IDC: It is expected that the ICT expenditure in the power and new energy industry in the Asia-Pacific region will reach 13.54 billion US dollars by 2026.

Recently, IDC released its "Industry Market Forecast: ICT Outlook for the Energy and New Energy Industry in the Asia-Pacific Region, 2023" report, predicting that by 2026, ICT spending in the energy and new energy industry in the Asia-Pacific region (consisting of hardware, software, IT services, and telecommunications services) will reach $13.54 billion, with a compound annual growth rate (CAGR) of 7.9% from 2021 to 2026. Currently, power companies in the Asia-Pacific region are facing challenges such as legacy IT systems and infrastructure, aging assets, changing customer expectations, lack of data capabilities, and low carbon commitments. Due to disruptions in the supply chain and potential economic downturns, project spending by power companies in the Asia-Pacific region has been slightly reduced. However, the majority of CIOs of power companies in the Asia-Pacific region remain optimistic about ICT spending, with over 40% of respondents indicating they will maintain the same level of expenditure as the previous year, and over one-third of respondents suggesting that they may increase ICT spending. IDC believes that key areas of ICT spending for the energy and new energy industry in the Asia-Pacific region include: 1. Smart grid, AMI, and other infrastructure The transformation of the Asia-Pacific region in power digitization, along with investments in smart grids, smart meters, and electric vehicle charging services infrastructure, has increased expenditure on IT infrastructure, services, and connectivity for the entire power industry. Most power companies are focused on improving operational efficiency, operational resilience, and operational visibility to enhance product quality, service quality, and customer experience. In the power sector of the Asia-Pacific region, investments in core SaaS mainly focus on systems such as Enterprise Resource Management (ERM) and Customer Relationship Management (CRM), which enhance the agility of power business by providing tracking and monitoring of operations across the entire value chain. 2. Cloud-based as-a-service products Power companies in the Asia-Pacific region have been exploring cloud-based as-a-service products. Data from the 2023 IDC Future Operation Survey shows that over 60% of power companies in the Asia-Pacific region store less than a quarter of their operational data in the cloud, with the majority of data still residing in local databases or "silo" systems. IDC believes that the migration of business and data in the power industry in the Asia-Pacific region to the cloud is still in its early stages. 3. AI-driven distributed energy management AI technology is a continued investment focus for power companies in the Asia-Pacific region, and it will also be one of the most effective drivers for enterprise digital transformation and future energy operations. Among these, AI-driven Distributed Energy Resource Management Systems (DERMS) are particularly noteworthy. DERMS can achieve cross-category, cross-device, and cross-scenario management of energy assets, optimizing, dispatching, and coordinating assets. With the help of AI technology, it is possible to dynamically monitor equipment adaptability, improve operational efficiency, manage supply-demand balance, and integrate large-scale distributed resources. Zhou Qishan, research manager for the energy industry at IDC China, stated that the Asia-Pacific region is a diverse market with various languages, cultures, policies, and market environments. In this market region, a one-size-fits-all sales and marketing strategy may not be effective. Technology providers are best advised to focus on specific countries or groups of companies while adjusting their marketing strategies to meet the specific needs of each target customer. Technology providers can seek to build trust and establish long-term partnerships with energy companies in the Asia-Pacific region through their experience, expertise, thought leadership in industry digitalization strategies, and channel strategies. In some cases, to overcome skill shortages in their country/region, power companies in the Asia-Pacific region may need to outsource non-core business activities and processes to local hosting service companies, especially for complex digital transformation projects and implementations requiring high technical skills such as cloud migration, IT/OT integration, etc. Technology suppliers can first establish a collaboration model with hosting service companies before further entering the target customer's field of vision. Furthermore, the power industry in each country is subject to strict regulations, and technology providers need to comply with constantly changing and updating rules and agreements. It is also essential to stay informed about the latest local regulations and government policies.