by Brianna Crandall — January 9, 2017 — A new white paper and slide-based report from Navigant Research examine the emerging Internet of Things (IoT) market. The reports are particularly geared towards utilities, but they give a good explanation of the Internet of Things and various aspects of its anticipated impact.
IoT and the Future of Networked Energy
The new IoT and the Future of Networked Energy white paper explores the market dynamics, opportunities, and challenges embodied by the emerging Internet of Things (IoT) trend and its impact on the Energy Cloud.
The rapid adoption of Internet-connected devices supports a new digital foundation for the energy industry, and the emerging IoT touches nearly all aspects of energy generation, transmission, and distribution. IoT represents one of several emerging technology integration platforms within the Energy Cloud, which leverages ubiquitous connectivity, intelligent sensors and devices, information and operations technology, and data-driven machine-learning functionality across the grid value chain.
According to the new white paper, the revenue opportunity represented by the commercial and residential IoT sectors is expected to total $776.8 billion from 2016 through 2025, representing a compound annual growth rate (CAGR) of nearly 17 percent.
According to Neil Strother, principal research analyst with Navigant Research:
The IoT is a sweeping set of hardware and software technologies that represents an emerging digital foundation for the energy industry, and can be thought of as the connective tissue that enables the quickly emerging Energy Cloud. This unfolding IoT trend is one worth watching, and smart stakeholders will want to take strategic steps to ensure they take advantage of the opportunity over the next decade or so to provide value to customers and reap the profits.
Currently, the IoT holds great potential for streamlined operations, the integration of distributed energy resources, and the ability to connect with customer assets in new and helpful ways, according to the white paper. The increasing connectivity of assets is said to result in greater reliability, increased safety from knowing in real-time what is happening in grid-edge devices, and the ability to share that data to keep customers comfortable and safe.
The white paper, IoT and the Future of Networked Energy, explores the market dynamics, opportunities, and challenges embodied by the emerging IoT trend and its impact on the Energy Cloud. The paper provides meaningful insights about IoT platforms and introduces the IoT Playbook, a framework for making key business decisions for harnessing the benefits to drive growth.
The paper also provides a high-level assessment of some of the risks involved as the IoT market shifts and matures. An Executive Summary of the report is available for free download on the Navigant Research Web site.
IoT Enabled Managed Services
The slide-based report explores the U.S. market for the Internet of Things (IoT), focusing on technology trends, customer adoption, utility rollouts, and the vendor landscape, with cost curve projections and adoption forecasts, through 2025.
The developing IoT market will require a rethinking of current utility business models to capture market share in this broader demand management landscape, according to the report. IoT is said to enable customers to manage their energy independently, as the technology opens the door to ongoing relationships through devices, software, and services. Navigant Research expects the IoT market to reach $500 million in 2020.
Casey Talon, principal research analyst with Navigant Research, explained:
IoT is not one device or technology but a platform of data collection devices, secure data networks, software, and services that delivers actionable insight. If utilities seize the opportunity, they can leverage this to enhance customer offerings and increase customer engagement.
To position their businesses to succeed, utilities should develop an IoT service strategy to compete with investment on the customer side of the meter, advises the report. Utilities should also consider developing, acquiring, or partnering to offer IoT-enabled managed services.
This report, IoT Enabled Managed Services, examines the IoT market in the United States, with a focus on technology trends, customer adoption, utility rollouts, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2025, along with estimated customer distribution by U.S. state.
Featuring Navigant Research’s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, features utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success. An Executive Summary of the report is available for free download on the Navigant Research Web site.