According to new research reports published by Information Services Group (ISG), a global AI-centered technology research and advisory firm, the power and utilities industry in Asia Pacific is investing in AI and other digital technologies to address operating challenges due to increased power consumption and renewable energy development.
ISG reported that energy demand in Asia Pacific, which accounts for more than half of global electricity consumption, is surging due to industrialization and population growth. Data centers, AI, cryptocurrency mining and increasing EV sales are major drivers of demand, and the region is expected to invest more than $3 trillion in power generation over the next decade. Moreover, power companies are adopting digital solutions for the complex tasks of fortifying grids while integrating new renewable energy sources.
“Utilities in Asia Pacific need to ensure energy security while accommodating a changing energy mix and the growing impacts of climate change,” said Mark Smith, ISG partner and chief software analyst. “Innovative grid and asset management software offers tools to navigate these changes while improving efficiency and reliability, and service providers are helping utilities adapt to new requirements.”
ISG has published the 2024 ISG Provider Lens Power & Utilities Industry — Services and Solutions report for Asia Pacific and two ISG Buyers Guides: Power and Utilities Grid Management and Power and Utilities Enterprise Asset Management to guide utilities through the selection of software and services. Together, the three reports assist companies in selecting both software solutions and providers of consulting, implementation, integration and management services.
ISG added that Asia Pacific electric utilities are modernizing transmission grids and increasing capacity to support renewable energy expansion and meet net-zero carbon targets. This requires integrating new energy sources from remote areas, controlling voltage variability and managing flows to and from customers generating their own power. Advanced grid planning to minimize energy losses and stabilize peak demand is an important part of this transition.
The ISG Provider Lens report noticed that utilities in Asia Pacific are using AI-enabled forecasting tools to optimize the output of wind and solar farms. AI is also improving energy management by analyzing consumption patterns to optimize grid operations. Meanwhile, AI-powered building systems, such as smart lighting, enhance customers’ energy efficiency.
Facing growing cybersecurity threats against networks, data and applications, utilities and governments in the region are building up digital defenses, ISG notified. Australia’s national government has given owners and operators of critical infrastructure new cybersecurity responsibilities, and India has proposed steps such as mandatory cybersecurity audits to ensure the resilience and reliability of that country’s power supply.
“Asia Pacific’s energy evolution comes with new security risks,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “Vendors continually strengthen the security of software platforms, and service providers are helping utilities mount critical regional defenses.”
The ISG Buyers Guide for Power and Utilities Grid Management evaluates 12 software providers and names GE Vernova, Schneider Electric and Siemens as Overall Leaders. The ISG Buyers Guide for Power and Utilities Enterprise Asset Management evaluates 12 software providers and names SAP, IBM and Hitachi Energy as Overall Leaders.
The ISG Provider Lens Power & Utilities Industry — Services and Solutions report for Asia Pacific evaluates the capabilities of 29 service providers across five quadrants: Intelligent Business Process Management Services (iBPMS), Next-Gen IT Services, Grid Modernization, Enterprise Asset Management (EAM) and Customer Information Systems (CIS) and Customer Experience (CX).
The report names Accenture, IBM Consulting, Infosys, TCS and Wipro as Leaders in all five quadrants. It names Capgemini and HCLTech as Leaders in three quadrants each and Hitachi Digital Services and Tech Mahindra as Leaders in two quadrants each. Acquire BPO, Fujitsu and ProbeCX are named as Leaders in one quadrant each.
In addition, Capgemini, Cyient, LTIMindtree, ProbeCX, Tech Mahindra and WNS are named as Rising Stars, companies with a promising portfolio and high future potential by ISG’s definition, in one quadrant each.
