Digital Utility Market Size, Share & Trends Analysis Report By Technology (Hardware, Integrated Solutions), By Network (Transmission & Distribution, Retail, Generation), By Region, And Segment Forecasts, 2020 - 2025

Industry Insights

The global digital utility market size was valued at USD 154.60 billion in 2019. It is expected to exhibit at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2025. 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 Market Trends

Digitalization has made everything more accessible and faster. In the case of energy and utility, the Industrial Internet of Things (IIoT) has digitalized various industrial processes such as power generation, distribution, and transmission. The integration of digital infrastructure with physical infrastructure is revolutionizing industry processes. The digital transformation of utilities has improved the efficiency of power generation and transmission as well as the distribution of electricity. The digital utility has expanded the capabilities by making physical systems more productive and autonomous and providing more choices for energy use.

The digital transformation is occurring across the entire value chain of energy due to increasing concern of customer satisfaction in the utility sector.  The utility sector is significantly adopting cutting-edge digital technologies such as blockchain, artificial intelligence, and machine learning in order to transform, serve customers, operate, and interact with partners across the supply chain. Vendors in the market are focusing on providing a high quality of customer service and launching new products in order to acquire more customers and gain a competitive edge.

Digital utility solutions have enabled users to manage energy generation and distribution operations effectively. The solutions provide capabilities such as predictive maintenance, improved safety & efficiency, and enhanced customer satisfaction. The growth of the digital utility market is attributed to factors such as an increasing number of renewable power generation projects and energy efficiency mandates. The growing need for green energy and rapid digitalization is further driving the growth of the digital utility market.

The growing adoption of renewable energy sources is expected to create new growth opportunities for the digital utility market. The increasing use of renewable energy has led to the establishment of new renewable power generation projects. The advent of the digitalization and connected devices is triggering new growth opportunities in the utility industry. The companies operating in the utility market are on the verge of digital transformation, thus, adopting new digital utility solutions providing clean energy to end-users. Green energy plays a crucial role in reducing carbon footprint and maintaining balance in the ecosystem.

Technology Insights

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.

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 2019 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.

The increasing number of renewable power plants, to cater to the needs of the growing population, is driving the growth of the digital utility market. The changing regulations and government policies related to utility are further driving the penetration of green energy in developed and developing economies.

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.

The digital utility across various regions provides modern contact center infrastructure. The contact center infrastructure offers features such as contact center transformation, product & vendor evaluation, contact management, quality control, and service assurance. The infrastructure helps to develop, maintain, and upgrade contact center applications at utilities such as gas, water, and power. The enterprises use automation tools and communication technologies to redirect their customer support center and contact from service resolution to revenue generation. It provides a standardized workflow for better utilization of resources.

Key Companies & 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.

Digital Utility Market Report Scope        

Global Digital Utility Market Segmentation

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