Utility Spending on Smart Grid IT Systems Will Total Nearly $140 Billion from 2014 through 2022, Forecasts Navigant Research Significant challenges exist to replacing legacy systems, report finds
Utilities have long used information technology (IT) solutions in their businesses - for customer billing, for outage responses, and for protection and control functions. Only recently, however, has the industry recognized the critical role that IT will play as the one-way network of old evolves into a far more complex system - i.e., the smart grid. Click to tweet: According to a recent report from Navigant Research, cumulative utility spending on IT systems for the smart grid will total $139.3 billion from 2014 through 2022.
'A dizzying array of solutions has emerged to meet utilities' IT needs for the smart grid,' says Richelle Elberg, senior research analyst with Navigant Research. 'This is a period of rapid change, and the difficulties associated with legacy system replacement and new system integration are not minor - but the potential benefits are real and increasingly measurable in terms of grid efficiency, reliability, and financial viability.'
To meet utilities' needs and to ease this transition, IT vendors are working to develop solutions that are more interoperable, according to the report, as well as creative purchasing models, such as managed services. At the same time, legacy utility IT systems were not designed to handle the volume or the speeds of data generated by the smart grid - so new hardware may be needed, in addition to software systems, to maximize the value of information gathered by grid devices. Increasingly, utilities are looking to outsourced data centers to meet these needs.
The report, 'Smart Grid IT Systems', provides a comprehensive overview of the global market for utility smart grid IT systems. The report discusses the potential benefits and challenges to utilities deploying new IT systems and describes a dozen major utility IT applications. Global market forecasts for utility smart grid IT systems, segmented by category (software purchases and upgrades, software maintenance fees, services, and SaaS), application, and region, extend through 2022. The report also provides in-depth profiles of numerous vendors and systems integrators involved in the utility smart grid IT space. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
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* The information contained in this press release concerning the report, 'Smart Grid IT Systems,' is a summary and reflects Navigant Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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