The global market for advanced distribution management systems is to grow at a CAGR of 17.1% over the period 2014-2019, according to a new report.
The data produced by Navigant Research, Global Advanced Distribution Management System Market 2015-2019, predicts that an increase in the integration of smart grid technologies will have a positive effect on the market during the forecast period.
According to the report, with the integration of smart meter data and analytics becoming an essential part of upcoming project plans, the complexity of outage management systems (OMS) has increased substantially.
While setting up an OMS, utilities have to consider all the parameters and upgrade the whole system rather than a single part of the system.
Cost-effective distribution management
Analysts found that utilities are now focusing on multiple systems and are looking at ways to maximize their internal resources and technical experience to efficiently and cost-effectively upgrade the OMS structure in the system.
This task requires processing data and information from various sources, taking correct decisions in real time, and interconnecting continuously both externally and internally.
Therefore, the power utilities, especially in the Americas, are trying to replace the stand-alone OMSs with an integrated advanced distribution management systems, a development that will ultimately boost the growth of the market during the forecast period.
Cost evasion strategy
The report also finds that many global utilities are only upgrading their power systems when they are damaged or when several power outages have taken place.
This is an outcome of the near-term cost evasion strategy adopted by utilities, which acts as a barrier to the adoption of smart grids and related applications.
This approach will hinder the growth of the global advanced distribution management system market as grid enhancement is an integral part of smart grid solutions.