Digital Transformation in Energy Market: Current Analysis and Forecast (2022-2028)

Digital Transformation in Energy Market: Current Analysis and Forecast (2022-2028)

Digital transformation is having a profound impact on the energy sector, transforming the way companies operate and deliver services to customers. From smart grids to renewable energy and predictive maintenance, digital technology is being used to optimize operations, increase efficiency, and improve the bottom line. Smart grids are being developed to manage power flow, detect and respond to outages, and optimize energy use. Renewable energy sources like wind and solar are being optimized through digital tools that improve placement and operation and monitor performance. Energy storage is also being improved through digital technology, making it more efficient and reliable. Predictive maintenance is being used to reduce costs and prevent equipment failures by anticipating equipment failure and scheduling maintenance proactively.

The Digital Transformation in Energy Market is expected to grow at a strong CAGR of 17% during the forecast period owing to the increasing integration of the IoT, and big data analytics along with the growing adoption of renewable energy and smart grid technologies. Further, digitalization offers flexibility to the organization by offering the improvement in user energy efficiency, integration of photovoltaic charging and storage, demand and supply forecast and optimized operational activity.

• Based on technologies, the market is segmented into big data analytics, artificial intelligence, industrial control system, field device, extended reality, and IoT. The industrial control system segment is expected to witness a significant CAGR during the forecast period. The digital transformation in ICS is to improve the efficiency, productivity, safety, and reliability of industrial processes. By connecting industrial devices and systems to the internet, operators can monitor and control their processes in real time, from anywhere in the world. This allows for greater flexibility, agility, and responsiveness to changing market demands. One of the key benefits of digital transformation in ICS is the ability to collect and analyze large amounts of data from sensors and other devices. This data can be used to identify patterns, trends, and anomalies, which can help operators to optimize their processes and detect potential issues before they become major problems.
• By application, the market is segmented into oil & gas, power generation, utilities, and others. The oil & gas segment holds a significant market share in the year 2021 owing to the major dependency on fossil fuels along with the increasing demand for energy around the world. Digital transformation is also driving innovation in the oil and gas industry, leading to the development of new technologies and business models. For example, digital marketplaces are emerging, where producers and consumers can trade crude oil, refined products, and natural gas in a transparent and secure manner. Furthermore, the industry is investing heavily in renewable energy technologies such as wind, solar, and hydrogen, which are expected to play a significant role in the energy mix in the future.
 
• For a better understanding of the market adoption of digital transformation in the energy industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Rest of World. North America dominated the digital transformation in the energy market in 2021 due to surge in shale oil and gas field exploration along with the increasing technological advancements such as hydraulic fracture, horizontal drilling and sub-sea exploration. Also, The North American energy market is undergoing a digital transformation, driven by the adoption of advanced technologies such as smart grids, renewable energy, energy storage, and electric vehicles. The integration of digital technologies into the energy grid is enabling utilities to optimize energy generation and distribution, reduce energy losses, and improve grid reliability. Overall, digital technologies are transforming the North American energy market and creating new opportunities for innovation and growth.
• Some of the major players operating in the market include Schneider Electric SE, Honeywell International Inc., Rockwell Automation Inc., SAP, ABB, IBM Corporation, Microsoft, Cisco Systems Inc., Teradata, and Intel Corporation.