SMART GRID DATA ANALYTICS MARKET ANALYSIS

The global smart grid data analytics market size was valued at USD 1804.3million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 14.6% from 2022 to 2030. The rising population is driving the demand for residential infrastructure and increased electricity consumption. This, in turn, is contributing to the demand for smart grid data analytics. Moreover, the rise in awareness about smart grid analytics is also driving the market. The growing urbanization in the countries of the Asia Pacific region is further fuelling the demand for smart grid data analytics. Along with this, the introduction of renewable energy is also expected to propel the growth of the market in the region.

Global Smart Grid Data Analytics Market: Regional Insights

The global smart grid data analytics market is regionally divided into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa.

North America among regions is anticipated to witness substantial growth in the global smart grid data analytics market over the forecast period, owing to high adoption of smart grids and analytics, high demand due to strong focus on innovations through technological advancements and R&D activities in countries such as Canada and the United States. Moreover, large rate of consumption of energy in the region is also driving growth of the market.

Furthermore, Asia Pacific is also expected to account for a strong share in the global smart grid data analytics market during the forecast period. The region is likely to be the fastest growing market, owing to increase in emergence of vendors, growing urbanization and initiatives by governments in countries such as China, Japan, India, and Korea. Moreover, emerging smart city projects in the region are also supporting growth of the market in Asia Pacific. For instance, China made an investment of US$ 74.3 billion in the National smart city program of the country. Due to this program, by 2017, the country had 500 smart cities in different stages of development.

Figure 1. Global Smart Grid Data Analytics Market Share (%), by Region, 2021

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Global Smart Grid Data Analytics Market Drivers:

Increase in investment in smart grid projects is anticipated to augment growth of the global smart grid data analytics market during the forecast period. Several government and private sectors around the world are investing in smart grid projects as the demand for electricity is increasing. For instance, as per the IEA, the demand for electricity around the world is likely to grow by 80% during 2012-2040. Moreover, the investment in smart grid projects are increasing for modernization, expansion and decentralization of electricity infrastructure. This in turn is expected to boost the market growth in the near future.

Growing rate of emerging data is also expected to propel growth of the global smart grid data analytics market during the forecast period. As per the Institute of Electrical and Electronics Engineers (IEEE), grid components and the enterprise systems managing these components have to exchange a huge amount of data in order to enable being smart. This exchange of information helps in economically optimizing bidirectional power flow in a utility and its customers. This data exchange is essential to control, monitor, and coordinate between smart equipment in the smart grid subsystems. Thus, this factor is expected to fuel the demand for smart grid data analytics in the near future.

Global Smart Grid Data Analytics Market Opportunities:

Increase in investment in development of smart grids by emerging countries is creating several growth opportunities in the global smart grid data analytics market. Along with the investment in development of smart grids, the emphasis of monitoring of energy is also growing in developing countries. This is further ensuring a string growth of the smart electric meters. Thus, due to increasing innovations and supporting markets such as battery wall, solar grids and domestic solar roof systems are propelling the demand for smart grid data analytics. As a result, the players in the global smart grid data analytics market are provided with several growth opportunities.  

Moreover, growing R&D activities by market players for more connected and better smart meters is expected to generate multiple opportunities in the global smart grid data analytics market over the forecast period. Smart meters that use the collected data and share it to multiple devices are increasingly being implemented in several cities around the globe, as this generates constant information regarding consumption of water that allows analyzing trends associated with water use and enable detecting faulty and leaky pipes. Thus, market players are focused on offering better smart meter solutions through various R&D activities, which in turn is creating growth opportunities in the market.

Global Smart Grid Data Analytics Market Trends:

Growing adoption of smart grid data analytics in energy industry is a major trend in the global smart grid data analytics market. The energy industry across the globe is increasingly implementing data analytics in smart grids and is regularly processing a huge amount of data. Thus, organizations are opting for setting the on-site infrastructure and using analytics. This is further driving the use of industrial Internet of Things (IoT) that can help address major financial, customer, and operational challenges. Thus, adoption of smart grid data analytics is increasing in energy industry, which in turn is driving the market growth.

Growing demand for smart grid data analytics in industrial and residential sector is also trending in the global smart grid data analytics market. Due to the rise in demand for energy sustainability and increasing rate of electrical gadgets and appliances, the need for smart grid data analytics is increasing in these sectors. Moreover, recent conventions for smart grids are also leading to a gradual approach towards growing investment for the development of controlled and centralized environment in regions such as North America and Europe. Thus, this trend is likely to continue in the global smart grid data analytics market during the forecast future.

Global Smart Grid Data Analytics Market Restraints:

Factors such as high cost of smart grid systems is expected to hamper growth of the global smart grid data analytics market during the forecast period. The cost of initial investment in the smart grids systems is expensive. The major factor that hinders the adoption of smart metering is unavailability of capital funding. Thus, due to the high cost of smart systems, most of the service provider and user employ regular metering equipment. As a result, the adoption of smart grid systems is declined, which in turn hinders growth of the market.

Moreover, lack of skilled professionals is also anticipated to restrain growth of the global smart grid data analytics market during the forecast period. Operating and installation of smart meter are complicated procedures that require skilled labor. This further increases the overall cost of the system, making them expensive than traditional metering systems. Thus, lack of knowledge regarding installation and operating smart meters creates shortage of skilled labor. This factor in turn impedes growth of the global smart grid data analytics market.

Figure 2. Global Smart Grid Data Analytics Market Share (%), by Segment Type, 2021

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Global Smart Grid Data Analytics Market Segmentation:

The global smart grid data analytics market report is segmented into Deployment, Solution, End-User Vertical, and Region.

Based on Deployment, the market is segmented into Cloud-based and On-premise. Out of which, Cloud-based is expected to dominate the global market over the forecast period and this is attributed to the growing adoption resulting from rise in rate of data generated, private data sources, consumer data, and novel infrastructure sensing. Thus, increasing adoption of cloud deployment of smart grid analytic solutions is driving growth of this segment.

On-Premise segment is also expected to witness significant growth in the near future and this is owing to the demand for on-premise deployment of smart grid analytic solutions.

Based on Solution, the market is segmented into Transmission and Distribution (T&D) Network, and Metering Customer Analytics. Out of which, Transmission and Distribution (T&D) Network is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of advanced analytics by transmission and distribution operators for improving performance, capturing value, and reducing asset-management costs.

Metering segment is also expected to witness significant growth in the near future and this is owing to the rise in investment in smart grids and growing rate of integration of renewable power generation sources along with rise in research and development activities. The advanced metering infrastructure is essential for development of a smart grid in a distribution systems. Several governments around the world are investing in smart grid programs, which creating the demand for advanced meter. This in turn boost growth of the segment.

Demand Response Analysis segment is also expected to witness significant growth in the near future and this is owing to the growing demand for electricity. The electricity demand changes all the time and along with it, the cost related to the demands also keep changing. For the existing grids, the supply is needed to be changed constantly depending on the demands. Thus, these factors are driving the adoption of smart grid data analytics in demand response analysis, which is fueling growth of the segment.

Based on End-User Industry, the market is segmented into Private Sector (SMEs and Large Enterprises), and Public Sector. Out of which, Private Sector (SMEs and Large Enterprises) is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of smart grid data analytics solutions. The private sector includes large and small, medium enterprises. Due to high consumption of electricity, the demand for smart grid data analytics is high in these industries. Thus, several market players are introducing various solutions for private sectors. For instance, GE recently introduced New Analytics Technologies for increasing efficiency of grid. This is further driving growth of this segment.

Public Sector segment is also expected to witness significant growth in the near future and this is owing to the increasing initiatives by government organizations. Several government companies are promoting smart grid solutions to accelerate the adoption of smart meters. This in turn is creating demand for data analytics in smart grids in public sector, which is further propelling growth of the segment.

Global Smart Grid Data Analytics Market: Key Developments

In January 2020, Itron Inc., and the Los Angeles Department of Water and Power (LADWP) made a contract to reduce operating costs and increase grid awareness. With this partnership, LADWP will be deploying Industrial IoT network and Distribution Automation solutions of Itron to modernize the grid.

In August 2019, Autogrid Systems Inc. and Amazon Web Services (AWS) entered into collaboration to bring AI-powered distributed energy management to Autogrid’s energy-industry customers. Under this collaboration, Autogrid Systems is likely to employ AWS IoT service suite in its AutoGrid Flex platform for detecting, collecting, organizing, and running sophisticated data analytics.

Global Smart Grid Data Analytics Market: Key Companies Insights

The global smart grid data analytics market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global smart grid data analytics market are Sensus USA Inc. (Xylem Inc.), Siemens AG, Amdocs Corporation, Itron Inc., Oracle Corporation, AutoGrid Systems Inc., Schneider Electric SE, General Electric Company, Uptake Technologies Inc., IBM Corporation, Landis & Gyr Group AG, SAP SE, Uplight Inc., Tantalus System Corp., Hitachi Ltd., and SAS Institute Inc.

*Definition:

Smart grid data analytics solutions are used to analyze large quantities of data, generated from automated distribution systems. This information includes data generated from smart appliances and other components of a smart grid.