The report forecasts the global smart grid IT systems market to grow at a CAGR of 12.91% during the period 2016-2020.
IT systems used in smart grids are mostly software applications that are used for planning, process management, resource allocation, and decision making. IT systems in this sector include:
Distributed energy resource management system (DERMS)
Demand response management system (DRMS)
Geographic information system (GIS) (includes asset management and workforce management)
Customer information system (CIS)
Power demand has increased constantly worldwide. Further growth in population and global economy is expected to drive this trend in the future as well. The population rise, an increase in energy demand, and the imposition of stringent emissions norms would require a substantial amount of energy production to sustain the economy growth. The deployment of smart grid enables new power resources such as distributed generation, integration of renewable power and electric vehicles to be integrated into the grid, to meet the power demand.
According to the report, the power and utility sector is undergoing a major change from a rigid structure to a system that is more focused on flexibility. It is driven by climate change policies, urbanization, and technological breakthroughs. This paradigm shift in the power sector is achieved by the deployment of AMI and SCADA systems, which are making the grid smarter and allowing utilities to have greater control over the functioning of the grid.
Further, the report states that high cost of upgrading smart grids is expected to have a significant impact on the growth of the smart grid data management market during the forecast period.