Digital Utility Market Size, Share & Trends Analysis Report By Technology (Hardware, Integrated Solutions), By Network (Transmission & Distribution, Retail, Generation), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global digital utility market size was valued at USD 117.7 billion in 2016. It is expected to exhibit a CAGR of 11.6% over the forecast period. Rising number of renewable power generation projects and energy efficiency mandates is one of the key trends stoking market growth. Stringent regulatory policies are further stimulating the growth of the market.

Soaring need for green energy and rapid digitalization are fueling the demand for the digital utility solutions. Increasing penetration of digital technologies and spiraling demand for domestic electricity in countries such as China and India are anticipated to provide a fillip to the market.

The market in the U.S. is estimated to hold the largest market share in the North America region during the forecast period. Increasing number of renewable energy plants and growing environmental concerns are supplementing the growth of the market. Additionally, rising number of government initiatives supporting digital transformation is projected to support the growth of the market in the country.

Digital utility solutions enable power generation plants to manage operations efficiently and help in reducing emission of greenhouse gases. Stringent regulatory norms are also expected to strengthen the market over the forecast period.

Upsurge in the amount of data collected and exchanged coupled with an increase in the number of connected devices are likely to provide a tremendous push to the market. Additionally, technological factors such as predictive maintenance, information exchange, and operational control solutions are playing an imperative role in the development of the market.

Technology Insights

The digital utility technology includes communication equipment, electronic equipment, networking equipment, mobile devices, and other electronic devices. Hardware and integrated solutions in digital utility are designed to cater to the needs of users related to utility operations and processes. These solutions scan, record, and maintain the asset performance.

Hardware is poised to be the leading revenue contributing technology segment in the market in 2016. Technological developments taking place in hardware and extensive use of smart meters, transformers, and others intelligent equipment are contributing to the growth of the segment. Smart grid solutions are sought after by organizations since they enable predictive maintenance, real-time analytics, and effective asset management.

The integrated solutions segment is expected to register the highest CAGR over the forecast period. Integrated solutions offered in the market include cloud and software services. The software solution assists in digitizing assets, optimizing operations, providing flexibility, and improving reliability.

Network Insights

On the basis of network, the digital utility market is categorized into generation, transmission & distribution, and retail. The transmission & distribution segment is anticipated to dominate the market over the forecast period. Transmission & distribution solutions are widely used across the utility industry owing to increasing emphasis on monitoring and management of electric transmission and distribution systems.

The retail segment is estimated to witness the highest CAGR over the forecast years. Data extraction and analytics techniques are widely used for efficient customer management, which is projected to drive the growth of the segment over the forecast period.

Regional Insights

The North America market was at the forefront of the market in terms of revenue in 2016 owing to increasing number of renewable power plants and rising investments in electrical infrastructure. Additionally, growing digitalization and emergence of several connected devices are likely to trigger the growth of the market over the forecast period.

Asia Pacific is poised to emerge as the most promising regional market over the same period. Surging demand for domestic electricity and changing regulatory norms in the region are expected to stir up the demand for digital utility solutions. Additionally, increasing infrastructural development activities and growing energy needs in APAC are helping the regional market to gain remarkable momentum over the coming years.

Digital Utility Market Share Insights      

Some of the companies operating in the market are ABB Ltd., Capgemini SA, General Electric Company, Microsoft Corporation, and Oracle Corporation.

With the rising number of market players, the competition in the arena is anticipated to get fiercer. However, it is estimated to bring down the cost of digital utility solutions over the coming years. Players operating in the market are focusing on research and development activities to introduce effective solutions for meeting changing consumer requirements.

Report Scope        

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global digital utility market report based on technology, network, and region.

• Technology Outlook (Revenue, USD Billion, 2014 - 2025)

  • Hardware

  • Integrated Solutions 

• Network Outlook (Revenue, USD Billion, 2014 - 2025)

  • Generation

  • Transmission & Distribution

  • Retail

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Rest of The World