Global Market for Renewable Asset Management Solutions Estimated to Grow to Nearly $24 Billion by 2031
Market drivers include cost reduction, increased resiliency of networks, and improvements in technical infrastructure
A new report from Guidehouse Insights examines the market for renewable energy (i.e., solar PV, energy storage, wind) monitoring, control, and asset management solutions.
In the wider energy value chain, utilities are becoming more interested in advanced solutions for renewable asset management. As markets shift away from direct incentives, such as ROI tied to performance, and as regulators introduce more stringent grid codes, operators are taking advantage of the opportunity to retrofit first-generation renewable energy plants with more advanced solutions. According to a new report from Guidehouse Insights, renewables monitoring & control and asset management spending is expected to grow from $7.7 billion in 2022 to $23.5 billion in 2031, at a CAGR of 13.3%.
Guidehouse Insights expects Solar PV and wind will account for most spending in the near term due to large existing capacities and the scope of included technologies. Energy storage spending is expected to grow at a CAGR of 22.2% over the next decade, exceeding solar PV and wind growth projections by a wide margin.
“The power and utilities industry has undergone multiple paradigm shifts over the past decade, most notably the proliferation of digital and energy transformations,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “Sitting at the intersection of these transformative shifts is the wide and growing market for renewable energy monitoring & control and asset management solutions.”
Key factors driving adoption of asset management solutions in the renewable energy space include the drive to reduce operational costs and to increase resilience of networks, as well as improvements in technical infrastructure allowing for a transition to cloud-based monitoring tools. On the other hand, certain stakeholders are still reluctant to implement the new technology, owing to factors such as complexity of regulations and standards, the lack of high-quality data, and interdepartmental siloes, according to the report.
The report, Renewables Monitoring & Control and Asset Management, focuses on utility-scale monitoring and control in three sectors: solar, energy storage, and wind. Revenues for energy storage and wind are broken out into initial license fees and recurring or annual fees. Analyses are also provided for the expected investment in renewable asset management by global region through 2031. 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, Renewables Monitoring & Control and Asset Management, 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.