Global Smart Grid Analytics Market 2024-2031

Global Smart Grid Analytics Market 2024-2031

Smart Grid Analytics Market Size, Share & Trends Analysis Report by Offering (Software and Services), and by Application (Advanced Metering Infrastructure (AMI) Analytics, Load Forecasting and Demand Response, Grid Optimization, Monitoring, and Management, Distributed Energy Resources Management Systems (DERMS), Predictive Maintenance, Energy Theft Detection and Cybersecurity, Voltage, Frequency, and Stability Management, Customer Engagement and Analytics, Outage Management, and Fault Detection and Other) Forecast Period (2024-2031)

Smart grid analytics market is anticipated to grow at a significant CAGR of 13.4% during the forecast period (2024-2031). The market growth is attributed to the growing demand for innovative analytics programs to improve smart grid systems' energy distribution. The increasing application of data analytics and machine learning to smart grid analytics aims to increase customer satisfaction with decreased downtime and optimize grid efficiency. Additionally, the increased demand for renewable energy sources, a growing acceptance of smart grid technologies, and government attempts to update the electrical infrastructure are other contributors to the global market growth.

Market Dynamics

Increasing Adoption of Real-Time Data Exchange in Smart Grids

A strong and effective communication infrastructure is essential to the effectiveness of smart grid technologies for real-time data interchange and control within the power grid. The communications infrastructure plays a vital role in smart grids by emphasizing its importance in enabling improved control mechanisms, improving grid dependability, and promoting smooth information flow. Utilities may more accurately forecast load requirements and pinpoint periods of peak demand by using real-time smart grid analytics to examine consumption trends in detail. Initiatives for energy efficiency like demand response programs, Volt/VAR optimization, and others can be made simpler with the help of such information.

Smart Grid Analytics Empowering Consumers for Future Power Systems

The relationship between energy customers and the electrical grid is changing paradigmatically as a result of the development of smart grid technology. By offering consumers in future power networks unparalleled insight, control, and engagement in their energy consumption, smart grids empower consumers. Real-time monitoring of energy use is made possible by AMI, which empowers users to make educated decisions regarding their usage patterns of electricity. Customers can manage their use, take part in demand-response programs, and improve overall energy efficiency if they have access to detailed analytics.

Market Segmentation

Based on the offering, the market is segmented into software and services.

Based on the application, the market is segmented into advanced metering infrastructure (AMI) analytics, load forecasting and demand response, grid optimization, monitoring, and management, distributed energy resources management systems (DERMS), predictive maintenance, energy theft detection and cybersecurity, voltage, frequency, and stability management, customer engagement and analytics, outage management and fault detection, and other (visual analytics).

Software is Projected to Hold the Largest Segment

The primary factors supporting the growth include increasing demand for smart grid analytics software for improving the efficiency and performance of the grid. Real-time grid monitoring, data analysis, and optimization are made possible by this software, which aids utilities in identifying and resolving problems promptly, minimizing outages, and enhancing energy distribution. As distributed energy resources and renewable energy sources are growing more integrated into modern grids, operational analytics are growing increasingly vital for utilities that require staying in compliance with regulations and providing high-quality service.

Advanced Metering Infrastructure (AMI) Analytics Segment to Hold a Considerable Market Share

Smart meters, communication networks, and data management systems are all part of the advanced metering infrastructure (AMI), an integrated system that offers a two-way digital connection between utilities and customers. In addition to saving utility costs, AMI gives customers convenience and several operational advantages. Through remote meter reading, service connection and disconnections, faster generation of more accurate bills to identify failures, and the ability for utilities to give customers digital access to data, AMI dramatically lowers operational costs. As a result, the growing use of advanced metering infrastructure and the installation of smart meters. For instance, in March 2022, Networked Energy Services entered the Indian market with its proven end-to-end AMI solution. This includes automated topology detection and management with true phase identification which in turn allows the realization of advanced use cases like network fault detection or building accurate power flow models - while at the same time offering the lowest operational costs.

Regional Outlook

The global smart grid analytics market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Demand for Smart Grid Analytics in Asia-Pacific

The regional growth is attributed to pivotal factors such as the increasing demand to update aging infrastructure. The regional governments are making significant investments in smart grid technologies and are offering significant opportunities for regional market growth. Furthermore, enhanced grid analytics usage is being aided by initiatives and supporting legislative frameworks focused on lowering carbon emissions.

For instance, in February 2022, IRENA and China State Grid paved the way towards smart electrification investing $350.0 billion between 2021 and 2025 to upgrade the power grid and build new power systems with improved voltage regulation capability and better compatibility with renewable energy. The joint report is a valuable tool for achieving this.

North America Holds Major Market Share

The market growth is attributed to growing government restrictions and environmental concerns that are driving a rising demand for effective energy management. Technological developments in distribution automation, grid optimization, and smart metering improve operational reliability and efficiency and are driving regional market growth. In October 2023, the US government announced $3.5 billion for the largest-ever investment in America’s electric grid, deploying more clean energy, lowering costs, and creating union jobs. The Georgia Environmental Finance Authority and the Family of Companies that support the Georgia electric cooperatives collaborate on a transformative project to benefit communities across the state through increased reliability and lower costs with an estimated investment of more than $507.0 million. The project will make a comprehensive smart grid infrastructure update, through investments in battery storage, local microgrids, and grid reliability, as well as new transmission lines.

Market Players Outlook

The major companies serving the smart grid analytics market include ABB Ltd., Hitachi, Ltd., IBM Corp., Schneider Electric SE, and Siemens AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.