IoT in energy set for nearly 12% annual growth
May 19, 2020:
The global IoT in energy market is expected to grow from $20.2n in 2020 to $35.2bn by 2025 at a CAGR of 11.8%, according to Markets & Markets.
Major factors expected to drive the growth include the way IoT in energy boosts business productivity, the advantage of IoT-based agile systems, the rising instances of cyber attacks, and that it can enhance the health and safety of employees.
The largest segment for IoT in energy during this period looks like being asset management. IoT-enabled asset management is a combination of processes, assets, workflows and analytics to offer centrally consolidated tracking, monitoring and analytics for the asset-intensive energy sector. Asset management includes the management of energy meters, predictive asset maintenance and control operations of assets.
To achieve the organisational strategic plan, the associated performance, risks and expenditures over the lifecycle of assets are taken care of by asset management. It offers advantages such as improved capacity and use, operational visibility and analysis, proactive products for asset failure situations, safety assurance, management of all assets from a single platform, extension of the life of assets, and improved return on assets.
The oil and gas segment is leading the IoT in energy market in 2020; the segment is the most capital-intensive industry. Companies operating in oil and gas exploration and refining require large capital to meet their day-to-day operational costs. Energy companies are continuously carrying out technological developments and process improvements to sustain in the market.
The adoption of the IoT is expected to improve the operational efficiency of the oil and gas segment, thus helping companies operating in this industry to sustain the drop in oil prices. The IoT can be deployed for remote monitoring of oil rigs and maintaining pipeline integrity. Thus, IoT products help detect potential accidents. IoT-enabled sensors and devices allow remote monitoring of operations and improved end-to-end processes in oil and gas facilities.
The Apac region is set to have the highest market share during this period. The increasing adoption of smart grid architecture, technology upgrades, energy management and regulatory mandates are major contributing factors for the growth of the IoT in energy market in the region. China, the region's largest economy is also its biggest importer.
China is the region's largest producer, accounting for half of its oil. Its output of 3.8 million barrels per day was 6% lower than average for nearly a decade. Apac consumes 36% of the world's oil, a total of 36 million barrels per day. Increasing adoption of smart meter in countries, such as China, Japan, Australia and South Korea has bolstered the growth of the IoT in Apac.
The major IoT in energy vendors are IBM (USA), Actility (France), ABB (Switzerland), Sap (Germany), Cisco (USA), Siemens (Germany), Intel (USA), AGT (Switzerland), Altair Engineering (USA), Flutura (USA), Davra Networks (USA), Wind River (USA), Schneider Electric (France), HCL Technologies (India), Aclara (USA), Rockwell Automation (USA), Bosch (Germany), SmartGas (Germany), Trimble (USA) and Infosys (India).