Proving the Business Case for the Internet of Things

SGaaS revenues to grow to $11.2 billion annually by 2023: Navigant

Iain Morris
September 2, 2014
 
Revenues from smart-grid-as-a-service solutions (SGaaS) will reach $11.2 billion annually by 2023, according to a new study from Navigant Research.

Although such services account for only a small part of the smart grid market today, they will allow utilities to spread project costs over several years and could also provide skilled IT professionals to utilities that might otherwise struggle to attract talent, says the market research player.

Navigant expects to see impressive growth in this area over the next decade as utilities with limited budgets find managed services to be a cost-effective alternative for smart grid initiatives.

It expects revenues from SGaaS to grow from about $1.7 billion in 2014 to $11.2 bilion in 2023.

“Traditionally, utilities have shied away from outsourcing operations beyond back-office functions like billing or payroll,” says Richelle Elberg, senior research analyst with Navigant Research. “But the tremendous growth in cloud-based services for business of all types has increased utilities’ awareness of and comfort levels with cloud-based solutions.”

According to Navigant, SGaaS holds a number of advantages over conventional smart grid deployments, including reduced time to market and improved security.

Moreover, cloud computing now offers better security than many utilities are able to implement internally.
 
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