The global energy & utility analytics market accounted to US$ 2.26 Bn in 2017 and is expected to grow at a CAGR of 12.5% during the forecast period 2018 - 2025, to account to US$ 5.71 Bn by 2025.
The most prominent region in the energy & utility analytics market accounted for North America, owing to the fact that the region is the hub of all technological advancements and developments, and the convergence of these megatrends in the region is further anticipated to drive the energy and utility analytics market to a strategic inflection point. A strategic inflection point is a fundamental transformation, which is expected to influence the evolution in how businesses function today. These megatrends in North America are economic, technological, environmental, and resource based in nature. For the energy and utility analytics market, the technological development and primacy of markets have already impacted the American society, further resulting to plummeted price for natural gas as well as renewable energy generation that has brought significant transformation to energy production in all the principal countries of North America. However, the energy & utility market in Asia Pacific is anticipated to be mature significantly over the years till 2025. Various countries in Asia Pacific region are anticipated to foresee raging economic growth, and owing to this growth the region's energy demands are also predicted to increase. Currently China is the major energy and utility consumer of APAC region followed by India and rest of APAC. Apart from the energy consumption the region has also exhibited vast oil demands. Also as APAC region is known to be the largest market for coals, the deployment of advanced technologies for management of the distribution and demand forecast. The trend is thus expected to drive the growth of energy and utility analytics market in APAC region.
Oil & Gas Industry to Hold Largest Market Share of Energy & Utility Analytics Market by Vertical
Businesses operations in oil & gas companies present throughout the globe has some portion of operations that are being automated as a lot of data is gathered from sensors or internal source of company's data. Necessity for oil & gas companies to tap the benefit of advance analytics is the availability of huge unstructured and semi-structured data which needs to be analyzed in an efficient manner to improve the performance and reliability. With an increase in the demand for natural resources such as oil and gas has increased the volume, difficulty level, and velocity of data which needs to be handle in a proficient method. Use of analytical solutions helps to bridge the performance gap caused to traditional & conventional models. Use of advance algorithms and codes to counter back bottleneck issues. It also facilitates the oil producers to capture in-depth data in real time incident at lower price from inaccessible areas as well, to enhance the performance of oilfield and plants.
Increasing Infrastructure Development and Smart Cities is anticipated to Create Lucrative Opportunities in Energy & Utility Analytics Market
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. Thus, these factors are creating enough opportunities for energy & utility analytics market globally.
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. This factor is also responsible for the substantial growth of energy & utility analytics market
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 dominance of solutions 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 analytics market.
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. Oil & Gas segment dominates the energy & utility analytics market throughout the forecast period.