Rising Renewable Energy Generation Fuels Active Network Management Market Growth
The global energy landscape is undergoing a significant transformation, with renewable energy sources playing a crucial role in meeting the world’s increasing energy demands. As the renewable energy sector continues to flourish, it has created a ripple effect, driving the growth of the active network management market. Active network management solutions enable efficient management and integration of renewable energy sources into existing power grids, ensuring a reliable and stable supply of electricity. Renewable energy has experienced remarkable growth over the past decade, driven by factors such as declining costs, government incentives, and growing environmental concerns. Solar and wind power are among the leading contributors to the renewable energy mix, with their capacity increasing significantly year after year. This surge in renewable energy installation has created the need for advanced management systems to optimize and balance the intermittent nature of these energy sources.
The capacity for generating renewable electricity is expanding at an unprecedented rate, presenting a significant opportunity to achieve the goal of tripling global capacity by 2030. For instance, in 2023, the addition of renewable energy capacity to energy systems worldwide increased by 50%, reaching a remarkable 510 gigawatts (GW). Notably, solar photovoltaic (PV) accounted for three-quarters of the total capacity added globally. The largest surge in renewable energy growth occurred in China, where the installation of solar PV in 2023 was equivalent to the entire world’s installations in 2022. Additionally, China experienced a remarkable 66% year-on-year increase in wind power additions. Europe, the US, and Brazil also witnessed record-breaking growth in their renewable energy capacities. Thus, such developments in the renewable energy sector hold immense potential for businesses and economies worldwide.
Active Network Management Market: Industry Overview
The active network management market report is segmented on the basis of component, industry, application, organization size, and geography. Based on component, the market is divided into software and services. Based on industry, the market is divided into energy and utility, transportation, oil and gas, manufacturing, and others. Based on application, the market is divided into grid asset monitoring, real-time monitoring, and automation. Based on organization size, the market is divided into small and medium-sized enterprises and large enterprises. Geographically, the market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.
In terms of revenue, North America dominated the active network management market share in 2023. The North America Active Network Management market is segmented into the US, Canada, and Mexico. The region is experiencing rapid expansion in terms of technology breakthroughs and acceptance. It has a well-equipped infrastructure and is capable of affording active network management solutions. Furthermore, General Electric and Oracle Corporation are key players in the active network management industry in North America, with significant investments in smart power distribution systems. Vendors in this market produce novel active network management solutions to suit varied operational and development demands across industrial verticals, including energy and utility, transportation, and government.
The Asia Pacific active network management market is experiencing significant growth, with countries such as China, Japan, South Korea, and India actively incorporating active network management technology into their renewable energy industries. For instance, TANTRANSCO, the electricity company in the Southern Indian state of Tamil Nadu, announced its plans to adopt an active network management system as a pilot project to reduce renewable energy curtailment and improve system balancing. This move is undertaken in response to the high penetration of wind and solar renewables in Tamil Nadu. The active network management system will help manage one of the largest and most diverse renewable resources across TANTRANSCO’s transmission network. Further, the government of Tamil Nadu is launching a smart energy platform to improve energy conservation and emission reduction by providing intelligent and efficient services. The launch of a similar smart energy system in China called Tianshu-1, has demonstrated the potential benefits of such systems. Tianshu-1 integrates various functions, including energy monitoring, forecasting, regulation, and operation, to provide users with comprehensive services. By leveraging these technologies, businesses can improve energy efficiency and promote sustainable practices. Thus, such developments by the government of Tamil Nadu and the rising adoption of active network management systems have driven the active network management market.
The Middle East & Africa market is segmented into four regions: South Africa, Saudi Arabia, the UAE, and the Rest of MEA. The UAE is currently making significant progress in the development of a smart grid infrastructure. For instance, in July 2022, the Dubai Electricity and Water Authority (DEWA) took a significant step forward by enhancing the integration of various energy resources in their smart grid through the implementation of a Virtual Power Plant (VPP). This pioneering initiative in the region consolidated the Distributed Energy Resources (DERs) operated by DEWA’s R&D Centre, managing them as a unified portfolio of generation and load that is seamlessly connected to the grid. The implementation of active network management plays a crucial role in this endeavor.
Active Network Management Market: Competitive Landscape and Key Developments
The active network management market analysis is carried out by identifying and evaluating key players in the market across different regions. ABB; Cisco Systems, Inc.; GE Grid Solutions, LLC; IBM Corporation; Camlin Group; Oracle Corporation; Argand Solutions; Siemens AG; Smarter Grid Solutions; and ZIV Automation are among the prominent players profiled in the active network management market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. As per the company press releases, below are a few key developments:
- In 2024, GE Vernova’s Grid Solutions business (NYSE: GE) announced the launch of Grid Beats, a comprehensive portfolio of software-defined automation solutions aimed at streamlining grid digitalization and enhancing grid resilience.
- In 2023, Oracle announced new Oracle Utilities Network Management System features to help utilities navigate the fast-evolving energy grid and rapidly expanding distributed energy resources (DERs). New automated grid management and built-in AI will enable utilities to orchestrate better and control DER and grid-edge devices, boost network visibility with real-time insights, and provide a unified user experience across multiple platforms.