According to a new report from Navigant Research, the APM market size for distributed energy technologies, such as solar PV plants, wind turbines, and energy storage solutions, is expected to increase from $4.6 billion in 2018 to $23.2 billion in 2027, experiencing a CAGR of 19.7% during this period. Digitization is driving a shift toward the capital optimization of asset portfolios, putting more pressure on energy companies to ensure assets are operational.
In remote locations, distributed renewables generation assets are not always equipped to meet the harsh conditions to which they are exposed—leading to outages, equipment failure, and random surges in power demand. APM allows asset-intensive industries to reduce downtime and ensure that assets are optimized to operate at the highest level of efficiency, avoiding lost revenue.
“The energy industry has traditionally relied on calendar management programs for its valuable assets, but consequently these assets face a high risk of breakdowns and unavailability between service intervals,” stated Pritil Gunjan, senior research analyst with Navigant Research. “This traditional approach can negatively affect the life expectancy of assets while drastically reducing their ROI, as they are likely to miss faults that occur between these intervals.”
APM for behind-the-meter renewables is still an emerging market because of the scale of investments required to perform end-to-end integrated APM, according to the report. However, the rapid pace of digitization has led to a shift toward the capital optimization of asset portfolios, putting more pressure on energy companies to ensure operational assets. Navigant Research recommends a two-pronged strategy – APM hybridization and aggregation – for APM market participants to succeed in this growing market opportunity.
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