According to Pike Research, the smart grid data analytics market will reach $4.2 billion by 2015. Software and service providers of smart grid analytics for the utility sector will ride a large growth opportunity over the next several years. According to Pike Research, the relatively small market will increase from $356 million in 2010 to nearly $4.2 billion in annual revenue by 2015.
This utility sector phenomenon is a great example of the growing need for analytics. The smart grid and the gradual installation of intelligent endpoints, smart meters and other devices will generate volumes of data. This type of instrumentation is playing out in many industries. As this occurs, industry players will be challenged to leverage the data generated by these devices.
In this recent article Marianne Hedin, industry analyst at Pike Research, said: “Smart grid utilities are evolving into brokers of information. The data tsunami that will wash over utilities in the coming years is a formidable IT challenge, but it is also a huge opportunity to move beyond simple meter-to-cash functions and into more robust business intelligence capabilities, true situational awareness with real-time optimization of their operations, and even predictive analytics.”
This same case can be made for data flowing through medical devices, scientific devices, sensors, monitors, detectors and other supply chain devices, instrumented cars and roads, instrumented domestic appliances, etc. Everything will be instrumented and from this instrumentation comes data. This data will be analyzed to find insight that drives informed actions. It’s not hard to see why analytics is such a hot topic these days.