Energy industry is spending big on big data and analytics, and is estimated to grow at a CAGR of 25 percent from 2014 to 2019, says a new research from ABI Research.
Currently energy industry represents over 15 percent of the overall cross-industry spending, and the spending on energy analytics is estimated to surpass $21 billion in 2019, the research titled “Big Data and Analytics in Energy Industry”said.
The need to invest in big data and analytics is driven by the growing pressure to improve profitability. Energy companies, which were conservative in adopting new technologies, now realize huge cost savings are possible by making the operations more driven by data, says principal analyst Aapo Markkanen.
Upstream operations account for 63 percent of the spending whereas downstream accounts for 31 percent of the total, reflecting the growing use of data in refining and smart grid. The midstream represents 6 percent of the sum, spent mostly on optimizing logistics.
The research finds that newer suppliers like Ayata and Ayasdi are pushing the state of the art when it comes to modernizing the upstream. However, there are also opportunities for entrants tackling other parts of the value chain.
Practice director Dan Shey says, “Rethinking data storage to accommodate the growing influx of sensor data is one example. In this domain, pay attention to likes of Infobright, SpaceCurve, and TempoDB as innovators.”