Utility spending on smart grid IT systems to reach nearly $20 billion by 2022: Report

SMARTGRID

Utility spending on smart grid IT systems will reach nearly $20 billion by 2022, says a new research from Navigant Research.

Information Technology (IT) makes smart grid really “smart.” Without intelligence and systems that know what to do with the data generated, the smart grid will be just more expensive version of the conventional grid.

Smartgrid

A bewildering array of utility IT solutions has emerged to meet these needs, but the challenge to acquire, integrate, and maintain these systems is formidable, Navigant Research said.

“The acquisition and integration of new and upgraded IT systems for electric utilities presents one of the greatest challenges faced by the industry today—but also an unprecedented opportunity,” says Richelle Elberg, senior research analyst with Navigant Research.

Utilities can now have not only granular data about the status of their network components and customers, but also the ability to quickly and appropriately react to that data. They need to carefully choose which systems they implement, in what order, and ensure that there is seamless integration across departments and field crews in order to maximize this potential.

One challenge for this market is the sheer volume of data that new sensing and automation devices will deliver. That information must be stored and analyzed, as well as shared with a variety of IT systems. This is an expensive proposition – good for vendors, but less so for utilities, according to the report.

Utilities may also be challenged to obtain approval from regulators that are reluctant to approve large investments with limited real-world examples of measurable benefits to ratepayers.

Global market forecasts for utility smart grid IT systems, segmented by category (software purchases and upgrades, software maintenance fees, services, and SaaS), application, and region, extend through 2022.

The report also provides in-depth profiles of numerous vendors and systems integrators involved in the utility smart grid IT space.

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