The rapid adoption of Internet-connected devices supports a new digital foundation for the energy industry, and the emerging Internet of Things touches nearly all aspects of energy generation, transmission and distribution.
That's according to a new report by Navigant Research. The revenue opportunity represented by commercial and residential IoT is expected to total $776.8 billion from 2016 through 2025, representing a compound annual growth rate of nearly 17%.
"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," says Neil Strother, principal research analyst with Navigant Research. "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."
IoT represents one of several emerging technology integration platforms within the "energy cloud," which uses pervasive connectivity, intelligent sensors and devices, information and operations technology, and data-driven, machine-learning functionality across the grid value chain.
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, Navigant Research says.
The increasing connectivity of assets results 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, it adds.
— Edward Gately, Contributing Editor, Channel Partners
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