Europe Digital Transformation in Energy

Europe Digital Transformation in Energy

The change in business processes driven by digital technologies is rising within the energy industry and influencing its business models and client-related processes. From smart grids to renewable energy and predictive maintenance, digital technology is useful in leveraging opportunities while optimizing costs to enhance profitability. Smart grids are being designed to control power traffic, identification and fault handling, and efficiency in electricity consumption. Wind and solar power continue to evolve as intelligent systems for site selection and management of the systems and for tracking their efficiency and effectiveness. Energy storage is also being advanced by the shift towards digitization thus making it finer and safer than before.

The Europe digital transformation in the energy market is expected to grow at a strong CAGR of 29.2% during the forecast period owing to the increasing integration of the IoT, big data analytics, and the growing adoption of renewable energy and smart grid technologies. Further, digitalization offers flexibility to the organization by improving user energy efficiency, integrating photovoltaic charging and storage, demand and supply forecast, and optimizing operational activity.

• Based on technologies, the market is segmented into big data analytics, artificial intelligence, industrial control systems, field devices, extended reality, and IoT. The adaptation of digital transformation in ICS is to enhance the speed, efficiency, safety, and dependability of operational procedures. When industrial devices and systems are connected to the Internet, their operators can oversee and regulate their processes in real time, even if they are in different parts of the globe. This enables organizations to be more responsive to the market forces, flexible, and adaptable to different conditions and forces acting on them. Another advantage of DT in ICS is data management and acquisition, where large amounts of data coming from sensors or other gadgets can be gathered and processed. This data can be analyzed to look for patterns, trends, and variations, indicators that operators can use to fine-tune processes and seek inputs, and early signs of trouble that can become significant concerns.
• 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 2023 owing to the major dependency on fossil fuels and the increasing demand for energy worldwide. 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 Europe's digital transformation in the energy industry, the market is analyzed based on its presence in countries such as Germany, the U.K., France, Italy, Spain, and the Rest of Europe. Germany is the biggest market for digital transformation in the energy market in Europe. Germany’s digital transformation in energy market caters significantly to Europe’s Digital Transformation in Energy Market share owing to the rising need for continuous power supply to support large-scale industries, the rise of smart meters, and the expansion of the renewable energy sector in the country. For instance, in January 2023, the Federal Cabinet of Germany adopted a bill to relaunch the digitalization of the energy transition, setting out a roadmap for the deployment of smart meters and expanding the scope of dynamic tariffs. Smart meters form part of the digital infrastructure and are therefore an essential element of a close-to-zero emissions energy system characterized by fluctuating demand and volatile generation. They also introduced dynamic tariffs from 2025. This will allow customers to shift their electricity demand away from peak times when large amounts of renewable electricity are available, and prices are lower.
• 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, Intel Corporation