Owing to the rising advent of smart meters, smart sensors and IoT based technologies the energy and utility industry has experienced a major transformation, particularly in terms of data generation. This transformation has further driven the implementation of analytical solutions for the data generated by utility grids, oil wells, generation stations, and energy production sectors. With the help of these analytical solutions the distributed generations have gained the capability to derive meaningful insights that can be used in operational decision making. Further, the analytics in the energy and utility industry provides an unprecedented knowledge into real-time demand and supply gaps, asset utilization and downtimes.
As analytics enables the energy and utility industry to realize the full potential of their intelligent networks and improve overall ROI on capital investments, the widespread adoption and implementation of smart devices are anticipated to drive the demand for analytics in global energy and utility industry.
In addition, the analytics also play a critical role in transforming enormous amount of data from the information assets, such as meters, sensors, and SCADA into actionable insights, which further facilitates into prediction and prescription of critical decision making, particularly for analysing Quality of Service, outage management and preventive maintenance activities. The myriad advantages offered by the analytics is therefore expected to exponentially drive the energy and utility analytics market for the coming years.
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Energy and Utility Analytics Market: Strategic Insights
Until now the companies were obstructive towards sharing their data, due to persisting security threat among the major industries of energy and utility sector. The oil & gas industry, in particular, was most restrictive towards data sharing as the loss of operational data can enable the unlocking of their competitive advantage, which can hinder its future growth.
However, as the technology companies raise their standards to mitigate the security risks, the energy and utility organizations are projected to realize the myriad advantages offered by data sharing. Some of these advantages include the monitoring capabilities attained by the equipment providers, which subsequently would enable these equipment providers to assess the maintenance issues on the real-time basis. Further, the data sharing would also cater as the foundation for equipment as a services trend that would allow the energy and utility industries to switch from purchasing of the equipment to investing into leasing of the equipment.
The emergence of data sharing will also generate adoption opportunities for analytical solutions such as robust demand response networks, supply chain optimization and other programs that would make a significant contribution to the smart cities growth. Although the data sharing is at present limited to only certain developed economies of the world, the trend is expected to spur in the near future. This free flow of information would further accelerate the demand for analytical capabilities for more efficient decision-making capabilities.
Smart revolution has resulted in increasing operational complexities for Energy & Utility companies across the globe. Additionally, there is a tremendous growth in the volume, diversity, as well as complexity of data. With the increasing competition and highly regulated environment, the companies operating in the energy and utility industry are implementing analytical capabilities for efficiently competing in the market place. The type segment of energy and utility analytics market is categorized into solutions and services.
The service segment of energy and utility analytics is bifurcated into managed services and professional services. Rapid technology advancements have stressed the necessity to comprehend the complexities of the IT environment and assure that the technology is synchronized with the business objectives of energy and utility companies. Integrating multiple IT systems that serve different departments, functions, and stages in product lifecycles have been a key challenge faced by organizations today on their growth path. Thus, organizations are seeking for implementing technology-driven business models to attain a competitive advantage.
The Global Energy and Utility Analytics market is segmented on basis of deployment type is categorized into on-premise, cloud, and hybrid. In the present scenario, the need for analytics solutions by the energy and utility companies is increasing. However, the threat of cybercrimes always remains a challenge for companies adopting the analytics software. Thus, many companies select on-premise deployment model in order to protect their data and keep their data within their reach.
The global energy and utility market by application is further segmented into load forecasting, customer analytics, grid analytics, asset management, smart meter analytics and others. Demand forecasting of electricity is an integral and central process for strategizing facility expansion and periodical operations in the energy & power sector. And as demand patterns of different sectors are nearly very complex because of deregulations among the energy markets, selecting a suitable forecasting model for a particular electricity network has become a relatively tough task for the energy and utility industries. Although there are various forecasting methods present in the market, none can be generalized for all demand patterns.
The industry vertical segment of Global Energy and Utility analytics market is segmented into oil & gas, nuclear power, renewable energy, utility, and others. The oil & gas companies are rigorously adopting analytics solutions as the industry continues to seek risk management on several frontages. In addition, the increasing cost of extraction and drilling is also expected to create a challenge for companies operating in oil & gas industry. Thus, the companies are embedding analytics for reservoir characterization, forecasting production, drilling optimization, and improve reservoir characterization complexities among other such benefits. Further, with the government initiatives towards renewable energy production, the renewable energy installations are also expected to notice a significant growth globally.
The players operating in the enterprise content management market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
The regional trends and factors influencing the Energy and Utility Analytics Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Energy and Utility Analytics Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2017 | US$ 2.26 Billion |
| Market Size by 2025 | US$ 5.71 Billion |
| Global CAGR (2017 - 2025) | 12.5% |
| Historical Data | 2015-2016 |
| Forecast period | 2018-2025 |
| Segments Covered |
By Type
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| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Energy and Utility Analytics Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Energy and Utility Analytics Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The List of Companies - Energy & Utility Analytics Market
The energy and utility analytics market is led by software segment with highest share in 2019, and service segment is expected to dominate the market on the basis of highest CAGR. The dominance of software segment is mainly because the energy and utility industry is still into implementation phase of the analytics, however in the coming years as the penetration of cloud based solutions increases majority of the solution providers would shift to analytics as a services, contributing to the services sector in energy and utility market.
The growth of the energy and utility analytics market growth is primarily attributed to the advanced decision making capabilities offered by analytics solutions. Moreover, the enhanced customer service capabilities and increasingly complicating oil & gas industry to drive the demand for robust analytical solutions, thereby substantially driving the energy and utility analytics market.
Increasing infrastructure development and smart cities is expected to create significant opportunity for the energy and utility analytics market growth. The emerging smart cities and infrastructural development across the developing countries such as India and China have been creating the excessive opportunities in the digital analytics market. Implementation of green industrialization and use of renewable energy has been promoted by developed countries. In this era of modernization, use of smart devices and IoT technology has been raising for the real-time accessibility, effectiveness, control and easy managing. Smart cites technologies has gained momentum around the globe and set for rapid transformation. It also includes intelligent transport systems, smart waste management and robust information technology that will improve the quality of living, employment opportunities and urban services. Thereby, analytics solutions would be used for analyzing the essential decision making for the smart cities and for industrial development, as there is the requirement for monitoring and analyzing the expensive assets, manage price fluctuations and reduced operational cost.