The market for grid-edge computing for utility operations is set to reach more than $16bn by 2032, according to Guidehouse Insights.

Energy networks are struggling to provide electricity amid increasing climate uncertainty and proliferation of distributed energy resources (DERs), says the report, which explores the market for edge computing technologies used throughout the distribution grid, from substations to DER networks, on the supply (utility) and demand (customer) side of the meter.

The global utility market is in a transitional period, as utilities work to reorient themselves to ensuring reliability and stability while managing distributed energy resources. To this end, they are adding sensors and analytics to gain a better understanding of real-time events occurring on their grids.

According to the report, grid-edge computing for utility operations is expected to grow from $3.5bn in global spending in 2023 to $16.1bn in 2032, at a CAGR of 18.5%.

“The global utility industry faces unprecedented challenges and opportunities, as energy networks struggle to provide electricity amid increasing climate uncertainty and the proliferation of distributed energy resources,” said Francesco Radicati, senior research analyst with Guidehouse Insights. “Utilities must rapidly diagnose and repair outages, and balance fluctuating loads caused by individual users’ renewable energy equipment. Intelligent monitoring and sensing devices placed on equipment in the distribution grid can provide insights into what is occurring, but what is really needed is true distributed intelligence so that utilities can make decisions on local devices and without limitations of bandwidth or latency.”

The volume of data and communications network limitations mean utilities are increasingly adopting edge computing, enabling them to make decisions based on real-time data generated locally. Edge computing also has implications for utilities’ cyber security, as the reduced amount of data sent to the cloud presents less of a vulnerability to attackers, according to the report.

The report focuses on edge computing technologies, both software and hardware, used throughout the distribution grid, from substations to DER networks, on the supply and demand side of the meter. Customer segments covered are residential and commercial and industrial (C&I). Utility-scale deployments are beyond the scope of this report.

An executive summary of the report is available for free download at: guidehouseinsights.com/reports/Edge-Computing-Market.