"Increase in renewable energy projects will spur the market revenue growth"
The global digital utility market accounted for US$ 191.04 Bn in 2021 and is anticipated to grow to US$ 515.24 Bn growing at a CAGR of 11.7% throughout the forecast period from 2023 to 2030.
Using digital technology as an enabler of change aids utility companies to transform to new energy systems. The growth of digital utility market is driven by factors including strict environmental regulations and increase in renewable energy sector and renewable integration among others. The benefits offered by digitalization including reduced cost of operation, increase revenue and lucrative opportunities is attracting companies to adopt digitalization. Opportunities in different types of utilities will vary, for instance, fully integrated companies in regulated markets are inclined towards savings in operating costs, increased productivity and network reliability among others. The growth of the digital utility market is thus enhanced globally.
In addition, rising adoption of digital utility helps in providing contextual and real-time business insights with much better automation and integration, improved connectivity and collaboration by bifurcating processes and technology, and better mobility with devices and apps that make time and place irrelevant. For instance, AGL a leading utility provider of Australia adopted a cloud based online customer engagement platform integrated with Microsoft Azure, which resulted in 29% increase in mobile conversion and 47% more click through on web pages related to new projects.
"Integrated solutions to register highest growth during the forecast period."
Based on technology, the digital utility market is segmented into hardware and integrated solution segments. Hardware segment accounted for more than 60% of the total revenue generated of the global digital utility market. Owing to rapid technological advancements in hardware including smart grids, smart meters, and transformers among other equipments. Organizations are looking for smart grid solutions as they allow for predictive maintenance, real-time analytics and efficient asset management.
In contrast, integration solutions segment is expected to register highest growth during the forecast period. This can be associated with organizations rapidly deploying integrated solutions for digitally enabled workforce, assists in digitizing assets, and optimizing operations among others. Integrated solutions include both cloud as well as software services. Thus proliferating the digital utility market growth.
"Transmission and distribution segment expected to be dominant during the forecast period"
Based on network, the global digital utility market is segmented into transmission and distribution, generation and retail. Transmission and generation segment is poised to dominate the market. This is due to the distribution and generation segment being widely used and the increasing focus on monitoring and managing electricity transmission and distribution. On the contrary, retail segment expected to witness highest growth throughout the forecast period in the digital utility market. Owing to increasing adoption of different data extraction and analytics tools for better customer management is proliferating the growth of the segment on a global scale.
"Rising environmental concerns to bolster the growth in Asia Pacific region"
In 2021, North America region was leading the digital utility market and accounted for more than 30% of revenue generated worldwide followed by Europe. Owing to, the increasing number of renewable power plants, development of state-of-the-art infrastructure to meet increasing electricity demand among others in the region is proliferating the growth of digital utility market.
In contrast, Asia Pacific region expected to grow at the highest rate. This is due to increased demand of electricity, development of smart cities and changing regulatory norms among others in the region. Thus bolstering the demand of the market in the region.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Digital Utility market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
| Segmentation | |
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Technology
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
