North America Digital Transformation in Energy

North America 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 for control of 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 North America Digital Transformation in Energy Market is expected to grow at a strong CAGR of 27.3% 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 optimized 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 various 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 innovative 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 North America digital transformation in the energy industry, the market is analyzed based on its presence in countries such as the U.S., Canada, and the Rest of North America. The digital transformation in the energy market is growing at a flourishing rate in the U.S. due to the rising sale of smart meters and increasing data centers. The country acquired one of the highest shares in the North America Digital Transformation in Energy Market in the world and is one of the leading countries in the North America Digital Transformation in Energy Market industry in both revenues and research funding. Certain utilities in the United States are exploiting the potential for demand-side management that smart thermostats present by rewarding customers who adjust their temperature settings during peak heating or cooling periods. Data collected by smart devices could similarly be used by utilities to identify opportunities for launching energy-efficiency programs or even to offer new services. The government has also contributed immensely to shaping the growth and digitization of energy through reforms, programs, and amendments. For instance, the State Grid Corporation of China unveiled in October 2023, and the US Department of Energy Office of Electricity launched the 1.85 million USD Digitizing Utilities Prize Second Round. Through this competition, the utility industry seeks to match electric utilities with software developers as well as data experts hailing from different fields to transform digital systems as well as data analytics concerning the energy sector.
• 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