According to a Navigant Research report, the market for smart grid IT and analytics for software and services is expected to exceed $21.4bn in 2026.The report examines the global market for smart grid IT systems and analytics solutions. It analyses major technologies and provides market forecasts for software, implementation and upgrade services, maintenance and cloudbased revenue through 2026.
IT solutions are becoming increasingly sophisticated and are helping utilities leverage operational and customer data to automate grid control and maintenance functions. This data is also used ultimately, to better engage with customers. Over the next ten years, combining these innovations with a growing range of analytics solutions is expected to account for an increasing portion of utility investment.
Says Michael Kelly, research analyst with Navigant Research: “Smart grid hardware—sensors, meters, etc.—provides utility operators with grid data, but IT solutions make that data actionable, rendering the grid truly smart.
“The potential for dramatically improved efficiency, reliability, and profitable performance is enormous—as is the need for significant additional investment on the part of electric utilities worldwide in order to achieve this potential.”
Navigant projects that managed services (or software-as-a-service, SaaS) is expected to be the fastest-growing spending category, increasing at a 16% compound annual growth rate through 2026. However, utility investment in new IT solutions is expected to happen in an incremental fashion in most regions, due mostly to financial constraints and competing budget items, according to the report.
The report, Market Data: Smart Grid IT Systems, covers 12 major smart grid IT systems, including four smart grid analytics applications: advanced distribution management systems, asset management systems, customer information systems, demand response management systems, distributed energy resource management systems, energy management systems, geographic information systems, meter data management systems, mobile workforce management systems, outage management systems, SCADA, and analytics.
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