Market Size of Smart Grid Data Analytics Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 12.76 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Smart Grid Data Analytics Market Analysis
During the time frame of the forecast, the smart grid data analytics market is expected to register a CAGR of 12.76%. The smart grid data analytics market is expected to develop at a faster rate during the projected period due to increased investment in smart grid initiatives. With the introduction of modern technologies such as IoT, players have been focusing on integrating smart grid solutions in a more significant way. Due to the continuing trend in data creation, power utility businesses are merging big data with billions more rows of new IoT and smart sensor data. Smart meter data can assist in more efficiently segmenting customers by providing a better understanding of their behavior.
- A big need for a smart grid data analytics market is likely to come from the growing need for electricity. According to the International Energy Agency (IEA), the world's electricity demand will rise by 5,900 terawatt-hours (TWh) in the Stated Policies Scenario (STEPS) and by over 7,000 TWh in the Announced Pledges Scenario (APS) by 2030. This is the same as adding the current demand in the United States and the European Union.
- Moreover, organizations plan to invest in the expansion, modernization, and decentralization of the electricity infrastructure for improved resiliency. The infrastructure of the power grid has been getting more digitalized and connected over time, making it possible for important digital communications to flow reliably and safely. Across the Indian subcontinent, there have also been the beginnings of a number of projects that will help people with their electricity problems.
- An enormous influx of data has been driving market growth. According to the IEEE, to enable being smart, a massive amount of data has been exchanged between grid components and the enterprise systems that manage these components. Based on the application, the information exchanged helps economically optimize the bidirectional power flow between a utility and its customers.
- Furthermore, smart grids collect much more data than the manual energy meter reading system. This permits the use of data analysis techniques and the preparation of highly realistic consumption forecasts, as many more variables are taken into account. Therefore, the opportunities for smart grid analytics have been expanding because there has been an exponential increase in the amount of data available in order to develop analytical models.
- However, the high costs of smart grid systems and the need for more skilled professionals have been restraining the market's growth. The most prominent limitation of smart metering is the availability of capital funding. Smart systems are comparatively more expensive than the standard metering equipment that most service providers and users employ. Furthermore, different smart meters have been designed with various parameters based on operational and consumer requirements, inhibiting the use of complicated equipment that needs skilled labor for handling and installation.
- The COVID-19 epidemic hurt the world economy because it hurt a lot of businesses, especially in the electricity sector, and stopped work in a lot of other sectors. After COVID-19 broke out, the price of electricity went down, which hurt a lot of companies in the energy and power industries. Additionally, according to the US Department of Homeland Security (DHS), the utility sector was one of the 16 essential infrastructure sectors that the COVID-19 epidemic severely impacted.
Smart Grid Data Analytics Industry Segmentation
The market for the study defines the revenues generated from the sales of smart grid data analytics solutions across various applications, including advanced metering infrastructure analysis, demand response analysis, and grid optimization analysis.
The study characterizes the smart grid data analytics market based on the deployment, solution, applications, and end-user verticals. The smart grid data analytics market is segmented by deployment (cloud-based and on-premise), solution (transmission and distribution (T&D) network, metering, and customer analytics), application (advanced metering infrastructure analysis, demand response analysis, and grid optimization analysis), end-user vertical (private sector (SMEs and large enterprises), public sector), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Deployment | |
Cloud-based | |
On-premise |
By Solution | |
Transmission and Distribution (T&D) Network | |
Metering | |
Customer Analytics |
By Application | |
Advanced Metering Infrastructure Analysis | |
Demand Response Analysis | |
Grid Optimization Analysis |
By End-user Vertical | |
Private Sector (SMEs and Large Enterprises) | |
Public Sector |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East & Africa |
Smart Grid Data Analytics Market Size Summary
The smart grid data analytics market is poised for significant growth, driven by increased investments in smart grid initiatives and the integration of modern technologies like IoT. This market expansion is fueled by the rising demand for electricity and the need for enhanced infrastructure resilience. As power utility companies merge big data with IoT and smart sensor data, smart meter data plays a crucial role in understanding customer behavior and optimizing power flow. The digitalization and connectivity of power grid infrastructure have enabled reliable and secure digital communications, further propelling market growth. However, challenges such as high costs and the need for skilled professionals pose constraints to market expansion.
The Asia-Pacific region, particularly countries like China and India, is expected to witness substantial growth in the smart grid data analytics market due to increasing electricity demand and government support for smart grid technologies. The region's focus on smart cities and innovative energy storage solutions contributes to this growth. The market is characterized by intense competition, with key players like Siemens AG, Itron Inc., and IBM Corporation leading the charge. Strategic partnerships and investments in smart meter infrastructure are enhancing market capabilities. Despite challenges, the market's trajectory is positive, supported by ongoing advancements and the growing need for efficient energy management solutions.
Smart Grid Data Analytics Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Assessment of the Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 Cloud-based
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2.1.2 On-premise
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2.2 By Solution
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2.2.1 Transmission and Distribution (T&D) Network
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2.2.2 Metering
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2.2.3 Customer Analytics
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2.3 By Application
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2.3.1 Advanced Metering Infrastructure Analysis
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2.3.2 Demand Response Analysis
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2.3.3 Grid Optimization Analysis
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2.4 By End-user Vertical
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2.4.1 Private Sector (SMEs and Large Enterprises)
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2.4.2 Public Sector
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2.5 Geography
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2.5.1 North America
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2.5.2 Europe
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2.5.3 Asia-Pacific
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2.5.4 Latin America
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2.5.5 Middle East & Africa
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Smart Grid Data Analytics Market Size FAQs
What is the current Smart Grid Data Analytics Market size?
The Smart Grid Data Analytics Market is projected to register a CAGR of 12.76% during the forecast period (2024-2029)
Who are the key players in Smart Grid Data Analytics Market?
Siemens AG , IBM Corporation , Itron Inc., General Electric Company and AutoGrid Systems Inc are the major companies operating in the Smart Grid Data Analytics Market.