Market Trends of Active Network Management Industry
Grid Asset Monitoring to Hold the Significant Market Share
- The smart grids are experiencing a surge in demand due to increasing environmental concerns. Over the years, energy consumption has grown significantly, and approximately USD 25 billion was allocated to energy storage and smart grids worldwide between January 2022 and September 2022. These investments are expected to expand, with energy storage companies playing a pivotal role in transitioning from fossil fuels to clean energy sources.
- Due to increasing electricity demand, grids receive more renewable energy sources input than they were designed for. Transformer monitoring is essential since broken or old transformers account for more than 70% of downtime and service costs. Asset performance management (APM) and active network management (ANM) are essential tools to effect this change.
- According to The US Department of Energy (DoE), total capital spending on IT and OT digital technologies by US electric utilities will reach 24.5 billion USD by 2026. Of this, 16.4 billion USD will be used for smart grid technologies and systems.
- It is becoming increasingly important for many regions to invest in grid modernization initiatives to enhance the electrical networks' dependability, productivity, and resilience. In April 2023, India's state of Bihar had the most installed smart meters across the country, with a total of 1.37 million. Uttar Pradesh followed in second place, followed by Haryana. Asset monitoring is a crucial component of this process, as it is essential for managing and optimizing these modernized networks. For instance, in the Asia Pacific, countries like the Chinese State Grid announced in January 2023 a USD 77 billion investment in the power grid for the year 2023.
- Companies like Ubicquia are developing AI-based solutions to help utility companies maintain their substations with remote monitoring. The UbiHub substation monitoring solution uses cutting-edge camera technology with industrial AI to detect safety risks like arc flashes, watch for wildlife intrusions, and spot trespassing criminals. This way, utilities have complete insight into every substation and can actively monitor threats.
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Asia-Pacific to Witness a Significant Growth
- Asian nations want to electrify quickly across all industries. Green community grids are gaining significant traction, notably in nations like China, India, and Nepal. According to the International Energy Agency (IEA), 70% of global electricity demand growth will come from Asian countries, comprising China, India, and Southeast Asia. China will account for over 45% of renewables growth in the next two years.
- The emergence of smart cities is expected to add to the region's competencies in the market. With the help of technology, smart cities can lessen their adverse environmental effects. For instance, smart power systems can manage peak demand. Smart water systems can ensure efficient water distribution and evidence-based decision-making tools can be used to plan limited infrastructure investments more efficiently and transparently. One of the essential elements of any functioning smart city is a smart energy system. Advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and big data are expected to address various current and future difficulties.
- Implementing IoT devices and sensors has been a significant contributor to the expansion of the active network management industry. These technologies enable real-time monitoring of grid conditions and the performance of assets, allowing for faster responses to problems and more informed decisions. For instance, in September 2023, India's power infrastructure system is undergoing a significant transformation, as the integration of smart grids and the IoT has enabled a revolutionary combination of efficiency and reliability in power distribution, as well as the development of a more resilient and sustainable energy system.
- Energy sector players are investing in AI technologies. For instance, smart electric vehicle (EV) chargers can automatically enable charging when demand is lowest and electricity cheapest, thus reducing the burden on the network. India-based ReNew Power announced a collaboration with twelve foreign lenders for external commercial borrowings for project finance loans of 1.1 billion USD. The funds will be utilized for ReNew's hybrid, battery-powered, round-the-clock renewable energy project, including solar projects, wind farms, and battery storage facilities.
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