TAYO ELEGBEDE
A new research by Bloomberg NEF indicates China and Europe are the biggest global markets for power generation software.
While China accounts for 26 percent of the global market for power grid software, Europe is responsible for 24 percent.
The research said China is particularly aggressive in digitalising nuclear fleets as part of a national strategy to modernise its nuclear capacity, while European utilities have a lead in digitalising the wind sector, given its large amount of offshore wind capacity.
The Bloomberg NEF research revealed that the market estimate for power grid software in 2020 is split roughly evenly between China (28%), Europe (25%), U.S. (21%), and the rest of the world (26%).
“The U.S. has a large amount of gas power generation and utilities there are spending money on digitalizing these plants as they play an important role in providing flexibility to the power market,” the research added.
Findings shows that the power sector will spend $3.2 billion on software in 2020 to optimise the performance, costs and revenues of generation and grid assets, while believing the figure will grow to $5.2 billion by 2025, driven by the sectors decarbonisation mandate.
The research further indicated that utilities will spend $1.8 billion on software to monitor, maintain and optimise power generation assets, noting that renewable capacity and shifting wholesale market dynamics will drive the software market to grow by 60% to $2.8 billion by 2025.
The wind sector, the research says, will become the biggest end-market for asset software by 2025, overtaking the gas sector.
“We expect 78 percent of wind capacity will have monitoring software, and 40 percent of wind farms will use Asset Performance Management (APM) and image analytics for fault diagnostic.
“The gas sector has a lower software adoption rate of 63 per cent for remote monitoring and 20 per cent for Asset Performance Management (APM) , yet capacity will remain 70 per cent larger than wind in 2025.
“The falling cost of IoT sensors and communications networks has helped expand the use of advanced analytics such as asset performance management (APM), and also the use of in-field digital tools such as augmented reality.
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