Edge Computing in Power Sector Market Size (2024 - 2030)

The Global Edge Computing in Power Sector Market was valued at USD 1.77 Billion and is projected to reach a market size of USD 2.56 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 7%.

Edge computing has the potential to seriously change the power industry, via its capacity to process massive quantities of information in actual time and finally enhance the protection and effectiveness of operations. It brings processing abilities and storage nearer to the place it is needed. It additionally helps enhance scalability, response instances, and operational costs by using enabling structures that are simpler to hold and update.

By processing a lot of the records generated from the related grid property locally, customers will see a sizable reduction in community bandwidth costs related to the delivery of the ever-increasing amounts of OT facts to a records center in the cloud. Fault resiliency of the grid is extended by enabling decentralized autonomous operations. Edge computing is enabling a new technology of smart functions that can leverage contemporary advances in artificial intelligence (AI) and machine learning (ML). It brings many of the advantages of cloud computing such as containerization, virtualization, and current approaches to application orchestration and updating to the OT world. These factors are estimated to drive the market's growth during the forecast period 2023-2030.

Global Edge Computing in Power Sector Market Drivers:

The technological benefits provided by edge computing in power generation are fuelling the growth of global edge computing in the power sector market.

The electrical energy grid is already undergoing a procedure of change, pushed by the want for digitization has largely helped. This is required due to the growing grid complexity operators should deal with. It flows from the want to combine new electricity sources and to generate and save energy in an allotted manner. Other elements using this trade consist of the want for generators, distributors, and power technology groups to provide new products and services in an increasing number of aggressive markets. It is additionally essential that each regulator and customer have extended access to the very today's operational and business information. When mixed with tons of increased intelligence throughout subsystems, digitizing the grid property throughout operations is critical to assist manipulate this complexity. Therefore, this factor drives the demand for edge computing in the power sector.

Improved efficiency through localized computing is another factor contributing to the growth of global edge computing in the power sector market.

Edge computing in the power sector involves implementing local computing equipment in electrical substations or transformation centers, bringing data storage and processing closer to the point of need. This results in improved scalability, faster response times, and cost savings. The benefits include seamless integration of legacy and new equipment, local data processing and storage using AI algorithms, and enhanced communications between substations. These capabilities enhance data utilization, operational efficiency, and fault detection, and create new business opportunities based on real-time information. Therefore, this factor also drives the demand for edge computing in the power sector.

Global Edge Computing in Power Sector Market Challenges:

The global edge computing in the power sector market is encountering challenges, primarily in terms of the extra load of a system to manage data. At the substation and throughout the grid, there may additionally be many of these edge units that want to be managed. Customers must be in a position to control these devices and their software workloads centrally, commonly from the cloud, but additionally, potentially on-premise when required. Today's technology of edge functions commonly helps containerization (e.g., Docker) which affords a variety of benefits such as utility portability. However, a management system has to additionally be in a position to set up and manipulate different workloads, such as traditional executables. Thus, these challenges inhibit the growth of global edge computing in the power sector market.

COVID-19 Impact on the Global Edge Computing in Power Sector Market:

The COVID-19 pandemic has led to a rise in edge computing and data centers, but funding for these technologies is projected to decrease slightly. To save costs, businesses are cutting back on software and server upgrades. The demand for edge computing will remain strong for the next few years as core network expansion continues. Remote work and online healthcare consultations are driving the need for secure, low-connectivity network infrastructure.

Global Edge Computing in Power Sector Market Recent Developments:

• In October 2022, Red Hat, the global leader in open-source solutions, introduced Red Hat Device Edge, a solution that allows the deployment of conventional or containerized workloads on small devices like robots, IoT gateways, and point-of-sale systems.

EDGE COMPUTING IN POWER SECTOR  MARKET REPORT COVERAGE:

Global Edge Computing in Power Sector Market Segmentation:

Global Edge Computing in Power Sector Market Segmentation: By Deployment

• Cloud
• On-Premise

Based on the deployment, the cloud segment dominated the market in 2022. Servers that allow edge apps are regularly owned by organizations, linked to units through a personal network, and positioned on-premises. Servers are gradually being mounted in far away and edge locations, lowering latency amongst information producers and consumers. In addition, as the telco area evolves, telcos are creating Multi-access Edge Computing (MEC) server structures for information manner technology.

The developing range of reachable centers in more than a few industries is using up the market for side routers. The routers serve as a gateway between each neighborhood community and the external WAN. All information packets be a part of the community to be routed via the whole aspect router. Furthermore, the side router is subsequently responsible for operational security, filtering out undesirable access requests. Edge data centers need to be well-equipped with numerous and robust aspect routers capable of coping with an excessive volume of visitors coming with low latency.

Global Edge Computing in Power Sector Market Segmentation: By Application

• IIoT
• Remote Monitoring
• Content Delivery
• Video Analytics
• AR/VR
• Others

Based on the application, the IIoT segment dominated the market in 2022. Smart grids, which function on system area infrastructure, are essential in contributing to profitability in edge computing in the power sector industry. Sustainable environmental measures are pushing the world to try to enhance the effectiveness of electrical energy distribution services, as well as the improvement of choice renewable energy sources like wind and solar. Globally, smart grids are being added to make bigger productivity upgrades and provide features together with interconnection with smart appliances, real-time consumption control, and microgrids to assist in disbursed renewable production. The healthcare enterprise had a substantial revenue share. When it comes to the use of digital technology, the healthcare enterprise has constantly been cautious. The enterprise is pretty controlled, with permission using enhancement rather than a blatant interruption.

Global Edge Computing in Power Sector Market Segmentation: By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Geographically, North America captured the greatest revenue share of greater than 40 % in 2022. The convergence of IIoT with part computing is forming favorable stipulations for producers in the U.S. to cross toward linked factories. Several startups have additionally evolved to supply platforms for creating edge-enabled options that are anticipated to enhance the regional market's growth.

In 2022, Asia Pacific accounted for a remarkable share of revenue due to a growing focus on strengthening networking technology due to the COVID-19 pandemic.

Global Edge Computing in Power Sector Market Key Players:

1. Amazon Web Services (AWS), Inc. (United States)
2. ABB Ltd. (Switzerland)
3. Siemens AG (Germany)
4. IBM Corporation (United States)
5. Aricent Inc. (United States)
6. Atos (France)
7. General Electric Company (United States)
8. Hewlett Packard (United States)
9. Huawei Technologies Co., Ltd. (China)
10. Cisco Systems (United States)