Global Market for Energy and Utility SaaS Estimated to Grow to $18 Billion by 2030
Market drivers include proliferation of data and DER, scalability and elasticity, skills shortages, evergreen upgrades, evolving regulations, and customer satisfaction
A new report from Guidehouse Insights analyzes the global market for software as a service (SaaS)
technologies throughout the energy industry.
The design architectures and delivery models for energy software have undergone a series of evolutions over the last decade. The development of more modular, open, and flexible solutions has been underpinned by an equally pivotal shift around the use of cloud and SaaS models. In recent years, driven by the imperative to reduce business costs, many utilities have transitioned to more flexible, cloud-based architectures and delivery models. According to a new report from Guidehouse Insights, the global market for SaaS-based energy technologies is projected to grow from $3.5 billion in 2021 to $17.5 billion in 2030, at a CAGR of 19.7%.
“While utilities’ adoption of cloud and SaaS has historically trailed other industries, the past decade has seen a transformational shift in energy providers’ willingness to explore and invest in cloud technologies,” says Michael Kelly, principal research analyst with Guidehouse Insights. “In an industry where the concept of putting data analytics or back-office IT systems in the cloud was almost unheard of merely a decade ago, and in a world where industries like banking, healthcare, and insurance are eons ahead in the adoption of cloud and SaaS models, energy providers’ migration to end-to-end, cloud-based portfolios may ultimately come to fruition.”
Utilities are awakening to the multi-pronged benefits that these models can deliver, from improvements in scalability and elasticity to more seamless upgrade procedures that ensure customers always have access to the latest and greatest features and functionality. The barriers around perceived cybersecurity concerns and outdated regulatory frameworks are quickly eroding as utilities, regulators, and customers realize the differentiated value that cloud and SaaS models can deliver, according to the report.
The report, Cloud Adoption, Configuration, and Implementation Across the Energy Industry, examines the global marketplace for cloud and SaaS technologies throughout the energy industry. It outlines the drivers and barriers behind the growing market for cloud- and SaaS-based IT, OT, and data analytics solutions across global markets, and provides details on market sizing for 2021 through 2030, segmented by region and technology segments. An executive summary of the report is available for free download on the Guidehouse Insights website.
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*The information contained in this press release concerning the report, Cloud Adoption, Configuration, and Implementation Across the Energy Industry, 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.