Global Market for Energy IT and OT Systems Is Expected to Grow to Nearly $23 Billion by 2030
Market barriers include cost, existing data silos, and poor data quality
A new report from Guidehouse Insights analyzes the market for 12 different utility information technology (IT) and operational technology (OT) systems, as well as four segments of data analytics. It includes regional spending projections and spending segment breakouts over the next decade.
Utilities are in the middle of multiple paradigm shifts amidst the digital transformation and proliferation of distributed energy resources (DER). This has led to the expansion of low-cost sensors throughout transmission and distribution (T&D) networks. Advanced IT and OT systems are needed to process these unprecedented levels of data. According to a new report from Guidehouse Insights, the global market for energy IT and OT systems is projected to grow at a compound annual growth rate (CAGR) of 4.9% through 2030 to $22.9 billion.
“The proliferation of renewable energy and DER is simultaneously facilitating the need for more advanced software platforms to enable dynamic, flexible, and decentralized grid networks,” says Michael Kelly, senior research analyst with Guidehouse Insights. “As more distributed generation is added to electricity systems, evolving the software tools that help to manage their interactions on the system has been of increasing importance to utilities and vendors.”
Despite numerous factors supporting the market for energy IT and OT solutions, several barriers to more rapid deployment by utilities remain. IT and OT system deployments require extensive product investments and integration efforts for both software and communications. In addition, many utilities have siloed the different segments of their businesses, resulting in a non-integrated IT and OT solutions framework. Finally, to adapt to the complex operating environment, utilities must further invest in data integrity, most notably connectivity model correction and accuracy, according to the report.
The report, Market Data: Energy IT and Cybersecurity, analyzes the market for 12 different utility IT and OT systems, as well as four segments of data analytics. The outlook includes regional spending projections and spending segment breakouts for software license fees, implementation and integration services, annual maintenance fees, and software as a service revenues. Guidehouse Insights expects IT and OT systems, as well as data analytics, to account for a significant—and growing—portion of utility investment over the next decade. 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, Market Data: Energy IT and Cybersecurity, 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.