Worldwide revenue from asset management and condition monitoring (AMCM) systems for the power grid will grow from $2.1 billion annually in 2014 to $6.9 billion by 2023, according to a report from Navigant Research.
Advances in sensing and monitoring technology have the potential to completely revolutionize the way the power grid is managed and maintained. While the penetration level of these systems is relatively low today, adoption is expected to accelerate rapidly over the next several years.
“The advent of the smart grid is causing utilities to reevaluate their approach to asset management,” says Richelle Elberg, senior research analyst with Navigant Research. “The prices for sensing and monitoring devices have fallen to the point where a credible and compelling business case for deployment can be made.”
The growing availability and affordability of these technologies comes at a critical time for many utilities, according to the report. Faced with aging infrastructure, knowledge drain as long-time employees reach retirement age, an increasingly two-way grid, and rising pressure for not only better efficiency and reliability, but also profitability, utilities are likely to find more effective AMCM solutions to be indispensable in the coming years.