Market Trends of Predictive Maintenance in the Energy Industry
Solutions Segment is Anticipated to Witness Significant Growth
- In the energy sector, there has been an increase in demand for customized industrial predictive maintenance solutions, primarily for remote monitoring operations. Big data has also played an essential role in analyzing processes, assets, and heavy equipment.
- Several vendors, including SAP, IBM, and Microsoft, are active in the market, offering customized predictive maintenance solutions and services based on the needs of organizations. These solutions can help organizations protect their critical equipment and gain a competitive advantage in productivity.
- Artificial intelligence (AI) and machine learning (ML) enable organizations to gain complete visibility of their operations and generate insights that can aid in the resolution of some of the industry's most disruptive challenges. Because of the volume of big data generated by energy sector companies, forward-thinking businesses invest in monitoring and predictive analytics tools that help leverage this data to its full potential. According to Gartner, 40% of new monitoring and control systems in this sector will use Internet of Things (IoT) to enable intelligent operations by the forecasted period.
- Due to the depletion of coal resources, the power generation industry is shifting away from coal and toward solar and wind energy. Because of changing climatic conditions, most countries strictly regulate coal power plants. As electricity consumption rises, developing countries invest in advanced technologies and equipment to expand their production capacities.
- The deployment of predictive maintenance solutions is expected to empower end users to increase productivity while minimizing failures in the power generation industry by maximizing innovative maintenance activities. The power generation industry in the Asia-Pacific developing countries requires higher efficiency, better control, and faster monitoring to reduce the likelihood of operational failure.
- Investments in renewable energy generation, particularly wind turbines, offshore wind farms, and solar farms, have fueled the predictive maintenance solutions market growth in countries such as China and India.
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North America to Occupy a Significant Market Share
- The predictive maintenance in the energy market is dominated by North America, followed by Europe. This is due to underlying factors such as the existence of many service providers, technological advancements, and increased knowledge of preventative maintenance. The growing emphasis on research & development (R&D) for technological advances in developed economies such as Canada and the United States has fueled demand for predictive maintenance solutions throughout the region. According to the United States Energy Information Administration (US EIA), the total energy consumption rate is expected to rise by 5% between 2020 and 2040.
- Businesses must provide energy efficiency and reduce downtime to remain profitable. This drives the data analytics market in utilities and energy. Rising environmental concerns and increased investments in sustainable energy will impact market growth.
- Other factors driving market growth include increased investment in artificial intelligence (AI) and machine learning (ML) to reduce asset downtime and maintenance costs, adoption of the Internet of things (IoT), the need to extend the overall lifespan of machinery and equipment, declining sensor prices, advancements in sensor technology, and the evolution of high-speed networking technologies. Furthermore, regulatory compliance has been a significant driver of the Internet of things (IoT) technology adoption in the United States. The passage of the Energy Act (EA) in the United States has sped up efforts to track sustainable energy consumption.
- The energy industry, one of the largest in the United States, is attracting significant investment. For example, according to Bloomberg New Energy Finance (BNEF), the United States is expected to invest approximately USD 7,00,000 million in renewable energy capacity over the next 20 years. These factors are expected to boost the growth of the predictive maintenance market.
- The energy sector remains a target for deal activity as environmental, social, and governance (ESG) strategies are strengthened. General investor interest remains high, although macroeconomic pressures could pose various valuation challenges for North American energy, power, and utility companies. For instance, J.P. Morgan paid USD 7.8 billion (USD 7,800 million) for South Jersey Industries. Similarly, ArcLight Clean Energy Transition Corp paid USD 1.5 billion (USD 1,500 million) to acquire OPAL Fuels LLC. This boosts the growth of predictive maintenance in North America.
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