According to the Market Statsville Group (MSG), the global digital utility market size is expected to grow from USD 212.3 billion in 2021 to USD 579.3 billion by 2030, at a CAGR of 11.8% from 2022 to 2030. Digital devices are quickly employed to increase plant productivity, dependability, and protection in the power production, transmission, and distribution industries. Digital technology such as smart meters, sensors, and smart grids give consumers and companies a more accurate and up-to-date picture of their energy use. These technologies raise energy generation and delivery efficiency, effectiveness, dependability, and safety. This results in better asset management, planning, and execution, superior quality and customer satisfaction.
The growing demand for green energy and fast digitization drive the demand for digital utility solutions. Increased digital technology penetration and rising home power demand in countries like China and India are expected to boost the industry. The increasing number of renewable energy production projects and energy efficiency standards drive the market’s growth. Stringent regulatory rules are further boosting market expansion.
Digital utility solutions help power generation plants manage operations more effectively and reduce greenhouse gas emissions. Over the forecast period, strict regulatory regulations will also likely enhance the market.
COVID-19 has caused both a financial and a medical crisis. The COVID-19 pandemic has strained the global healthcare system, and developed countries are expected to experience an economic downturn. The COVID-19 outbreak was positive for the digital utility market. The ability to obtain digital utility services online has proven useful for users, raised demand, and drove expansion in the entire digital utility business.
The growing number of distributed and renewable power production projects has aided the expansion of the digital utility sector. As the resource mix incorporates scattered energy supplies and new alternatives for delivering and consuming electrical services emerge in the distribution system, power systems worldwide have grown less centralized. Regarding supplying electrical services, DERs are currently marginal participants in most power networks; however, smart energy consumption and DER deployment are increasing. Small wind turbines, solar photovoltaic panels, natural-gas fueled fuel cells, and emergency backup generators are common examples of distributed energy generation in the residential sector.
The need for huge capital to test major industry participants will restrain the market’s growth. According to IEE (Institute of Energy Economics) and Financial Analysis estimates, India would need to invest USD 60-80 billion in the next five years to update its grid infrastructure. Electric utilities are expected to invest USD 3.2 trillion in new and replacement transmission and distribution infrastructure worldwide. The digital transformation or upgrade of current infrastructure would necessitate significant expenditure, impeding the market’s growth.
Implementing advanced metering infrastructure and other network sensing technology in the United States and Europe reflects the expanding digitization of the power industry through using ICTs, which provides considerable growth potential for the digital utility market. Around 59 billion smart meters in the United States have been placed, accounting for over 40% of metered locations. In the EU, improved meter installations are expected to reach 72 percent by 2020.
Rising customer demand for highly responsive systems and improved user experiences will aid in expanding the digital utility industry in the coming years. Rising efficiency in power utility distribution and productivity gains might provide attractive development prospects for the digital utility business in the future years. In the future, the growing integration of technologies such as the Internet of Things with digital utility services may help boost the digital utility industry.
The study categorizes the digital utility market based on network and technology at the regional and global levels.
Based on the network, the global digital utility market is divided into generation, transmission and distribution and retail. The transmission and distribution segment holds the largest digital utility market share. The aging infrastructure in the power utility business is largely driving the expansion of the transmission and distribution segment. Advanced communications, digital devices, and control systems boost asset efficiency and operators' capacity to monitor and manage electric transmission and distribution networks. Ultimately, this would create new income pockets for the industry throughout the forecast period.
Based on the technology, the global digital utility market is divided into hardware and integrated solutions. The hardware segment has dominated the market with the largest share. All tangible aspects of the digital utility are included in the hardware segment. It includes everything from smart meters to smart transformers and all of the goods found in a digital substation. It also includes all components that make standard equipment smart, such as sensors, smart thermostats, and programmable logic controllers.
Based on the regions, the global digital utility market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Over the forecast period, Asia Pacific is expected to grow at the highest CAGR in the digital utility market. The rising need for local power to reduce reliance on imports and changes in energy legislation are expected to drive demand for digital utility solutions in emerging nations. Furthermore, measures for infrastructure development and growing energy demands in emerging nations are assisting the thriving of the Asia Pacific digital utility market.
The global digital utility market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
Major players in the global digital utility market are:
Frequently Asked Questions
Want to Review Complete Market Research Report
Budget constraints? Get in touch with us for special pricing
Request for Special PricingCustomize this Report
Related Reports
Student Loan Servicing Market 2022: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024Lab Automation Market 2021: Industry Size, Regions, Emerging Trends, Growth Insights, Development Scenario, Opportunities, and Forecast by 2027
Mar 2024Retail Automation Market 2022: Industry Size, Regions, Emerging Trends, Growth Insights, Opportunities, and Forecast By 2030
Mar 2024Mobility As A Service (Maas) Market 2023: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024Web 3.0 Blockchain Market 2022: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024