing demand.
Therefore, such a landscape is expected to positively impact the growth trajectory of the regional market in the forthcoming years. For instance, Itron Inc. collaborated with a government-held utility in August 2019 to connect approximately 2,40,000 electric meters.
The key players in the global smart grid data analytics market include:
For instance, GE Power’s Grid Solutions business partnered with Tata Power to come up with the new Advanced Distribution Management Solution (ADMS) in July 2018, designed particularly for India. The system comes with advanced features like security analysis, monitoring, and planning.
The global smart grid data analytics market is segmented as follows:
Copyright © 2023 - 2024, All Rights Reserved, Facts and Factors