Global Big Data Analytics Market Size in the Energy Sector Grows at a Staggering CAGR of 11.08%

Introduction

Big data analytics is the often-complex process of analyzing large amounts of data to discover useful information, such as correlations, hidden patterns, market trends, and consumer preferences, that can help businesses make informed business decisions. Big data analytics is a subcategory of advanced analytics, including applications powered by complex statistical algorithms, predictive models, and what-if analyses.

Organizations have access to systems and software for big data analytics, allowing them to make data-driven decisions that improve business outcomes. Benefits include increased marketing effectiveness, new revenue opportunities, consumer personalization, and operational efficiency. Big data analytics in energy services enable the adoption of greener power generation. It enables sustainability consulting services and reduces greenhouse gas emissions by purchasing renewable energy.

Market Dynamics

Enormous Influx of Data Drives the Global Market

The increased adoption of digitization systems in the energy sector has accelerated the rate of data production. The energy big data sources consist of electric utility data and additional data. Enterprise data and information a utility's smart grid reveals constitute electric utility data. All additional data sources utilized for big data applications are called supplemental data.

The rate at which information is generated has been steadily increasing. According to OmniSci, there are over 135 million smart utility meters in the United States, generating between 400 megabytes and 54 petabytes of new utility data annually. Electric utility companies combine this massive amount of data with billions of rows of additional IoT and smart sensor data. Such factors boost the market's growth.

Rising Investment in Digitization Creates Tremendous Opportunities

Digitalization tools and platforms facilitate the construction of renewable energy plants with automated processes, allowing for informed decision-making and driving market expansion. Moreover, the proposed interconnections are the basis for a more decentralized generation, preventing the formation of isolated energy islands. These platforms reduce downtime by providing maintenance alerts and anticipating asset maintenance.

In addition, production facilities must be modernized to make them more competitive and efficient, which is a major driver of market expansion. The digitalization of new power plants also ensures their services' efficiency and high availability. Similarly, digital twins assist with modeling, forecasting, and performance testing, from power generation to customer connection. Consequently, these factors create market expansion opportunities.

Regional Analysis

North America is the most significant global big data analytics market in the energy sector and is estimated to exhibit a CAGR of 9.77% during the forecast period. North America is among the foremost innovators and early adopters of big data analytics. There are numerous opportunities for market expansion due to the substantial demand for big data analytics in the energy industry and the region's dominant position in the big data analytics market. The region's preference for renewable energy sources is anticipated to fuel the expansion of data analytics in smart grid systems. In addition, the United States plays a much larger role in the region's demand growth than Canada. The nation has increased demand, especially from oil and gas, refining, and power generation segments. Most Americans believe solar and wind power are environmentally friendly energy sources.

Asia-Pacific is estimated to exhibit a CAGR of 13.24% over the forecast period. Asia-Pacific is the fastest-growing region for big data analytics in the energy sector. The increasing adoption of IoT and smart technologies and diverse government initiatives, such as smart cities, throughout Asia-Pacific nations, including China and India, evidence this. As organizations uncover the true potential of business intelligence (BI) for increased productivity and profitability, big data and analytics spending is expected to increase in the ASEAN region. China is anticipated to be the leading nation in the Asia-Pacific region for big data analytics in the energy utility sector owing to its large population and rising national adoption rate of smart metering and smart grid systems. According to a report published in Smart Energy International, China will install over 438 million intelligent electric meters in 2021.

Key Highlights

• The global big data analytics market size in the energy sector was valued at USD 7.50 billion in 2022. It is estimated to reach USD 19.31 billion by 2031, growing at a CAGR of 11.08% during the forecast period (2023–2031).
• Based on application, the global big data analytics market in the energy sector is bifurcated into grid operations, smart metering, and asset and workforce management. The grid operations segment dominates the global market and is projected to exhibit a CAGR of 10.38% over the forecast period.
• North America is the most significant global big data analytics market in the energy sector and is estimated to exhibit a CAGR of 9.77% during the forecast period.

Competitive Players

Competitive Players

The key global big data analytics market in the energy sector are IBM Corporation, SAP SE, Microsoft Corporation, Infosys Limited, Dell Inc., Accenture PLC, Intel Corporation, and Siemens AG.

Recent Developments

Market News

• In July 2023, Microsoft collaborated with the energy industry to facilitate a more secure, equitable, and sustainable future on a global scale. Microsoft is excited to reveal the general availability of Azure Data Manager for Energy to facilitate this transformational journey.
• In May 2023, Shell Plc announced that it would utilize AI-based technology from big-data analytics company SparkCognition to increase offshore oil production, the companies announced on Wednesday.

Segmentation

Global Big Data Analytics Market in the Energy Sector: Segmentation

By Applications

• Grid Operations
• Smart Metering
• Asset and Workforce Management

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa