Smart Grid Service Revenue To Reach $11.2 Billion By 2023

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Smart grid as a service (SGaaS) solutions allow utilities with financial constraints to spread the cost of their projects out over a period of several years, and according to new research from Navigant Research will see strong growth over the next 10 years.

According to the Navigant Research report, revenue from SGaaS solutions will grow from $1.7 billion annually in 2014 to $11.2 billion in 2023, attracting IT professionals to utilities with limited budgets and providing managed services to utilities to help in their smart grid initiatives where before only the largest utilities could effectively afford to initiate such a development.

“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.”

Smart grids, and microgrids specifically, are enjoying a time of impressive investment opportunity lately. Navigant Research released two separate reports earlier this month investigating both initiatives — finding that nearly $600 billion will be spent on smart grid technologies over the next decade, and another $31 billion will be invested into Asia Pacific microgrids by 2023.

Navigant Research outlines several potential advantages for Smart Grid as a Service solutions over conventional, in-house smart grid deployments:

  • the complexity of smart grid deployments and systems integration
  • a shortage of qualified internal human resources
  • reduced time to market
  • improved security

The report, Smart Grid as a Service, analyses the global market for SGaaS offerings and outlines where they are being used by utilities.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica.TV Video


Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Joshua S Hill

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Joshua S Hill has 4403 posts and counting. See all posts by Joshua S Hill