Data Analytics for Electric Utilities Market is Growing at an Impressive Pace Over the Upcoming Years
The global data analytics for the electric utility market was valued at USD 5 Million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% between 2021 to 2028. Big data analytics for electric utilities refers to a large amount of data generated by the utilization of electronic sensors, electric supply, using grid operations and grid technologies to have a coordinated, analyzed, and effective reduction energy consumption and increasing efficiency of the energy sector.
The market is driven by the need for increasing dependency on alternate sources of energy due to the scarcity of fossil fuels aided with the increased consumption of electric energy. To meet the demand for the excess energy requirement advanced tools that involve the use of big data analytics is incorporated in order to efficiently understand the behavior and adapt to these sources of energy. Moreover, due to the volatility in oil prices has led to an unprecedented expenditure in energy-related projects that have, in turn, boosted the demand for data analytics.
Furthermore, due to the COVID-19 pandemic, the market has been increasingly declining owing to the halt in industrial and economic development during the pandemic period. The market is expected to grow substantially after the upliftment of the restriction imposed to curb the viral infection.
The volatility in oil prices leads to high expenditure in energy-related projects, which, in turn, creates demand for big data analytics. Owing to this factor, the need for quality information is increasing, which is likely to boost market growth.
However, the data analytics market needs to be supported by skilled employees with expertise in a specific domain,s and matching the power supply-demand for the operations to proceed over a short period of time is a restrain for the growth of the overall market across the globe. But optimized power generation and electricity utilization are expected to be portrayed as an opportunity for the growth of the market.
Globally, the Asia-Pacific region is expected to dominate the market and is growing at the fastest pace owing to the increasing adoption of IoT and smart technologies aided with various governmental initiatives regarding the adoption of smart technologies specifically in China and India.
Major key players in the data analytics for electric utilities market are Bain & Company, McKinsey, C3 Energy, and EnergySavv.