Utility asset management is a system comprising various hardware and software integrated to provide real-time as well as historical data related to utility assets within the transmission and distribution (T&D) network. Factors such as increasing grid complexity, aging utility infrastructure, increasing power demand, and growing distributed generation resources resulting in operational challenges are driving the utility asset management market. The amount of data, gathered from different utility assets such as transformers, switchgears, and circuit breakers, available in the T&D network needs to be analyzed in a very efficient manner. This calls for an efficient utility management system which can ensure the quality of power reaching consumers and can minimize power losses.
The global utility asset management market is projected to reach a market size of USD 4.09 Billion by 2022. This growth is attributed to increasing investments in grid modernization, requirement for energy efficiency, increasing grid complexity, and necessity to reduce losses in T&D lines.
It segments the utility asset management market, on the basis of application, into transformer, sub-station, and T&D lines. The transformer application segment is expected to account for the largest market share in the application segment as it is the most critical asset of the grid. In the North American region, investments for T&D upgradation are taking place in order to achieve energy efficiency and reduce T&D losses. While in the Asia Pacific region heavy investments in distributed energy resources being made by China, Australia, and India has resulted in the complexity of grid. This would provide an attractive market opportunity for utility asset management.
The utility asset management market has been segmented, based on component, into hardware and software. The hardware segment is further classified into sensors, infrared cameras, and others which include feeder protection device and sensing transmitter. The software segment includes equipment/component management system, performance management system, and production management system.
The utility asset management market has been analysed with respect to five regions, namely, North America, Europe, Asia Pacific, the Middle East and Africa, and South America. North America is projected to dominate the global utility asset management market by 2022, owing to smart grid investment and aging T&D infrastructure in the region. The market in Asia Pacific is expected to grow at the highest CAGR from 2017 to 2022. This growth is attributed to growing industrialization and urbanization and rising renewable power generation capacity in the region. Countries, such as, India, Japan, and China are driving the utility asset management market in the Asia Pacific region.
Heavy cost implied to deploy the sensors for the monitoring of the assets could be the restrain for the market.
A detailed listing and benchmarking of various growth strategies adopted by key market players in the utility asset management market is provided in recent years. Companies in the utility asset management market adopted both organic and inorganic strategies to gain market shares and revenue growth. These strategies are grouped as new product launches, contracts & agreements, expansions, mergers & acquisitions, partnership, collaborations, alliances, and joint ventures.
Visionary leaders are the leading market players in terms of new developments such as product launches, innovative technologies, and the adoption of growth strategies. These players have a broad product offering that caters to most of the regions globally. Visionary leaders primarily focus on acquiring the leading market position through their strong financial capabilities and their well-established brand equity.
Dynamic Differentiators are established players with very strong business strategies. However, they have a weaker product portfolio compared to the visionary leaders. They generally focus only on a specific type of technology related to the product.
Innovators in the competitive leadership mapping are vendors that have demonstrated substantial product innovations as compared to their competitors. The companies have focused on product portfolios. However, they do not have very strong growth strategies for their overall business, when compared with the visionary leaders.
Emerging companies have niche product and service offerings. Their business strategies are not as strong as that of the established vendors. The emerging vendors include the new entrants in the market, emerging in terms of product portfolio and geographic reach, and require time to gain significant traction in the market.