Global Utility And Energy Analytics Market - Segmented by Deployment (Cloud, On-premise, Hybrid), Type (Software, Services), Applications (Meter Operation, Load Forecasting, Demand Response, Distribution Planning), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global utility and energy analytics market was valued at USD 2.07 billion in 2017 and is expected to reach a market value of USD 3.95 billion by 2023, registering a CAGR of 11.04% during the forecast period (2018 – 2023). With the increase in the usage of microgrid control system, and other smart grid systems which enables companies to monitor, control, and analyze grid functioning from a central control center, there is a vast untapped potential of advanced analytics tools and techniques, such as the big data platform and cloud computing.
The scope of the report is limited to solutions offered by major players including providers of software, professional services in meter operation, load forecasting, demand response, demand response, and distribution planning. The study also emphasizes on different types of deployment, such as cloud, on-premise, and hybrid.
Rising Demand for Energy is the Major Market Driver
Global energy needs are expected to grow, with fossil fuels remaining the major source of energy in the forecast period. Developed countries continue to consume large amounts of energy while the demand is increasing in the developing countries. Over 70% of the increased energy demand is from developing countries, led by China and India. Europe and North America use 70 % of the world energy, although this is only 20% of the world’s population. Oil powered 92% of the vehicles in 2014, but that is expected to fall to between 78% and 60% as electric vehicles are expected to become more popular by 2030. It has been estimated that companies around the world spend around USD 7 billion on big data and analytics. Oil, coal, and gas are collectively expected to account for the majority of global primary energy consumption.
North America Expected to Hold the Largest Market Share
The demand in North America is mainly driven by a higher focus on innovations through R&D and technology advancement in developed economies, like Canada and the United States, and this growth is also supported by its large consumption of energy. According to the US Energy Information Administration, the total energy consumption is expected to increase by 5% between 2016 and 2040. With such less growth, it is important for companies to efficiently deliver energy and reduce downtime in order to maintain profitability. This drives the market for data analytics in utilities and energy.
Key Developments in the Market: