The global market for AI solutions for energy transmission and distribution (T&D) network management is expected to grow by 14.1% between 2020 and 2029, according to Guidehouse Insights.
The market is expected to generate $1.4 billion in revenue in 2020 and more than $4.4 billion in 2029.
Driving the market is an increase in investments by utilities as they seek to minimise outages, make mobile workers more effective, improve load planning, manage real-time power quality, perform predictive asset maintenance, and more.
The superior insights derived from machine and deep learning solutions can reduce costs, improve reliability and service quality, and enhance efficiency throughout the grid.
William Hughes, a principal research analyst with Guidehouse Insights, said: “AI technology has profound implications for the operation of T&D networks.
“Utilities will likely become increasingly dependent on AI-based solutions to incorporate distributed energy resources (DER) at an accelerating pace while maintaining acceptable performance metrics and keeping costs low.”
Key barriers to widespread adoption of AI in T&D network management include uncertainty that available data will yield results and challenges in integrating the data with operational technology (OT) systems.
According to the report, these challenges can cause utilities to hesitate before adopting AI-based applications. However, once adopted, the datasets used for one application become easier to use for others, and benefits tend to accrue more rapidly.
Read more about the report.