The utility and energy analytics market was valued at USD 286.8 million in 2018, and it is expected to reach a value of USD 980.5 million by 2024, at a CAGR of 24.9%, over the forecast period (2019-2024). Developed countries continue to consume vast amounts of energy, while the demand is increasing in developing countries. The increased demand is caused in part by the rise in population and by economic development.
- In a utility and energy company, there are many sources of Big Data, such as grid equipment, weather data, smart meters, measurements from power systems, GIS data, and data related to asset management. Companies are using this data to bring in operational efficiencies and manage energy demand for end consumers.
- The unprecedented explosion of data from the smart meter and smart grid programs, combined with the increasingly complex data retention requirements from regulators and a changing competitive landscape have created new challenges and opportunities for the transmission and distribution companies.
- Poor data quality and integration, patchy ownership of data across processes, and fragmented use of analytics are among the prominent challenges that trouble any energy company. Thus, finding a proper analytics approach to a problem and embedding its core competencies for decision making is a challenge of its own.
Scope of the Report
The energy and utility industry typically comprises of power plants generating electricity that is transmitted over long-distance transmission lines and then finally provided over distribution lines to residences and businesses. Big Data and analytics is helping the energy and utility companies overcome the industry challenges through insights based informed decision making.
Key Market Trends
Meter Operation Accounts for a Significant Share of Analytics Application
- Earlier, utilities used to read meters once per month. However, some have transitioned to capturing meter data every 15 minutes, as well as every hour of every day. As a result, the terabyte of data containing valuable behavioral aspects of the consumer is generated every hour. It is important to mine the values of these data fully and Big Data analytics has become a significant contributor to this industry.
- The insights uncovered through analytics will help in creating behavioral patterns of the consumers, which will in turn help with developing new meter rate plans and services for customers.
- Moreover, with the advent of smart meters, the demand for analytics in the industry has increased with smart meters automating and stimulating usage data generation. In the United Kingdom, with the foundation for smart metering in place, energy utilities are favoring installation, and support mandated interactions with the Data Communications Company (DCC).
North America Dominates the Market
- 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 North America is mainly driven by a higher focus on innovations through R&D and technology advancement in the 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.
The market is highly fragmented with the emergence of new startups offering a broad range of innovative solutions, catering to diverse energy and utility sector requirements. The market is witnessing intensifying competitive rivalry, which is expected to further rise over and beyond the forecast period. The major players dominating the market are Oracle Corporation, Capgemini SE, ABB Corporation, IBM Corporation, and CA Technologies.
- March 2019 - Capgemini launched the Unified Commerce Solution for Grocery, a new Salesforce Fullforce solution designed to help grocers capture loyalty in the rapidly expanding online grocery market, by improving the ordering experience.
- March 2019 - GE announced the launch order for its new GT26 HE (high efficiency) gas turbine upgrade with Uniper for the utility's Enfield Power Station in greater London.
- February 2019 - Siemens Canada and Nova Scotia Power (NSP) collaborated to develop and demonstrate smart grid technology to better manage the province's electricity and reduce greenhouse gas emissions.
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