Digital Utility Market

Digital Utility Market Size (2023-2028):

The Global Digital Utility Market size is estimated at US$ 229.27 billion in 2022 and is projected to reach a valuation of US$ 445.89 billion by 2028 and is predicted to register a CAGR of 12.69% during the forecast period 2023-2028.

Market Overview:

In the power generation, transmission, and distribution industries, digital devices are quickly being used to improve plant productivity, reliability, and protection. Smart grids, sensors, and smart meters are digital systems that provide a more exact and real-time account of power use to businesses and consumers. These technologies help to improve the productivity, performance, safety, enforcement, and reliability of power generation and distribution systems. As a result, asset management, preparation, and execution are improved, as well as quality and customer satisfaction.

Market Growth:

Businesses, particularly the electricity industry, are becoming more digitalized as a result of technological improvements. The importance of digital technology is becoming increasingly apparent in the power industry, which is expected to boost the market throughout the forecast period. Companies have realized the advantages of digitalization and are now focusing on two major areas: customer interaction and improving operations and productivity, revolutionizing the way the power industry does business.

Market Drivers:

The market for digital power utilities is being driven by the growth of the renewable energy sector and the integration of renewables. Several countries' change from traditional power-focused policies to renewable-focused policies has resulted in a large increase in renewable energy's proportion of the digital power utility market. The rapid adoption of digital platforms is the next great revolution in the power sector, and the renewable energy sector is an early adopter of this technology. Market Growth is Boosted by Increased Transmission and Distribution (T&D) Use To improve plant productivity, dependability, and protection, digital devices are increasingly being used in the power generating, transmission, and distribution industries.

Market Restraints:

Key industry actors in the landscape are projected to face challenges as a result of the requirement for a huge injection of capital. Electric utilities are expected to spend USD 3.2 trillion on new and replacement transmission and distribution infrastructure around the world. The digital transformation or upgrade of existing infrastructure would necessitate a significant investment, which will stymie the market. However, the expansion of the digital power utility industry is supported by the transformation of existing infrastructures and increases in the efficiency of electricity distribution systems.

DIGITAL UTILITY MARKET REPORT COVERAGE:

Market Segmentation: 

Digital Utility Market - By Technology:

• Hardware
• Integrated Solutions

The Global Digital Utility Market has been divided into Hardware and Integrated Solutions based on technology. In the digital utility market, hardware had the biggest market share. The usage of hardware in next-generation equipment such as smart meters and transformers is a crucial element driving up demand for the market. As demand for traditional metering systems declines and more people turn to digital technologies and smart meters, hardware demand is expected to rise. The digital utility market is expected to develop at the fastest CAGR throughout the forecast period, according to Integrated Solutions.

Digital Utility Market - By Network:

• Transmission and Distribution
• Generation
• Retail

The market is divided into Transmission & Distribution, Generation, and Retail based on Network. In the global Digital Utility market, Transmission and Distribution held the biggest market share. New digital devices, communications, and control systems increase asset efficiency and enable operators to efficiently monitor and manage electric transmission and distribution systems. Because of the growing necessity of monitoring and managing electric transmission and distribution networks, transmission and distribution solutions are widely used across the utility business.

Market Regional Analysis: 

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Over the projected period, North America is expected to retain the biggest market share in the Digital Utility market. This is due to increased internet penetration and the increased use of many sorts of technology in the United States, such as smart sensors, meters, transformers, and other advanced digital technologies. One of the key causes driving utilities to reform their business, operations, and information models in North America is digital transformation. Furthermore, the North American power utility business is extremely competitive, therefore any value enhancement and improvement in existing services are quite important to customers.

Electricity is not available in some remote and rural areas of Asia-Pacific countries due to insufficient transmission and distribution (T&D) networks. The countries in the region are substantially investing in the construction of a transmission line network to supply electricity to these areas. Increased demand for power in the industrial and commercial sectors helped China become the largest market for power sector investment. In addition, China's power transmission and distribution grid has been undergoing massive improvements and modifications in order to enable it to transport more electricity and meet future demand. India has had the fastest growth in energy investment in recent years, with renewable spending continuing to outpace fossil fuel-based power generation, aided by the tendering of solar PV and wind projects. During the projected period, this is expected to drive the digital power utility market.

Germany and France are the major countries in Europe that will witness the growth of the Digital Utility Market during the forecast period.

During the assessment year, the Middle East and Africa industry outlook will be bullish, owing to investments in augmented data analytics and integrated distributed energy resources (iDER). To tap profitable markets, key industry companies might invest in smart grids and artificial intelligence in the UAE, Saudi Arabia, and South Africa.

Market Key Players:

1. Microsoft Corporation
2. Siemens AG
3. General Electric
4. IBM
5. Oracle Corporation
6. SAP SE
7. Schneider Electric SE
8. ABB LTD
9. Eaton Corporation
10. Capgemini

Market Recent Developments:

• Avande successfully acquired QUANTIQ, a Microsoft Business Applications provider
• QUANTIQ will considerably enhance Avanade's Dynamics 365 capabilities and build on its existing cloud-based Microsoft Business Application services, with a focus on Dynamics 365, Power Platform, and Azure — a key goal for Avanade. Clients will benefit from enhanced solutions that will assist speed digital transformation across all industry sectors, internationally, thanks to the combination of QUANTIQ's ERP customer experience and Avanade's offshore engineering capabilities and broad expertise across the Microsoft platform. Approximately 300 additional specialists will join Avanade's current Business Applications team as a result of the acquisition.