Utility and Energy Analytics Market - Growth, Trends, and Forecast (2019 - 2024)
With the increase in the usage of the microgrids 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 favorable government regulations promoting smart grid solutions and exponentially increasing adoption of smart meters are also expected to drive the demand for big data analytics among utility vendors.
The use of electric vehicles (EVs) is growing, with the International Energy Agency (IEA) predicting that the number of electric cars on the road will increase from 3.1 million in 2017 to 125 million by 2030. It requires the vendors the opportunity to enable utilities to intelligently manage the new energy demand on the power grid.
In 2016, more than USD 10 billion was invested by utility companies in deploying around 700 million smart meters. This resulted in the generation of more than 100 petabytes of data per year. Also, the Chinese State Grid Corporation planned to install 380 million smart meters in the country by 2020. Due to these factors, the market studied has a huge opportunity over the forecast period.
Software segment, which comprises of risk analytics, asset management analytics, grid analytics, and other such analytics, is projected to hold its market position during the forecast period. With the help of big data, utility companies are not only understanding the customer consumption patterns but also in managing technical challenges, such as dispatch ability and load matching.
The use of Apache Hadoop is helping utility companies better understand asset health and accurately score operational risk. The French energy services company launched an energy consumption management and monitoring solution that uses big data analytics for remote monitoring.
Scope of the Report
The analytics landscape is quickly changing for energy and utility companies, with fresh data sources, both structured and unstructured including IoT data, and swelling competition from providers of alternative energy. In order to precisely predict demand, control costs, and expand business decisions, utility companies need data solutions that directly influence business performance by dropping costs, improving services, finding risks and efficiently support customer engagement.
Key Market Trends
Two-way Communication between Smart Meters and Utilities Enables Increased Application
Electricity cannot be stored in large volumes and supply and demand must be matched to achieve a balanced system. Predictive analytics plays an important role in accurately forecasting these demands.
The deployment of advanced metering infrastructure (AMI) by utilities have enabled electricity usage sensing and bi-directional communication between consumers and electric utilities. This provides ample opportunities to efficiently deal with peak demands and reduce energy consumption by using pricing incentives as in demand response (DR) programs.
Demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid, by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
The growing availability of high resolution, high-dimensional electricity consumption data offers unique opportunities in developing forecasting models. But this has also offered a data repository for data analytics for balancing the supply and demand. Such models can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates.
North America Leads and Pioneers Markets for Utility and Energy Analytics Solutions
North America is one of the leading adopters of analytics solutions and is considered to be one of the largest markets for utility and energy analytics. The demand in the region is mainly driven by a higher focus on innovations through R&D and technology advancement in developed economies, such as the United States and Canada. The region’s large consumption of energy is also supporting the growth of the market. Moreover, the region has a strong foothold of vendors in the market. Some of them include IBM Corporation, Oracle Corporation, BuildingIQ, and SAS Institute Inc among others.
On April 2018, Building IQ partnered with Cypress Envirosystems, a company that offers electro-pneumatic thermostat solutions to retrofit existing commercial buildings and industrial facilities, to enhance productivity and save energy. Both companies want to bring the energy optimization mindset to facility managers in older buildings to share how visualization and data analytics can result in real savings.
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 essential for companies to reduce downtime to maintain profitability efficiently. This fuels the market for data analytics in utilities and energy.
The utility and energy analytics market is highly competitive and consists of several major players. These major players with a prominent presence in the market are focusing on expanding their customer base across the market segments. The companies are leveraging on strategic collaborative initiatives to increase their market share and improve profitability. The companies operating in the market are also acquiring or partnering with start-ups working on utility and energy analytics technologies to strengthen their product capabilities and introduce new features.
May 2019 - Tapping deep machine learning, Oracle Utilities Analytics Insights has been able to identify the presence of an EV, show the time and frequency of charging and disaggregate the energy being consumed by the vehicle with advanced metering infrastructure (AMI) data. With this intelligence, utilities can reliably plan for the energy infusion needed to power EVs at scale and engage customers to charge at the times that are the least expensive for them and best for the health of the energy grid. The new EV detection capabilities from Oracle Utilities Analytics Insights are currently being piloted by a number of utilities.
October 2018 - Oracle announced its plan to acquire the utility software company, Opower, for USD 532 million. Opower’s platform processes over 40% of all residential energy consumption data in the United States. If Oracle can develop additional use cases in the near term with this data, this could be a significant opportunity for Oracle to further access the utility industry.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
Report customization as per the client's requirements
3 months of analyst support
Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook