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 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 the emission of greenhouse gases. Stringent regulatory norms are also expected to strengthen the market over the forecast period.
An upsurge in the amount of data collected and exchanged coupled with an increase in the number of connected devices is 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.
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 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 other 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.
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.
The North America market was at the forefront of the market in terms of revenue in 2016 owing to the increasing number of renewable power plants and rising investments in electrical infrastructure. Additionally, growing digitalization and the 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.
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.
Attribute |
Details |
Base year for estimation |
2016 |
Actual estimates/Historical data |
2014 - 2016 |
Forecast period |
2017 - 2025 |
Market representation |
Revenue in USD Billion and CAGR from 2017 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Rest of the World |
Country scope |
U.S., Canada, Germany, France, Japan, China, and India |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analysts working days) |
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
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
The U.S.
Canada
Europe
Germany
France
Asia Pacific
China
India
Japan
Rest of The World
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
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