Navigant Research, in a new report, examines the global smart grid as a service (SGaaS) market, focusing on data services, cloud-based software, and fully managed services, while providing forecasts for managed distribution/substation automation, microgrids, distributed energy resources (DER) management, advanced metering infrastructure (AMI), demand response, home energy management (HEM), and analytics.
In the report, Navigant noted that the global SGaaS market expected to grow from $1.3 billion in 2016 to $6 billion in 2025.
In the past, utilities preferred their own physical assets and the software required to manage these assets, store all related data in-house, and use their own staff to perform associated business processes, points out the report. Currently, utilities are turning to service-based delivery to help them take a more flexible approach to business processes, mitigating technology risks, and reducing costs while staying ahead of the competition.
“The monopoly business model allowed utilities to wait for technologies to mature before purchasing them, but with the increasing threat of competition, the potential profits from the Energy Cloud will not wait, and first-mover advantage will soon be the order of the day,” says Stuart Ravens, principal research analyst with Navigant Research. “A new, innovative future will require flexibility — such as the ability to scale up and down data center capacity or rapidly deploy software for product development or testing — which lends itself to cloud-based procurement.”
The Smart Grid as a Service report, now available for purchase on the Navigant Research Web site, analyzes the global SGaaS market, with a focus on three segments: data services, cloud-based software, and fully managed services.
The report also examines the key technologies related to SGaaS, as well as the competitive landscape. An Executive Summary of the report is available for free download. More insight is provided on virtual power plants and commercial building energy management.