A new study conducted by Navigant Research forecasts global revenue for predictive analytics for distributed generation will increase by 36% through to 2027.
Key drivers include the increasing demand for reliable onsite generation, increased digitisation of onsite generation systems and the need to maximise returns on distributed generation.
Navigant predicts revenue generation to exceed $187 million.
Vendors are expected to innovate business models, for instance the use of customer data to improve utility offerings and increase future business.
Despite, the success of fossil fuels declining, the predictive analytics for distribution generation (PADG) market will grow owing to ubiquitous connectivity within the energy industry.
PADG is defined as applying machine learning algorithms to operational datasets collected from distributed generators to predict component or system failures before they happen, allowing for optimised maintenance and decreased unplanned downtime.
Adam Forni, senior research analyst with Navigant, said: “In an industry traditionally focused on mechanical performance, PADG creates a digital twin of the rotating equipment that can be monitored, modeled and manipulated to enhance system operation.
“Customers adopt PADG for increased uptime and optimised maintenance, but the path to widespread deployment of PA is capturing adjacent use cases of digitisation, including real-time monitoring, asset and fleet management, as well as energy use cases like virtual power plant revenue.”
The report analyses application in five key segments namely commercial and industrial (C&I) standby, C&I prime and continuous, C&I combined heat and power, utility, and resource extraction.