A report from Navigant Research provides a detailed discussion of the development of different types of artificial intelligence (AI) technologies and how they can benefit stakeholders across the Energy Cloud. The report provides forecasts for enterprise spend on analytics within the Energy Cloud, with a focus on electricity utilities, energy service providers, commercial building owners and operators, and cities/local governments.
Of the many technologies the Energy Cloud will rely on in its evolution to the next phase of the smart grid, AI stands out as the one that turns data into business value. There are many applications of AI across the Energy Cloud, which include predictive maintenance in wind and solar farms, vegetation management in grid operations, optimization of customers’ distributed energy resources (DER) investments, digital assistants to control smart homes, and improved efficiency of transportation systems. According to the report, Energy Cloud analytics revenue is expected to grow from $5.98 billion in 2019 to $18.1 billion in 2028, experiencing a compound annual growth rate (CAGR) of 12.7%.
“AI can help organizations work smarter,” says Stuart Ravens, principal research analyst at Navigant Research. “Each new deployed Internet of Things (IoT) device can improve an organization’s visibility into business or customer operations. Each new development in analytics allows companies to gain deeper insights from data, opening new market opportunities or improving existing business processes. Each new development in data management allows companies to access more complex datasets, gain insights more quickly, and increases their competitive edge.”
According to the report, AI can address many of the issues that a variety of industries are experiencing: pressure to improve profits through cost-cutting, increased competition, digitization of business processes created by the mass deployment of connected sensors and control equipment, new business model creation, and more. AI—along with advancements in computer processing, cloud, and edge computing—can help enterprises address these issues.
The report, AI and Advanced Analytics Overview, provides forecasts for enterprise spend on analytics within the Energy Cloud. The study focuses on electricity utilities, energy service providers, commercial building owners and operators, and cities/local governments. Global market forecasts, segmented by analytics type and region, extend through 2028. Asia Pacific is expected to become the largest region by 2026. This report also identifies key industry players in several applications.