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Growing Demand for Analytics Predicted to Emerge as a Key Trend in the Global Power Sector Market Through 2020, Says Technavio
[June 02, 2016]

Growing Demand for Analytics Predicted to Emerge as a Key Trend in the Global Power Sector Market Through 2020, Says Technavio


Technavio research analysts are forecasting positive growth for many segments of the global power sector market over the next four years as several related markets, including smart grid IT systems, solar microinverters, and smart grid managed services, will likely witness an increase in revenues.

Technavio market research analysts predict the global smart grid IT systems market to grow at a CAGR of close to 13% by 2020. The growing demand for improved grid reliability, efficiency, control voltage fluctuation, and integration of renewables has pushed utilities to look out for solutions in managing new assets. Several IT companies are therefore offering specific IT solutions such as SaaS (News - Alert), which allow utilities to integrate different smart grid systems and manage them from a central location. IT solutions help utilities save on the maintenance of smart grids and software upgrade costs. Several financial benefits associated with smart grid IT systems will increase its implementation during the forecast period.

Energy management systems (EMS) emerged as the largest segment in the smart grid IT systems market in 2015 and accounted for around 31% of the overall market share. Growing adoption of smart grid systems across the globe has increased grid reliability and minimized losses subsequently. EMS provides clear visibility and control of the transmission and distribution grid, and optimizes grid performance.

"The global market for solar microinverters will exhibit a promising market growth rate during the predicted period and will be positively impacted by factors like high efficiency. Easy installation and customization options offered by solar microinverters will lead to its augmented adoption and the overall growth of the power ector during the predicted period. This segment is expected to exhibit a CAGR of nearly 26% until 2020," said Vishu Rai, one of Technavio's lead analysts for energy research.



Increased incorporation of data analytics in solar microinverter systems is a key trend for the overall power sector. Data analytics finds increased adoption in solar microinverter systems as it aids in the generation of more solar power per circuit. With the help of data analytics, inverters can be programmed and controlled to trip off and on in response to the grid voltage fluctuations, perform grid-balancing tasks, and it can also inject or absorb reactive power. These microinverters are then networked to the company's cloud-based monitoring and control system to improve efficiency.

The global smart grid managed services market is likely to grow at a significant CAGR of around 45% by the end of the forecast period. The concept of smart grid managed services refers to synchronizing of software and hardware used to managing smart grids. It also includes deployment of smart meters for integrating energy sources with smart grids. Smart grid technology also helps end users in the utilities sector to communicate better. Since new technology in the form of smart grids is being set up, investments in grid-related equipment will be high on both, production as well as distribution.


View Technavio's entire power sector report library

Some of the key vendors in the global power sector market include Accenture, GE-Alstom, and Capgemini (News - Alert) for smart grid IT systems; ABB, Enphase Energy, and SMA for solar microinverters; and IBM and Siemens (News - Alert) for smart grid managed services.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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