The global market for active network management is projected to reach USD 942.43 million in 2023, according to Future Market Insights. During the forecast period ranging from 2023 to 2033, a CAGR of 20.3% is projected for the market. By the end of the said period of assessment, FMI predicted active network management would be valued at USD 5,985 million by 2033.
A growing share of distributed and renewable energy sources are being integrated into electrical distribution systems, which has made Active Network Management (ANM) an invaluable tool for operators of distribution systems to manage their systems efficiently and cost-effectively without having to depend primarily on network reinforcement. ANM strategies are designed to control the amount of power injected into and taken out of the grid at any given point in time.
Net zero electricity use will be achieved through the adoption of new innovative technologies. Using Active Network Management (ANM) systems and flexible connection agreements, this technology has allowed distribution constraints to be better managed.
An innovative project by SHEPD led to the Orkney smart grid, the first smart grid in Britain, developed and deployed through innovation projects resulting in a £500k solution compared to the £30m cost of alternative reinforcement identified in the Orkney ANM scheme in a recent review. It is envisaged that new energy generators will be able to set power limits employing automated controls, thereby preventing too much energy from entering the grid, which would otherwise cause outages and faults in the system.
Anm4L is an EU project that aims at developing and demonstrating new ANM solutions for increasing the scalability and efficiency of electricity distribution systems by integrating distributed generation. Active and reactive power management will be integrated into ANM solutions to prevent overloading and maintain proper voltage levels. Ideally, this would reduce the need to curtail renewable energy, allowing a distributed generation to be even more integrated into existing networks. In another instance, Swedish and Hungary distribution grids were used to demonstrate the toolbox, methods, and business models for ANM. The project also weighs scalability and replicability requirements to apply these ANM solutions throughout the EU.
ANM was implemented at the Dunbar Grid Supply Point (GSP) between 2012 and 2016 by SP Energy networks and partners to connect four new projects with a total of 50MW to an export-constrained grid, as well as to connect a 48MW windfarm to a flexible link, replacing the previous inter-trip connection.
Using Active Network Management has proven to be an incredibly effective way of increasing the amount of renewable energy generated without requiring a multi-billion-pound investment from businesses. Smart cities are adopting smart energy distribution strategies due to an increase in projects aiming to make cities smarter. Over 2.5 billion urban residents are projected to live in cities by 2050.
For instance, Urbanova has built a smart city proving ground in Spokane, Washington to develop the future of cities. The Urbanova project aims to improve urban life by applying robust, scalable, replicable, and sustainable technologies. One of the pilot projects aims to monitor air quality through connected and smart streetlights, a pilot program for a Shared Energy Economy, and a study of people's lives using their voices to analyze. Urbanova's Smart City Pilot relies on the Active Network as a platform for connecting a range of devices to a smart city and running smart city applications.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | USD 800 million |
| Expected Market Value (2023) | USD 942.43 million |
| Anticipated Forecast Value (2033) | USD 5,985 million |
| Projected Growth Rate (2023 to 2033) | 20.3% CAGR |
The vision of smart grids is shaping up and with the changing demands on distribution systems, the need for active network management solutions is increasing. With the growth of embedded electricity generation at different voltage levels and the rapid development of smart grid technologies, the Distribution Network Operators (DNOs) are focusing on adopting active network management solutions for the wider development of smart grids and to manage flows on their networks.
Moreover, the rising need for efficient use of electricity at customer level and growing penetration of renewable resources are creating potential growth opportunities for the active network management market.
The demand for active network management solutions is increasing among industries to connect separate components of smart grids such as storage devices and energy generators by integrating software to control and monitor the operation of these devices.
Furthermore, with the growing power quality requirements and rising need for utilization rate of existing networks are among the key factors propelling the growth of active network management market.
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The continuous rise in demand for efficient power management solutions and uninterrupted power supply are the key factors driving the growth of active network management market. Moreover, the growing adoption of smart grid technologies and increasing smart cities projects across the world are also some of the key factors driving the growth of active network management market.
Also, the ongoing advancements in the renewable energy generation solutions and high spending on smart infrastructure solutions are creating potential growth opportunities for the active network management market. Apart from this, the rise in demand for efficient and automated power management solutions and rising adoption of connected devices are driving the growth of active network management market.
Also, the need for reducing investments in expensive energy network reinforcement and for managing real-time network related issues are driving the growth of active network management market. However, the lack of proper IT infrastructure and high cost of implementation are some of the key challenges which hinders the growth of active network management market.
Leading players in the active network management market are focusing on entering into collaborations and partnerships to better serve the regional customers and to adhere with the regional regulations and policies. Also, various active network management solution providers are coming up with advanced solutions to help the power companies in solving challenges caused due to aging infrastructure.
Some of the key players in the Active Network Management market are
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On the basis of regions, North America and Asia Pacific is expected to lead the active network management market owing to the growing adoption of digital technologies in industrial landscape and presence of leading active network management players in the region. Moreover, the increasing focus on the adoption of energy management solutions and growing smart cities projects are driving the adoption of active network management market in countries of Asia Pacific.
Europe is also expected to create significant growth opportunities, owing to the continuous increase in adoption of advanced energy management solutions and automated power management solutions in the countries of the region. Furthermore, the rising increasing usage of renewable energy sources in the advanced and emerging economies around the globe is expected to drive the active network management market.
The Active Network Management market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.
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The Active Network Management market has been segmented on the basis of component, end users, and region.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis and Forecast, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis and Forecast 6.1. Component 6.2. End Users 7. Global Market Analysis and Forecast, By Component 7.1. Software/Platform 7.2. Services 7.3. Professional Services 7.4. Managed Services 8. Global Market Analysis and Forecast, By End Users 8.1. Power 8.2. Power Generation 8.3. Power Grids 8.4. Energy & Utilities 8.5. Oil & Gas 8.6. Manufacturing 8.7. Others 9. Global Market Analysis and Forecast, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia & Pacific 9.5. East Asia 9.6. Middle East and Africa 10. North America Sales Analysis and Forecast, by Key Segments and Countries 11. Latin America Sales Analysis and Forecast, by Key Segments and Countries 12. Europe Sales Analysis and Forecast, by Key Segments and Countries 13. South Asia & Pacific Sales Analysis and Forecast, by Key Segments and Countries 14. East Asia Sales Analysis and Forecast, by Key Segments and Countries 15. Middle East and Africa Sales Analysis and Forecast, by Key Segments and Countries 16. Sales Forecast by Component and End Users for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. ABB 18.2. General Electric 18.3. Schneider Electric 18.4. Cisco Systems 18.5. Itron 18.6. Oracle Corporation 18.7. IBM Corporation 18.8. Landis+Gyr 18.9. Smarter Grid Solutions
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Active Network Management Market
