The global energy industry has witnessed a massive transformation over the past five years, owing to the rapidly rising demand for energy conservation and energy security. Players across the energy supply chain are actively working toward the development of sustainable distribution systems. Moreover, the increasing concern of cybertheft has further driven the adoption of digital solutions for oil& gas and power industry. Internet of Energy, as a system integrator, helps in accumulating the complete value chain within a single operating platform, addressing specific client-centric challenges, along with an improvement in overall performance.
Furthermore, the cost-effectiveness feature of Internet of Energy is gradually driving the degree of acceptance amongst the energy companies. Access to real-time information across remote locations is a major demand across the energy domain, which is now being achieved with the help of Internet of Energy-enabled sensor data, which brings extraordinary insight into process performance. Internet of Energy, which integrates sensing, communication and analytics dimensions has shown improvement as the core technologies have enhanced. The following figure represents the components of Internet of Energy.
Read Report Overview: Internet of Energy Market
The Global Internet of Energy Industry Analysis by BIS Research projects the market to grow at a significant CAGR of 21.05% during the forecast period from 2019 to 2024. The market growth is expected to be driven by the rising concern for energy efficiency, growing market penetration of decentralized power generation, as well as the need to prevent cyber-attacks.
The increasing demand for energy efficiency across the globe has propelled the need for Internet of Energy. Moreover, there is an increased concern for decentralized power generators in the electricity distribution supply chain to reduce the electricity demand. The growth of the market is likely to be encouraged by increasing cyber-attacks on the communication infrastructure, leading to the loss of energy.
Catering to oil & gas industry, each of the industry stream (upstream, midstream, and downstream) can be benefitted from the use of IoE in the following ways. Upstream companies which majorly deal in the exploration and production of the oil & gas can gain operational insights by analyzing huge set of data. Midstream companies which deals in the transportation such as pipelines and storage will be benefited by building a data-enabled infrastructure, which can further enhance the business considerably. Downstream companies dealing with the petroleum products, refiners and retailers will witness new opportunities of revenue generation, expanding their presence across the supply chain and targeting digital consumers with the help of IoE.
However, some challenges also prove to be a restraint to the overall growth of the market. Privacy and security risk involved during the operation of Internet of Energy solutions play an important role in hindering the adoption of such technologies by various small-scale players. Moreover, small- and medium-sized players in the energy sector are hesitant in introducing Internet of Energy due to the lack of communication infrastructure associated with the same.
Internet of Energy Market: By Application
Preventive maintenance represents the most significant application in the oil & gas market for IoE-based technologies. The deployment of smart sensors in the industrial equipment helps oil & gas companies to monitor and inspect the same. Earlier, instead of smart sensors, the machinery inspection was done manually which has drawbacks related to unsuitable mechanical maintenance and hardware status. Therefore, the use of IoE for preventive maintenance becomes more accurate, as it is being used to reduce risks and environmental concerns. Moreover, preventive maintenance is expected to display the maximum growth, owing to the high possibilities of value addition in these application areas.
North America: Frontrunner in the Internet of Energy Market
The trends of the Internet of Energy market vary across different regions such as North America, Europe, Asia-Pacific (APAC), and Rest-of-the-World (RoW). In 2018, North America was at the forefront of the market, with a considerable market concentration in the U.S.
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North America is expected to remain the dominant market for Internet of Energy in the forecast period, with the U.S. being the technological hub for all digital innovations across the energy sector. During the forecast period, the Asia-Pacific region is expected to flourish as one of the most lucrative markets for Internet of Energy solution providers manufacturers. Asia-Pacific region is also expected to exhibit significant growth opportunities for Internet of Energy due to an increased level of optimism in the economic conditions in these countries. The key countries in this region present immense scope for market development, owing to the increasing urban population size, growing market penetration of advance technologies, and favorable government investments.
Key Companies in the Internet of Energy Market
The prominent players in the Internet of Energy market include General Electric Company, Siemens AG, Schneider Electric, ABB Ltd, Honeywell International, Rockwell Automation, Ingersoll Rand Plc, Microsoft Corporation, Cisco Systems, IBM Corporation, Intel Corporation, Huawei Technologies, and HCL Technologies, and Telit Communications PLC.