According to a research report released by TMR, the global market for smart grid data analytics is expected to reach US$4.68 bn before the end of 2022. This is possible with a CAGR of 13.4% from 2015 to 2022 in terms of revenue, while the market is predicted to reach US$2.28 bn by the end of 2016. The largest solution type in the global smart grid data analytics is expected to be AMI analytics solutions by 2022. It is expected to expand at a leading CAGR of 14.3% from 2015 to 2022 and reach US$1.11 bn by the end of 2022.
Asia Pacific is expected to overtake North America to be the leading regional segment in the global smart grid data analytics market by expanding at a highly optimistic CAGR of 15.4% from 2015 to 2022. It is expected to reach US$1.42 bn by the end of 2022.
Generalized Solutions Remain Top BSS Utility Solutions
The global BSS market (for utilities) is expected to expand at a CAGR of 15.4% from 2015 to 2022 and reach US$5.63 bn by the end of 2022. The largest type-based segment in this market is expected to remain generalized solutions till 2022, when it is expected to reach US$3.10 bn. Generalized solutions also form the top segment in terms of growth.
From a regional perspective, although Asia Pacific is showing a very high potential in the form of growth rate, North America is expected to continue leading the global BSS solutions market for utilities.
IoT and Big Data Analytics Improvements Score Big for Smart Grid Data Analytics
“A majority of the smart grid data analytics solutions are based on the Internet of things and all its concepts. The connectivity of a smart grid within its components is essentially a two-way stream between the utilities and the consumer. It therefore becomes apparent that any advances in IoT technologies are going to have a tremendous impact on the efficiency of the communication volume and rate within smart grid data analytics components. Not only that, but these components can become even more reliable than before and handle more complex communication protocol while managing theft and outage records,” states a TMR analyst. These advancements also assist smart grid data analytics solutions providers’ deal with the incremental nature of data usage of customers.
Lack of Regulatory Structure Disturbs Smart Grid Data Analytics Market Growth
The lack of government reforms to incentive programs or regulatory norms is severely hindering the growth of the global smart grid data analytics market. This is party the cause of the high costs associated with the smart grid data analytics components. A majority of the utility providers are focused on lower budget allocations for upgrading and improving their existing power grid systems. The high cost of these components coupled with the lack of government support is therefore a restrictive force acting on the market that needs to be addressed soon.
The leading players in the global smart grid data analytics market all possess high prominence in all key regions of the world. Accenture Plc., Siemens AG, SAS Institute, Inc., and IBM Corporation – the leading players of the market in 2014 – had taken high priority to devise highly efficient smart grid data analytics solutions in the form of AMI analytics, demand response, and visualization tools.