According to a report released by Research and Markets, an international market research institute, the global grid optimization solution market is expected to reach a CAGR of 11.36% by 2017-2021.
The latest trends in the market are changing energy patterns and growing demand for power generation. Globally, electricity consumption growth is in line with global economic growth. As a result, the capacity of the global grid has grown exponentially, with fossil fuels being the most favored. The further growth of the global population and economy is expected to promote the trend of the future. According to the World Bank, the global population is expected to increase from 7.4 billion in 2016 to 8.7 billion in 2035.
According to the report, one of the major drivers of the grid optimization solution market is the transition to the smart grid. By deploying sensors, communications systems and information technology, the smart grid optimizes all grid functions, making the grid smarter and allowing utilities to balance cost, reliability and efficiency. Therefore, deploying a smart grid allows utilities to make the most efficient use of the available infrastructure.
In addition, it is reported that one of the factors hindering the growth of the market is the concern about cybersecurity. The advances and developments in information technology that control power generation and distribution expose the grid to cyber-attacks, which traditional utilities do not need to worry about. The smart grid infrastructure uses IoT technology and is therefore more vulnerable to security threats in the absence of robust cyber security.
Major players in the global grid optimization solution market include ABB, Aclara Technologies, Eaton and General Electric.