Global Market for Edge Computing Technologies Estimated to Grow to More Than $16 Billion by 2032
Energy networks struggle to provide electricity amid increasing climate uncertainty and proliferation of distributed energy resources
A new report from Guidehouse Insights explores the market for edge computing technologies used throughout the distribution grid, from substations to distributed energy resources (DER) networks, on the supply (utility) and demand (customer) side of the meter.
The global utility market is in a transitional period, as utilities work to reorient themselves to ensuring reliability and stability while managing distributed energy resources. To this end, they are adding sensors and analytics to gain a better understanding of real-time events occurring on their grids. According to a new report from Guidehouse Insights, grid-edge computing for utility operations is expected to grow from $3.5 billion in global spending in 2023 to $16.1 billion in 2032, at a compound annual growth rate (CAGR) of 18.5%.
“The global utility industry faces unprecedented challenges and opportunities, as energy networks struggle to provide electricity amid increasing climate uncertainty and the proliferation of distributed energy resources,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “Utilities must rapidly diagnose and repair outages, and balance fluctuating loads caused by individual users’ renewable energy equipment. Intelligent monitoring and sensing devices placed on equipment in the distribution grid can provide insights into what is occurring, but what is really needed is true distributed intelligence so that utilities can make decisions on local devices and without limitations of bandwidth or latency.”
The volume of data and communications network limitations mean that utilities are increasingly adopting edge computing, enabling them to make decisions based on real-time data generated locally. Edge computing also has implications for utilities’ cybersecurity, as the reduced amount of data sent to the cloud presents less of a vulnerability to attackers, according to the report.
The report, Edge Computing Market, focuses on edge computing technologies, both software and hardware, used throughout the distribution grid, from substations to DER networks, on the supply (utility) and demand (customer) side of the meter. Customer segments covered are residential and commercial and industrial (C&I). Utility-scale deployments are beyond the scope of this report. An executive summary of the report is available for free download on the Guidehouse Insights website.
* The information contained in this press release concerning the report, Edge Computing Market, is a summary and reflects the current expectations of Guidehouse Insights 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 Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.