Utility companies deploying smart-grid analytics can expect to realize a return of $121.8 billion on investments of $20.6 billion made between 2012 and 2020, according to new research from Greentech Media.
According to the market-research company, with the introduction of ‘big data’ and analytics, smart-grid technology has the potential to completely re-invent the utility business – instead of just adding “a myriad of new applications”.
“We are now moving into a market where the spotlight will be on the data analytics software that will allow utilities to track, visualize and predict – the core elements of … the Soft Grid,” said the company in a statement.
With spending on analytics expected to hit $3.8 billion in 2020, Greentech Media says that growth is being driven by the use of data technologies such as Hadoop, an open-source data management platform.
Predictive analytics as well as cost improvements and the enhanced performance of data storage technologies are also important factors.
In addition, a rich ecosystem of vendors has already taken shape.
Although the biggest names in IT are looking to dominate this space, utilities are likely to seek out “Soft Grid” specialists that can offer new products and services.