The market size of energy and utility analytics is anticipated to grow from $ 1.82 Billion in 2016 to $ 3.98 Billion by 2022, at a compound annual growth rate (CAGR) of 13.93% in the coming years The major drivers of the market include operational efficiency and risk mitigation, dynamic forecasting and load management, predictive analytics for businesses and rising government initiatives for advanced metering infrastructure. To take the benefits of new opportunities, energy and utility companies are transforming their systems into smarter systems of energy which will feature a two-way flow of energy and information. But the pressure is increasing on the companies to deliver cost effective and consistent sources of energy and in the same time environmental concerns should be in mind.
The market of energy and utility analytics is segmented on the basis of service and software. The services segment is anticipated to rise at the highest CAGR in coming years In that energy and utility analytics services in the service segment is projected to witness the high demand because requirement for energy and utility analytics software solutions is increasing across the organizations.
Infrastructure software in the market of energy and utility analytics ensures which business applications and processes in this industry can run effectively. Th demand of infrastructure software in utility analytics and energy is increasing because of its capability to configure automatic alerts for its users. The infrastructure software of energy and utility analytics is further categorized into risk analytics, smart grid analytics and asset optimization analytics, among which asset optimization analytics have the biggest share of market, whereas smart grid analytics is projected to have the highest growth in the forecast period. Asset optimization analytics is anticipated to have the largest share of market during the period of 2016–2021. Utilization of this software is to predict the future existence of assets. It also helps in identifying the asset lifecycle pattern and in determining the major factors behind their failure using historyand real-time data.
In 2016, energy, gas and oil, is having the largest share in the market of energy and utility analytics. The growth is fueled by the increasing the requirement of people to simplify their workload regarded to security and their dependence on generated data from several devices used in the energy, gas and oil, verticals. Utilities are anticipated to grow at the highest CAGR in the coming years due to the increasing requirement to store and manage data coming from several utilities used across organizations.
Key business applications for which the utility analytics and energy is deployed are meter operation & optimization, load research & forecasting, transmission & distribution management, workforce management, emergency response management, predictive maintenance, and others. The acceptance of energy and utility analytics for predictive maintenance is anticipated to grow tremendously in the forecasted years.
Organizations are rapidly deploying energy and utility analytics solutions either on-demand or on their premises. The demand cloud-based energy and utility analytics market solutions is growing due to its time-efficient and cost-effective features; its growth is specifically high in medium and small enterprises where low cost solutions are much in need.
On the basis of regions global market is segmented into Asia-Pacific, North America, Europe, Middle East and Latin America and Africa. The North American region is followed by Europe. Europe is anticipated to grow as the largest revenue generating region for energy and utility analytics for the next five years. This is mainly due to the developed economies of the Canada and US and innovations of research and development.
The energy and utility analytics market faceing many challenges like privacy, lack of data security and lack of skilled workforce with analytical skills & expertise. Factors like lack of technology skills, lack of integration with legacy architecture, and complex analytical process flow are forecasted to limit the market growth.
Major market players that offer energy and utility analytics services and software globally are Intel Corporation (US), IBM Corporation (US), SAP SE (Germany), Ericsson (Sweden), Eaton Corporation(Ireland), Cisco Systems, Inc. (US), Schneider Electric Company (France), Oracle Corporation (US), Capgemini (France), and TIBCO Software Inc. (US). These players have adopted different types of inorganic and organic growth strategies like partnerships & collaborations, new product launches, and mergers & acquisitions to expand their business in the energy and utility analytics market. In March 2015, products launched by TIBCO SPOTFIRE 7 with “Smart” analytics, Company announced the general availability of TIBCO Spotfire® 7, All aspect of Spotfire® 7 designed for easy use, empowering users of all skill levels to gain insights rapidly and easier than ever before.
