Smart grid IT market expected to double by 2024
Revenue on software and services will hit $17.1bn by 2024, says Navigant.
Worldwide spending on smart grid IT software and services are expected to double by 2024, according to a new report.
Revenue should rise from $8.5bn per year in 2014 to $17.1bn in 2024, Navigant Research said.
While utility investment in new IT solutions are likely to happen in an incremental fashion in most regions, total spending is expected to climb steadily as those charged with managing the grid turn increasingly to sophisticated IT systems.
IT systems and analytics are projected to account for a significant—and growing—portion of utility smart grid investment over the next 10 years.
“Power grid operators worldwide face new and growing challenges—to stability, reliability, and even economic viability,” said Richelle Elberg, principal research analyst with Navigant Research.
“Modern IT solutions can help managers leverage the growing connectivity of grid equipment and devices in order to automate control and maintenance functions and better engage with customers.”
Despite exciting advances in the IT solutions available to utilities that leverage smart grid technology, the market has not ramped as sharply as previously forecast, according to the report.
Utility executives, or their regulators, may not yet believe that the return on investment is compelling enough for widespread deployment.
As more deployments provide market validation, investment in these systems is expected to accelerate, the report finds.
The report, Smart Grid IT Systems, provides a comprehensive overview of the global market for utility smart grid IT systems.
The study discusses the potential benefits and challenges to utilities deploying new IT systems and describes a dozen major utility IT applications.
Global market forecasts for utility smart grid IT software and services, segmented by category (software purchases and upgrades, software maintenance fees, services, and software as a service, or SaaS), application, and region, extend through 2024.
The report also provides in-depth profiles of numerous vendors involved in the utility smart grid IT space.