Energy utilities are leveraging only between 2% and 4% of data acquired from intelligent grid devices for analytics to enhance the efficiency of their grid operations, according to Frost & Sullivan.
The need to improve customer services and operational metrics is expected to push utilities into investing more in grid analytics capabilities.
The global grid analytics market will record a 10.4% growth between 2018 and 2025.
Revenue generation is expected to increase from $1.15 billion to $2.31 billion during the forecasts period.
Of the massive data generated by energy utilities from smart meters and intelligent devices, only 2% to 4% is leveraged by utilities.
Farah Saeed, research director of energy and environment at Frost & Sullivan, said: "The market will gradually switch to predictive and prescriptive analytics, especially as networks with low latency capabilities, such as 5G, are employed to minimise reaction times.
"Predictive and prescriptive analytics will incorporate statistical models that flag areas of inefficiency, evaluate and predict events in a timely manner, and eventually include Artificial Intelligence to deliver a holistic decision-making tool.
"North America is currently the largest market for grid analytics but Asia is expected to register the fastest CAGR of 13.3% between 2018 and 2025. The emphasis is on improving energy access and minimising financial losses, including non-technical losses. India and China, in particular, have been leading the way when it comes to utility-scale renewable energy (RE) sources.
"Meanwhile, Australia and Singapore are looking to minimize power interruption by integrating geographic information system data analytics and forecast events, and Japan would be an ideal market for customer analytics as it is attempting to achieve 100% smart meter penetration by 2024."
In the future, the areas with the greatest growth opportunities will include:
- Service outcome-based business models instead of just power generation and transmission.
- Internet of Things devices and sensors that track and transmit data from and to the grid. IoT infrastructure spending by utilities is forecast to reach more than $2 billion by 2024, growing at a CAGR of 20.5%.
- Renewable energy and electric vehicles. Utilities in Europe and North America are beginning to leverage these resources as baseload and back-up capacity.
- Initiatives to strengthen the grid to minimise outage times, streamline billing operations, provide real-time energy information, and deliver new and relevant services.
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