Smart grid IT spending is estimated to reach $140 billion between 2014 and 2022, says a new study from Navigant Research.
IT will play a crucial role in utilities segment as the traditional grid network evolves into a far more complex system, the report said.
Vendors are working on developing more interoperable solutions to meet utilities’ needs and ease the transition to a smart grid while also developing what it calls “creative purchasing models”, such as managed services, Navigant said.
“A dizzying array of solutions has emerged to meet utilities’ IT needs for the smart grid,” says Richelle Elberg, senior research analyst with Navigant Research.
“This is a period of rapid change, and the difficulties associated with legacy system replacement and new system integration are not minor – but the potential benefits are real and increasingly measurable in terms of grid efficiency, reliability, and financial viability,” Elberg added.
The research also says because legacy utility IT systems were not designed to handle the volume or speeds of data generated by the smart grid, new hardware may be needed in addition to new software systems.
Another trend in smart grid IT market is the outsourcing of data centers.
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picture source: reuters