Global smart grid analytics market is projected to witness a CAGR of 12.50% during the forecast period 2024-2031, growing from USD 6.40 billion in 2023 to USD 16.42 billion in 2031, owing to the rapid digitization of electricity sector.
The smart grid analytics market includes advanced data analysis tools and technologies to optimize the performance and management of smart electrical grids, where electrical grids are complex network made to generate, transmit, and distribute electricity from power plants to end-users. The smart city concept is a key catalyst for the growth of the smart grid analytics market, as urban areas increasingly embracing technologies designed to enhance infrastructure and improve quality of life. Smart cities leverage Internet of Things (IoT) sensors, smart meters, and real-time data analytics to create more efficient and responsive energy management systems. These cities integrate diverse energy sources, and must effectively manage dynamic energy consumption patterns, which necessitates advanced smart grid analytics. By providing real-time monitoring, predictive maintenance, and optimization, smart grid analytics helps ensure grid reliability, manage peak loads, and enhance energy efficiency. This alignment with the goals of urban sustainability and resilience drive further innovation and adoption in the smart grid analytics market, as smart grid solutions support the complex demands of modern urban environments.Top of FormBottom of Form
Advancements in Technology is Elevating the Smart Grid Analytics Market
Smart gird analytics market is anticipated for major evolution, driven by advancements in several technology that elevate grid capabilities along with data collection. The surge of low-cost battery storage technology is a major factor driving the smart grid analytics market demand. For instance, as per IEA, by the end of 2022, the total installed capacity for grid-scale battery storage reached around 28-GW, reflecting a notable increase of over 75% from 2021. This trend is anticipated to persist, with forecasts suggesting that capacity could grow 35 times to nearly 970-GW by 2030 under the Net Zero Scenario.
Similarly, the widespread adoption of rooftop photovoltaics is adding value to the market. Advancement in microgrids, which operate independently or in integration with the main grid, is contributing to reshaping the smart grid analytics market.
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Top of FormMoreover, surge in data availability and the rise of IoT connectivity, such as smart devices and sensors that allow real-time monitoring and control of various grid components has significantly broadened the scope and potential of smart grid analytics market. For instance, utility companies have been upgrading their power plants and substations by installing sensors on key components such as turbines and transformers. These sensors monitor vibrations and other irregularities that could signal potential failures. Duke Energy and other utilities report that asset analytics have proven highly effective, helping to avoid significant outages caused by equipment issues.
Demand For Renewable Energy is Driving the Smart Grid Analytics Market
The growth in the utilization of renewable energy sources necessitates effective tracking and prediction of key outcomes. Smart grid analytics technology has therefore surfaced as an innovative tool in enhancing and improving the delivery of power networks. According to the World Economic Forum, in 2023, the global addition of new renewable electricity capacity reached 507-GW, marking a 50% increase compared to 2022. Smart technology plays a crucial role in increasing renewable energy penetration by providing methods and tools for effective management. Smart grid analytics collect and analyze updated data to forecast energy production, optimize grid operations, and balance demand and supply. These tools use historical data, weather predictions, and real-time performance to predict renewable power sources to generate electricity and the strength of that power. This enables energy providers to adjust grid usage patterns, integrate renewable energy more efficiently, and ensure a consistent and reliable energy supply for clients. Consequently, smart grid analytics offers utilities essential insights for optimizing renewable energy utilization while effectively managing the grid.
Capital Intensity and Operational Challenges in Market
One major drawback attributable to the smart grid analytics market is the capital intensity in terms of implementation and integration. The utilization of high-level smart grid analytics tools incorporates extensive amounts of capital investment in smart meters, sensors, and data management. Furthermore, incorporation of these new technologies into the existing grid systems takes time and funds, which may comprise of procurement of new products and solutions, expense incurred to educate people, and procurement of security shields. Some of the financial and operational issues that can become an issue for some utilities especially those in the developing world and may cause a slow rate of implementation and use of smart grid analytics solutions.
Asia-Pacific is Projected to Experience Fastest Growth in the Smart Grid Analytics Market
In densely populated countries with recent rapid development, such as China, India, Japan, and South Korea, the growing demand for energy is driving the need for new and improved power system. It includes the adoption of various smart grid analytical solution to manage and optimize energy distribution effectively. Asia-Pacific which currently hosts 54 percent of the world’s total urban population, is at the forefront of this energy transformation.
Besides, tremendous government spending for promising smart grid analytics technologies, such as China’s dedicated funding in smart city programs and infrastructure development, is improving energy efficiency and facilitating the integration of renewable resources. India has invested over USD 7.4 billion in smart grid projects as of 2023, with a focus on smart meters, sensors, and data management infrastructure. Similar supportive regulatory environments that provide incentives for carbon emission reduction and promotion of renewable resources are contributing to the improvement of advanced grid analytics through incentive enhancement and system robustness.
The evolution of smart city systems in the region is driving the need for advanced smart grid, IoT ecosystems, and renewable power investments. Additionally, the growth in utilizing advanced storage systems and smart grid technology is supported by technology suppliers and government that drives the market ahead and enhances the smart grid solutions.
Future Market Scenario (2024 – 2031F)
1. The emerging technologies such as AI, machine learning, and blockchain is anticipated to drive the advancement of smart grid analytics market. Also, improved predictive analytics, real time monitoring, and cyber security are expected to increase the efficiency of grid management and operation.
2. With the growing use of smart meters, sensors, and IoT devices in smart grids, the amount of data is expected to increase significantly. This surge will drive the need for advanced analytics to manage the information effectively and enhance grid reliability by enabling more precise decision-making.
3. As the need for clean energy grows, renewable sources such as solar and wind power will become central to smart grid analytics. Data analytics will help manage the fluctuations in renewable energy, maintain grid balance, and ensure efficient power distribution.
4. The concept of smart cities will have a large impact on the smart grid analytics market. Thus, as more cities embrace integrated and intelligent solutions in infrastructure, there will be increasing demand for smart grid solutions to support energy management and optimization, for providing service delivery or communication infrastructure.
Report Scope
“Smart Grid Analytics Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global smart grid analytics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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